The global 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 includes various authentication hardware devices that provide encryption and strong authentication mechanisms. Cipher machine encrypts plain text into cipher text by using encryption algorithms. It assists in securing sensitive data and wireless network authentication. Password cards are physical token devices that generate one-time passwords for multi-factor authentication. They offer stronger authentication than SMS or app-based tokens. The growing need for highly secured data transmission and authentication across various end-use industries such as BFSI, government, healthcare, manufacturing, and IT & telecom is driving the demand for cipher machines and password cards.
Market key trends:
One of the key trends in the cipher machine and password card market is the adoption of quantum-safe or quantum-resistant encryption algorithms. As quantum computers become more powerful, traditional encryption algorithms like RSA and ECC will become vulnerable. Password cards and cipher machines are now integrating post-quantum encryption algorithms like lattice-based and hash-based signatures that are resistant to quantum attacks. This ensures future-proof security for highly sensitive data. Another notable trend is the integration of biometric authentication with password cards. Multifactor authentication combining biometrics and one-time passwords provides the strongest level of access control. It has increased adoption across various government and critical infrastructure organizations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as huge capital investment is required to operate in the market. Entrants also need to build brand image and gain consumer trust which requires substantial investments and time.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are a number of established players offering similar products in the market. However, rising security concerns increases buyer priority for safer options.
Bargaining power of suppliers: The bargaining power of suppliers is low due to low switching costs and availability of substitutable components from different sources.
Threat of new substitutes: The threat of new substitutes is moderate as security technologies are advancing constantly. However, demand for password management and access control will remain robust given increased digitalization and remote working practices.
Competitive rivalry: Intense as major players compete on the basis of product features, security, customization, and price.
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 digitalization and remote working practices driving demand for secure authentication systems.
Regional analysis: North America dominates the market currently owing to stringent regulatory norms and rapid technological adoption. Asia Pacific is expected to witness fastest growth during the forecast period supported by robust economic development, increasing cybercrimes, and rising electronics and automotive industries in the region.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it