Passive Authentication Market Trends

Introduction

Passive Authentication is experiencing a period of great change as we enter 2024, caused by a confluence of macro-factors. In particular, technological developments in the fields of artificial intelligence and machine learning are enhancing the capabilities of passive authenticators, enabling them to provide more seamless and secure user experiences. Similarly, the regulatory requirements for data privacy and security are driving organizations to adopt more robust methods of passive authentication, which will ensure compliance and protect sensitive information. And finally, the changing expectations of consumers, who are demanding a frictionless access to services and are more aware of the dangers of cybercrime, are driving businesses to prioritise passive solutions. These trends are strategically important for all market participants, as they not only determine their competitive positioning but also determine the future landscape of identity management and security.

Top Trends

1. Increased Adoption of Biometric Authentication
   Biometrics are growing in popularity, with seventy percent of organisations planning to use them by 2025. Biometrics are being integrated into border control systems in the UK and other countries, to enhance security. Fraud is expected to decline as a result of this trend, because biometric data is much harder to duplicate. As technology improves, the accuracy and speed of biometrics will improve, further increasing their use.
2. Integration of AI and Machine Learning
   Artificial intelligence and machine learning are increasingly being used in passive authentication, with some 60 per cent of companies already using these methods to analyze users’ behaviour. In the case of IBM, the use of the super-computing system, Watson, is an example of this. The integration of such a system into the security system enables real-time threat detection and thus faster response times to potential attacks. In the future, it is expected that more sophisticated learning systems will be developed which can adapt to new threats and thus increase the overall level of security.
3. Rise of Zero Trust Security Models
   By 2024, zero-trust will have become the standard for enterprise security. The principle of “never trust, always verify” will have become a guiding principle for companies like Microsoft. Security will have improved because the risk of unauthorized access will have been reduced by continuous verification. Granular access control will have been implemented, which will have consolidated zero-trust.
4. Regulatory Compliance Driving Innovation
   Regulations like the GDPR and the CCPA are pushing companies to strengthen their authentication procedures, and 75% of companies are prioritizing compliance. A strong desire to avoid fines has led to innovations in passive authentication. For example, Symantec has developed solutions that are compliant with these regulations. As regulations change, companies must keep their authentication strategy in constant flux.
5. Enhanced User Experience Focus
   Streamlining the identity process is a priority for 65% of companies. Okta has developed solutions that combine security and ease of use. Its UX focus should reduce friction in the sign-in process, thereby increasing customer satisfaction and retention. Future developments may include a more intuitive user experience and the seamless integration of multi-factor authentication.
6. Cloud-Based Authentication Solutions
   The shift to cloud-based solutions is speeding up. Already 72% of companies have moved their identity verification to the cloud. Solution suppliers like Auth0 offer scalability and enhanced security and availability. The cloud reduces the costs of the in-house system while increasing security. Cloud technology is constantly improving, so we may see more and more advanced features being added to these solutions.
7. Collaboration Among Industry Leaders
   The FIDO Alliance is a consortium of the most important players in the field of strong authentication, which promotes the standardization of the technology. This cooperation is essential to creating interoperable solutions that increase security on all platforms. More and more companies will join this work, and the more unified the approach to authentication will become. And new standards will be developed in the future that will increase security even more.
8. Increased Focus on Privacy and Data Protection
   The prevailing concern of the public is to have their privacy preserved. In this respect, the demand for a system of identification that safeguards the data of the individual is paramount. Companies like the Thales group are responding by enhancing their encryption and data security features. These efforts are expected to enhance the confidence and loyalty of consumers. In the future, the process of identification could be augmented by even more effective privacy protections.
9. Adoption of Behavioral Biometrics
   The next big thing is behavioural biometrics, which 55% of organisations are already looking into. This technology monitors users’ behaviour in order to detect anomalies, and increases security without compromising the user experience. Companies such as Duo Security are pioneering this technology. When behavioural biometrics is perfected, it will be rolled out across many sectors, and will further strengthen the authentication process.
10. Mobile Authentication Solutions on the Rise
    The number of users of mobile phone-based verification is growing, with 78% of users preferring the convenience of mobile phone-based solutions. Leaders in the field are developing applications that allow secure access via mobile devices. This trend is expected to increase customer engagement and improve the efficiency of the verification process. Future developments may include more sophisticated mobile security features, such as integrated biometrics.

Conclusion: Navigating the Passive Authentication Landscape

Passive authentication is characterized by a high degree of competition and a high degree of fragmentation. Both old and new players compete in this market. Especially in the APAC region, the trend towards artificial intelligence-driven and automation-based solutions is increasing. The vendors want to provide better user experience and at the same time ensure high security. In order to differentiate themselves, the old players use their established reputation and their established technology platforms, while the new entrants focus on innovation, such as scalability and flexibility. This trend towards automation and artificial intelligence is expected to continue and the vendors who want to remain at the top will have to integrate these advanced technologies. The decision-makers must therefore put their efforts in these areas and make targeted investments and alliances in order to stay ahead of the rapidly changing market.