Reportstack shows that the Global Hardware One Time Password (OTP) Token Authentication Market is growing at a CAGR of 9.96 percent from 2013-2018, thanks primarily to demand from the banking and government sectors. Hardware OTP authentication is a two-factor authentication solution that enables secure remote network access and digital signature functionality with the help of a physical hardware authenticator or a secure token.
This type of authentication is required for added security in critical infrastructure and in companies that witness a high level of online activity. Since hardware OTP tokens provide a second layer of secure authentication, it becomes more difficult for attackers to hack into a user's system.
Key Market Drivers
Increased Dependence on the Internet for Transactions
Increase in Advanced and Complex Threats
Growing Adoption in the Government Sector
Rise in Compliance Requirements
Key Market Trends
Emergence of a Unified Platform for Different Authentication Solutions
Increased Adoption by SMEs
Rise in Popularity of USB OTP Tokens
Focus on the Interoperability of OTP and USB OTP Tokens
Unsurprisingly, high demand from the financial sector is a big factor contributing to market growth.
“Many companies in the banking and financial industry currently provide online facilities and features for their customers, which demand strong authentication solutions such as hardware OTP tokens,”.
“Today’s security landscape is being characterized by a rise in advanced and complex threats, and these OTP tokens can provide a high level of security when compared with traditional single-factor authentication solutions,” .
RSA Security Inc.
VASCO Data Security International Inc.
To determine these market scenarios over the next 3-4 years, the analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
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