Home Technology Hardware OTP Token Authentication Market Size, Share, Growth, Report to 2026

Hardware OTP Token Authentication Market

Hardware OTP Token Authentication Market Size, Share & Trends Analysis Report By Type (USB Tokens, Signing Token and Reader, Mini Tokens), By Enterprise (SMEs, Large Enterprise), By Application (Retail Banking, Corporate Banking) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2018-2026

Report Code: SRTE1188DR
Study Period 2014-2026 CAGR 8%
Historical Period 2014-2016 Forecast Period 2018-2026
Base Year 2017 Base Year Market Size USD XX Billion
Forecast Year 2026 Forecast Year Market Size USD 833.3 Million
Largest Market North America Fastest Growing Market Europe
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Market Overview

From an estimated USD 375.6 million in 2016, the Global Hardware OTP Token Authentication market size is expected to reach USD 833.3 million by 2026, with a CAGR of 8.0% from 2020 to 2026.

One of the key aspects driving the global hardware OTP (one-time-password) authentication market is its security, even in the increasing trend of internet-based transactions where data theft and malware are common. Hardware OTP tokens are the most secure token technology, which presents an ideal solution as they create a one-time password or passcode that regenerates concerning time. It is only valid for one login or transaction session and requires both a primary password and a one-time passcode.

Multi-factor authentication avoids fraud as the data is stored in the database in the form of a digital archive, making it incredibly impossible to decrypt or manipulate. Hardware OTP token also provides an additional option for powerful verification to address public identification security issues. Moreover, the portability aspect associated with these hardware devices further reduces the need for external identity management software and hardware. Some of the end-user industry segments required to provide multi-factor authentication to grant access to information or use of services are businesses, BFSI, government, healthcare, and other segments (gaming, service providers, etc.), which is driving the growth of the market.

Several German banks such as Postbank, Deutsche Bank, Commerzbank, Raiffeisen Bank, and Volksbank are moving away from SMS one-time passwords as a login authentication transaction verification method due to an inherent weakness. Thus, hardware tokens provide a solution to bridge SMS OTP gaps and offer the required security levels. New rules and regulations focusing on strong customer authentication (SCA) mechanisms are boosting the global hardware OTP token authentication market in coming years.

Regional Analysis

North America

The market is segmented into North America, Europe, MEA, Asia Pacific, and South America, depending on the region. Throughout the forecast era, North America is projected to as one of the major markets. Some of the main factors supplementing the regional market's growth are technological developments, higher smartphone penetration, increased network connectivity, and a high rate of adoption of digital services. Smartphones and software tokens are beneficial for business owners and other commercial account holders who possess multiple accounts in multiple institutions. They reduce complexity and offer enhanced efficiency, which aids the market. 

Besides, the shift towards enhanced security in the region can be traced back to the massive data breach triggering the adoption of multi-factor authentication solutions in North America. It is anticipated that major technology players such as CA Technologies, Symantec Corporation, and RSA Security LLC will allow the North American market to gain enormous traction during the forecast period.


Europe is witnessing the highest CAGR of 8.3% and a soaring estimated market value of USD 306.9 million by 2026, which shows great market opportunity in the near future. With many account holders increasingly conducting banking operations in Europe over a range of online platforms, including computers, tablets, and mobiles marked an increase in internet fraud incidence. Thus, many banks offer hardware tokens to customers who demand strong security for their transactions, non-mobile users, and users who choose not to depend on software as a means of authentication strongly.

Nordea, one of the largest active banks in Finland, offers hardware authentication tokens to its non-mobile customers intending to provide security and convenience to 100% of its customer base focus on security among customers, rendering significant opportunities for hardware tokens.


On the other hand, Asia-Pacific is predicted to be the region with the most promising growth as developing economies such as India and China are improving their security solutions platform by expenditure on connected devices, increasing investments in various cloud and IoT technologies. Additionally, increasing demand for digital services in these regions can be attributed to the region's growth, leading to an enhanced focus on personal data protection and authentic data security.

Report Scope

Report Metric Details
By Type
  1. USB Tokens
  2. Signing Token and Reader
  3. Mini Tokens
By Enterprise
  1. SMEs
  2. Large Enterprise
By Application
  1. Retail Banking
  2. Corporate Banking
Company Profiles Deepnet Security(U.K.) FEI TIAN Technologies Co.Ltd. (China) Protectimus Solutions LLP (U.K.) Symantec Corporation (US) Fortinet Inc.(U.S.) HID Global Corporation(US) OneSpan Inc.(U.S.) Gemalto NV (U.S.) RSA Security LLC (U.S.) Duo Security Inc.(U.S.) Yubico AB (Sweden)
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

By Type

Based on type, the global hardware OTP token authentication market study is divided into USB tokens, signing tokens, and reader and mini tokens. The mini token segment is estimated to achieve USD 485.7 million in 2026, with a CAGR of 8.5%. Mini tokens segment caters to the maximum share as they are handy and easy to operate. Thus, they fit the bill for several financial institutions that operate under high risks added with a strong authentication process, which compels many company authorities to direct their employees to switch from USB tokens to mini tokens. Mini tokens segment enjoys the largest market share in the forecasted year, with Europe region having the highest CAGR of 8.8%, showing a huge possibility of market.

