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Risk-based Authentication Market Size
Risk-based Authentication Market size is poised to grow with a lucrative CAGR from 2024 to 2032, driven by the rising emphasis on biometric authentication methods, such as fingerprint recognition and facial recognition, to enhance the accuracy and security of user verification processes. The shift towards continuous authentication, where user identity is constantly verified throughout a session, providing a more proactive approach to cybersecurity, will shape the industry outlook.
Risk-based Authentication Market Trends
There is increasing adoption of advanced technologies including Internet of Things (IoT), Bring Your Own Device (BYOD), and connected devices. In November 2023, around 82% of organizations had a BYOD program, and 68% of organizations saw a progress in productivity after shifting to BYOD. It offer various benefits to organizations such as reduced hardware costs, increased productivity for remote employees, and a satisfied customer base. As organizations incorporate new technologies, security issues multiply, necessitating the authentication solutions that will bolster the market share.
Risk-based Authentication Market Analysis
On-premises segment is set to expand at an exponential rate over 2024 to 2032, led by the growing emphasis on data security and regulatory compliance. In November 2023, the US-based data security company Rubrik launched Ruby, its generative AI extension for Rubrik Security Cloud, stating that it would speed up cyber threat detection, recovery, and resilience. Unlike cloud-based alternatives, on-premises RBA provides businesses with greater control over sensitive data, addressing concerns related to data privacy and sovereignty. Additionally, the flexibility to customize authentication protocols to meet specific organizational needs will add to segment growth.
The solution segment is predicted to experience a dynamic growth between 2024 and 2032, as these solutions combine strong risk-based authentications to avoid data theft and frauds. In 2022, data breaches cost organizations around $4.35 million. Additionally, about 236.1 million ransomware attacks occurred globally in the first half of 2022. Enterprises are also witnessing a rapid increase in the adoption of mobility-enabling partners, employees, and other stakeholders to access sensitive corporate data from any device.
The BFSI sector dominates the risk-based authentication market, as these solutions ensure compliance with regulatory mandates, strengthening security, and delivering enhanced digital services to its customers. In 2023, more than 318,000 credit card fraud reports were filed, which increased the adoption rate of risk-based authentication solutions in BFSI organizations.
Asia Pacific risk-based authentication market is anticipated to register significant revenue gains over the forecast period, due to an increase in the adoption of cloud-based solutions. In 2021, as per PwC Indonesia, 89% of SMEs were actively using cloud services. Additionally, among large enterprises, 80% were already using cloud computing services and are planning to adopt cloud technologies. Countries including India, China, Singapore, and Japan are rapidly adopting multi-factor authentication solutions to meet with the increasing regulatory compliances, which augments the market growth.
Risk-based Authentication Market Share
The major companies operating in the risk-based authentication industry include:
- Iovation
- Gurucul
- IBM
- Micro Focus
- CA Technologies
- Crossmatch
- RSA Security
- EZMCOM
- ForgeRock
- SecureAuth
- OneSpan
- Gemalto
- Okta
- Equifax
- Oracle
- Centrify
- Ping Identity
- Lexisnexis
- Silverfort
- Biocatch
These companies are entering into strategic partnerships to develop more advanced risk-based authentication solutions introducing enhanced security, thereby avoiding password fatigue and reuse.
Risk-based Authentication Industry News
- In January 2024, Oracle collaborated with etisalat by e& to enhance AI capabilities and to deploy NVIDIA H100 GPU clusters within its Oracle Cloud Infrastructure (OCI).