Allied Market Research (AMR) is predicting that the global passive authentication market will quadruple in the next few years, growing from $796 million in 2019 to $4.09 billion by 2027. Those figures represent a CAGR of 22.7 percent in the 2020 to 2027 window.
The firm attributed much of that growth to the rising demand for solutions that can remove friction from the authentication process and deliver a better overall user experience. The passive authentication market covers a range of technologies that can authenticate without direct user input, including face, voice, and behavioral biometrics.
AMR noted that the demand for such solutions has been particularly high in the past year. More people started working from home due to COVID-19, and that has created more security vulnerabilities and led to an increase in phishing and other cyberattacks. That, in turn, has created a need for security solutions that can close some of those potential gaps.
The solution segment of the market accounted for nearly 60 percent of the global market in 2019, though the service segment will grow more quickly with a CAGR of 23.2 percent. The financial industry has displayed the most enthusiasm for passive authentication (roughly 40 percent of the market), largely because the technology can help detect and prevent fraud. However, the healthcare segment will have a higher CAGR of 27.8 percent for the duration of the forecast period.
Finally, North America was the biggest driver of revenue, though the Asia-Pacific market will exhibit the most growth with a 24.8 percent CAGR moving forward. In each case, the segment that was the largest in 2019 will hold its position in 2027 despite more rapid growth elsewhere.
AMR identified NEC, Gemalto, RSA Security, Experian, Nuance, and BioCatch as some of the most noteworthy players in the passive authentication space. Adroit, meanwhile, believes that the market for risk-based authentication technology will reach $12.8 billion by 2028.
July 8, 2021 – by Eric Weiss