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Thursday, 28 April 2016

Asia Pacific region leads growth in multifactor authentication

  • Introduction of out-of-band authentication (OOB) authentication
  • Growing dominance of Two-factor authentication
Technavio’s analysts have forecast that the global multifactor authentication market will grow at a CAGR of 22% between 2016 and 2020 because of growing security concerns about web transaction fraud, network-based attacks, web-based application attacks, and mobile phone application attacks. Enterprises are adopting multifactor authentication solutions for more control over access to applications and sensitive information from remote locations.

The Asia Pacific region is expected to be the fastest-growing region in the global multifactor authentication market because of a higher level of implementation of bring your own device (BYOD) and choose your own device (CYOD) policies, as well as mobility services.

“The advent of OOB authentication is the latest trend gaining traction in this market. OOB authentication is a type of two-factor authentication (that) works well even if a fraudulent user gains all of the security credentials to a user’s account. Hardware OOB authentication tokens and mobile phone-based OOB authentication tokens such as SMS and backup calls are the OOB authentication methods available in the market,” says Amrita Chaudury, Lead Analyst, ICT, Technavio Research.

Two-factor authentication occupies the largest share in the market, accounting for 92% of the overall market. This technique is a combination of factors such as username and password, an automated teller machine (ATM) card, or any one biometric characteristic such as fingerprints. The BFSI and payment card industry (PCI) sectors are highest adopters of two-factor authentication for both employee and user authentication.

Key vendors in the global multifactor authentication space include EMC, Entrust, Gemalto and Vasco. The market is fragmented with the presence of many small regional vendors and large multinational vendors. Competition in the market is expected to intensify during the forecast period owing to increase in product and service extensions, mergers and acquisitions, and technological innovations. Established multifactor authentication vendors are likely to acquire smaller vendors to expand their product portfolio and boost market share.

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