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Smart Insights Reports

Unconnected OTP Generator Market 2011

Smart Insights Report "Unconnected OTP Generator Market 2011" analyzes in detail all market segments for the unconnected one-time-password generator market: online banking, enterprise security, and others segments such as e-government and online gaming.

For each market segment, this "Smart Insights Report" provides a detailed analysis of major drivers that make the segment develop, as well as potential threats, and market forecasts.

It includes qualitative and quantitative research covering all market segments.

Unconnected OTP generators have demonstrated their central role in providing an increased security level to end users performing remote operations, mainly for online banking and enterprise security. They bring convenience, a personalized level of security adapted to customer needs, and ease of deployment for an affordable project budget.

For each market segment, this "Smart Insights Report" provides a detailed analysis of major drivers that make the segment develop, as well as potential threats that could hinder this development. "Unconnected OTP Generator Market 2011" includes a market assessment for 2010, and 5-year market forecasts running from 2011 to 2015. These market forecasts include data in quantities (million units) as well as in sales level (EUR million).

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Unconnected OTP generators have demonstrated their central role in providing an increased security level to end users performing remote operations, mainly for online banking and enterprise security. They bring convenience, a personalized level of security adapted to customer needs, and ease of deployment for an affordable project budget.

 

Smart Insights forecasts that the unconnected OTP generator installed base will reach more than 1 billion users in 2015, including 611 million mobile OTP users and 446 million hardware unconnected OTP generator users.

 

Adoption of OTP generators in the online banking segment is triggered by a combination of factors:

• High level of online transactions,

• Increasing fraud level with traditional methods,

• Chip and PIN (EMV) cards dissemination.

 

In most of the countries where EMV smart cards are not fully introduced, banks are issuing unconnected OTP tokens as a strong authentication solution to perform secure transactions. The EMV migration is expected to continue and to happen in a foreseeable future in the two major markets where it has not yet happened, the USA and China. In both cases, a decision to use EMV Cards will undoubtedly trigger a huge demand for EMV-CAP readers.

 

Adoption of OTP generators in the enterprise security segment is generally dependant on company level decisions. They provide additional security, but many companies are still reluctant to adopt secure access solutions for their computers. However, we see these solutions adopted by a mass majority of companies from Fortune 500. Increasing demand for additional security measures will result in a fast development of OTP-based solutions aiming at delivering both privacy and security to corporate clients.

 

With the increasing popularity of online games, internet fraud has become a real threat to the gamers. Several popular online gaming operators realized the need for a secure online gaming platform based on OTP generators.

 

Moreover, in some eGovernment projects, governments are issuing secure OTP generators to their civil servants. The tokens are used as an authentication solution for both physical and logical access control to the confidential information.

 

Due to the increasingly wide distribution of smart phones, Smart Insights anticipate that the Mobile OTP generator solution will be widely adopted. Mobile OTP generator solutions provide an easy and less costly alternative to OTP generators. Both enterprises and financial institutions will be increasingly tempted to deploy mobile OTP generators rather that to have to purchase, personalize, distribute and support physical security devices.

 

During the edition of this report, we have witnessed the following mergers and acquisition:

  • Aladdin’s merge with SafeNet,
  • Gemalto’s acquisition of Todos and part of Xiring,
  • Symantec’s takeover of VeriSign,
  • HID’s acquisition of ActivIdentity.

 

Smart Insights anticipate this race to critical size is not yet over, and more mergers and acquisitions will happen on the market as players are running for critical size and combining. These movements can be justified by a combination of factors:

  • A race towards critical size and specific market segment (such as the EMV CAP readers) control,
  • A strategy to combine hardware development and manufacturing with software and system integration expertise,

Activities consolidation from major security players which now understand the added value brought by unconnected OTP generator and secure USB tokens.

Executive Summary  5

1 Overview  11

1.1 Unconnected OTP generators classification  13

1.2 OTP generator components 17

1.3 OTP methods 20

1.4 Scope of this report 21

1.5 Threats and security needs 22

1.6 Authentication  22

1.6.1 Two-factor authentication  23

1.6.2 OTP technology  23

1.6.3 Digital signature  24

1.7 Algorithms and security mode  25

1.7.1 DES  25

1.7.2 AES  25

1.7.3 Public-key cryptography and PKI 25

1.7.4 Public key certificate  27

1.8 Standards and Certifications 27

1.8.1 PKCS  27

1.8.2 EAL  28

1.8.3 OATH  29

1.8.4 EMV CAP  30

1.8.5 3-D secure  32

2 Global OTP token market 33

2.1 Market overview  35

2.2 Security and cost comparison of 2FA devices 37

2.3 Technology and user experience comparison  39

2.4 Unconnected OTP generator applications 40

2.4.1 Online banking  40

2.4.2 Enterprise Security  41

2.4.3 eGovernment 42

2.4.4 Online gaming  42

2.5 Customer needs 43

2.5.1 Issuer  43

2.5.2 End users 44

2.6 Market triggers and threats 44

2.6.1 Corporate data protection  44

2.6.2 Online banking fraud  45

2.6.3 Man-in-the-Browser attack threats 46

2.6.4 Layered approaches to the MITB attack  47

2.6.5 Potential threats in the future  48

2.7 Market forecasts 49

2.7.1 Hardware OTP  49

2.7.2 Mobile OTP  52

2.8 Token Management System (TMS) 53

3 OTP token vendors 55

3.1 Market positioning  57

3.2 ActivIdentity (now HID Global) 58

3.3 Aladdin (now Safenet) 59

3.4 Emue Technologies 60

3.5 Entrust 61

3.6 Gemalto  61

3.7 Feitian technology  62

3.8 Innovative Card Technologies 63

3.9 NagraID  63

3.10 Reiner SCT  64

3.11 RSA  65

3.12 Swecard  66

3.13 Vasco  66

Glossary of terms 69

 

 

 

Table of illustrations

Illustration 1 Example of OTP generator. 14

Illustration 2 Example of smart card reader. 14

Illustration 3 Example of OTP generator with card reader. 15

Illustration 4 Example of smart card. 15

Illustration 5 Example of display card. 15

Illustration 6 Example of secure USB token. 16

Illustration 7 Example of secure USB tokens with OTP generator. 16

Illustration 8 Example of mobile OTP. 17

Illustration 9 Example of token form. 19

Illustration 10 Example of card reader form. 19

Illustration 11 Example of card reader form. 19

Illustration 12 Market coverage. 21

Illustration 13 EMV CAP transaction scheme. 31

Illustration 14 EMV CAP transaction scheme 2. 32

Illustration 15 Unconnected OTP generator users 2010. 36

Illustration 16 Unconnected OTP generator users 2015. 36

Illustration 17 Unconnected OTP generator user figures 2010-2015. 37

Illustration 18 Security devices comparison. 39

Illustration 19 Phishing site evolution. 45

Illustration 20 Phishing site targeted industry. 46

Illustration 21 EMV CAP reader users 2010- 2015. 49

Illustration 22 EMV CAP reader user figures 2010- 2015. 49

Illustration 23 Hardware OTP generators market volume. 51

Illustration 24 Hardware OTP generators market volume figures 51

Illustration 25 Hardware OTP generators market revenues 51

Illustration 26 Hardware OTP generators market revenues figures 52

Illustration 27 Mobile OTP generators market revenues 53

Illustration 28 Mobile OTP generators market revenues figures 53

Illustration 29 OTP vendors market positioning. 58