Global Risk Based Authentication Market Size, Share & Trends Analysis Report, Forecast Period, 2024-2030

The Risk Based Authentication market is experiencing robust expansion, with market size projected to increase from XX billion in 2023 to xx billion by 2030, demonstrating a consistent year-over-year growth rate of 15.10%. Risk Based Authentication Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Cloud, On-premises), by applications (BFSI, IT & Telecommunication, Retail, Government, Healthcare, Others) And regions ({regionNms}) : Industry Forecast and Opportunity Analysis for 2023 - 2030

The global risk-based authentication market refers to the development, deployment, and usage of software solutions that are intended to measure and manage the risk associated with a user's authentication process. A risk-based authentication system exploits elements, including user behaviour, device information, as well as location data, to evaluate the likelihood of a fraudulent login attempt. These systems change the level of authentication based on the dynamic perceived risk. These are more secure and user-friendly in terms of authentication. The threats in the form of cyber-attacks have increased the requirement for robust security, and hence, this market for risk-based authentication is likely to expand because of factors including technological advancement and growing data breaches coupled with growing significance on data privacy and security.

Risk Based Authentication Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 15.10%
By Product Type	Cloud, On-premises
Key Market Players	Broadcom Inc. Centrify Equifax Inc. ForgeRock Gurucul HID Global (Assa Abloy AB) International Business Machines Corporation Micro Focus International plc Okta Inc. Oracle Corporation Secureauth Corporation TransUnion
By Region

Risk Based Authentication Market Trends

It has been observed that the risk-based authentication market is shifting very rapidly toward integration with advanced analytics and machine learning technologies. Organisations are increasingly embracing RBA solutions that use real-time data pertinent to user behaviour, device characteristics, and transaction contexts toward reviewing factors of user authentication requirements. Overall, it is this trend that allows businesses to dynamically adjust the "requirement" side of authentication based upon perceived risk levels while enhancing security without trampling over the usability criteria. With this rising complexity, cyber threats are at an all-time high, and along with it comes the need for intelligent RBA solutions that can recognise and mitigate risks in real time. Another dominant trend seen in the RBA market is regulatory compliance with data protection. Business houses today are very high on such regulations as GDPR and CCPA, particularly in ensuring secure access to sensitive information respecting legal requirements. Thus, regulatory compliance becomes a driver toward the implementation of RBA systems for protection of user identity and detailed audit trails and reporting capabilities.

Risk Based Authentication Market Leading Players

The key players profiled in the report are Broadcom Inc., Centrify, Equifax Inc., ForgeRock, Gurucul, HID Global (Assa Abloy AB), International Business Machines Corporation, Micro Focus International plc, Okta Inc., Oracle Corporation, Secureauth Corporation, TransUnion

Growth Accelerators

Growing frequencies and sophistication of cyberattacks increase demand for strong security measures across the board, across industries. Fraud and phishing/threat of credential theft and fraud continue growing, thus increasing demand for RBA solutions as a means of providing enhanced security without sacrificing user experience. The RBA dynamically evaluates the risk level of every attempt based on user behaviour, location, and device, among others. That would, therefore, enable firms to offer stronger protection against unauthorised access. The second major driver is that digital services and remote working are increasingly adopted, which expands the attack surface for cybercriminals. With companies switching to cloud-based applications and the number of people working remotely increasing, the need to have adaptive, context-aware security mechanisms, such as RBA, has increased. Even the regulatory compliance requirements of GDPR and CCPA compel companies to put stronger authentication methods in place, which fuels the demand for the RBA solutions across all sectors—from finance to healthcare and e-commerce.

