Authentication and Brand Protection Market

Authentication and Brand Protection Market Outlook from 2024 to 2034

The global authentication and brand protection market size is estimated to stand at US$ 2.9 billion in 2024. The market is projected to exceed a valuation of US$ 6.5 billion by 2034, registering a promising CAGR of 8.3%.

Authentication and Brand Protection Market Overview:

• Authentication and brand protection demand is on the rise since there is a growing need to protect consumer safety, maintain legal compliance, preserve brand reputation, and protect intellectual property rights.
• The global trends in the authentication and brand protection industry spotlight the increasing importance of advanced technologies such as blockchain, biometrics, and AI-driven solutions.
• There are increasing instances of product piracy and counterfeiting in multiple industries, including electronics, food and beverage, and pharmaceuticals. Therefore, there is likely to be more than a 2.2X surge in the sales of authentication and brand protection solutions by 2034.

Key Factors Influencing the Authentication and Brand Protection Market Growth

Companies Battle the Surge in Counterfeiting with Robust Authentication Solutions! The increasing sophistication of counterfeiters has compelled companies to allocate resources toward robust authentication solutions to protect their brands and products effectively.

• Every year, counterfeit goods totaling around US$ 2 trillion are offered for sale. Companies are facing an increasing number of obstacles in their quest to safeguard their trademarks. Global supply chain convergence has made brands far more susceptible to intellectual property theft, illegal distribution networks, and counterfeiting.

• To combat counterfeit sellers, Amazon established an internal team in 2020 that is composed of computer scientists, law enforcement, and former federal prosecutors stationed all around the world. Every day, Amazon scans about 8 billion listings from vendors using artificial intelligence algorithms. Through the use of authentication and brand protection technologies, such as machine learning and data collecting, they are able to match trademarks and logos with the offerings of the companies.

Authentication Tech is on the Rise as eCommerce Battles Counterfeit Surge! The proliferation of eCommerce has widened the scope of counterfeit products, consequently driving a surge in the demand for authentication technologies.

• A formidable obstacle encountered in 2023 was the notable surge in unapproved resellers on various eCommerce sites. Products that are counterfeit pose a serious problem for online retailers like Amazon. Numerous unlicensed retailers sold counterfeit products, which have harmed customers because they were of lower quality.
• As technology advances, the landscape of trademark protection in eCommerce is anticipated to change even more in 2024, with a focus on countering rogue vendors. Brand protection for eCommerce has changed dramatically as a result of this.

Authentication Solution Adoption Soars amid Regulatory Demands! Regulatory compliance requirements and consumer demand for transparency have also played a significant role in driving the adoption of authentication and brand protection solutions.

• Committees within IEC and ISO are specifically focused on developing standards and remedies to deter counterfeit goods and boost customer confidence. These comprise recommendations for gauging the proficiency of testing facilities, standards for authenticating products, and minimum safety and quality requirements.
• Companies are under increasing pressure to demonstrate the authenticity and integrity of their products. This has led to greater investment in technologies such as track-and-trace systems and anti-counterfeiting labels.

Tech Breakthroughs Drive Boom in Authentication and Brand Protection! Advancements in technology are enabling more sophisticated authentication methods, further fueling the authentication and brand protection market growth.

• Technology has emerged with sophisticated ways to address these issues. RFID (Radio-frequency Identification), QR codes, Tamper-evident technologies, digital watermarking, DNA-based authentication, NFC (Near Field Communication), and other cutting-edge technologies are some of those creating waves in this industry.
• These cutting-edge brand protection and authentication technologies serve as a barrier against the numerous risks of piracy, counterfeiting, and unauthorized usage. These provide businesses with real-time monitoring capabilities and improved security measures, enabling them to stay a step ahead of counterfeiters.

Obstacles Compressing the Authentication and Brand Protection Market Revenue Expansion

Conventional authentication methods, such as barcodes, holograms, and RFID, have built-in vulnerabilities that counterfeiters may take advantage of. For example, copying 2D codes like QR codes is extremely easy.

It is challenging for QR code readers to distinguish between original and duplicated codes when a QR code is simply replicated, as it retains all of its functionality.

Holograms are difficult to copy because of their complex structures, reflecting properties, and precise features. They are a common feature of security-sensitive items such as banknotes and credit cards.

Even with the advances in holographic technology, its main purpose is still ornamental. Since they can buy branded and personalized holograms of any form, size, or design, counterfeiters can deceive non-experts with thorough study, making it virtually hard to identify a fake hologram.

Sudip Saha

Principal Consultant

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Historical Market Study on Authentication and Brand Protection alongside Future Projections

From 2019 to 2023, the authentication and brand protection market showed promising growth, boasting a 10.5% CAGR. During this time, Omni channel commerce activities and the global increase in urbanization have led to a significant market upswing.

Since it is now essential to ensure data integrity, there has been a massive market expansion in recent years. The widespread application of RFID technologies has led to market penetration.

The market for authentication and brand protection is expected to exhibit a lower CAGR compared to the historical period. Despite the anticipated decrease in growth rate, authentication and brand protection market forecasts anticipate robust progression driven by the adoption of advanced authentication technologies across various industries.

