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Follow UsLONDON, UK: Goode Intelligence, a specialist provider of information security and mobile commerce research and analysis, has issued a report revealing that the market for mobile phone-based authentication products and services is set to grow significantly over the next five years especially in North American markets.
Goode Intelligence forecasts that for North America, mobile phone-based authentication products and services will generate just over $48 million in 2010 and that the market will grow to $142 million in revenue by 2014; an increase of $94 million and a compound annual growth rate (CAGR) of 24 percent.
The report, 'The Mobile Phone As An Authentication Device – Analysis and Forecasts 2010 – 2014', shows that the key drivers behind this market growth and the adoption of mobile authentication include:
Increased employee mobility which requires secure access to company networks remotely.
An ongoing need to reduce operational costs in organisations.
The requirement to reduce fraud from identity theft and unauthorised access for eCommerce services.
An increase in eHealthcare and eGovernment services that require a stronger level of authentication than simply a password.
Industry and government regulation including PCI DSS for credit card processing, FFIEC for US financial services and HIPPA for US healthcare.
The move to cloud services that require more agile and scalable authentication services.
GI is a Goode Media Ltd company.
Alan Goode, report author, and founder of Goode Intelligence, stated that “North America is currently an active market for mobile phone authentication products and services with many vendors competing in what is becoming a very competitive and fast moving market.”
Goode continued “The start-up single-play mobile phone authentication vendors such as Anakam and PhoneFactor have started to erode market share from the traditional authentication vendors, both software and hardware. However, the likes of RSA, ActivIdentity, VASCO and Entrust are beginning to market their own mobile products and services and it will be interesting to see if their brands and products are strong, and distinct, enough to compete with the new players.”
Other findings from the report:
The growing adoption of smartphones by corporate and personal users will drive the market for soft-token One Time Password (OTP) deployments.
SMS OTP products and services will be the fastest growing area for mobile phone authentication in the next one to two years and will be aided by mobile carriers changing their SMS tariffs to reduce cost of receiving SMS text messages.
The total number of mobile OTP users (both SMS OTP and Soft-token OTP), as a percentage of the total OTP market (both hardware token and software) will increase from 12 percent of the market in 2010 to 61 percent of the market in 2014.
By 2014, almost 114 million unique users globally will generate nearly $760 million in revenue for technology vendors involved in products and services that enable the mobile phone to become an authentication device.