Passive Authentication Market Overview
Global Passive Authentication Market Size valued at USD 1.1 Billion in 2022. The Passive Authentication market industry is foreseen to grow from USD 1.34 Billion in year 2023 to USD 6.63 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 6.63% during the forecast period (2023 - 2032). Increased demand for passive authentication in modern-day enterprises and demand for a seamless authentication process are the key market drivers enhancing the growth market.
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Passive Authentication Market Trends
Growing demand for passive authentication among enterprises is driving market growth.
Market CAGR for passive authentication is being driven by the rising demand for passive authentication among enterprises. The growing demand for seamless authentication processes from enterprises throughout the sector for the enhanced user experience. The surging adoption of biometric technology for the authentication and detection of fraud. Artificial Intelligence and the Internet of Things is being implemented increasingly for authentication purpose, anticipated to boost the growth of passive authentication market.
Passive authentication techniques have enabled enterprises to expand their reach in current years by integrating new capabilities and offering new opportunities to their clients, one of which is offering easy-to-use authentication services. Passive authentication services are now easy to implement owing to the fast progress of the personal digital electronics technology business, allowing customers to carry a range of sensors and the resources in their pockets. This eventually simplifies and speeds up user authentication, boosting the passive authentication market globally. Passive authentication saves time for its user and the company by quickly verifying known users and customers using seamless data gathering and pattern recognition. These instruments determine writing patterns, walking habits, and other features. For instance, each person has distinct movement patterns; when integrated with Machine Learning, a clear and accurately identified a signature for that person is created; sensors on wearables, smartphones, and PDAs track the movement and walking patterns of users. These are then utilized to identify and authenticate the individual user, offering them seamless access to specific services like rapid monetary transactions and fast sign-on.
Passive authentication services are now easier to introduce and utilize due to the fast advancement of the personal digital electronics technology industry, allowing individuals to accommodate a variety of sensors and resources in their pockets. This hugely accelerates and simplifies user authentication and boosts the growth of the passive authentication market. Thus, driving the Passive Authentication market revenue.
However, there has been an increase in data privacy concerns among consumers in recent years due to the growth in cyberattacks and data theft globally, growing awareness about data theft and privacy, and growing concerns about the utilization of personal data. This data collection can lead ordinary users to become concerned about their data usage.
Passive Authentication Market Segment Insights
Passive Authentication Component Insights
The global Passive Authentication market segmentation, based on components, includes Solutions and Services. The solution segment dominates the market, accounting for the largest market revenue as these are integrated into different industry verticals like financial services and insurance, banking, telecom & IT communication, government, retail & consumer goods, health, and others. Passive authentication solutions allow retailers to securely certify their clients to safeguard their financials by taking advantage of human behavior factors with enhanced customer experience. Further, the rapid improvements in technology are making industries introduce novel solutions with integrated different ways for fraud prevention and identification, like facial and voice biometrics.
Figure 1: Global Passive Authentication Market, by Component, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Passive Authentication Function Insights
The global Passive Authentication market segmentation, based on function, includes Compliance Management, Marketing Management, Risk Management, and Others. The compliance management segment dominates the market and accounts for the largest market revenue in the forecast period. Current compliances need centralized coordination of various resources, projects, actions, and people. The information security and privacy compliance needs are important as they are anticipated to impact the business objectives, valuation model, and regulatory profile of the acquirers, mainly if the new acquisitions bring raised risk of information security or privacy-related liability. Further, the marketing management segment is expected to witness the second-largest growth in the market due to the rise in cyberattacks on marketing management.
Passive Authentication Regional Insights
By region, the study gives market insights into the North America, Europe, Asia-Pacific, and the Rest of the World. The North American Passive Authentication market dominates the market as the region is witnessing various startups related to the development of passive authentication technologies. The presence of marketing analytics tools, the presence of market players strongly established in the region, and the government, companies, and third-party administration initiatives are boosting the market growth in the North American region.
Further, the prime countries studied in the market report are the US, Canada, France, the UK, Italy, German, Spain, Japan, India, China, Australia, South Korea, and Brazil.
Figure 2: GLOBAL PASSIVE AUTHENTICATION MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Asia-Pacific Passive Authentication Market accounts for the second-largest market share due to the emerging several small and medium-sized enterprises in the emerging countries of this region. Moreover, China’s Passive Authentication market held the largest market share, and the Indian Passive Authentication market was the rapid-growing market in Asia-Pacific region.
Europe's Passive Authentication market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the increase in the prevalence of cybercrime and the increase in demand for data security in this region. Further, the German Passive Authentication market held the largest market share, and the UK Passive Authentication market was the fastest-growing market in European region.
