Phone-based Authentication: Global Market Outlook and Forecast 2015-2019
About Phone-based Authentication
The phone-factor is the second layer of two-factor or multi-factor authentication. Phone-based authentication is enabled through an end-user's cell phone or smartphone and provides an advanced level of authentication. The authentication process is done using passcodes, text messages, or phone calls. It is mainly used by banks and payment gateways to ensure confidentiality and to verify the authenticity of the user during monetary transactions. It is also being adopted by other sectors such as healthcare. It is a cost-effective method compared to hardware tokens for securing information. With advances in technology, several mobile network operators (MNOs) have introduced 2G, 3G, and 4G network services. This helps them improve their efficiency in sending OTP to customers for their online transactions and mobile banking. Thus, MNOs play an important role in the growth of the global phone-based authentication market.
Technavio's analysts forecast the global phone-based authentication market to grow at a CAGR of 49.33% over the period 2014-2019.
Covered in this Report
This report covers the present scenario and the growth prospects of the global phone-based authentication market for the period 2015-2019. To calculate the market size, the report considers the revenue generated from the sales of the phone-based authentication solutions.The market is segmented on the basis of the following:
Technavio Announces the Publication of its Research Report – Global Phone-based Authentication Market 2015-2019
Technavio recognizes the following companies as the key players in the Global Phone-based Authentication Market: CA Technologies, EMC, Gemalto, Microsoft, Symantec, Technology Nexus and VASCO Data Security
Other Prominent Vendors in the market are: Deepnet Security, Duo Security, SecurEnvoy, SMS Passcode, Swivel Secure, TeleSign and Trustwave
Commenting on the report, an analyst from Technavio’s team said: “Many small vendors that operate in niche markets are entering the market to leverage its highly fragmented nature, resulting in increased M&A. Some of these smaller players possess superior technology compared to the large players, which makes them appealing among the latter. Most large vendors are therefore pursuing the M&A route to foray into the market. For instance, Microsoft and Early Warning have used M&A as a strategy to spread their footprint. We expect other large vendors to follow suit during the forecast period. Part of the reason for the increasing momentum of M&A among established vendors is the intensifying competitive landscape of the market.”
According to the report, a mobile workforce, including traveling executives, sales representatives, and field workers, needs access to company data irrespective of time and place. An increase in the mobile workforce has enabled SMEs to have their employees across a given region, which in turn has boosted their sales and productivity. We expect the mobile workforce to increase further during the forecast period because of the high penetration of mobile devices such as tablets, smartphones, and laptops. The increased use of mobile devices will enable employees to access confidential data from remote locations. Although mobile devices ensure higher productivity, they also increase the security threat to an organization's confidential data. As a result, the demand for phone-based authentication to safeguard sensitive enterprise information against malware attacks and other security threats will increase during the forecast period.
Further, the report states that the presence of many vendors in the market is intensifying price wars and triggering competitive pricing in the market.
CA Technologies, EMC, Gemalto, Microsoft, Symantec, Technology Nexus, VASCO Data Security, Deepnet Security, Duo Security, SecurEnvoy, SMS Passcode, Swivel Secure, TeleSign, Trustwave
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook