Passive authentication is a form of authentication in which the identity of the user is checked and confirmed without the need for specific additional actions for the purpose of authentication. Passive authentication solutions are deployed in various industry verticals such as banking, financial services, and insurance (BFSI), government, It & telecommunications, retail & consumer goods, health, media & entertainment, and others (education, travel & hospitality and automotive). Similarly, with rapid technological advancements, companies are delivering innovative solutions with integrated multiple methods such as voice and facial biometrics for authentication and fraud prevention.

Recent advances in passive authentication technology have created numerous opportunities for the passive authentication market growth in the coming years. Passive authentication technological features have been extended by modern high-performance servers that allow for real time processing and much faster response times that are essential for the users to have a seamless experience without the need of retaining different login credentials for various services at a single platform or environment. Furthermore, advancement in cloud computing solutions ranging from higher scalability and computing coupled with surge in adoption of Internet of Things, and sensor technologies are the factors that have created strong demand for passive authentication technology in the market.

According to a recent report published by Allied Market Research, titled, Passive Authentication Market by Component, Function, Deployment Mode, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020-2027,” the global passive authentication market size was valued at $796 million in 2019, and is projected to reach $4,093 million by 2027, registering a CAGR of 22.7% from 2020 to 2027.

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In 2019, the global passive authentication market share was dominated by the solution segment, primarily backed by rapid advancement within the technology that has created lucrative opportunities for the market growth. Voice biometrics replace traditional and outdated security methods such as PINs, passwords, and answers to security questions, providing a more secure and friction-free way to verify identity in telephone calls and digital transactions. With rapid increase in the number of malicious attacks, there is a rise in need for AI-based authentication solution, which is further anticipated to widen the market scope during the forecast period. The service segment is estimated to be the fastest growing segment within the market, as increase in prevalence of cybercrimes has surged the demand for passive authentication solutions. In addition, gradual rise in demand for quick and secure online transactions is anticipated to fuel the growth of the passive authentication market in the near future. In addition, companies around the world are focusing on delivering reliable, secure and efficient services to their customers by adopting passive authentication.

The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The global COVID pandemic has bought a positive impact, attributed to rapid spread of coronavirus across the world and social distancing measures in public. Many businesses invested in passive authentication solutions to avoid the usage of biometrics and physical authentication solutions during the COVID-19 pandemic. This resulted in passive authentication solutions to gain significant demand during the pandemic. In 2020, global investments in data security has increased by 2.4% to reach $123.8 billion. Rise in awareness of data privacy and safety, boosts the need for strict security policies within the organization, which further is set to create lucrative opportunities for the growth of the global passive authentication market

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Key Findings Of The Study

  • By component, in 2019, the solution segment held the major share. However, the service segment is expected to witness highest growth rate during the forecast period.
  • By deployment type, the local (on-premise) segment accounted for the highest revenue in 2019, however, the cloud is expected to witness highest growth rate during the passive authentication market forecast period.
  • By function, compliance management held the major share in 2019, however the risk management is anticipated to witness highest growth during the forecast period.
  • By industry vertical, the BFSI sector accounted for the highest revenue in 2019, however, the healthcare & pharmaceutical segment is expected to witness the highest growth rate during the forecast period.
  • By region, the passive authentication market size was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the upcoming years. 


Some of the key companies mentioned within the report include NEC Corporation, IBM Corporation, Cisco Systems Inc., Gemalto, FICO, RSA Security LLC, Experian plc, Equifax Inc., Nuance Communications, Inc., and BioCatch Ltd. This study includes passive authentication market trends, passive authentication market analysis, and future estimations to determine the imminent investment pockets.

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