Hardware OTP Token Authentication Market size was valued at USD 645.42 million in 2023 and is likely to reach USD 5.79 billion by the end of 2036, expanding at around 18.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hardware OTP token authentication is assessed at USD 740.43 million.
Extensive research associated with hardware OTP token authentication in western countries, along with the growing number of internet-based transactions and the high level of security provided by the tokens, are expected to fuel this market's progress. The market growth can also be attributed to factors such as the increasing investments from the banking and finance industry and preference for convenience and instant use.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
18.4% |
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Base Year Market Size (2023) |
USD 645.42 million |
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Forecast Year Market Size (2036) |
USD 5.79 billion |
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Regional Scope |
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The hardware OTP token authentication market is segmented on product type into disconnected, connected, and contactless. The disconnected segment is anticipated to grab the most significant share by the end of 2029 because of the ease of use and increased security it offers against connected or network devices. Moreover, disconnected tokens are the most common type of security tokens used, usually in combination with a password, in two-factor authentication for online identification.
Based on application, banking, financial services, and insurance (BFSI) industry is one of the most important industries for hardware OTP token authentication globally. Financial organizations make several online transactions every day, and the use of hardware OTP will ensure two-factor authentication leading to secured access. Thus, BFSI sector is projected to dominate the market and is estimated to grow with a high CAGR throughout the forecast period.
Our in-depth analysis of the global market includes the following segments
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By Type |
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By Application |
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By Component |
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North America Market Statistics
Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa region. North America industry is anticipated to dominate majority revenue share by 2036, as increase in the number of data breaches have pushed organizations to adopt hardware OTP devices that provide another layer of security for the user to secure themselves. The market in the United States is predicted to grow at the highest CAGR over the forecast period owing to increase the security of the data. Furthermore, in 2020, the market in North America is evaluated to occupy the largest share in terms of revenue, owing to the growing investment of governmental and non-governmental agencies in security of data, accompanied by the presence of leading IT service and electronic device providers in the region.
Author Credits: Abhishek Verma
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