Risk Based Authentication Market Segmentation analysis

The Global Risk Based Authentication is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Cloud, On-premises . The Application segment categorizes the market based on its usage such as BFSI, IT & Telecommunication, Retail, Government, Healthcare, Others. Geographically, the market is assessed across key Regions like {regionNms} and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The RBA market presents a very dynamic field with numerous players ranging from mainstream cybersecurity firms to identity management services to new businesses. For instance, large companies like IBM, Microsoft, and RSA Security are at the forefront of the market as they provide complete RBA solutions that leverage other innovative technologies like machine learning and behavioural analytics. These companies are majorly focused on improving users’ experiences without compromising security, hence offering businesses risk-based authentication solutions suitable for different levels of risk. In the RBA sector, the emergence of companies and startups is due to their provision of niche industry solutions. Such organizations usually focus on speed, flexibility, and ease of use, which is attractive to organizations that need cheaper and more flexible ways to authenticate users. Such partnerships and collaborations are predominant in this environment, as they enable companies to leverage each other’s strengths and increase their reach.

Challenges In Risk Based Authentication Market

The RBA market is a difficult one for user experience and convenience. Although the RBA does offer security through assessments of user behavioural factors and contextual factors and derivation of risk levels associated with a login request, it does at times introduce friction in the authentication process. The users often receive unnecessary requests for second-factor authentication, mainly when the access is valid. This sometimes can be annoying and even leads to abandonment of service usage. Probably the biggest problem with RBA is to find that sweet spot between enough security and keeping it as convenient as possible for the user. Another challenge that faces the RBA market is the continually changing threat landscape. Cybercriminals are always developing new sophisticated ways to attack traditional security systems; therefore, the adoption of new threats by RBA solutions has to be extremely quick. Organisations must invest in advanced analytics and machine learning algorithms to genuinely analyse risk signals and distinguish between genuine activity and malicious activity. All this, of course, calls for continuous investment in technology as well as specialists to keep a front-foot in control in every situation.

Risks & Prospects in Risk Based Authentication Market

The opportunities from the risk-based authentication market are gigantic because most of the organisations across the globe, such as finance, healthcare, and e-commerce, are now in need of strengthening security in the face of increased cyber threats and data breaches. Organisations are increasingly looking at risk-based authentication solutions to shield sensitive information while maintaining a smooth user experience. This approach helps businesses assess the level of risk of user transactions in real time and applies additional verification measures when necessary. A major market opportunity is rising mobile and online banking, accelerating the need for more secure and advanced kinds of authentications. For example, more and more individuals are accessing and making transactions through mobile applications or online systems, meaning that there is further demand for secure and user-friendly authentication solutions. Thereby, this really applies to emerging markets—mobile banking adoption is growing rapidly.

Key Target Audience

Major market target organisations in the risk-based authentication market comprise finance, healthcare, e-commerce, and telecom sectors, where security and user experience are highly valued in their online activities. Among such organisations, risk-based authentication solutions are gaining acceptance as a means of protecting sensitive information and ensuring a frictionless access process with no wear and tear from traditional authentication methods.,, The other significant market segment is technology providers and security solution vendors who are involved in developing and providing risk-based authentication tools. They specifically target those businesses that need to enhance their cyber security posture and become compatible with regulatory compliances. Such vendors enable organizations to proactively mitigate security threats with smarter analytics and synchronization with the existing systems. The evolution of cyber threats, along with stricter compliance regulations, is expected to drive this market forward by increasing demand for risk-based authentication solutions, and this audience will be critical for the growth of the market and innovation in the space.

Merger and acquisition

Some of the mergers and acquisitions in the risk-based authentication (RBA) market within the recent past illustrate the newfound focus on cybersecurity and fraud prevention. Corporations seek to build their capabilities by acquiring advanced technology and service lines. Several firms announced strategic acquisitions to strengthen authentication technologies and further expand their reach into key industries, such as banking, healthcare, and retail. These factors are mainly driven by the need to respond to an increasing threat to security and to provide a more seamless user experience. The risk-based authentication market is expected to witness high growth, which is projected to reach approximately $6.7 billion in 2029, as against $3.5 billion in 2022. This growth comes as a result of increased awareness on system security and the need for stronger measures in fraud prevention. Large players in the market are not only buying complementary technologies but are also coming into partnerships to create more holistic security solutions to better serve the needs of different industries with changing needs.