By 2032, the cloud authentication market is expected to be worth USD 12,753.4 million, with a CAGR of 14.4%. The market value in 2022 is USD 11,279.2 million. With a lower demand rate of 12.6% from 2018 to 2022, the market had a worth of USD 10,002.0 million in 2021.
Government identity and access management laws being implemented, and the extraordinary increase in cloud use, are the main drivers of the cloud authentication market growth. As cloud authentication is widely adopted in the BFSI, IT & telecom, and retail sectors, the global market is likely to expand at an exponential rate.
Moreover, the popularity of cloud services is probably going to increase as a result of the industrial advances taking place in developing economies.
Growth of Cloud Authentication Services in Different Sectors
BFSI Sector
One of the sectors with the highest information sensitivity is the BFSI. The industry is quickly implementing cloud authentication to protect its customer data and prevent fraud and data breaches.
Additionally, the BFSI sector's stringent laws and regulations are encouraging the use of biometrics in banking, which encourages the demand for cloud authentication services.
By September 14, 2019, all EEA payment service providers must have adopted Strong Customer Authentication (SCA) in compliance with the European Union's Payment Services Directive 2 (PSD2). Thus, cloud authentication in the BFSI industry is expected to grow during the forecast period.
Retail Sector
E-commerce platforms are replacing physical businesses in the retail sector. Due to this high level of vulnerability to cyber-attacks, client data, and information is a top target for fraudsters. During the projected period, the retail sector is anticipated to witness considerable growth in the cloud authentication market.
IT and Telecom Sector
The popularity of Bring Your Own Device (BYOD) trend is growing in the landscape of IT and telecom companies, eventually driving the implementation of cloud authentication as a service market.
The IT departments of those companies strive to protect their information assets when outside devices access their networks. In today's organizational ecology, multi-cloud computing systems are also becoming more and more common, particularly in the IT and communications sectors.
As multi-cloud computing systems become more common, they underline the need for identity management services that are noticeably more reliable in order to safeguard their public cloud infrastructures.
| Attributes | Details |
|---|---|
| Cloud Authentication Market CAGR (2022 to 2032) | 14.4% |
| Cloud Authentication Market Size (2022) | USD 11,279.2 million |
| Cloud Authentication Market Size (2032) | USD 12,753.4 million |
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As per FMI, in the span of 2017 and 2021, the market witnessed the growth of 12.6% CAGR while during the forecasted period, the market is posed to grow at 14.4% CAGR. On the basis of short-term growth, by 2026, the market is expected to be worth USD 18,769.41 million.
The cloud authentication market share is showing tremendous growth over the years due to high-security demand.
With rising number of companies shifting their data to the cloud, the cyber-attacks and breaches are only expected to rise. In order to tackle these types of incidents, the intense need of cloud authentication is imminent. As authentication factors enhances the security features, ensuring the access of critical information and systems to only those who have authorization.
During the forecast period, the e-commerce sector is anticipated to expand at the fastest rate. The vertical sell consumer goods and services to its customers through a variety of channels.
Moreover, due to the potential for payments and the enormous volume of financial transactions carried out using credit and debit cards, e-commerce is one of the most cost-conscious sectors and one of the businesses that hackers target the most. As a result, the adoption of cloud authentication is considered the safest option for businesses.
Additionally, it is projected that merchants would be more likely to use cloud authentication services as the supply chain, labor, distribution partners, and customers become more complex.
Principal Consultant
Although MFA solutions help to improve the security of the firm, they also have some drawbacks and some hazards. First of all, a multi-factor authentication setup can be demanding, expensive, and time-consuming.
The time required to accomplish a single activity grows as the number of authentication factors does as well. Additionally, fraudsters may utilize techniques like sim swapping or switching to gain quick access to a user's physical sim card and access IDs. These elements are predicted to impede the cloud authentication market expansion.
Cloud authentication as a service share of 68% was held by multi-factor authentication in 2021, and it is anticipated that this market would expand further during the forecast period.
The multi-factor service enables the replacement of several passwords with stronger ones. Additionally, it can offer the possibility to increase output while lowering operating costs.
Remote fingerprint scanning, facial recognition, and document verification are all made possible by cloud-integrated MFA solutions. The demand for cloud authentication is expected to grow as a result of improvements in biometrics, software, and hardware, as well as positive government initiatives to improve national security.
With the market share of 26% in the year 2021, the very large enterprise segment lead the market in the enterprise size. Meanwhile, the small offices segment is poised to witness the high CAGR of 22.7% between 2022 and 2032.
Cloud authentication has mostly been employed by both large corporations and SMEs during the past ten years. Large businesses can benefit from features like automatic user account provisioning, workflow and self-service management, Single Sign-On (SSO), password management, and access governance.
