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The passive authentication market is undergoing significant growth, fueled by the increasing need for seamless and secure user authentication solutions. As of the latest market trends, passive authentication is gaining prominence as an effective method to enhance user experience while ensuring robust security measures. Unlike traditional authentication methods that rely on active user input, passive authentication operates in the background, continuously monitoring user behavior and device attributes to verify identity. This approach aligns with the growing demand for frictionless authentication experiences in various industries, including finance, healthcare, and e-commerce.
One notable trend shaping the passive authentication market is the adoption of biometric authentication methods. Biometrics, such as fingerprint recognition, facial recognition, and voice recognition, are being integrated into passive authentication systems to provide a more secure and user-friendly authentication process. The use of biometrics adds an extra layer of security by leveraging unique physical or behavioral traits, enhancing the accuracy and reliability of passive authentication.
The rise of mobile and digital channels is contributing significantly to the growth of passive authentication. With the increasing reliance on smartphones and online platforms, users expect authentication processes to be convenient and non-intrusive. Passive authentication aligns with this expectation by leveraging contextual information, such as device location, usage patterns, and biometric data, to continuously verify the user's identity without requiring explicit actions. This trend is particularly relevant in the mobile banking and fintech sectors, where secure yet user-friendly authentication methods are crucial.
Continuous authentication is emerging as a key trend in the passive authentication market. Traditional authentication methods often involve a one-time verification process, but continuous authentication monitors user behavior throughout the entire session. By continuously assessing factors such as typing patterns, mouse movements, and device interactions, passive authentication systems can detect anomalies or unauthorized access in real time. This proactive approach enhances security by adapting to changing user behavior and responding to potential threats promptly.
Machine learning and artificial intelligence (AI) are playing a pivotal role in advancing passive authentication capabilities. These technologies enable passive authentication systems to analyze vast amounts of data and identify subtle patterns that may indicate fraudulent activities. By leveraging machine learning algorithms, passive authentication becomes more adaptive and resilient to evolving cyber threats. This trend reflects a broader industry shift toward intelligent authentication solutions that can learn and improve over time, providing a more sophisticated defense against unauthorized access.
Additionally, the passive authentication market is witnessing increased attention from industries that prioritize customer experience. E-commerce platforms, in particular, are adopting passive authentication to strike a balance between security and user convenience. By reducing friction in the authentication process, passive authentication contributes to a smoother and more enjoyable online shopping experience, ultimately leading to increased customer satisfaction and loyalty.
The regulatory landscape is influencing the passive authentication market trends, with data protection and privacy regulations driving the adoption of advanced authentication methods. As governments worldwide implement stricter regulations to protect user data, businesses are compelled to implement robust authentication measures. Passive authentication, with its emphasis on continuous monitoring and biometric factors, aligns well with the security requirements outlined in regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Technological advancement in passive authentication techniques. |
| Market Dynamics | Increased demand for seamless authentication processes from enterprises throughout the sectors. |
Passive Authentication Market Highlights:
Passive Authentication Market Overview
Passive Authentication Market is projected to grow from USD 1.63 Billion in 2024 to USD 6.63 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.11% during the forecast period (2024 - 2032). Additionally, the market size for Passive Authentication was valued at USD 1.34 billion in 2023.
Increased demand for passive authentication in modern-day enterprises and demand for a seamless authentication process are the key market drivers enhancing the growth market.
Figure 1: Passive Authentication Market Size, 2024-2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Passive Authentication Market Trends
Growing demand for passive authentication among enterprises is driving market growth.
Market CAGR for passive authentication is being driven by the rising demand for passive authentication among enterprises. The growing demand for seamless authentication processes from enterprises throughout the sector for the enhanced user experience. The surging adoption of biometric technology for the authentication and detection of fraud. Artificial Intelligence and the Internet of Things is being implemented increasingly for authentication purpose, anticipated to boost the growth of passive authentication market.
