Authentication and Brand Protection Market Size, Share | 2031

Report Description

Authentication and Brand Protection Market Outlook 2031

The global authentication and brand protection market size was USD 2.95 Billion in 2022 and is likely to reach USD 6.9 Billion by 2031, expanding at a CAGR of 9.9% during 2023–2031. The market growth is attributed to the rapidly growing e-commerce and stringent regulations and standards.

Growing consumer awareness and concerns about product safety and authenticity is anticipated to significantly boost the authentication and brand protection market. Rising incidence of counterfeiting across industries including pharmaceuticals, electronics, cosmetics, and consumer goods growing demand for authentication and brand protection solutions.

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Authentication is the process of verifying the identity of a person, system, or device. This is crucial for preventing unauthorized access to sensitive information or systems. It is a fundamental component of cybersecurity measures and is used to control access to various digital resources such as accounts, networks, and data.

Brand protection refers to the strategies and measures implemented by companies to safeguard their brand image, reputation, and intellectual property from unauthorized use and counterfeiting.

The primary goal of brand protection is to maintain the trust and loyalty of customers by ensuring that products, services, and communications associated with the brand are genuine and of high quality. It prevents the unauthorized use of trademarks, logos, and other intellectual property.

The market report finds that the COVID-19 pandemic boosted the authentication and brand protection market. During a pandemic surge in remote work and online activities, which increased focus on digital security. The global shift toward online shopping and digital transactions has accelerated during the pandemic. This increased the demand for secure payment and transaction authentication methods to combat fraud and ensure the integrity of digital transactions.

Impact of Artificial Intelligence (AI) on the Authentication and Brand Protection Market

Artificial Intelligence (AI) is expected to boost the revenue of the market players present in the authentication and brand protection market. This technology has facilitated the development of advanced authentication methods, such as biometrics and behavioral analytics.

AI and machine learning analyze vast amounts of data to detect patterns indicative of security threats. This is particularly valuable in identifying and mitigating potential risks to authentication systems, helping to prevent unauthorized access and cyberattacks. For instance,

• In March 2021, Wisekey, a cybersecurity company, took a significant step in augmenting its product and service offerings related to brand protection. The company leveraged a combination of AI and NanoSeal secure Near Field Communication (secure NFC) technology. The NanoSeal ecosystem introduced a product authentication server and database management, highlighting their commitment to advancing technological solutions for brand protection in the evolving landscape.

Authentication and Brand Protection Market Dynamics

Major Drivers

Rising trace and track technologies drive the market. Trace and tracking technologies such as Radio-Frequency Identification (RFID) and QR codes, enable companies to implement effective anti-counterfeiting measures.

These technologies allow for the tracking of products throughout the supply chain, which makes it easier to identify and eliminate counterfeit goods. These technologies provide innovative solutions to trace the origin, movement, and authenticity of products, and further they contribute significantly to brand protection.

Existing Restraints

High cost of implementing authentication technologies hampers the market. The implementation of robust authentication and brand protection measures involves significant upfront costs. Small- and medium-sized enterprises (SMEs) find it challenging to allocate resources for cutting-edge technologies which potentially leave them vulnerable to security threats.

Emerging Opportunities

Rising development of remote authentication solutions creates lucrative opportunities for the market. The global shift toward remote work has accelerated the demand for secure remote authentication solutions.

Employees access corporate networks and sensitive information from various locations, thus the need for robust authentication to prevent unauthorized access becomes critical. Additionally, remote authentication solutions play a pivotal role in ensuring that only authorized individuals can access sensitive information and applications remotely.

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Scope of the Authentication and Brand Protection Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Authentication and Brand Protection Market Segment Insights

Authentication Mode Segment Analysis

Based on authentication mode, the authentication and brand protection market is divided into blockchain and smartphone. The blockchain segment is expected to hold a dominant share of the market during the projection period, as it enhanced transparency in the supply chain.

Blockchain provides transparency by allowing all participants in a supply chain or business network to have a shared view of the data. This transparency is crucial for brand protection, as it enables stakeholders to trace the origin and journey of products throughout the supply chain by reducing the risk of counterfeiting.

