Executive Summary
The global Risk-based Authentication market size is expected to grow from USD 74.9 million in 2021 to USD 1,361.3 million by 2027 at a CAGR of 62.1%.
Market growth is driven by the growing global acceptance of advanced technologies including the Internet of Things (IoT), Bring Your Own Device (BYOD), and connected devices. They offer a variety of benefits to organizations such as reduced hardware costs, increased productivity of remote staff, and a satisfied customer base. However, the improved acceptance of these connected devices has resulted in various privacy and data theft as well as unsafe use resulting in data breaches and cyber-attacks. Therefore, businesses around the world are using risk-based security solutions to deter growing online threats. Global business security spending is estimated at USD 96 billion in 2021, which also boosts the market growth.
Risk-based authentication is the process of applying various levels of rigidity to authentication processes that provide maximum security and risk limit control at reduced costs. It helps to test a set of factors related to activities or accessibility efforts to better assess the risks involved without causing any hindrance to legitimate users. It also assists organizations in complying with internal and external compliance laws including HIPPA, FFIEC, PCI, and SOC. Adherence to strict user data protection laws also enhances market growth.
Improved adoption of cloud-based risk-based authentication solutions demonstrates significant market growth potential. They bring improved efficiency with improved security and a better customer experience. They also offer other benefits such as reduced costs, moderate economy, centralized management, care and reporting, and improved flexibility without the use of computer hardware due to their rapidly increasing adoption.
Various SMEs and public sector organizations lack comprehensive information about the benefits offered by risk-based assurance solutions, which hinders market growth. The precarious financial situation among SMEs enables them to adopt common security measures without spending the extra money to implement risk-based warranty solutions. However, the increasing level of cybercrime and the increasing level of compliance has made it important for organizations and the public sector to find improved solutions.
Businesses generally adopt cloud-based solutions, and cloud-based mode is expected to grow at a higher CAGR than that of real-time shipping mode during forecasting. Some of the top-tier industries, such as Banking, Financial Services and Insurance (BFSI) and the public sector, in large economies, make extensive use of on-premises solutions, but these specific industries are expected to move to cloud-risk-based guaranteeing solutions in the coming years.
Businesses across all verticals in the major industry use risk-based authentication solutions. The vertical healthcare industry is expected to grow at a much higher CAGR at the time of forecasting, as risk-based verification solutions help healthcare providers to manage and secure the identities of their users. However, the BFSI direct industry is estimated to have the largest market size by 2021, which is encouraged by high investment in BFSI infrastructure to provide secure and seamless user information.
The report covers 5 major regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. North America is estimated to be the largest revenue-generating region for risk-based authentication vendors in 2021, followed by Europe. In the US, a growing number of data theft is targeted at businesses. Therefore, the growing need to meet compliance requirements to ensure user identity protection catalyzes the adoption of state-based authentication solutions. APAC is expected to be the fastest-growing region with the highest CAGR in the risk-based guarantee market, due to the high adoption of risk-based assurance solutions in APAC's most developed countries, such as China, India, Australia, Japan, and Singapore.
The major players operating in the global Risk-based Authentication market are IBM (US), CA Technologies (US), Okta (US), Gemalto (Netherlands), Micro Focus (UK), OneSpan (VASCO Data Security; US), SecureAuth (US), RSA Security (US), OneLogin (US), ForgeRock (US), Ping Identity (US), Entrust Datacard (US), LexisNexis (US), GURUCUL (US), Centrify (US), Equifax (US), Crossmatch (US), BioCatch (Israel),Oracle (US), Evidian (France), Identity Automation (US), NoPassword (US), iovation (US), Silverfort (Israel), and EZMCOM (US).
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