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2021

Passive Authentication Market

Passive Authentication Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, Function, Deployment, Organization Size and Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Information, Infrastructure & Network Security

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Author's: Abhijith Nair | Onkar Sumant
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Passive Authentication Market Insights - 2027

The global passive authentication market size was valued at $796 million in 2019, and is projected to reach $4,093 million by 2027, registering a CAGR of 22.7% from 2020 to 2027. Passive authentication can be defined as a form of authentication through which the identity of the user is checked and confirmed without the need of specific additional actions for the purpose of authentication. This type of authentication can be defined as frictionless as the user need not carry out specific additional actions; however, the user’s activity or other observable data are gathered and analyzed for evidence of identity without additional intervention from the user.

In 2019, the global passive authentication market share was dominated by the solution segment, primarily backed by rapid advancement within the technology that has created lucrative opportunities for the market. Voice biometrics replace traditional and outdated security methods such as PINs, passwords, and answers to security questions, providing a secure and friction-free way to verify identity in telephone calls and digital transactions. There is a rise in the need for AI-based authentication solution attributed to rapid increase in the number of malicious attacks, which is further anticipated to widen the market scope during the forecast period. The service segment is estimated to be the fastest growing segment within the market, as increase in prevalence of cybercrimes has surged the demand for passive authentication solutions. In addition, gradual increase in demand for quick and secure online transactions is anticipated to fuel the growth of the passive authentication market in the near future. In addition, companies around the world are focusing on delivering reliable, secure, and efficient services to their customers by adopting passive authentication.

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Europe is estimated to achieve a significant growth during the forecast period due to higher authentication and awareness of passive authentication solutions. The increase in prevalence of cybercrimes and rise in demand for data security worldwide is anticipated to drive the growth of the passive authentication market during the forecast period. Similarly, surge in number of cybercrimes such as identity theft, data breach, and hacking boost the demand for passive authentication platforms and solutions in the near future. In addition, gradual increase in demand for quick and secure online transactions is anticipated to fuel the growth of the passive authentication market in the near future. In addition, companies around the world are focusing on delivering reliable, secure, and efficient services to their customers by adopting passive authentication. This is expected to help companies enhance customer experience as well as protect their data.

The report focuses on the growth prospects, restraints, and passive authentication market analysis. The study provides Porter’s five forces analysis of the passive authentication industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global market trends.

Segment review

The passive authentication market is primarily segmented on the basis of component, function, deployment mode, organization size, industry vertical, and region. By component, the market is segmented into solution and services. By function, it is segmented into compliance management, marketing management, risk management, and others. By deployment mode, it is bifurcated into on premise and cloud. By organization size, it is divided into small & medium enterprise and large enterprise. By industry vertical, it is classified into BFSI, Government, IT & Telecom, retail & consumer goods, healthcare, media & entertainment, and others. By region, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

Impact of COVID-19 Pandemic on Passive Authentication Market (Pre and Post COVID Analysis)

COVID-19 pandemic has caused a severe economic slowdown and the present crisis is only exacerbating the pattern of global economic reliance on the Internet, which remains a crucial strategic global business engine. According to the World Economic Forum's Global Risks Report 2020, there is an increase in the cybersecurity risk, cyber threats, and data theft. Owing to the above factor,, the market for passive authentication is set to gain traction. Proper authentication of consumers and users are of grave importance in today’s business environment to ensure the safety and privacy of crucial assets. Key players of the passive authentication market have implemented strong strategies to aid these organizations. For instance, Purilock, a Canadian security services provider, offers passive authentication to make authentication and identification even easier. Plurilock ADAPT's invisible MFA technology is a form of passive authentication that adds many additional identity verification factors to existing login prompts without the user doing anything extra.

Top impacting factors    

Factors such as increase in demand for passive authentication solution in various business sectors has emerged as a key factor, within the overall market growth. For instance, Canadian passive authentication services provider Purilock offers passive authentication to make authentication much faster. Furthermore, colossal advantage in terms of user accessibility and time saving has also provided a strong support for the during the passive authentication market forecast period. However, data confidentiality and trust issues within the consumers is estimated to create a staggering effect on the market growth during the forecast period. Moreover, advancements in passive authentication techniques and its growing need in fraud detection and issues are the factors set to create a lucrative passive authentication market opportunity during the forecast period.

