The recent spate of legislative mandates pointing in the direction of adopting strong authentication with auditing capability as a best practice, has galvanized the hardware authentication devices market. Information security, often viewed as a set of technical issues, is now a corporate governance responsibility that involves risk management, reporting controls, testing and training, and executive accountability. This is making available budgets for hardware authentication device based solutions. Market participants are witnessing steady and ongoing opportunities to offer corporate customers a new line of comprehensive identity management solutions.
New analysis from Frost & Sullivan (internetsecurity.frost.com), World Hardware Authentication Devices Markets, reveals that revenues in this industry totaled $248.1 million in 2004 and can reach $1,171.2 million in 2011.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the World Hardware Authentication Devices Markets, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
Repeated security breaches on information networks, identity theft and phishing attacks have made enterprises and consumers conscious of the danger posed by weak and insecure static passwords. Consequently, they are more willing to invest in and employ cost-effective, reliable, and user-friendly hardware authentication devices that offer secure forms of identification and enhanced network security.
“Hardware authentication devices enhance network security by providing two-factor authentication. They serve as users’ digital identity organizer, managing their varied credentials whether they are encryption keys or passwords, on one device. This eliminates the need to remember several different passwords to access different resources in the network,” says Frost & Sullivan Research Analyst Zubin Baben. “End users will embrace security solutions that are easy to use.”
There are, however, certain constraints in adoption of this technology, like the challenge posed by the complexities in integrating the technologies with the existing infrastructure of the enterprises. Changes to legacy applications and workflow may be required during the integration. Moreover, the cost of large-scale deployment can be quite substantial, considering the high cost of the backend software, infrastructure, and services needed for large-scale installation of the devices. This is a constraint, especially in an environment where information technology (IT) budgets are shrinking.
The hardware authentication devices markets can meet this challenge by developing cost-effective technologies and products to boost sales. Market participants may need to convince enterprises that these technologies are worthwhile investments by making it possible to extend them to support wider applications such as physical security and employee self services.
“The enterprises are hoping for a comprehensive solution that will seamlessly integrate physical and logical authentication processes in a user-friendly manner while simultaneously performing a variety of operations such as payment and employee benefits,” notes Baben. “Delivering such a solution could boost acceptance of hardware authentication devices in the market.”
Vendor lock-in is a risk in this market as a large number of solutions in the market use proprietary standards. Since most of these solutions are not interoperable, they drastically reduce the options available to buyers. This is especially acute in the one time password generating tokens (OTPs) space, where in most cases enterprises have to buy an entire stack of products from the client side applications, middleware to back end authentication systems from a single vendor resulting in long-term vendor lock-in.
The consumer identity segment presents a signifcant emerging opportunity for the market in the future. But the industry needs to develop technologies and products that address the needs of the consumer identity space in terms of cost, manageability, deployment mechanisms, and privacy concerns so as to take advantage of the immense market opportunity.This is going to be a major area of focus for the hardware authenticaiton devices markets.
World Hardware Authentication Devices Markets is part of the Network Security subscription. The study analyses the world market for hardware authentication devices, segmenting it into OTPs and USB keys along with the server seats and associated software. It discusses the various trends and opportunities while providing market share analysis, forecasts, drivers, restraints, and revenues. Executive summaries and analyst interviews are available to the press.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
World Hardware Authentication Devices Markets
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Keywords in this release: Hardware authentication devices, two factor authentication, world, one time password generating tokens, OTPs, universal serial bus keys, USB, USB authentication