Passive Authentication (PA) Services Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Offering (Solution, and Services), By Deployment Mode (Cloud-Based, and On-Premises), By Organization Size (SMEs, and Large Enterprises), By Application (Marketing Management, Risk Management, Compliance Management, and Others), By Industry Vertical (BFSI, Government, IT & Telecom, Retail, Healthcare, Media & Entertainment, and Others), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

Passive Authentication (PA) Services Market Size and Forecast 2024 to 2031

The Global Passive Authentication (PA) Services Market was valued at USD 1,744.6 Million in 2023 and is anticipated to reach a value of USD 9,483.0 Million by 2031 expanding at a CAGR of 23.6% between 2024 and 2031.

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Passive authentication (PA) services is a process of authentication in which the identity of user is verified without requiring them to take any specific actions for the purpose of authentication. A wide range of organizations use passive authentication to enhance the user experience. Passive authentication (PA) services incorporates various cutting-edge technologies to verify and identify users automatically, making authentication process more secure. Passive authentication enables users to quickly and seamlessly authenticate themselves online with public and private sector organizations. In today’s world, biometric verification technologies are increasingly being used to enable users with secure access to online services. Passive authentication (PA) services comes in several forms, from biometric authentication technology, to the user’s digital fingerprint. The market is influenced by factors such as rising incidences of cybersecurity threats, growing demand for enhanced user experience, rapid adoption of biometric technology, and growing need for frictionless authentication. Passive authentication (PA) services provide a secure, and robust authentication process with frictionless login experience.

Passive Authentication (PA) Services Market Major Driving Forces

Rising Incidences of Cybersecurity Threats: The rise in number of cyber-attacks including phishing, ransomware, data breaches, and malware are driving demand for authentication services. Businesses and organizations require seamless and effective authentication methods for continuous monitoring of users after login.

Growing Demand for Enhanced User Experience: The increasing demand for enhanced user experience is driving the adoption and growth of Passive Authentication (PA) Services in the market. Businesses and organizations prioritize a seamless and user-friendly authentication process for operating in the background and continuous monitoring user behavior and biometric patterns.  

Rapid Adoption of Biometric Technology: The rapid adoption of biometric technology for authentication and fraud detection is another factor that aiding the growth of the market. The growing replacement for traditional and outdated security methods such as password and security questions with the biometric technology which offer frictionless authentication drives market growth.  

Growing Need for Frictionless Authentication: The growing need for frictionless authentication among organizations is boosting the growth of passive authentication (PA) services market. By operating in the background, passive authentication (PA) services provides a frictionless login experience. 

Passive Authentication (PA) Services Market Key Opportunities

Demand for Multi-Factor Authentication Process: The significant rise in the demand for the multi-factor authentication process in an organization is expected to boost the growth of the global passive authentication services market during the forecast period. Multi-factor authentication offers enhanced control and security to assist organizations eliminate the need for password-based security way.  

Integration of AI and Machine Learning: The integration of artificial intelligence and machine learning into passive authentication (PA) services can enhance the efficiency and effectiveness of passive authentication systems. machine learning enables passive authentication systems to create adaptive user profiles by analyzing user behavior patterns. AI can continuously authenticate users, and can identify anomalies.

Shift Toward Passwordless Solutions: The growing shift towards passwordless authentication offers significant opportunities for market players. Moreover, integration of Passive Authentication (PA) Services with other authentication methods, such as biometrics, voice biometrics, will ensures that only authorized individuals gain access to systems and services, further enhancing security.  

Passive Authentication (PA) Services Market Key Trends

·         The adoption of behavioral biometrics is a major trend in the passive authentication (PA) services market

·         Integration of passive authentication with other authentication methods to create a multi-factor authentication approach is gaining traction

·         Growing incidents related of fraud, scams, and data breach attacks is one of the significant factor fueling the demand for passive authentication (PA) services

·         The integration of Passive Authentication into IoT devices for improving security and enhancing user experiences

·         Increased use of AI and machine learning for enhancing the efficiency and effectiveness of Passive Authentication systems

·         The ongoing trend of the adoption of collaboration tools is propelling the demand for passive authentication (PA) services in market

·         The growing need for frictionless authentication among organizations is boosting the growth of passive authentication (PA) services market

Region-wise Market Insights

North America accounted for the largest market share at 39.4% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 24.8% between 2024 and 2031.

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In North America, the demand is driven by the rising cybersecurity concerns, stringent data protection regulations, presence of prominent technology companies, and high adoption of advanced technology. Additionally, the development of frictionless authentication methods, large number of leading financial institutions, and e-commerce platforms also drives demand for passive authentication services. Europe is witnessing rapid growth in the passive authentication market, due to implementation of General Data Protection Regulation (GDPR) and growing focus on enhancing cybersecurity. In Asia-Pacific, the market is characterized by the growing incidences of cyber-attacks, rapid technological advancements, increasing internet penetration, rapid digitalization, and growing number of smartphone users which has created an increasing demand for passive authentication (PA) services. The Middle East and Africa has been witnessing a growing demand for passive authentication (PA) services driven by digital transformation whereas, in South America, the market is influenced by economic factors, with increasing adoption of digital technologies, increasing cybersecurity threats, and growth in e-commerce and digital payments.  

Market Competition Landscape

The global passive authentication (PA) services market is characterized by intense competition among a well-established and emerging vendors. Differentiation is a key strategy in the Passive Authentication Market, where prominent players are focusing on differentiate their solutions by offering unique features and advanced authentication methods. Key players in the passive authentication (PA) services market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, collaborations, partnerships, and the incorporation of emerging technologies such as AI and machine learning to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Key players in the global passive authentication (PA) services market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         IBM Corporation

·         Thales Group

·         Cisco Systems, Inc.

·         NEC Corporation

·         OneSpan, Inc.

·         FICO Company

·         Verint Systems, Inc.

·         Equifax, Inc.

·         BioCatch Ltd

·         Fortress Identity

·         Nuance Communications

·         Early Warning

·         Lexisnexis Risk Solutions

·         BehavioSec

·         Gemalto