Passive authentication techniques have enabled enterprises to expand their reach in current years by integrating new capabilities and offering new opportunities to their clients, one of which is offering easy-to-use authentication services. Passive authentication services are now easy to implement owing to the fast progress of the personal digital electronics technology business, allowing customers to carry a range of sensors and the resources in their pockets. This eventually simplifies and speeds up user authentication, boosting the passive authentication market globally. Passive authentication saves time for its user and the company by quickly verifying known users and customers using seamless data gathering and pattern recognition. These instruments determine writing patterns, walking habits, and other features. For instance, each person has distinct movement patterns; when integrated with Machine Learning, a clear and accurately identified a signature for that person is created; sensors on wearables, smartphones, and PDAs track the movement and walking patterns of users. These are then utilized to identify and authenticate the individual user, offering them seamless access to specific services like rapid monetary transactions and fast sign-on.
Passive authentication services are now easier to introduce and utilize due to the fast advancement of the personal digital electronics technology industry, allowing individuals to accommodate a variety of sensors and resources in their pockets. This hugely accelerates and simplifies user authentication and boosts the growth of the passive authentication market. Thus, driving the Passive Authentication market revenue.
However, there has been an increase in data privacy concerns among consumers in recent years due to the growth in cyberattacks and data theft globally, growing awareness about data theft and privacy, and growing concerns about the utilization of personal data. This data collection can lead ordinary users to become concerned about their data usage.
Passive Authentication Market Segment Insights
Passive Authentication Component Insights
The global Passive Authentication market segmentation, based on components, includes Solutions and Services. The solution segment dominates the market, accounting for the largest market revenue as these are integrated into different industry verticals like financial services and insurance, banking, telecom & IT communication, government, retail & consumer goods, health, and others. Passive authentication solutions allow retailers to securely certify their clients to safeguard their financials by taking advantage of human behavior factors with enhanced customer experience. Further, the rapid improvements in technology are making industries introduce novel solutions with integrated different ways for fraud prevention and identification, like facial and voice biometrics.
Figure 2: Passive Authentication Market, by Component, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Passive Authentication Function Insights
The global Passive Authentication market segmentation, based on function, includes Compliance Management, Marketing Management, Risk Management, and Others. The compliance management segment dominates the market and accounts for the largest market revenue in the forecast period. Current compliances need centralized coordination of various resources, projects, actions, and people. The information security and privacy compliance needs are important as they are anticipated to impact the business objectives, valuation model, and regulatory profile of the acquirers, mainly if the new acquisitions bring raised risk of information security or privacy-related liability. Further, the marketing management segment is expected to witness the second-largest growth in the market due to the rise in cyberattacks on marketing management.
Passive Authentication Regional Insights
By region, the study gives market insights into the North America, Europe, Asia-Pacific, and the Rest of the World. The North American Passive Authentication market dominates the market as the region is witnessing various startups related to the development of passive authentication technologies. The presence of marketing analytics tools, the presence of market players strongly established in the region, and the government, companies, and third-party administration initiatives are boosting the market growth in the North American region.
Further, the prime countries studied in the market report are the US, Canada, France, the UK, Italy, German, Spain, Japan, India, China, Australia, South Korea, and Brazil.
Figure 3: GLOBAL PASSIVE AUTHENTICATION MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Asia-Pacific Passive Authentication Market accounts for the second-largest market share due to the emerging several small and medium-sized enterprises in the emerging countries of this region. Moreover, China’s Passive Authentication market held the largest market share, and the Indian Passive Authentication market was the rapid-growing market in Asia-Pacific region.
Europe's Passive Authentication market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the increase in the prevalence of cybercrime and the increase in demand for data security in this region. Further, the German Passive Authentication market held the largest market share, and the UK Passive Authentication market was the fastest-growing market in European region.
Passive Authentication Key Market Participants & Competitive Insights
Leading market participants are investing hugely in research and development in order to spread their product lines, which will help the Passive Authentication market grow even more. Market players are also undertaking various strategic activities to spread their global footprint, with the important market developments inclusive of new product launches, mergers and acquisitions, higher investments, contractual agreements, and collaboration with the other organizations. To spread and survive in a more competitive and rising market climate, the Passive Authentication industry must provide cost-effective items.
