Passive Authentication Market Size, Share, Trends, Growth 2032

Global Passive Authentication Market: Insights

According to the report published by Zion Market Research, the global Passive Authentication Market size was valued at USD 1.57 Billion in 2023 and is predicted to reach USD 12.64 Billion by the end of 2032. The market is expected to grow with a CAGR of 26.08% during the forecast period. The report analyzes the global Passive Authentication Market's growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the Passive Authentication industry.

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Global Passive Authentication Market: Overview

Authentication is the act of verifying the identity of an individual user. Authentication can be passive as well as active. Passive authentication is a process where the identity of an individual user is verified without the need for any specific additional actions for the authentication purpose. Passive authentication needs users to authenticate with the help of a web browser where the user is redirected to an identity provider. The passive authentication process involves the use of behavioral patterns which includes contextual and biometric authentication along with device identification process.

It also includes the multi-factor authentication that offers enhanced control and security to assist organizations discard the requirement for password-based security method.

Global Passive Authentication Market: Growth Factors

One of the major factors driving the growth of the global passive authentication market is the growing replacement for traditional and outdated security ways like password and security questions with the voice biometric which offer a friction-free and most secure method to verify the identity of users in the digital transaction and telephone calls. This process needs a more extended period of speech for establishing a high-security verification method. The passive verification process does not need a user to remember their phone numbers or account numbers. Moreover, the significant spike in the demand for the multi-factor authentication process in an organization will boost the growth of the global passive authentication market during the forecast period.

Also, the growing incidences of cybercrimes all across the globe along with the data security issues are likely to positively shape the trajectory of the global market during the forecast period. The growing demand for secure and quick online transactions is also promoting the growth of the global passive authentication market during the forecast period.

The emergence of the coronavirus pandemic has significantly boosted the growth of the global market. The ongoing trend of the adoption of collaboration tools like Cisco Connect and Zoom is propelling the demand for passive authentication in the market globally due to the ongoing cyber-attacks amid the pandemic. The growing utilization of smartphones for payment services and smart working from one’s own device has induced companies to initiate biometric technology in order to secure the user's devices from hackers. Thus, biometric authentication that includes iris recognition, facial recognition, and fingerprint recognition emerged as a preferable way to secure the identity of the users.

Key Insights

• As per the analysis shared by our research analyst, the global Passive Authentication Market is estimated to grow annually at a CAGR of around 26.08% over the forecast period (2024-2032).
• In terms of revenue, the global Passive Authentication Market size was valued at around USD 1.57 Billion in 2023 and is projected to reach USD 12.64 Billion by 2032.
• Based on the industry, The Banking, Financial Services, and Insurance (BFSI) sector stands as the most dominant industry segment in the passive authentication market. This prominence is attributed to the sector's handling of highly sensitive financial data and its susceptibility to cyber threats. Passive authentication provides continuous, non-intrusive user verification, enhancing security without compromising user experience. Furthermore, stringent regulatory requirements, such as GDPR and PCI DSS, compel BFSI institutions to adopt robust authentication measures to ensure compliance and protect customer data
• Based on the organization size, Small and Medium-sized Enterprises (SMEs) represent the leading segment in the passive authentication market. SMEs are increasingly targeted by cyberattacks due to their limited IT resources and security infrastructure. Passive authentication offers these organizations a cost-effective and user-friendly security solution, enabling them to enhance their security posture without the complexities associated with traditional authentication methods
• Based on the deployment type, On-premises deployment holds the largest share in the passive authentication market. Organizations in sectors with stringent data security and privacy requirements, such as banking, healthcare, and government, prefer on-premises solutions. These deployments offer greater control, customization, and integration with existing IT environments, ensuring compliance with regulatory standards and reducing reliance on external providers 
• Based on the business function, Compliance management is the most dominant business function segment within the passive authentication market. Organizations prioritize compliance management to adhere to various industry and regulatory guidelines for data security and protection. Passive authentication solutions aid in proactively managing risks and defending against cyber threats, thereby ensuring regulatory compliance and safeguarding sensitive information
• Based on the component, The solution segment leads the passive authentication market by component. These solutions encompass technologies like behavioral biometrics, device recognition, and risk-based authentication, providing comprehensive and integrated security capabilities. Their ability to offer robust security without disrupting user experience makes them the preferred choice for organizations seeking effective passive authentication measures
• Based on the region, North America dominates the passive authentication market regionally. This dominance is due to the region's advanced technological infrastructure, high adoption rates of innovative security solutions, and a strong regulatory environment that mandates stringent data protection measures. Organizations in North America are early adopters of passive authentication technologies, further solidifying the region's leading position in the market

Global Passive Authentication Market: Report Scope

Global Passive Authentication Market: Segmentation

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The global passive authentication market can be segmented into the industry, organization size, deployment type, business function, component, and region. All the segments have been analyzed based on present and future trends and the market is estimated from 2024 to 2032.

By industry, the market can be segmented into media & entertainment, healthcare, retail, consumer, telecom & IT, government financial services, and insurance.

By organization size, the market can be segmented into large and small & medium enterprises.

By deployment type, the market can be segmented into cloud and on-premise.

By business function, the market can be segmented into tourism management, marketing management, compliance management, and others.

By component, the market can be segmented into services and solutions. The service segment can be further bifurcated into managed and professional services.

The regional segment includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Global Passive Authentication Market: Regional analysis

North America accounts for the largest share in the global passive authentication market due to the growing awareness of people regarding passive authentication solutions. Moreover, the high adoption of advanced technology in the region further boosts the growth of the regional market during the forecast period.

Asia Pacific is expected to witness huge growth during the forecast period due to the growing prevalence of cyber-attacks in the region.

Global Passive Authentication Market: Competitive Analysis

The global passive authentication market is dominated by players like:

• Verint
• Veridium
• VASCO
• SecuredTouch
• Gemalto
• FICO
• FacePhi
• Experian
• Equifax
• RSA Security
• Pindrop
• LexisNexis
• BioCatch
• Early Warning
• Cisco
• Aware
• BehavioSec
• IBM
• Jumio
• IDology
• NuData Security
• Nuance Communications
• NEC

Global Passive Authentication Market: Segmentation

The global passive authentication market is segmented as follows:

By Industry

• Media & Entertainment
• Healthcare
• Retail
• Consumer
• Telecom & IT
• Government Financial Services
• Insurance

By Organization Size

• Large
• Small & Medium Enterprises

By Deployment Type

• Cloud
• On-Premise

By Business Function

• Tourism Management
• Marketing Management
• Compliance Management
• Others

By Component

• Services
• Solutions

Global Passive Authentication Market: Regional Segment Analysis

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

What Reports Provides

• Full in-depth analysis of the parent market
• Important changes in market dynamics
• Segmentation details of the market
• Former, on-going, and projected market analysis in terms of volume and value
• Assessment of niche industry developments
• Market share analysis
• Key strategies of major players
• Emerging segments and regional markets
• Testimonials to companies in order to fortify their foothold in the market.