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Japan - multifactor authentication market size is projected to increase by USD 1,088.98 million, at a CAGR of 24.39% between 2023 and 2028. The growth rate of the market depends on several factors, including the emergence of cloud-based multifactor authentication solutions and services, the stringent government regulations to increase the adoption of multifactor authentication, and the increase in the volume of online transactions. Multifactor authentication solutions and services comprise biometrics and phone-based authentication solutions, making them the most secure authentication solutions in the market. Multifactor authentication is a security process that validates the user multiple times before allowing access to the data. It ensures that no security breach would affect the confidentiality of the data.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Component, which comprises service and product. Additionally, it categorizes Deployment into on premises and cloud, and covers Type, including password-based authentication and password-less authentication. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The emergence of cloud-based multifactor authentication solutions and services is the key factor driving market growth. The rise in maintenance costs for hardware and software-based two-factor and three-factor authentication models has aroused the interest of many companies in the adoption of cloud-based multifactor authentication solutions and services. Market players are integrating multifactor authentication techniques with the cloud due to the growing demand for cloud-based multifactor authentication. Companies prefer cloud-based multifactor authentication because of its benefits, such as easy installation and upgrading, pay-as-you-go, zero maintenance costs, less dependency on internal IT personnel, and improved reliability and scalability.
Additionally, the adoption of the cloud is rapidly increasing among industries, giving rise to many security challenges for cloud service providers and other ecosystem vendors, especially in dealing with the complexity of privacy and data protection regulations. The demand for multifactor authentication for securing the data and information in the cloud environment is likely to provide huge opportunities to multifactor authentication solution providers and cloud service providers, which will drive the growth of the market during the forecast period.
Growing adoption of BYOD among enterprises is the primary trend shaping market growth. The growing BYOD movement continues to draw authentication concerns for enterprise security. Organizations are figuring out ways to seal the cracks between employee authentication and enterprise security. For easy onboarding, firms can implement multifactor authentication to manage employee access on enterprise applications.
Moreover, aligning with market trends and analysis, in the context of providing high security, secure authentication and authorization of a user is crucial to protecting the user's personal information. It involves the security of the whole infrastructure. Thus, the growing adoption of the BYOD concept acts as a driving factor for the growth of the market during the forecast period.
Inconvenience of bearing hardware tokens and vulnerability to threats is a challenge that affects market growth. Hardware tokens are susceptible to theft and might not be recognized by the systems in use. The hardware OTP token is an additional device that must always be carried around, making it inconvenient for users. These devices can be easily forgotten by end-users. The storage capacity of hardware tokens is very low (a few kilobytes).
In addition, these devices are sensitive to high temperatures, physical damage, and dust. There is a potential for permanent corruption in hardware devices, and reformatting is almost impossible. Hardware devices are also vulnerable to man-in-the-middle attacks. These disadvantages and the short life span make hardware tokens a less popular option for end-users, which may impede market growth during the forecast period.
The market share growth by the service segment will be significant during the forecast period. Increased flexibility in enterprises has enabled employees to work from home or outside the office. In such cases, verification of the remote access user is crucial. So, enterprises are adopting safe and secure authentication services that allow only an authorized person to access their information. Multifactor authentication solutions and services are gaining prominence in organizations for restricting people from gaining unauthorized access to critical data and tampering with critical information. People are granted access after their identity is confirmed with the information stored in the database.
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The service segment showed a gradual increase in the market share of USD 127.42 million in 2018. The major factors expected to drive the Japan - multifactor authentication market are increased data breaches, cyber-attacks, and the growing adoption of BYOD among enterprises. The introduction of cloud-based multifactor authentication technology has reduced the maintenance costs associated with hardware and software-based authentication. Furthermore, multifactor authentication enables secured access control, tracks fraudulent activities, and facilitates authentication of online transactions. The banking sector witnessed the highest adoption of multifactor authentication solutions and services, which enabled secure transactions and reduced data loss and fraudulent activities. Thus, such factors will drive the growth of the services segment of the multifactor authentication market in Japan during the forecast period.
On-premises multifactor authentication is installed and runs on systems on the premises of the organization utilizing the product rather than at a remote facility such as a cloud or a server farm. The multifactor authentication software is made up of databases and modules that work together to specifically meet the special requirements of large businesses with regard to the automation of corporate-wide business systems and their functions. Additionally, on-premises multifactor authentication solutions and services offer a high level of confidence to end-users in the security of servers. The adoption of on-premises multifactor authentication is expected to maintain steady growth of the on-premises segment of the market during the forecast period.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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