Manufacturing locally in order to reduce operational costs is one of the key business tactics usitilized by manufacturers in the global Passive Authentication industry to benefit clients and raises the growth of market sector. In recent years, the Passive Authentication industry has offered some of the most significant advantages to several enterprises. Major players in the Passive Authentication market, including Fortress Identity, NEC Corporation, IBM Corporation, Thales Group, OneSpan Inc., Cisco Systems Inc., Nuance Communications Inc, BioCatch, NuData Security, Vasco Data Security International, and others, are trying to increase market demand by investing in research and development operations.
NEC Corporation, headquartered in Minato, Tokyo, is a Japanese multinational information technology and electronic corporation. The company offers IT solutions in manufacturing, services, and retail, and finance in the private section, assisting clients in launching new services. The company offers IT and network solutions, inclusive of artificial intelligence,Internet of Things platform, cloud computing, and telecommunications equipment and software to communication services, business enterprises providers to government agencies, and has been the largest PC vendor in Japan. In May 2020, the company launched NeoFace Thermal Express to offer touchless screening. The recent supplies combine personal protective equipment and elevated body temperature (EBT) detection, inclusive of masks and NeoFace biometrics on a scalable and the modular platform with thermal and video analytics.
Fortress Identity, a US-based company, is a developer of a multinational identification security platform intended to utilize multiple attributes in order to authenticate a user. The platform of the company offers businesses cost-effective, intuitive, biometric identity management technology with intuitive web and Blockchain mobile applications, allowing users to safeguard their privacy. In July 2020, the company upgraded its digital ID verification and biometric authentication-as-a-services with passive facial liveness. Liveness detection helps AI technology to show that a computer is communicating with a live human. The platform allows biometric facial recognition and the passive facial liveness to go with the user for the transaction authentication and determine that the user is alive without any particular movement.
Key Companies in Passive Authentication market include
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Fortress Identity
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Thales Group
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OneSpan Inc.
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Nuance Communications Inc
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BioCatch
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NuData Security
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Vasco Data Security International
Passive Authentication Industry Developments
In June 2022, Object Management Group (OMG) announced a consortium known as Responsible Computing (RC®), which is a coalition of technology innovators dedicated to addressing the sustainable development goals. The approach, responsible computing, is about taking a holistic view that ensures we deal with todays and tomorrow’s challenges in computing such as sustainability, ethics and professionalism but also given that technology should be thought of in terms of how it affects people and the planet.
Open-source hybrid cloud AI technologies from IBM and Red Hat will be part of its second mission; EnduroSat has announced this in May 2022.
Jumio based in the US introduced the passive liveness detection feature in March 2022. This advanced tech employs AI / facial biometrics based on which it detects & prevents spoofing attempts during the authentication process. The Passive Liveness Detection feature strengthens security measures in remote identity verification scenarios.
BioCatch, an Israeli behavioral biometrics firm declared a strategic partnership with Nuance Communications, an American conversational AI technology provider. The aim was to incorporate BioCatch’s passive biometric technology into Nuance Conversations’ voice as well as digital customer engagement platform, enhancing security and user authentication capabilities.
This solution incorporates behavioral metrics algorithms based on machine learning, making possible friction-less continuous user authentication while securing online transactional operations as well as digital interaction, said Gemalto NV, a Dutch cybersecurity company, when they launched their passive authenticator named Identity Check Passive Biometrics in November 2021
June 2020 - ID R&D made an announcement confirming that RelyComply had chosen their ISO/IEC 30107-3 compliant Passive Facial Liveness product known as IDLive Face for integration with RelyComply’s KYC (Know Your Customer) solution powered by Artificial Intelligence. It can detect spoofing attacks to verify new customers without adding any friction to the onboarding process.
May 2020 - NEC Corporation launched NeoFace Thermal Express for touchless screening. This latest offering combines personal protective equipment (PPE) with a respiratory rate measurement device elevated body temperature (EBT) detection, including face masks and NeoFace biometrics in a scalable, modular video analytics platform with thermal analysis.
Passive Authentication Market Segmentation
Passive Authentication Component Outlook
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Solution
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Service
Passive Authentication Function Outlook
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Compliance Management
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Marketing Management
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Risk Management
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Others
Passive Authentication Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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