Risk-based Authentication

Global Risk-based Authentication Market to Reach US$16.3 Billion by 2030

The global market for Risk-based Authentication estimated at US$6.2 Billion in the year 2024, is expected to reach US$16.3 Billion by 2030, growing at a CAGR of 17.4% over the analysis period 2024-2030. Solutions, one of the segments analyzed in the report, is expected to record a 18.4% CAGR and reach US$11.4 Billion by the end of the analysis period. Growth in the Services segment is estimated at 15.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.7 Billion While China is Forecast to Grow at 23.1% CAGR

The Risk-based Authentication market in the U.S. is estimated at US$1.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.8 Billion by the year 2030 trailing a CAGR of 23.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.9% and 15.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.8% CAGR.

Global Risk-based Authentication Market - Key Trends and Drivers Summarized

How Is Risk-based Authentication Enhancing Digital Security?

Risk-based authentication (RBA) is a security approach that assesses the risk of a user login or transaction by evaluating factors such as location, device, and behavioral patterns. Unlike traditional authentication, which applies uniform methods for all users, RBA dynamically adjusts the security level based on the perceived risk, offering additional layers of verification only when necessary. This approach is particularly valuable in protecting sensitive information in sectors like finance, healthcare, and e-commerce. As cyber threats grow in sophistication, risk-based authentication has become crucial for organizations aiming to secure user accounts while minimizing user friction.

What Are the Key Segments in the Risk-based Authentication Market?

Components include software, hardware, and services. Software-based RBA solutions dominate the market, providing flexible and scalable security that adapts to user behavior. Hardware solutions, such as biometrics and tokens, add an extra layer of protection in high-security environments. Deployment modes include on-premises and cloud-based solutions, with cloud-based RBA growing rapidly due to its accessibility, scalability, and ease of integration across various applications. End-user industries for risk-based authentication include financial services, healthcare, government, and retail. Financial services represent the largest segment, as RBA is critical for protecting online banking, trading platforms, and digital wallets. The healthcare sector also relies heavily on RBA to safeguard patient records and ensure HIPAA compliance, while government agencies use it for secure access to sensitive data and citizen services. Retail, particularly e-commerce, utilizes RBA to prevent fraud in online transactions, enhancing customer trust and compliance with data protection regulations.

How Is Risk-based Authentication Applied Across Industries?

In financial services, RBA is used to protect online banking and mobile transactions, adjusting security measures based on factors like transaction size, geolocation, and login behavior. Healthcare organizations employ RBA to ensure that only authorized individuals access patient data, safeguarding against data breaches. Government agencies rely on RBA for secure access to e-government services, particularly for sensitive operations involving personal information and national security. In e-commerce, RBA helps prevent account takeover and fraud during high-risk transactions, ensuring that legitimate customers experience minimal inconvenience while suspicious activities are flagged for additional verification.

What Factors Are Driving the Growth in the Risk-based Authentication Market?

The growth in the Risk-based Authentication market is driven by several factors, including the rise in cyber threats, increasing regulatory requirements, and advancements in machine learning and artificial intelligence. Innovations like behavioral biometrics, real-time risk assessment, and adaptive authentication methods have expanded the applications of RBA in securing digital interactions. The focus on reducing fraud, improving user experience, and meeting compliance standards has further fueled demand, as RBA offers organizations a balance of security and convenience. Additionally, growing e-commerce activity, expanding digital banking, and increasing investments in cybersecurity have contributed to market growth, supporting wider adoption in various sectors.

SCOPE OF STUDY:

The report analyzes the Risk-based Authentication market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Solutions, Services); Technology (Multi-Factor Authentication, Behavioral Biometric, Web Access Management); Vertical (BFSI, Government, Healthcare, Manufacturing, Retail, Telecommunication, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• CA Technologies
• Cross Match Technologies, Inc.
• Entrust Data card
• Equifax Inc.
• Financial Software Systems, Inc.
• ForgeRock
• Gemalto N.V.
• IBM Corporation
• Micro Focus International plc
• Okta Inc.
• One Span
• Oracle Corporation
• RSA Security LLC
• SecureAuth Corporation

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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