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Password token authentication market to increase at a CAGR of 9.12%

Press Release   •   Jul 02, 2013 12:19 BST

The password token authentication market has been forecast to increase at a compound annual growth rate (CAGR) of 9.12% through to 2016, driven by the increasing dependence on websites and web applications for transactions, and the emergence of a unified platform for various authentication solutions.

An authentication token may be a physical device that an authorised user of computer services is given to ease authentication. The term may also refer to software tokens.

Authentication tokens are used to prove one's identity electronically (as in the case of a customer trying to access their bank account). The token is used in addition to or in place of a password to prove that the customer is who they claim to be. The token acts like an electronic key to access something.

According to a new report titled 'Global Hardware One-Time Password Token Authentication Market 2012-2016', published on companiesandmarkets.com, one major factor driving growth within the market is the increased dependence on websites and web applications for transactions, which has led to numerous cyber-attacks. In the current scenario, financial companies are increasingly providing online facilities and features for their customers.

Hence, companies are empowering their customers with secure authentication solutions such as hardware OTP tokens that can provide a higher level of security than traditional single-factor authentication.

Despite the respective advantages and disadvantages of software and hardware authentication solutions, both segments are expected to coexist.

Some industries that are more cost-conscious will adopt software authentication solutions, whereas large enterprise with traditional setups will adopt hardware authentication solutions. Hence, vendors are introducing a unified platform that can provide both hardware and software authentication solutions.

The simplest vulnerability with any password container is theft or loss of the device. The chances of this happening, or happening unawares, can be reduced with physical security measures such as locks, electronic leash, or body sensor and alarm. Stolen tokens can be made useless by using two factor authentication. Commonly, in order to authenticate, a personal identification number (PIN) must be entered along with the information provided by the token the same time as the output of the token.

Key players currently dominating the password token authentication market include Gemalto N.V., RSA Security Inc., SafeNet Technology Ltd., and VASCO Data Security International Inc.

For more information on the password token authentication market, see the latest research: Password Token Authentication Market

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