Encryption Technology is fastest growing segment fueling the growth of Cipher Machine and Password Card Market
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| Cipher Machine and Password Card Market |
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:
The cipher machine and password
card market comprises products such as cipher machines and password cards that
are used to enhance security level while accessing systems. Cipher machines
generate unique one-time passwords that change periodically ensuring high level
security. Password cards are small physical tokens that generate rotating
passcodes for authentication. They provide a simple and secure second layer of
authentication for both online and physical access without user intervention.
Market key trends:
The high growth of the cipher
machine and password card market is attributed to increasing concerns regarding
the security of confidential data from cyber threats and data breaches across
various organizations. According to Cybersecurity Ventures, global cybercrime
costs are predicted to reach $10.5 trillion annually by 2025, up from $3
trillion in 2015. Cipher machines and password cards provide high level
security by generating dynamic and time-based passwords that regularly change,
making them very difficult for hackers to break. Their convenience of use is
driving increasing adoption in both private and public sectors to secure access
to various physical and digital assets. In addition, rising digitalization of
processes and remote working has further propelled the demand for enhanced
authentication solutions in recent times.
Porter's Analysis
Threat of new entrants: Entry
into the cipher machine and password card market is moderately difficult as it
requires heavy capital investment in research and development activities.
Bargaining power of buyers: Buyers have moderate bargaining power in this
market as there are numerous established players offering a variety of products
at competitive prices. Bargaining power of suppliers: Suppliers have low to
moderate bargaining power as the raw materials required are commodity products
easily available from multiple sources. Threat of new substitutes: Threat of
substitutes is low as there are limited alternative authentication methods that
can offer the same level of security for sensitive applications. Competitive
rivalry: The market is dominated by few large players and fragmentation is
moderate.
SWOT Analysis
Strengths: Established global
distribution networks and strong brand recognition among major players.
Technological leadership and continuous innovation to address evolving security
threats.
Weaknesses: High R&D costs
and significant capital expenditures required to develop new solutions.
Vulnerability of biometric authentication technologies to spoofing attacks.
Opportunities: Growing adoption
of passwordless authentication methods across verticals to fortify
cybersecurity measures. Increasing digitization and remote working trend
opening up demand from SMBs.
Threats: Stringent privacy and data
protection regulations hampering collection and storage of biometric data.
Advent of advanced cyber threats challenging security capabilities of existing
solutions.
Key Takeaways
The global
cipher machine and password card market is expected to witness high growth,
exhibiting a CAGR of 9.0% over the forecast period, due to increasing demand
for multi-factor authentication from various industries to strengthen
cybersecurity defenses. The Asia Pacific region currently dominates the market
with over 35% share and is projected to maintain its leading position during
the forecast period driven by growing digital transformation initiatives across
sectors in major economies like China and India.
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, and NXP Semiconductors N.V. The market is
concentrated owing to the presence of global brands with extensive product
portfolio and widespread geographical presence. These players are focusing on
new product launches and partnerships with technology providers to solidify
their market positions.
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