Authentication and Brand Protection Market Trends

Growth Drivers

• The Development of Track & Trace Technology- The supply chain uses a variety of cutting-edge technologies, including blockchain, to enable traceability. Blockchain works similarly to a database, storing data in a digital ledger made up of separate blocks that are updated with every new transaction. Technologies for traceability give consumers access to the complete, comprehensive data of the supply chain, providing insightful and useful information that impacts a business's productivity, openness, and profitability. Blockchain aids in product authentication as well as tracking the product's origin and progress along the whole supply chain. It aids producers in keeping an effective supply chain and verifies that the product has been delivered on schedule and to the correct location.

• Creation of Solutions for Remote Authentication- The OECD and the Intellectual Property Office of the European Union have claimed that the trade in counterfeit and pirated goods has reached roughly 3.3% of world trade. The estimated value of imported counterfeit goods worldwide in 2019 was around USD 509 billion, according to data from customs seizures. In response to this problem, a number of businesses are providing remote authentication systems to thwart counterfeiters. Users can verify a product's legitimacy by scanning photographs of it and uploading them to a corporate website using remote authentication. The goal of AlpVision's technology is to lessen market counterfeiting.

• Growing Need in Emerging Markets- For industry participants in authentication and trademark protection, the booming medical, automotive, electronics, and food and beverage sectors in developing countries like Asia Pacific provide enormous growth potential. The severe risk of counterfeiting in these areas increases the need for solutions related to authentication and trademark protection. Because of the increased danger of counterfeiting across numerous industries, developing countries have an ever-increasing demand for authentication and brand protection goods, which is anticipated to propel market expansion throughout the forecast period.

Challenges

• Constant Evolution of Counterfeiting and Fraudulent Practices- It gets harder for companies to provide reliable and secure identification solutions as counterfeiters become more adept at their techniques. The quick development of digital platforms and online marketplaces is a problem as well because it gives counterfeiters an easy way to sell their fake goods all over the world.

• It is challenging to monitor and regulate the flow of counterfeit goods due to the worldwide scope of supply chains and the frequency of cross-border trade.

• Conventional authentication methods, such as barcodes, holograms, and RFID, have built-in vulnerabilities of which counterfeiters can take advantage. For instance, it is simple to copy 2D codes, including QR codes. A QR code's whole functionality is duplicated when it is simply replicated, making it challenging for readers to distinguish between the original and copied codes.