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Threats Drive Demand for Secure Online Transactions

Service providers, retailers, banks, governments, and multinational enterprises are working hard to counter the growing threat of online hacking and identity fraud that has made headlines throughout 2011.

As a result, vendors of hardware and software solutions aimed at boosting security for online transactions and network access we see increased demand for their offerings.

According to the latest market study by ABI Research, cumulative shipments of hardware-based solutions, including one-time-password (OTP) generators, portable smart card readers, and secure USB tokens will reach 1.8 billion units by the end of 2016.

However, greater development of more user-friendly software in browsers and on mobile devices will result in software solutions accounting for 60 percent of shipments in 2016.

The market will see a boost in growth for USB tokens over the forecast period with OTP generators experiencing a decelerating growth pattern due to high profile hacks to companies such as RSA, reducing OTP credibility.

Overall, the market remains positive, with hardware and software solutions shipping in excess of one billion units in 2016 alone.

ABI Research analyst Phil Sealy says, “High profile hacks have gained extra media attention and coverage, heightening awareness of what a data compromise can mean. Hacks have not been limited to one particular market. RSA, Sony, Citigroup, L-3 Communications, and NASA have all fallen victim in 2011.”

Growth of mobile software solutions will occur from 2013 onward. This is due to an increasing number of smartphones and tablets being utilized to access networks and complete online transactions.

With threats growing, mobile software solutions are forecast to achieve the greatest growth, with annual shipments of 392 million in 2016.

Companies are looking at deploying solutions not only to protect data, but also to limit the possibilities of damaged credibility while maintaining services which are not only safe, but also accessible to their customers.

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