The authentication services market is seeing enormous growth in recent times and is only projected to increase. Most reports state that by 2026, the authentication security market will reach an exponential high of USD 2,411.45 million. The market at present is valued at around 731.34 million dollars. This means that the market is projected to increase at a current annual growth rate or CAGR of 22%.
This article will aim to determine what makes the advanced authentication security market so potent and what developments will take place shortly.
What does Authentication Services Mean?
The authentication services refer to the process where a user requests access to information from a certain authenticating party. A user can do so by disclosing certain details like login credentials which are only privy to the user and the authenticating party. When they do so, the authenticating party will cross verify if the details provided by the user align or match with the details in an on-premises directory.
Almost every website uses some form of authentication service to allow users to access the data they have to offer. In recent times, authentication services have seen implementation on the cloud which is now known as Authentication-as-a-service. AaaS makes it possible for organisations to control the access of users to applications through services like multi-factor authentication, single sign-on and password management, all in the cloud.
The Segmentation of the Authentication Services Market
The analysis of the authentication services market takes place after segmenting it on the basis of its types. These types include:
- Authentication type: This segment usually involves the different forms or methods of authentication. That is two and multi-factor authentication, single sign-on and other forms.
- Service type: This refers to the service aspects like compliance management, managed public key infrastructure or PKI and subscription keys management.
- End-user industry: The segment that deals with the industries that specifically use authentication services. This includes IT and Telecommunications, BFSI or Banking, Finance and Insurance Services, Healthcare and finally, Government services.
- Geography: The analysis of the adoption and growth of the market from a geographical standpoint. For example, what does the market look like on different continents or a specific region? These include regions like North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
By analysing the market through different segments, it becomes possible to obtain a better understanding of the digital identity trends.
An Overview of the Authentication Services Market
The authentication services market is seeing enormous growth for specific reasons and technologies. The reason for this growth is due to the following reasons:
- Increase in ransomware attacks:
In 2020 alone, there were around 304 million ransomware attacks worldwide. This was a 62% increase from the previous year. Even tech giants like Microsoft became victims of ransomware attacks. For this reason, enterprises have implemented a variety of authentication tools for extra protection.
- Adoption of cloud:
The amount of data that enterprises and organisations are deploying over the cloud is increasing exponentially. For this reason, the vulnerability of data loss through hacking is increasing as well.
- Change in working conditions:
Most employees also work from home. Therefore, causing gaps in the existing cybersecurity protocols that enterprises may have like unsecured devices and more. For this reason, authentication services make it possible for enterprises to plug these gaps.
Of the many technologies that authentication services have to offer, Multi-factor authentication is seeing more adoption in comparison to others. This is because:
- Outdated authentication options
Before the advent of advanced authentication services, users were only protected through passwords. The unauthorised sharing of passwords became the most common cause of data breaches. For this reason, multi-factor authentication or MFA acts as a more stringent form of login security.
- Advanced MFA
This form of authentication can combine with other technologies like authentication applications, biometric technologies and more for better protection.
According to analysis, from a geographical standpoint, North America will be the most prominent contributor. To be more precise, the United States is most likely to adopt authentication services in comparison to any other country. This is because of the increased use of devices and the storage of data on electronic databases.
Therefore, authentication services have a lot to offer every sector possible, from healthcare to even defense. It is essentially the future of login security and will play an important role in reducing ransomware attacks.