This publication has been discontinued on July 19, 2011.
Abstract
Call for Reliable and Cost Effective Identity Verification Solutions Boost Hardware
Authentication Devices Sales
Globally, the consumer identity segment remains the most promising, and yet, the least utilized
area in the hardware authentication devices markets. Increased online activity has brought concerns
over passwords, digital identity, and authentication to the forefront, thus creating demand for a
viable solution. Technologies and products that can address the needs of this segment in terms of
cost, manageability, deployment mechanisms, and privacy concerns are expected to be in huge demand.
Market participants can take advantage of this opportunity by developing reliable and cost-effective
systems to boost sales.
This Frost & Sullivan research service analyses the global hardware authentication devices
markets, segmenting it into one time password generating tokens (OTPs) and universal serial bus (USB)
keys along with server seats and associated software. It discusses the various trends and
opportunities while providing market share analysis, forecasts, drivers, restraints, and revenues.
The study enables companies to align their positioning strategies to benefit from the changing
environment and obtain maximum return on investment.
Regulation Compliance Force Corporate Governance Involvement in Information Security
As computer networks store increasing volumes of sensitive data, strict regulations are ensuring
that information security is now a corporate governance responsibility and involves the active
engagement of the CEOs and boards of directors. The Sarbanes-Oxley Act, Health Insurance Portability
and Accountability Act (HIPAA), Gramm-Leach-Bliley Act (GLBA), California Senate Bill 1386,
Government Information Security Reform Act (GISRA) and the Patriot Act make sure that stronger
authentication is becoming the de facto standard. As a result, hardware authentication devices
markets are witnessing rising opportunities to offer corporate customers a new line of comprehensive
security management solutions for identity confirmation.
Businesses are shunning weak passwords that result in repeated security breaches and are opting
for hardware authentication devices that can be electronically verified, and are resistant to
tampering. The security management solutions provide a two-factor authentication -- users merely
have to plug the device into the standard USB port on the computer and enter their pin code.
"The technologies utilize the users personal security devices such as a smart card along with
the persons knowledge through a pin code," says the analyst of this research service.
"End users quickly embrace these technologies due to their ease-of use and the availability to
real-time remote access, resulting in increased sales."
Rising Identity Theft and Phishing Attacks Projected to Raise Investment in Authentication
Systems
Businesses are sustaining heavy losses and serious damage to reputation because of fraudulent
transactions perpetuated by online imposters. "Identity theft and phishing attacks are taking a
toll on consumer confidence and slowing down the adoption of online commerce and e-business,"
notes the analyst. In this situation, the corporate management is forced to assure secure
remote-access connectivity to a diverse mix of users. These include distant employees who need
access to the same applications and resources as their corporate-based counterparts as well as
customers, partners, and contractors who require connectivity to select applications.
Hardware authentication devices are increasingly seen as one of the best ways to combat these
problems and provide a secure means for businesses to verify consumers. By this, business partners
are likely to be able to securely automate trade processes and supply chains over the internet to
increase productivity. Consumers can also ascertain the identity of the online host systems before
undertaking e-transactions.
Table of Contents
- 1. Executive Summary
- 2. Total Hardware Authentication Devices Market
- 1. Market Overview and Drivers & Restraints
- 1. Market Overview and Definitions
- 2. Market Drivers
- a. The Weakness of Passwords
- b. Security Best Practices Mandate Need for Strong Authentication
- c. Costs of Supporting Passwords
- d. Regulatory Compliance and the Need for Sound Corporate Governance drives Budgets for Strong
Authentication
- e. Need to Authenticate and Secure Remote Access Users
- f. Identity Theft and Phishing Attacks Increase Need to Protect Consumer Identity and Manage
Risks Due to Online Fraud
- g. Growing Awareness of the Need to Combat Internal Security Threats
- h. Need to Combat the Problem of Credential Proliferation
- i. Digital Signature Laws and PKI
- j. Deployment of New Technology Standards Leads to Renewed Demand for Technology Upgrades
- k. Need to Consolidate Security Investment
- l. Tokens Improve Security Consciousness amongst Network Users
- m.Ease of Use of Tokens Leads to Acceptance of the Technology
- 3. Market Restraints
- a. Complexities of Integration with IT Infrastructure