Pharmaceuticals, luxury goods, consumer electronics, and automotive industries are witnessing a heightened demand for anti-counterfeiting measures, propelling the online brand protection software market growth.

The way supply chain security is being implemented is changing due to the combination of IoT devices, sophisticated security printing and track-and-trace technology.

Real-time tracking of a product's location, state, and even possible tampering is made possible with smart sensors integrated into its packaging. Brands are able to quickly identify and address any dangers by analyzing the data collected by these devices to find irregularities.

This is expected to have a highly positive impact on the global demand for authentication and brand protection.

Authentication and Brand Protection Market Trends

• Several businesses are providing remote authentication systems to thwart counterfeiters. Users can validate a product's authenticity by scanning images and submitting them to a company website through remote authentication.
• An evolving trend in the authentication and brand protection market indicates a growing emphasis on innovative technologies such as blockchain, which is frequently connected to cryptocurrencies. Blockchain improves supply chain transparency and traceability by offering a decentralized, tamper-proof ledger.
• Artificial Intelligence emerged as an essential component in providing companies with astute brand protection. Brands can strengthen their defense against new threats and remain ahead of the game by utilizing AI-powered systems since these have the capacity to continually learn from and adjust to new threats.
• RFID authentication and secure document features are being integrated into packaging, labels, and products, providing consumers with easy verification methods and enhancing brand trust and credibility.

Demand Analysis of Authentication and Brand Protection by Region

The North America authentication and brand protection market stands out as a dominant force. Regarding pharmaceutical and food and beverage applications, North America is a leading market.

Numerous businesses in this region are making investments and concentrating on the advancement of cutting-edge authentication and brand protection technologies. The market here is mostly driven by the existence of significant companies in the industry as well as a sizable consumer base.

Europe is witnessing continuous and steady growth in demand for authentication and brand protection.

In Europe, the medical field is developing quickly. Still, the market for authentic medical equipment is hampered by the same goods being offered in this region by unauthorized producers. Because of this, producers of medical devices favor making investments in digital authentication, forensic, overt, covert, and brand protection solutions, among other things.

There is likely to be momentous progression in the Asia Pacific authentication and brand protection market. Alcohol and soft beverages are in great demand, and they are easy to copy. Manufacturers are increasingly purchasing overt or covert labels in order to comply with regulatory bodies' standards, produce authentic goods, and protect their brands.

The necessity for products related to authentication and trademark protection is anticipated to increase as a result.

Cross-border Trade Boom is the Driving Force behind Authentication Demand Surge in the United States

Demand for authentication and brand protection in the United States is set to rise with an anticipated CAGR of 8.4% through 2034. Key factors influencing the demand include:

• In 2023, sales from cross-border eCommerce exceeded US$ 700 billion, as reported by the United States Small Business Administration. Many items created in the United States are sold in different countries, which has increased the demand for brand security and product authentication as a means of trademark protection.
• In this region, market participants are focusing on creating novel and inventive solutions since it offers them profitable prospects. For example, the mobile authentication technology business Authentic Vision announced on August 30, 2022, the availability of its Meta Anchor™ technology in the United States market. This technology promises to provide safe and quick authentication to prevent counterfeit goods and guarantee licensing compliance.

Strong Customer Authentication Initiatives Drive Market Expansion in the United Kingdom

The United Kingdom authentication and brand protection market is expected to surge at a CAGR of 9.6% through 2034. The topmost dynamics supporting the market expansion in the country include:

• To meet the demand and improve the end user experience, new brand security technologies are being developed in this country. In an effort to lessen fraud, Strong Customer Authentication technology was implemented on March 14, 2022. It enables card readers, passcodes, phone calls, and smartphone apps to be used by banks and suppliers to authenticate transactions and logins for mobile banking.
• In addition to established firms, start-ups are quickly becoming more visible in this sector because of their innovative solutions. An EdTech start-up called PORGiESOFT is developing cyber fraud detection software for corporate workers using AI. It has developed the robust fraud detection machine learning platform SenseText™ to help organizations easily identify and combat cyber fraud.

China's Counterfeit Conundrum Fuels Demand for Authentication and Brand Protection Solutions

The China authentication and brand protection market is forecasted to inflate at a CAGR of 8.7% through 2034. Prominent factors backing up the market growth are:

• According to the OECD, China is the country that produces at least 80% of the counterfeit goods that are trafficked abroad. However, this is not the whole tale. Furthermore, it is believed that the total value of China-made counterfeit products sold within China's home market is far higher than the value of counterfeit items exported to other countries. Therefore, the authentication and trademark protection market has enormous potential in China.
• Players in the authentication and trademark protection markets have enormous development potential owing to the booming consumer electronics sector. In the first half of 2022, for instance, Xiaomi confiscated over 9,000 counterfeit goods valued at US$ 94,048.49, surpassing the US$ 42,474.74 worth of products seized in 2020. Solutions for authentication and trademark protection are in high demand because of the serious danger of counterfeiting in such fields.

