The research study covers the present scenario and growth prospects of the global two-factor biometrics market for 2016-2020. To calculate the market size, the report considers revenue generated from the sales of two-factor biometric products and services.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global two-factor biometrics market:
- Increasing use of mobile devices
- Growing number of online transactions
- Increasing security threats
- Growing demand in BFSI sector
Increasing use of mobile devices
With the growing need for uninterrupted connectivity with corporate networks, employees are using their personal portable devices such as smartphones, tablets, and laptops to gain access to confidential information. The rise in employee mobility is also leading to the use of mobile devices to access company systems. The increased use of mobile devices to access critical information has created a greater need for security solutions. “As these mobile devices are generally not secure, it is easy for hackers to gain unauthorized access to corporate networks through these devices. This may lead to fraudulent activities and misuse of critical corporate and business data. So, enterprises are increasingly adopting two-factor biometrics to secure their networks from growing security threats while providing their employees with secure access to their systems,” says Amrita Choudhury, a lead analyst at Technavio, specializing in research on automatic identification system.
Growing number of online transactions
Consumers are becoming increasingly dependent on the internet for financial transactions as it is convenient. Internet-based financial transactions are vulnerable to cyber-attacks and security threats. The volume of cyber-attacks is increasing in line with the rising number of online transactions, especially in sectors such as BFSI, PCI, healthcare, and retail. “To make online transactions more secure, organizations are using hardware OTP token authentication methods. The increasing number of online transactions is likely to fuel the growth of the global two-factor biometrics market during the forecast period,” says Amrita.
Increasing security threats
A major factor that is contributing to the growth of the market is the increasing instances of business information theft and insider fraud. Cyber-attacks are becoming increasingly advanced and sophisticated. With rapid changes in IT infrastructure, attackers have found new methods of stealing valuable information and disrupting businesses. Rising dependency on websites and web applications for transactions and purchases is resulting in an increase in cases of theft of credentials. Technavio predicts that 65%-70% of cyber-attacks are insider fraud or security breaches. These cyber-attacks compel organizations to adopt two-factor biometrics to enhance the security of confidential data and databases.
Growing demand in BFSI sector
Online banking is gaining significant acceptance among users for checking the bank balance, requesting for bank statements and checkbooks, and upgrading debit cards among others. According to Technavio researchers, 65% of the total cases of fraud faced by banks in 2015 were technology-related. These fraudulent activities are committed through internet banking channels, ATMs, and payment channels such as credit/debit/prepaid cards. Adoption of new technologies is making financial institutions more vulnerable to security risks such as identity theft, phishing, card skimming, and cyber stalking. Rising online transactions are leading to an increase in card-related fraud attempts and insurance claim fraud. These factors drive the demand for two-factor biometrics in the BFSI sector.
Browse Related Reports:
- Global Multi-factor Authentication Market 2016-2020
- Biometrics Market in BRIC Countries 2015-2019
- Global Mobile Payment Security Software Market 2016-2020
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