Companies can enjoy opportunities in the cloud authentication market due to role-Based Access Control (RBAC), audit, and compliance, among others. So, in 2022, large organizations are likely to have the greatest market share and are anticipated to expand at a respectable CAGR.
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The USA dominated the cloud authentication market with a share of 23.4% in 2021. On the other hand, demand is continuously growing with the CAGR of 13.8%
North America dominated the cloud authentication market with holding the market share of 32.9% in the year 2021. This is owing to the high presence of major players including RSA Security, Symantec Corporation, Gemalto N.V. and Entrust Datacard.
Symantec corporation have the quite diverse and strong portfolio of cloud authentication solutions, which includes features such as anti-malware, anti-spam, anti-hacking as well as anti-ransomware. This makes company the significant player in the market.
Germany shows significant growth in the cloud authentication market, with a share of 12.5% in 2021. Demand is continuously growing, with a CAGR of 17.8%
The market in the European region is expected to witness the growth of a CAGR of 16.4%. The primary factors being the emergence of preventing cyber-attacks, breaches and online frauds. On the other hand, the necessity of regulations compliance is also fueling the market growth.
The rising demand of access management services as well as cloud based identity are primarily the factors behind the market growth while the rising focus on cloud-based applications are also supporting the market growth. Although, the market is still unsure about the concerns regarding data privacy and governance.
India is expanding rapidly, at a CAGR of 24.1%. It is anticipated that government programs like Make-in-India and the Digital India Program are likely to open up new business prospects for cloud authentication providers. A major element fueling new opportunities in the cloud authentication market in this region is the enormous population of the region.
Within a few years, Asia Pacific (APAC) nations including China, Japan, and South Korea are predicted to surpass North American nations as the biggest internet retail market.
China and Japan are likely to have a CAGR of 19.2% and 21.9%. As a result, policymakers and other businesses have shown a particular interest in the rise of online payments in APAC nations.
To have the best class opportunities, cloud authentication market players need to overcome digital and automation challenges.
Many manufacturers have used sales automation or enablement systems in some capacity. Time-to-market is still slowed down by manual operations, such as monitoring inventories or orders, when the remainder of the value chain is ignored.
Additionally, a lack of communication might prevent manufacturers and their partners from taking advantage of chances for cloud authentication growth.
Therefore, manufacturers must concentrate on developing connected manufacturing methods that can enable them to identify areas for development and generate new sources of income.
| Areas of Development | Resolution |
|---|---|
| Lack of transparency about partner channels' effectiveness and quality | Companies’ partnerships can be strengthened, and more opportunities become apparent by improving how customers connect with one another. This can be done by:
|
| Inability to adapt quickly to change | Manufacturers can integrate many teams on a single platform and make real-time changes and insights available to all by using cloud-based customer relationship management (CRM) software. By doing this, manufacturers may gather more data and give teams the knowledge they need to work more effectively. In accordance, the cloud authentication market share reveals a sizable area of development. |
Moreover, strategic alliances and standards are contributing to the high demand for cloud authentication. For instance,
Businesses are required by the growing trend of digitization to implement effective, secure, and trustworthy preventive solutions. At the same time, digitization is revolutionizing authenticating methods in ways that have never been possible before. During the anticipated time frame, these improvements are anticipated to drive the cloud authentication market forward.
Recent Developments
The cloud authentication market is estimated to record a CAGR of 14.4% during the forecast period.
The cloud authentication market size is predicted to be valued at USD 12,753.4 million by 2032.
The cloud authentication market share is valued at USD 11,279.2 million in 2022.
North America is expected to lead the cloud authentication market with a share of 32.9% in 2021.
Multifactor authentication dominated the cloud authentication market, with a share of 68% in 2021.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Methods 5.1. SecurID OTP 5.2. SecurID Authenticate OTP 5.3. Emergency Access Code 5.4. Approve (Push Notifications) 5.5. Device Biometrics 5.6. SMS OTP 5.7. Voice OTP 5.8. FIDO 5.9. LDAP Directory Password 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type 6.1. Single-Sign-On (SSO) 6.2. Multi-Factor Authentication (MFA) 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. South Asia 7.5. East Asia 7.6. Oceania 7.7. Middle East and Africa (MEA) 8. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 9. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. South Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Oceania Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. CA Technologies Inc 17.2. Computer Sciences Corp 17.3. Gemalto NV 17.4. VASCO Data Security International, Inc. 17.5. SecureAuth 17.6. SecurEnvoy Ltd 17.7. Microsoft 17.8. Broadcom 17.9. Onespan 17.10. Ping Identity 18. Assumptions & Acronyms Used 19. Research Methodology
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Cloud Authentication Market
