Passive Authentication Market Size, Share, Opportunities, And Trends By Deployment Model (On-Premise, Cloud), By Offering (Software, Services), By Enterprise Size (Small, Medium, Large), By End-User Industry (Government, BFSI, Media And Entertainment, Education, Communication And Technology, Others) And By Geography - Forecasts From 2024 To 2029

The passive authentication market is expected to grow at a compound annual growth rate of 23.14% over the forecast period, reaching a market size of US$3,291.932 million in 2029 from US$766.798 million in 2022. 

Passive Authentication is an advanced form of authentication under which the user's identification is confirmed without the requirement of any additional specific actions for authentication. It is an advancement over the traditional password system. The primary factors driving the market growth are increasing cyber threats, cybercrime, and growing technology penetration globally. The validation of passive authentication systems has been limited to simple devices, potentially limiting the market.

A passive authentication system is a technologically advanced alternative to password protection systems. The problem with the latter system is that creating and then remembering a long, strong, and complex password for greater security can sometimes get in the way of work, especially in an emergency. On the contrary, short and simple passwords are weak and insecure due to their ease of cracking, making the overall password protection system inefficient.

Additional layers of authentication, such as a passcode or a one-time password, provide greater security but extend the operation time. In contrast, passive authentication is stronger and doesn't require additional security layers. Passive biometric authentication systems are expected to grow faster than password protection systems due to their increased security features.

Passive Authentication Market Driver:

• Rising cybercrime is predicted to support the global market growth of passive authentication.

The rise in cybercrime and associated crimes is a significant driver of the passive authentication market's expansion. In this digital era, most operations have turned to the online channel for better performance. Online channels have expanded the customer base in various industries, including grocery, clothing, and accessories shopping, banking, and financial services.

However, data has been transferred to online channels along with these businesses. Hackers and other criminals are monitoring sensitive customer information, hoping to make money from it. Hackers steal and utilize personal information, including name, phone number, bank account information, and more, for their gain.

• Increasing utilization in the BFSI sector will boost the passive authentication market.

The growing popularity of online banking and financial activities, which are vulnerable to fraud and theft, is expected to propel the BFSI sector to the forefront of the passive authentication market during the projected time. Bank of America reported a data breach affecting 57,000 customers and their personal information following a third-party vendor Infosys McCamish Systems hack in November 2023, which affected insurance process management services. Increasing cases of data breach, hacking, robbery, and theft are creating demand for secure authentication systems, driving the market for passive authentication.

• Increasing Small and Medium Firms will provide huge market growth prospects.

The need for passive authentication solutions for safe company operations will increase dramatically as small and medium-sized businesses proliferate. The Cloud model of passive authentication will show a robust growth prospectus due to its rising adoption, especially in small and medium enterprises. As per Eurostat data, in 2023, 59% of medium-sized enterprises purchased cloud computing services, up from 53% in 2021, while small businesses' share increased by 37.9 percentage points to 41.7%.

Additionally, the passive authentication market offers authentication software and authentication services. Authentication software is expected to grow exponentially owing to the increasing installation of this software in BFSl sectors as well as other sectors like government and education.

Passive Authentication Market Geographical Outlook

• The North American region holds a significant share of the passive authentication market.

The North American region is anticipated to dominate the passive authentication industry due to its state-of-the-art infrastructure and early technological adoption. Rising internet penetration, introduction of advanced products, and growing customer education will boost regional market growth.

For instance, in April 2022, P Pindrop Security, an American company that offers risk scoring for phone calls to detect fraud and authenticate callers, expanded its VeriCall® API platform to include new fraud-risk scoring based on the Pindrop Intelligence Network (PIN). The new embedded PIN™ Score enhanced VeriCall® Technology by providing passive authentication capabilities and actionable intelligence to detect high-risk callers. Pindrop's technology matched call scrutiny with caller risk profiles, allowing customers to provide secure, passive authentication to over 90% of callers.

Further, in September 2023, ID R&D, a company based in New York, introduced frictionless voice biometrics for ChatGPT, securing access by integrating with ChatGPT voice controls. The technology uses speaker verification and liveness detection to authenticate users' speech, convert it into text, and enter it as chat text in the ChatGPT mobile app.