Passive Authentication Key Market Participants & Competitive Insights
Leading market participants are investing hugely in research and development in order to spread their product lines, which will help the Passive Authentication market grow even more. Market players are also undertaking various strategic activities to spread their global footprint, with the important market developments inclusive of new product launches, mergers and acquisitions, higher investments, contractual agreements, and collaboration with the other organizations. To spread and survive in a more competitive and rising market climate, the Passive Authentication industry must provide cost-effective items.
Manufacturing locally in order to reduce operational costs is one of the key business tactics usitilized by manufacturers in the global Passive Authentication industry to benefit clients and raises the growth of market sector. In recent years, the Passive Authentication industry has offered some of the most significant advantages to several enterprises. Major players in the Passive Authentication market, including Fortress Identity, NEC Corporation, IBM Corporation, Thales Group, OneSpan Inc., Cisco Systems Inc., Nuance Communications Inc, BioCatch, NuData Security, Vasco Data Security International, and others, are trying to increase market demand by investing in research and development operations.
NEC Corporation, headquartered in Minato, Tokyo, is a Japanese multinational information technology and electronic corporation. The company offers IT solutions in manufacturing, services, and retail, and finance in the private section, assisting clients in launching new services. The company offers IT and network solutions, inclusive of artificial intelligence,Internet of Things platform, cloud computing, and telecommunications equipment and software to communication services, business enterprises providers to government agencies, and has been the largest PC vendor in Japan. In May 2020, the company launched NeoFace Thermal Express to offer touchless screening. The recent supplies combine personal protective equipment and elevated body temperature (EBT) detection, inclusive of masks and NeoFace biometrics on a scalable and the modular platform with thermal and video analytics.
Fortress Identity, a US-based company, is a developer of a multinational identification security platform intended to utilize multiple attributes in order to authenticate a user. The platform of the company offers businesses cost-effective, intuitive, biometric identity management technology with intuitive web and Blockchain mobile applications, allowing users to safeguard their privacy. In July 2020, the company upgraded its digital ID verification and biometric authentication-as-a-services with passive facial liveness. Liveness detection helps AI technology to show that a computer is communicating with a live human. The platform allows biometric facial recognition and the passive facial liveness to go with the user for the transaction authentication and determine that the user is alive without any particular movement.
Key Companies in Passive Authentication market include
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Fortress Identity
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Thales Group
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OneSpan Inc.
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Nuance Communications Inc
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BioCatch
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NuData Security
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Vasco Data Security International
Passive Authentication Industry Developments
March 2022: The leading provider of software-defined NanoSats, EnduroSat, and Space services for business and academia announced that hybrid cloud, open-source, and AI technologies from IBM and the Red Hat are part of their second mission.
January 2022: Solace Nutrition, is a US-based medical nutrition company, that bought R-Kane Nutritionals' assets for an unknown sum. This asset acquisition allows the Solace Nutrition to create synergy between both brands, accelerate growth, and start a position in an adjacent nutrition sector. The R-Kane Nutritionals is a firm established in the US that specializes in high-protein meal replacement products for weight loss.
June 2020: ID & R&D declared that RelyComply had chosen its ISO/IEC 30107-3 compliant passive facial liveness product, IDLive Face, in order to integrate with their AI-powered the Know Your Customer (KYC) offerings. This device detects spoofing stacks while verifying the identity of new clients without adding extra effort to the onboarding experience.
Passive Authentication Market Segmentation
Passive Authentication Component Outlook
Passive Authentication Function Outlook
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Compliance Management
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Marketing Management
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Risk Management
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Others
Passive Authentication Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
Report Attribute/Metric |
Details |
Market Size 2022 |
USD 1.1 Billion |
Market Size 2023 |
USD 1.34 Billion |
Market Size 2032 |
USD 6.63 Billion |
Compound Annual Growth Rate (CAGR) |
22.10% (2023-2032) |
Base Year |
2022 |
Market Forecast Period |
2023-2032 |
Historical Data |
2018- 2022 |
Market Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Type, Distribution Channel, and Region |
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
Countries Covered |
The US, Canada, France, UK, German, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil |
Key Companies Profiled |
Fortress Identity, NEC Corporation, IBM Corporation, Thales Group, OneSpan Inc., Cisco Systems Inc., Nuance Communications Inc, BioCatch, NuData Security, Vasco Data Security International |
Key Market Opportunities |
Technological advancement in passive authentication techniques. |
Key Market Dynamics |
Increased demand for seamless authentication processes from enterprises throughout the sectors. |
Passive Authentication Market Highlights:
Frequently Asked Questions (FAQ) :
The global Passive Authentication market size was valued at USD 1.1 Billion in 2022.
The global market is foreseen to rise at a CAGR of 22.10% throughout the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market include Fortress Identity, NEC Corporation, IBM Corporation, Thales Group, OneSpan Inc., Cisco Systems Inc., Nuance Communications Inc, BioCatch, NuData Security, and Vasco Data Security International.
The Solution section dominates the market in 2022.
Compliance Management had the largest share in the global market.