By Enterprise

The global hardware OTP token authentication market study is divided into SMEs and large enterprises based on the application. This large enterprise is expected to achieve the highest growth rate during the forecast period, with a CAGR of 8.3%. The airborne segment market share, which is expected to increase over the next few years as large banking institutions are compelled to strengthen security measures with constant threats from Trojans and other malware. Also, fraudsters are shifting their focus from account takeovers to scams. Banks must proactively detect both insider and external fraud, which requires a strong and effective security gate, which propels the hardware OTP token authentication system.

By Application

The global hardware OTP token authentication market study is divided into retail banking and corporate banking segments based on the application. Corporate banking is expected to register the highest CAGR of 8.2 % during the forecast period. This growth is estimated as hardware tokens provide the highest security promises to corporate banking, requiring large transactions.

However, rapid internet penetration associated with growth in the number of mobile users has drastically transformed banking operations. This draws a shift from a reduction in the use of hardware tokens and is anticipated to fuel the adoption of software tokens in the future. According to a survey conducted by AITE Group LLC, in 2017, there was a marked transition towards software authentication methods from hardware ones.

Market Size By Type

Market Size By Type
  • USB Tokens
  • Signing Token and Reader
  • Mini Tokens
  • Impact of covid-19

    COVID-19 has become an incomparable global public health emergency that has impacted virtually every sector, so the long-term consequences expected over the forecast period would positively impact the development of the healthcare industry. COVID-19 has triggered the adoption rate of contactless payments to make financial transactions possible in lockdown. It has also changed customer's behavior and demand; their purchase habits have LEDs to re-routing of supply chains in current market dynamics.

    According to the WHO, the virus could remain on money for days after exposure, so the organization advised people to use contactless payment whenever feasible. Thus, many financial transactions in BFSI, supermarkets, shopping centers, transportation, and numerous other sectors through contactless payment are expected to increase the possibility of cyber threats. In this context, large banking institutions are forced to adopt security measures anticipated to bolster the global hardware OTP token authentication market. Besides, the COVID-19 pandemic is escalating the market for online and cashless goods, creating a tremendous growth opportunity for this market in the coming future.

    Recent Developments

    • In May 2019, Gemalto NV, a leading U.S.-based company, upgraded its Automated Fingerprint Identification System (AFIS) product implemented in the Department of National Defense (DND), Canada Gemalto to enhance the security and reliability of collecting and verifying fingerprint records.
    • In June 2019, Duo Security Inc. launched a product that can enhance MFA support for Amazon Web Services (AWS). Also, it helps AWS customers with additional protection for AWS directory service applications.



    Key Players

    Hardware OTP Token Authentication Market Share of Key Players

    Hardware OTP Token Authentication Market Share of Key Players
    Deepnet Security(U.K.) FEI TIAN Technologies Co.Ltd. (China) Protectimus Solutions LLP (U.K.) Symantec Corporation (US) Fortinet Inc.(U.S.) HID Global Corporation(US) OneSpan Inc.(U.S.) Gemalto NV (U.S.) RSA Security LLC (U.S.) Duo Security Inc.(U.S.) Yubico AB (Sweden) Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the Hardware OTP Token Authentication Market?
    Hardware OTP Token Authentication Market size will grow at approx. CAGR of 8% during the forecast period.
    Some of the top prominent players in Hardware OTP Token Authentication Market are, Deepnet Security(U.K.), FEI TIAN Technologies Co.Ltd. (China), Protectimus Solutions LLP (U.K.), Symantec Corporation (US), Fortinet Inc.(U.S.), HID Global Corporation(US), OneSpan Inc.(U.S.), Gemalto NV (U.S.), RSA Security LLC (U.S.), Duo Security Inc.(U.S.), Yubico AB (Sweden), etc.
    North America has held a dominant position in the Hardware OTP Token Authentication Market, with the largest market share.
    The Europe region is projected to exhibit the highest rate of growth in the Hardware OTP Token Authentication Market.
    The global Hardware OTP Token Authentication Market report is segmented as follows: By Type, By Enterprise, By Application

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