Global Single Factor Authentication System Market – Industry Trends and Forecast to 2031

 Single Factor Authentication System Market Analysis and Size

Generally, a single factor authentication system is a security framework that is very popular in the global market for its single step authentication to authenticate the person’s authority. The single factor authentication has a distinctive feature compared to other conventional authentication techniques involving password and username verifications and identifications in this system. Furthermore, it has an advanced biometrics security system with advanced features for identifying the person, including fingerprints, iris recognition, facial recognition, and voice recognition techniques.

Data Bridge Market Research analyzes that the global single factor authentication system market which was USD 10,005.60 million in 2023, is expected to reach USD 35,617.54 by 2031, and is expected to undergo a CAGR of 17.20% during the forecast period 2024-2031.  In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Single Factor Authentication System Market Scope and Segmentation

Market Definition

Single-factor authentication (SFA) is a process for securing the access to a given system, such as a website or network which identifies the party inviting access through only one category of credentials. The most common instance of SFA system is a password-based authentication. Password security trusts on the diligence of the system user or administrator who sets up the account.

Global Single Factor Authentication System Market Dynamics

Drivers

• Payment Security Concerns

Rising offline and online payment safety and security concerns globally is the major factor which is projected to drive the growth of the single-factor authentication systems. Some of the prominent areas of SFA application such as electronic voter registration ID registries, e-passports, general identification and fraud prevention, biometric visas, digitized driver licenses, and election management.

• Highly used in banking sector

Growing investments in banking sectors and increasing demand for secure and safe financial transactions are the major factors expected to drive the growth of the SFA market. There is an increasing acceptance of single-factor authentication systems technology in banking sector to maintain privacy and security and protect financial transactions.

• Government initiatives

Rising competition in the global market has raised the demand for the security of confidential information and data of an organization for maintaining their position in the market. Numerous initiatives taken by the governments to provide unique identity cards for every citizen are expected to drive the market's growth.

Opportunity

• High volume of online transactions

The growing volume of online transactions due to consumers' large adoption of digital banking is expected to propel the demand for single factor authentication. The use of internet banking, spurt in ecommerce and mandatory laws by central banks are growing large corporations to authenticate consumers with strong authentication measures. The rising use of the mobile banking is set to increase the demand for OTP authenticators during online transaction. Furthermore, the integration of this systems for payment in many sector such as healthcare, retail, and BFSI is create extensive opportunity for the growth of the single-factor authentication market.

Restraint/Challenge

• High cost

The major challenge companies face is the high cost involved in deploying these solutions while adopting single factor authentication solutions. This solutions help users and organizations in decreasing the risk of information losses. These solutions are very costly solution for SMEs because of budget restrictions. The software maintenance costs, software licensing costs and technical support for users, are very expensive solutions for low-budget enterprises to deploy so these are the major factors which will hinder the market growth rate of single factor authentication system.

Global Single Factor Authentication System Market Scope and Market Size

The single factor authentication system market is segmented on the basis of type, offering, functionality type and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Fingerprint Recognition
• Iris Recognition
• Palm Print Recognition
• Face Recognition
• Vein Recognition
• Signature Recognition
• Voice Recognition
• Others

Offering

• Hardware
• Software

Functionality Type

• Contact
• Noncontact
• Combined

End User

• Government, Military and Defence
• Healthcare
• Automotive
• Banking and Finance
• Consumer Electronics
• Travel & Immigration
• Security
• Others

Global Single Factor Authentication System Market Regional Analysis/Insights

The single factor authentication system market is analyzed and market size insights and trends are provided by country, type, offering, functionality type and end user as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, Netherlands, Russia, Switzerland, Turkey, rest of Europe, Japan, China, Australia, India, South Korea, Singapore, Indonesia, Thailand, Malaysia, Philippines, rest of Asia-Pacific, Brazil, Argentina, rest of South America, Saudi Arabia, South Africa, U.A.E., Israel, Egypt, and rest of Middle East and Africa.

North America is expected to dominate the market in terms of market revenue due to the growing enactment of smart technologies and the swiftly enhancing digitalization in this region.

Asia-Pacific is expected to be the fastest developing region due to the growing initiatives which has taken by government to deliver personal tax ID and unique identity number based on their biometric information in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data. 

Competitive Landscape and Global Single Factor Authentication System Market

The single factor authentication system market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to single factor authentication system market.

Some of the major players operating in the single factor authentication system market are:

• Safran (France)
• NEC Corporation India Private Limited (India)
• FUJITSU (Japan)
• Aware, Inc. (U.S.)
• Gemalto Cogent, Inc. (U.S.)
• BIO-key International (U.S.)
• Precise Biometrics (Sweden)
• secunet Security Networks AG. (Germany)
• Thales Group (France)
• Cognitec Systems GmbH (Germany)
• Crossmatch. (U.S.)
• Fulcrum Biometrics, LLC. (U.S.)
• Daon (Ireland)
• Facebanx (U.S.)
• HID Global Corporation/ASSA ABLOY AB. (U.S.)
• SUPREMA Inc, (South Korea)
• Iritech, inc. (U.S.)
• M2SYS Technology (U.S.)

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