by The Cipher Machine and Password Card Market is estimated to be valued at US$ 2.29 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cipher machines and password cards are commonly used for secure authentication in government, defense, banking, enterprise and other industries where confidential data is involved. Cipher machines have complex encryption algorithms built-in to generate one-time passwords on regular intervals. Password cards are small hardware tokens that similarly generate random codes each time to securely login accounts. Together they provide robust two-factor authentication and prevent theft of credentials. Advances in encryption and miniaturization have enhanced their capabilities while maintaining ease of use.
Market Dynamics:
Rising cyber threats and data breaches have bolstered the need for stronger authentication measures to protect sensitive data. Cipher machines and password cards address this need by adding an extra layer of security beyond just passwords. Furthermore, mandatory compliance with data privacy regulations such as GDPR is driving greater adoption across sectors dealing with personal user information. However, low-cost security solutions based on mobile apps present competition to hardware-based authenticators. Continuous innovation to integrate biometrics and simplify the user experience could help hardware tokens achieve broader acceptance going forward.
Segment Analysis
The global cipher machine and password card market can be segmented into cipher machine and password card. The cipher machine segment currently dominates the market and accounts for around 60% share due to growing usage of cipher machines by defense sector and government organizations for secured data transmission. Cipher machines offer high level encryption for defense and military applications thereby driving higher adoption of these machines.
PEST Analysis
Political: Growing cyber threat perceptions and increasing focus on data security by governments globally are forcing public and private organizations to adopt robust encryption solutions. This is driving adoption of cipher machines and password cards across regions.
Economic: Cost savings through reduction in hacking losses and improved efficiency in completing secured transactions are compelling factors for investments in high-security authentication platforms by financial institutions and telecom operators.
Social: Rising instances of identity thefts and data breaches have increased security concerns among consumers and made them more receptive to advanced authentication methods for protecting personal information.
Technological: Advancements in microchip technology, biometric sensors and miniaturization of electronic components are enabling development of next-gen small form factor two-factor authentication tokens and password cards with enhanced security features.
Key Takeaways
The global cipher machine and password card market is expected to witness high growth, exhibiting CAGR of 9.0% over the forecast period, due to increasing instances of cyber threats and growing demand for robust authentication systems from banking and defense sectors. The market size for 2023 is estimated at US$ 2.29 Bn.
Regional analysis: North America represents the largest regional market attributed to large-scale deployments across military and critical infrastructure sectors in the US. Asia Pacific is expected to emerge as the fastest growing regional market owing to heavy investments in citizen identification programs and increased focus on cybersecurity of national networks in countries like India and China.
Key players operating in the cipher machine and password card market are KABA Group, Yubico, SecuGen Corporation, Anviz Global, Nitgen Co., Ltd., Integrated Biometrics, BIO-key International, Daon Inc., Suprema Inc., Integrated Biometrics, ASSA ABLOY, Dormakaba Holding, Allegion plc, HID Global Corporation, Gunnebo Security Group, IDenticard Systems, PrimeKey Solutions AB, Thales Group, Gemalto NV, NXP Semiconductors N.V. The market is expected to witness consolidation activities through mergers and acquisitions as companies focus on expanding their product portfolios and geographical footprints.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