- b. Slow Acceptance of PKI
- c. High Cost of Hardware and Software for Large-scale Deployments
- d. Market is Confused about the Best Form Factor Solution for Authentication
- e. Lack of Native Support for USB Interface and Smart Card Readers
- f. Lack of Multi-Vendor, Multi-Device Interoperability means Taking the Risk of Vendor Lock-in
- g. Tokens Cannot Provide Transactional Security on Their Own
- h. Competition for Funds from the IT Security Budget
- i. Complacency about Security
- j. Proliferation of Standards
- 4. Market Challenges
- 2. Revenue Forecasts and Trends
- 1. Market Engineering Measurements
- 2. Total World Hardware Authentication Devices Market
- 3. One-time Password Generating Tokens Market
- 4. USB Authentication Tokens Market
- 5. Impact of Smart Cards in the Hardware Authentication Devices Market
- 3. Market Trends
- 1. Application Trends
- 2. Vertical Market Trends
- 3. Trends by Geographic Regions
- 4. Distribution Channel Trends
- 5. Pricing Trends
- 4. Technology Trends
- 1. Form Factors
- 2. Authentication Methods
- 3. Standards Support and Encryption Algorithms
- 4. Managed Authentication Services
- 5. VeriSigns Unified Authentication Platform
- 5. Legislative Trends
- 1. Health Insurance Portability and Accountability Act
- 2. Gramm-Leach-Bliley Act
- 3. Government Information Security Reform Act
- 4. Computer Security Enhancement Act of 2001
- 5. Californias Information Practices Act (Senate Bill 1386)
- 6. The PATRIOT Act
- 7. Sarbanes-Oxley Act
- 8. Homeland Security Presidential Directive 12
- 9. European Legislation -- Data Privacy Regulations
- 10. FDA Title 21 Code of Federal Regulations (21 CFR Part 11) Electronic Records; Electronic
Signatures
- 11. Basel II Norms
- 6. Certification Trends
- 1. Federal Information Processing Standard (FIPS) 140-2
- 2. Common Criteria
- 3. Federal Information Processing Standard (FIPS) 201
- 4. ISO 7816 Smart Card Standard and the ISO/IEC 7810
- 5. U.S. Government Smart Card Interoperability Specification Version 2.1
- 7. Product Analysis
- 8. Competitive Analysis
- 1. Competitive Structure
- 2. One-Time Password Generating Tokens Segment Market Share Analysis
- 3. USB Authentication Tokens Segment Market Share Analysis
- 4. One-Time Password Generating Tokens Segment Competitive Analysis
- 5. USB Authentication Tokens Segment Competitive Analysis
- 9. Frost & Sullivan Awards
- 1. Frost & Sullivan Award for Market Leadership
- 2. Frost & Sullivan Award for Product Innovation
- 3. Frost & Sullivan Award for Vertical Market Penetration Leadership
- 4. Frost & Sullivan Award for Product Line Strategy
List Of Figures
Chapter 1
- Total World Hardware Authentication Devices Market: Revenue Forecasts (World), 2001-2011
Chapter 2
- Total Hardware Authentication Devices Market: Market Drivers Ranked in Order of Impact (World),
2005-2011
- Total Hardware Authentication Devices Market: Market Restraints Ranked in Order of Impact
(World), 2005-2011
- Total World Hardware Authentication Devices Market: Revenue Forecasts (World), 2001-2011
- Total World Hardware Authentication Devices Market: Percent of Revenues by Product Segment
(World), 2001-2011
- One-time Password Generating Tokens Market: Revenue Forecasts (World), 2001-2011
- USB Authentication Tokens Market: Revenue Forecasts (World), 2001-2011
- Total Hardware Authentication Devices Market: Database of Key Industry Participants by Segment
Type (World), 2004
- Total Hardware Authentication Devices: Products Offered by Major Market Participants (World),
2004
- Total Hardware Authentication Devices: Client, Middleware and Authentication Server Products
Offered by Major Market Participants (World), 2004
- Total Hardware Authentication Devices Market: Competitive Structure (World), 2004
- Total Hardware Authentication Devices Market: Market Share Analysis (World), 2002-2004
- One-time Password Generating Tokens Market: Market Share Analysis (World), 2002-2004
- USB Authentication Tokens Market: Market Share Analysis (World), 2002-2004
List of Charts:
Chapter2
- Total World Hardware Authentication Devices Market: Market Engineering Measurements (World.),
2004
- Total World Hardware Authentication Devices Market: Percent of Revenues by Product Segment
(World), 2001-2011
- One-time Password Generating Tokens Market: Revenue Forecasts (World), 2001-2011
- USB Authentication Tokens Market: Revenue Forecasts (World), 2001-2011
- Total Hardware Authentication Devices Market including Smart Cards: Percent of Revenues by
Product Segment (World), 2004 and 2011
- Total World Hardware Authentication Devices Market: Percent of Revenues by Vertical Market
(World), 2004
- Total World Hardware Authentication Devices Market: Percent of Revenues by Geographic Regions
(World), 2004
- Total World Hardware Authentication Devices Market: Percent of Revenues by Channel (World), 2004
- Total World Hardware Authentication Devices Market: Pricing by Product Segment (World), 2004
- Total World Hardware Authentication Devices Market: OTP Segment Competitive Landscape (World),
2004
- Total World Hardware Authentication Devices Market: USB Segment Competitive Landscape (World),
2004
