Cipher machines use various encryption algorithms to digitally scramble messages and password cards generate strong single-use passwords to access restricted digital systems and services. They find widespread usage amongst government agencies, financial institutions, corporate offices, and even personal use for protecting data and online accounts. Cipher machines are commonly deployed at national security agencies and diplomatic missions for encrypting and sharing classified files and communications. Password cards have become increasingly popular given the rapid migration of workplace processes to remote and hybrid setups amid the pandemic.
The global Cipher Machine and Password Card Market is estimated to be valued at US$ 1.2 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increased adoption of remote work practices driven by the COVID-19 pandemic has been a major driver for the cipher machine and password card market. With employees working remotely, there has been heightened need for secure authentication to access corporate VPNs and file servers from remote locations. Password cards provide a safer two-factor authentication method compared to ordinary passwords that are prone to hacking. Furthermore, the growing threat of cyberattacks and data breaches have propelled cybersecurity spending globally. Organizations are ramping up investments in encryption technologies and digital identity verification tools like cipher machines and password cards to strengthen their security posture and meet compliance requirements. The driver mentioned in the heading, remote work and the second driver, heightened cybersecurity investments and regulations, are expected to continue fueling demand for cipher machines and password cards over the forecast period.
Segment Analysis:
The global cipher machine and password card market is segmented based on Type, Application, and Geography. Based on Type, the market is categorized into PC Supported, Telephone Supported, and One-time Password Card. Among these, the PC supported segment dominates the market and accounts for around 60% share owing to its user-friendly features.
PEST Analysis:
Political: Regulations regarding data privacy have encouraged the adoption of encryption methods and secure authentication. Some countries have imposed bans on certain encryption techniques for national security reasons.
Economic: The rising number of cyberattacks and data breaches faced by organizations have boosted spending on security products. Firms aim to prevent financial losses arising from theft of confidential data.
Social: Increased digitization of work processes and mobility solutions have expanded the attack surface for cybercriminals. Enterprises recognize the need for strong authentication to safeguard sensitive information accessed remotely.
Technological: Advancements in cryptography algorithms have improved the strength of encryption. Integration of biometrics with password management systems provide enhanced security. However, technologies like quantum computers pose future risks to certain password algorithms.
Key Takeaways:
The global cipher machine and password card market size was valued at USD 2.43 billion in 2024 and is expected to grow at a CAGR of 12% during the forecast period.
Regional analysis: North America dominates the market currently due to stringent regulatory requirements andrising digitalizationacross industries. The Asia Pacific region is anticipated to witness the fastest growth over the next decade backed by growing online transactions in developing nations like India and China.
Key players: The key players in the cipher machine and password card market are Micro Focus, Broadcom, HelpSystems, Splunk, and ManageEngine. Micro Focus leads the market with its comprehensive portfolio for privileged access management.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