Passive Authentication Market Key Development:

• August 2023 – ID R&D, a global leader in AI-based voice biometrics, won the 2023 VoxCeleb Speaker Recognition Challenge, showcasing the strength of voice biometrics for frictionless security. The award-winning IDVoice product, which uses passphrases for authentication, is particularly useful for securing conversations with AI-powered chatbots, highlighting the utility of voice biometrics.
• November 2022- NEC launched a multimodal biometric authentication solution featuring the world's No.1 face and iris recognition. This is the first to combine NEC's face and iris recognition, both recognized by the US National Institute of Standards and Technology. The solution was launched in Japan and released globally in spring 2023.
• May 2022- LexisNexis Risk Solutions acquired BehavioSec, an innovative behavioral biometrics technology provider. BehavioSec uses behavior analysis for continuous authentication to establish identity trust and prevent fraud. The acquisition enhanced LexisNexis' device and digital identity-focused offerings, such as LexisNexis® ThreatMetrix®. The acquisition complemented LexisNexis' existing digital identity detection and authentication capabilities, as behavioral biometrics are crucial for passive detection and authentication in digital channels.
• January 2022- Nuance Communications, an American MNC, was named the market leader in Opus Research's 2022 Intelligent Authentication and Fraud Prevention Report. The company's cloud-native biometric security solution, Nuance Gatekeeper, was praised for its product completeness and flexibility, ranking highest among the 21 vendors evaluated in the report.  

Passive Authentication Market Players and Products:

• Ear Acoustic Authentication - NEC Corporation's technology uses ear acoustic authentication to identify a person by recognizing the echo of a sound sent through their ear canal. This near-instantaneous process ensures continuous authentication without the user's conscious awareness, preventing impersonation and detecting terrorists if the device is used.
• Cisco ISE Passive Identity Connector- The Cisco ISE Passive Identity Connector consolidates multiple authentication data sources into a single source of truth, simplifying the installation of Cisco security products and offloading work from key infrastructure. It listens to various network authentication servers and centralizes authentication information, becoming the single source of truth for subscribers. This approach simplifies the process of verifying user credentials and ensuring the security of network infrastructure.

 

• Tokenless Authenticators- Thales provides tokenless authentication solutions for security and convenience, including out-of-band or SMS, SafeNet MobilePASS+, software authentication, and GrIDsure. These solutions reduce administrative overhead, eliminate software installation and hardware distribution, and offer secure one-time passcode generation on mobile devices. Software authentication offers multi-factor authentication products, saving organizations on hardware and deployment costs. GrIDsure allows end-users to generate a one-time password without hardware tokens or software applications, using a matrix of random characters.

Market Segmentation:

The passive authentication market is segmented and analyzed as below:

• By Development Model
  • On-premise
  • Cloud
• By Offering 
  • Software
  • Services
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-User Industry
  • Government
  • BFSI
  • Media and Entertainment
  • Education
  • Communication and Technology
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • Spain
    • United Kingdom
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. PASSIVE AUTHENTICATION MARKET, BY DEVELOPMENT MODEL