Japan's Authentication Market Booms with Stringent Regulations and Innovation

Sales of authentication and brand protection products in Japan are estimated to record a CAGR of 9.8% through 2034. The primary factors bolstering the authentication and brand protection market size are:

• Stringent regulations against counterfeit goods underscore the importance of robust authentication measures. The surge in counterfeit semiconductors poses a new challenge, necessitating innovative solutions to safeguard brands and consumers. This, in turn, creates significant opportunities for authentication and brand protection market players.
• Prominent companies have increased their market share mostly through product launches and innovations. NEC introduced a multimodal biometric identification solution in November 2022, which is the centerpiece of their 'Bio-IDiom' brand of biometric authentication and features the best face and iris recognition in the world.

Counterfeit Cosmetic Crackdown Fuels Growth in South Korea's Brand Authentication Measures

The market in South Korea is likely to exhibit a CAGR of 9.5% through 2034. Reasons supporting the growth of authentication and brand protection market in the country include:

• Laws targeting counterfeit cosmetics signify progress in brand protection efforts. However, the absence of a unified global track-and-trace technology regulation hampers comprehensive solutions. Reports of local brokers substituting genuine products with counterfeits highlight the demand for innovative authentication methods to bolster consumer trust and brand integrity.
• Market participants are adamant about opposing IP infringement and counterfeiting. To showcase its most recent consumer protection and intellectual property (IP) initiatives and strengthen ties with brand owners, public servants, and other stakeholders, Coupang organized its first Brand Protection Seminar in September 2022.

Authentication and Brand Protection Market Analysis by Segment

As far as the technology of authentication and brand protection is concerned, the overt segment is likely to dominate through 2034, registering a CAGR of 8.1%. Similarly, the smartphone segment is expected to dominate the revenue share of authentication and brand protection in terms of authentication mode, with a projected CAGR of 8.0% through 2034.

Overt Measures Propel Brands to Market Leadership in Authentication

The overt technology segment is anticipated to lead the way, holding an impressive authentication and brand protection market share. Here are a few key components that contribute to its adoption:

• Since overt measures are usually less expensive than covert (hidden) or forensic techniques, they are anticipated to gain prominence throughout the predicted period.
• Without incurring appreciable additional manufacturing expenses, overt technology-based authentication and brand protection tools can be included in product packaging or labeling.
• Overt technologies make it easier for customers and authorities to distinguish between real and fake items by providing obvious deterrents against counterfeiting.
• Since overt measures are more affordable, many brands find them to be a sensible option, which increases their market share.

The Multifaceted Approach of Smartphone Authentication Driving Industry Growth

Smartphones take the top spot in the authentication and brand protection market, a trend substantiated by factors such as:

• To preserve user security and brand reputation, smartphone authentication and trademark protection are essential. Smartphone authentication offers users a convenient way to verify their identity without the need for additional hardware or tokens.
• Users prefer smartphone authentication because it is more secure when biometric technologies like iris, face, and fingerprint scanning are integrated with it.
• Smartphone authentication can be also done using multiple ways, such as pattern unlock, two-factor authentication (2FA) or multi-factor authentication (MFA), password/PIN, and more, which is driving industry expansion.
• The intuitive and user-friendly design of smartphone authentication interfaces improves user experience and promotes wider adoption.

Competitive Landscape

Authentication and brand protection market players employ diverse strategies to gain a competitive edge. Prominent companies have increased their market share primarily through product launches and advancements, which have been followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations.

Some focus on developing advanced authentication technologies, such as biometrics or blockchain, to ensure secure product authentication. Others emphasize brand protection services, offering solutions like anti-counterfeiting measures or online brand monitoring.

Recent Developments

• Systech revealed in November 2023 that it had launched the newest iteration of its UniSecure® platform, an all-encompassing security printing solution for divergence and counterfeit identification.
• Holostik India, a provider of both digital and physical security, introduced Optashield, a novel anti-counterfeiting solution, in July 2023. It is a safety strip that prevents counterfeiting and can be used on labels or holographic stickers.
• Ennoventure Inc. unveiled new authentication features, encrypted QR codes and serialized encryption, in July 2023. These features are meant to help firms in different sectors protect their goods and fight counterfeiting.
• Based on their shared commitment to enhancing customer safety, Nexans and the organization decided to form a strategic collaboration in January 2023. The packaging for Nexans goods is going to be labeled with Authentic Vision's proprietary Holographic Fingerprint labels.

Key Authentication and Brand Protection Market Players

• 3M Company
• AlpVision SA
• Applied DNA Sciences, Inc.
• Arjo Solutions
• Authentic Vision

Key Segments in the Authentication and Brand Protection Market Report

By Technology:

• Overt
• Covert
• Digital
• Forensic

By Authentication Mode:

• Smartphone
• Blockchain

By Offering:

• Security Labels and Inks
• Holograms
• Barcodes
• RFID/NFC
• Authentication Chips
• QR Codes

By Application:

• Electronics
• Pharmaceuticals
• Automobile
• Food & Beverage
• Apparel
• Luxury Goods
• Cosmetics
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa (MEA)