Increase in demands of passive authentication in modern-day businesses:

Passive authentication measures are helping organizations to expand their reach by integrating new capabilities and provide newer opportunities to their consumers. One of them is providing more accessible and convenient authentication services. For instance, in April 2018, Passive authentication startup UnifyID has announced its frictionless online and physical dynamic probability and confidence scoring technology has reached general availability. Alternatively, identity signals are collected as they enter their username and password, allowing for much better identity authentication without any of the users having to do any additional work.

Furthermore, passive authentication services are now easier to introduce and use, because of the rapid advancement of personal digital electronics technology industry, which has allowed individuals to accommodate a variety of sensors and resources in their pockets. This greatly simplifies and accelerates user authentication and impacts the growth of the passive authentication market.

Passive Authentication Market
By Component
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Cloud segment is projected as one of the most lucrative segments.

Rise in data privacy and security concerns

There has been a rise in the importance of data security making it mandatory to introduce stringent compliance and regulatory policies that governments and other concerned regulatory bodies have introduced to safeguard sensitive data after the world witnessed many discerning cyber threats and attacks on big data servers and their analysis methods. 

Policies such as the General Data Protection Regulation (GDPR) introduced by the European union that enforces seven principles of-lawfulness, fairness, and transparency; Purpose limitation; Data minimization;

Accuracy: Storage limitation; Integrity and confidentiality (security) and Accountability. GDPR aims for appropriate personal data processing. Processing involves collecting, arranging, structuring, storing, changing, informing, utilizing, interacting, merging, limiting, removing, or destroying personal data. Compliance policies like GDPR and other similar regulations make a business adopt big data security solutions into their big data environment.

Passive Authentication Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

APAC is projected as one of the most significant region.

Key Benefits For Stakeholders

  • The study provides an in-depth analysis of the passive authentication security market size along with current trends and future estimations to elucidate imminent investment pockets.
  • Information about key drivers, restraints, and opportunities and their impact analysis on the market size is provided in the report.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
  • The quantitative analysis of passive authentication market for the period 2020–2027 is provided to determine the market potential.

Some of the key companies mentioned within the report are,

  • NEC Corporation
  • IBM Corporation
  • Cisco Systems Inc.
  • Gemalto
  • FICO
  • RSA Security LLC
  • Experian plc
  • Equifax Inc.
  • Nuance Communications Inc.
  • BioCatch Ltd.

Passive Authentication Market Report Highlights

Aspects Details
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By COMPONENT
  • Solution
  • Services
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By DEPLOYMENT
  • On-premise
  • Cloud
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By ORGANIZATION SIZE
  • Large Enterprise
  • Small and Medium Enterprise
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By FUNCTION
  • Compliance management
  • Marketing management
  • Risk management
  • Others
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By INDUSTRY VERTICAL
  • BFSI
  • Government
  • IT and telecom
  • RETAIL AND CONSUMER GOODS
  • HEALTHCARE
  • MEDIA AND ENTERTAINMENT
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

equifax, CISCO SYSTEMS INC., gemalto, ibm CORPORATION, BIOCATCH, experian, fico, NUANCE COMMUNICATION, .RSA SECURITY., NEC

Analyst Review

According to CXOs of the major companies, the passive authentication market is experiencing a rapid growth, owing to increase in demand for passive security measures within various industrial sectors. Passive authentication measures are helping organizations to expand their reach by integrating new capabilities and provide newer opportunities to their consumers. One of them is providing accessible and convenient authentication services. For instance, Canadian passive authentication services provider Purilock offers passive authentication to make authentication much faster. Plurilock ADAPT's invisible MFA technology is a form of passive authentication that introduces several additional identity verification factors to existing login prompts without the user taking any additional steps.

Passive authentication saves time for both the organizations and its users by quickly verifying known users and customers using seamless data collection and pattern recognition. These tools are used to figure out things like writing/typing patterns, walking styles, and others. For instance, regardless of what is being written, every individual has identifiable movement patterns. These patterns, when combined with machine learning, create a clear and unique identity signature for that individual. Similarly, sensors onboard smartphones, wearables, and PDAs monitor various users' walking and movement patterns, which are then used to identify and authenticate the individual user, granting them seamless access to specific services like faster monetary transactions.

The passive authentication market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of products, and support services. The market is concentrated with major players consuming 50-55% of the share. The degree of concentration is expected to remain same during the forecast period. Furthermore, rise in number of fraud and theft cases within both commercial and industrial sectors has urged strong need for effective authentication services, thereby creating a strong foundation for the growth of the passive authentication market during the forecast period.

Author Name(s) : Abhijith Nair | Onkar Sumant

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Passive Authentication Market

Global Opportunity Analysis and Industry Forecast, 2020-2027