5.1. Introduction

5.2. On-premise

5.2.1. Market Opportunities and Trends

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Cloud

5.3.1. Market Opportunities and Trends

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

6. PASSIVE AUTHENTICATION MARKET, BY OFFERING

6.1. Introduction

6.2. Software

6.2.1. Market Opportunities and Trends

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Service

6.3.1. Market Opportunities and Trends

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

7. PASSIVE AUTHENTICATION MARKET, BY ENTERPRISE SIZE

7.1. Introduction

7.2. Small

7.2.1. Market Opportunities and Trends

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Medium

7.3.1. Market Opportunities and Trends

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

7.4. Large

7.4.1. Market Opportunities and Trends

7.4.2. Growth Prospects

7.4.3. Geographic Lucrativeness

8. PASSIVE AUTHENTICATION MARKET, BY END-USER INDUSTRY

8.1. Introduction

8.2. Government

8.2.1. Market Opportunities and Trends

8.2.2. Growth Prospects

8.2.3. Geographic Lucrativeness

8.3. BFSI

8.3.1. Market Opportunities and Trends

8.3.2. Growth Prospects

8.3.3. Geographic Lucrativeness

8.4. Media and Entertainment

8.4.1. Market Opportunities and Trends

8.4.2. Growth Prospects

8.4.3. Geographic Lucrativeness

8.5. Education

8.5.1. Market Opportunities and Trends

8.5.2. Growth Prospects

8.5.3. Geographic Lucrativeness

8.6. Communication and Technology

8.6.1. Market Opportunities and Trends

8.6.2. Growth Prospects

8.6.3. Geographic Lucrativeness

8.7. Others

8.7.1. Market Opportunities and Trends

8.7.2. Growth Prospects

8.7.3. Geographic Lucrativeness

9. PASSIVE AUTHENTICATION MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Development Model

9.2.2. By Offering

9.2.3. By Enterprise Size

9.2.4. By End-User Industry

9.2.5. By Country

9.2.5.1. United States

9.2.5.1.1. Market Opportunities and Trends

9.2.5.1.2. Growth Prospects

9.2.5.2. Canada

9.2.5.2.1. Market Opportunities and Trends

9.2.5.2.2. Growth Prospects

9.2.5.3. Mexico

9.2.5.3.1. Market Opportunities and Trends

9.2.5.3.2. Growth Prospects

9.3. South America

9.3.1. By Development Model

9.3.2. By Offering

9.3.3. By Enterprise Size

9.3.4. By End-User Industry

9.3.5. By Country 

9.3.5.1. Brazil

9.3.5.1.1. Market Opportunities and Trends

9.3.5.1.2. Growth Prospects

9.3.5.2. Argentina

9.3.5.2.1. Market Opportunities and Trends

9.3.5.2.2. Growth Prospects

9.3.5.3. Others

9.3.5.3.1. Market Opportunities and Trends

9.3.5.3.2. Growth Prospects

9.4. Europe

9.4.1. By Development Model

9.4.2. By Offering

9.4.3. By Enterprise Size

9.4.4. By End-User Industry

9.4.5. By Country

9.4.5.1. Germany

9.4.5.1.1. Market Opportunities and Trends

9.4.5.1.2. Growth Prospects

9.4.5.2. France

9.4.5.2.1. Market Opportunities and Trends

9.4.5.2.2. Growth Prospects

9.4.5.3. Spain

9.4.5.3.1. Market Opportunities and Trends

9.4.5.3.2. Growth Prospects

9.4.5.4. United Kingdom

9.4.5.4.1. Market Opportunities and Trends

9.4.5.4.2. Growth Prospects

9.4.5.5. Others

9.4.5.5.1. Market Opportunities and Trends

9.4.5.5.2. Growth Prospects

9.5. Middle East and Africa

9.5.1. By Development Model

9.5.2. By Offering

9.5.3. By Enterprise Size

9.5.4. By End-User Industry

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.1.1. Market Opportunities and Trends

9.5.5.1.2. Growth Prospects

9.5.5.2. South Africa

9.5.5.2.1. Market Opportunities and Trends

9.5.5.2.2. Growth Prospects

9.5.5.3. Others

9.5.5.3.1. Market Opportunities and Trends

9.5.5.3.2. Growth Prospects

9.6. Asia Pacific

9.6.1. By Development Model

9.6.2. By Offering

9.6.3. By Enterprise Size

9.6.4. By End-User Industry

9.6.5. By Country

9.6.5.1. China 

9.6.5.1.1. Market Opportunities and Trends

9.6.5.1.2. Growth Prospects

9.6.5.2. Japan

9.6.5.2.1. Market Opportunities and Trends

9.6.5.2.2. Growth Prospects

9.6.5.3. India

9.6.5.3.1. Market Opportunities and Trends

9.6.5.3.2. Growth Prospects

9.6.5.4. South korea

9.6.5.4.1. Market Opportunities and Trends

9.6.5.4.2. Growth Prospects

9.6.5.5. Others

9.6.5.5.1. Market Opportunities and Trends

9.6.5.5.2. Growth Prospects

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. NEC Corporation

11.2. IBM

11.3. Cisco

11.4. Thales Group

11.5. Nuance Communications (Microsoft Corporation)

11.6. BehavioSec Inc. (LexisNexis Risk Solutions)

11.7. Pindrop

11.8. ID R&D Inc. (Mitek Systems)

NEC Corporation

IBM

Cisco

Thales Group

Nuance Communications (Microsoft Corporation)

BehavioSec Inc. (LexisNexis Risk Solutions)

Pindrop

ID R&D Inc. (Mitek Systems)