Risk-based Authentication

Risk-based Authentication

Global Risk-based Authentication Market to Reach US$16.3 Billion by 2030

The global market for Risk-based Authentication estimated at US$5.3 Billion in the year 2023, is expected to reach US$16.3 Billion by 2030, growing at a CAGR of 17.5% over the analysis period 2023-2030. Solutions Component, one of the segments analyzed in the report, is expected to record a 18.4% CAGR and reach US$11.4 Billion by the end of the analysis period. Growth in the Services Component segment is estimated at 15.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.4 Billion While China is Forecast to Grow at 23.2% CAGR

The Risk-based Authentication market in the U.S. is estimated at US$1.4 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.8 Billion by the year 2030 trailing a CAGR of 23.2% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 13.2% and 15.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.0% CAGR.

Global Risk-based Authentication Market - Key Trends and Drivers Summarized

How Is Risk-based Authentication Enhancing Digital Security?

Risk-based authentication (RBA) is a security approach that assesses the risk of a user login or transaction by evaluating factors such as location, device, and behavioral patterns. Unlike traditional authentication, which applies uniform methods for all users, RBA dynamically adjusts the security level based on the perceived risk, offering additional layers of verification only when necessary. This approach is particularly valuable in protecting sensitive information in sectors like finance, healthcare, and e-commerce. As cyber threats grow in sophistication, risk-based authentication has become crucial for organizations aiming to secure user accounts while minimizing user friction.

What Are the Key Segments in the Risk-based Authentication Market?

Components include software, hardware, and services. Software-based RBA solutions dominate the market, providing flexible and scalable security that adapts to user behavior. Hardware solutions, such as biometrics and tokens, add an extra layer of protection in high-security environments. Deployment modes include on-premises and cloud-based solutions, with cloud-based RBA growing rapidly due to its accessibility, scalability, and ease of integration across various applications. End-user industries for risk-based authentication include financial services, healthcare, government, and retail. Financial services represent the largest segment, as RBA is critical for protecting online banking, trading platforms, and digital wallets. The healthcare sector also relies heavily on RBA to safeguard patient records and ensure HIPAA compliance, while government agencies use it for secure access to sensitive data and citizen services. Retail, particularly e-commerce, utilizes RBA to prevent fraud in online transactions, enhancing customer trust and compliance with data protection regulations.

How Is Risk-based Authentication Applied Across Industries?

In financial services, RBA is used to protect online banking and mobile transactions, adjusting security measures based on factors like transaction size, geolocation, and login behavior. Healthcare organizations employ RBA to ensure that only authorized individuals access patient data, safeguarding against data breaches. Government agencies rely on RBA for secure access to e-government services, particularly for sensitive operations involving personal information and national security. In e-commerce, RBA helps prevent account takeover and fraud during high-risk transactions, ensuring that legitimate customers experience minimal inconvenience while suspicious activities are flagged for additional verification.

What Factors Are Driving the Growth in the Risk-based Authentication Market?

The growth in the Risk-based Authentication market is driven by several factors, including the rise in cyber threats, increasing regulatory requirements, and advancements in machine learning and artificial intelligence. Innovations like behavioral biometrics, real-time risk assessment, and adaptive authentication methods have expanded the applications of RBA in securing digital interactions. The focus on reducing fraud, improving user experience, and meeting compliance standards has further fueled demand, as RBA offers organizations a balance of security and convenience. Additionally, growing e-commerce activity, expanding digital banking, and increasing investments in cybersecurity have contributed to market growth, supporting wider adoption in various sectors.

SCOPE OF STUDY:

The report analyzes the Risk-based Authentication market in terms of US$ Million by the following Component; Technology; Vertical, and Geographic Regions/Countries:

Segments:
Component (Solutions, Services); Technology (Multi-Factor Authentication, Behavioral Biometric, Web Access Management); Vertical (BFSI, Government, Healthcare, Manufacturing, Retail, Telecommunication, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• CA Technologies
• Cross Match Technologies, Inc.
• Entrust Data card
• Equifax Inc.
• Financial Software Systems, Inc.
• ForgeRock
• Gemalto N.V.
• IBM Corporation
• Micro Focus International plc
• Okta Inc.
• One Span
• Oracle Corporation
• RSA Security LLC
• SecureAuth Corporation

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