analysis of the strong authentication and one time password (otp) market
TRANSCRIPT
The World has Changed, Weakening the
Security Once Afforded by Passwords
Research PREVIEW for the
Analysis of the Strong Authentication and One-
Time Password (OTP) Market
@FS_TVision
Sample of Key Highlights
• Authentication establishes a bond of trust between an organization and the
user who is requesting system access. Strong authentication refers to
methods of authenticating users with a level of validation that is beyond that
of simple username and password.
• The total market for strong authentication grew to $1.53 billion in 2013.
• 2013 was a “watershed” year for strong authentication in that biometrics
became the largest segment of strong authentication technology. Much of
the momentum in biometrics is being driven by the use of voice biometrics,
especially in call center and interactive voice response (IVR) applications.
• The total market will grow to $2.1 billion by 2018, representing a compound
annual growth rate of almost 7 percent.
• RSA remains the largest vendor in the market, with about one-fifth of the
market revenue. This is down from 2010 when RSA had approximately
one-quarter of the market revenue. The decline is market revenue is less
about RSA’s performance and more about a growing market for new
authentication methods.
Source: Frost & Sullivan analysis.
Drivers and Restraints
Strong Authentication Market: Key Market Drivers and Restraints, Global, 2013–2018
Large Installed base of existing solutionsH H M
Resistance to change within the security communityH M L
Mature strong authentication methods are expensive and
inconvenientM M L
Vendors communicate in terms of features rather than
quantifiable benefitsL L L
1–2 years 3–4 years 5–6 years
Movement to cloud-based servicesH H H
Single, federated sign-on to SaaS appsM H H
Growth of the threat landscapeM H H
Open Standards ApproachesL M H
Compliance mandates strong authentication L L M
Impact: H High M Medium L LowNote: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan analysis.
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Executive Summary—CEO’s Perspective
2The authentication form factor used should be determined by types of authentication needs.
3There are a number of emerging alternatives to hardware OTP. Security professionals should apply an open mind.
4
Authentication methods should be viewed as a method to manage risk. Companies need multiple methods of authentication to properly match the strength/convenience of the authentication method to the level of risk to be managed.
1
According to the 2012 Verizon Breach Investigation Report1, weak or stolen login credentials were a factor in over 76 percent of the breaches analyzed.
Source: Frost & Sullivan analysis.1-To download this study, go to: http://www.verizonenterprise.com/resources/reports/rp_data-breach-investigations-report-2012_en_xg.pdf
Details of the Full Analysis
Contents
Section Slide Number
Executive Summary 5
Market Overview 11
Total Market -
• External Challenges: Drivers and Restraints 32
• Forecasts and Trends 47
• Market Share and Competitive Analysis 59
• Innovations for Stronger Authentication 69
The Last Word (Conclusions and Implications) 83
Select Company Profiles 92
Appendix 109
List of Exhibits
Figure Slide Number
Total OTP Market: Distribution Channel Analysis, Global, 2013 32
Strong Authentication Market: Key Market Drivers and Restraints, Global, 2013–2018 35
Importance of Features in Decision to Choose/Consider Cloud Software Service Providers 37
Strong Authentication Market: Revenue Forecast, Global, 2010–2018 50
Strong Authentication Market: Revenue Forecast, Global, 2010–2018 51
Total OTP Market: Prices of OTP Product Per User, Global, 2011, 2013, 2015 55
Total Strong Authentication Market: Revenue Forecast by Vertical Market, Global, 2010-2018 56
Percent of Revenue, Total Strong Authentication: Global, 2013 60
Percent of Revenue, Total Strong Authentication: Global, 2010 & 2013 62
List of Exhibits
Figure Slide Number
Agnitio Strong Authentication Revenue 2009-2013 94
Entrust Authentication Revenue 2009-2013 95
Gemalto Authentication Revenue 2009-2013 96
Giesecke & Devrient Authentication Revenue 2009-2013 97
HID Global Authentication Revenue 2009-2013 98
Hitachi Authentication Revenue 2009-2013 99
IBM ZTIC Authentication Revenue 2009-2013 100
ID Control Authentication Revenue 2009-2013 101
KOBIL Systems Authentication Revenue 2009-2013 102
List of Exhibits
Figure Slide Number
NEC Authentication Revenue 2009-2013 103
Nuance Communications Authentication Revenue 2009-2013 104
PhoneFactor Authentication Revenue 2009-2013 105
RSA Authentication Revenue 2009-2013 106
SafeNet Authentication Revenue 2009-2013 107
SecureAuth Authentication Revenue 2009-2013 108
SyferLock Authentication Revenue 2009-2013 109
Symantec Authentication Revenue 2009-2013 110
VASCO Authentication Revenue 2009-2013 111
Yubico Authentication Revenue 2009-2013 112
Market Overview—Key Questions This Study Will
Answer
What is strong authentication and why is it needed?
What are the predominant methods of strong authentication?
How will the structure of the market change with time?
What is the future of the hardware token?
What is the market size for strong authentication from 2010 to 2018?
What is the strong authentication revenue for the leading vendors by hardware token, software token, USB key, and biometrics?
Source: Frost & Sullivan analysis.
Partial List of Companies Interviewed
1. Agnitio
2. Authen2cate
3. Comodo
4. Duo Security
5. Entrust
6. FIDO Alliance
7. Giesecke & Devrient
8. GlobalSign
9. HID Global (ActivID)
10. IBM
11. ID Control
12.Lieberman Software
13.mBlox
14.Nok Nok Lads
15.Nuance
16.NXP
17.RSA
18.SafeNet
19.Scio Security
20.SecureAuth
21.SecurEnvoy
22.Swivel Secure
23.Symantec
24.SyferLock
25.TeleSign
26.TextPower
27.VASCO
28.Verizon
29.Yubico
Source: Frost & Sullivan research.
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Research Authors
Lead Analyst:
Frank DicksonIndustry PrincipalNetwork SecurityFrost & Sullivan
Contributing Analyst:
Chris RodriguezSenior Industry
AnalystNetwork SecurityFrost & Sullivan
Research Director:
Michael SubyVice President of
ResearchStratecast | Frost &
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