The smartphone segment is expected to expand at a significant pace in the coming years due to the proliferation of mobile devices and rising demand for mobile biometrics. Smartphones often come equipped with advanced biometric authentication features such as fingerprint sensors, facial recognition, and iris scanning. The integration of biometrics enhances the security of authentication processes by making smartphones a convenient and secure tool for user verification.

Offering Segment Analysis

On the basis of offering, the global market is segregated into security labels & inks, barcode, RFID, QR codes, and authentication chips. The QR codes segment is projected to register a high CAGR during the forecast period, as it is a cost-effective solution and provides ease of implementation.

QR codes are cost-effective to produce and implement which makes them an attractive solution for businesses of all sizes. This affordability allows a wide range of companies including smaller enterprises, to leverage QR codes for brand protection and authentication.

QR codes are used for diverse applications including product authentication, marketing, mobile payments, and more. This versatility boosts their popularity across different industries and thus, the market. For instance,

• As per the recent data published in June 2023, a survey found that the US- and the UK-based consumers majorly used QR codes in bars and restaurants. Around 37% of consumers were using QR codes for payments in 2021 and this was less than 44% in September 2020.

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Technology Segment Analysis

On the basis of technology, the authentication and brand protection market is segmented into covert, overt, forensic, and digital. The covert segment is anticipated to register a robust growth rate during the forecast period, as it enhances security measures and prevents counterfeiting.

Covert features are designed to be hidden or difficult to reproduce, making them effective in preventing counterfeiting, as it provides an additional level of security. This makes it difficult for counterfeiters to replicate with authentication elements. Furthermore, covert security features are seamlessly integrated into product packaging, labels, and documents without affecting the overall design or aesthetics. This seamless integration provides a subtle yet robust approach to brand protection by combining effectiveness with unobtrusiveness.

The overt segment is projected to expand at a considerable growth rate during the projection period, as it provides a visible difference and rising awareness among consumers regarding the authenticity of overt security. Overt security features are visible and easily detectable by the naked eye, providing a clear deterrent to counterfeiters. Overt security measures such as holograms, color-shifting inks, or visible watermarks, are well-recognized by consumers as indicators of authenticity. This consumer awareness fills confidence in the genuineness of products and strengthens the brand's commitment to quality.

Application Segment Analysis

Based on application, the market is divided into electronics, cosmetics, apparel, automotive, pharmaceuticals, food & beverage, and others. The pharmaceuticals segment is expected to generate a major revenue share of the market due to rising focus on patient safety and regulatory compliance.

Ensuring patient safety is a top priority in the pharmaceutical sector. Regulatory bodies worldwide implement stringent standards and regulations to maintain the integrity of medications. Authentication measures are essential for pharmaceutical companies to comply with these regulations, demonstrating their commitment to quality and safety.

The food & beverage segment is anticipated to gain significant revenue share owing to a growing focus on preventing counterfeiting & fraud and their brand reputation. Counterfeit food and beverage products pose serious health risks and can lead to legal consequences for producers.

Authentication technologies help in preventing counterfeiting and fraud by enabling the verification of product authenticity throughout the supply chain. Furthermore, brand reputation is vital in the food and beverage industry, authentication measures protect brands by ensuring that only genuine products reach consumers.

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Regional Outlook

In terms of region, the global authentication and brand protection market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to rising technological advancements and increasing adoption of security technologies.

North America is a global hub for technological innovation, with the presence of many technology companies that drive advancements in authentication technologies including biometrics, blockchain, and artificial intelligence. Businesses in North America across sectors such as finance, healthcare, and manufacturing, have a high awareness regarding the importance of security technologies. This leads to the early adoption of authentication and brand protection solutions.

The market in Asia Pacific is projected to grow rapidly during the forecast period, owing to the presence of a diverse consumer base and rising prevalence of counterfeit products. Asia Pacific is home to a large and diverse consumer base. Rising urbanization and increasing consumer spending contribute to the growth of industries such as retail, e-commerce, and food & beverages.

Authentication measures are essential in these sectors to ensure product authenticity and combat counterfeiting. Additionally, the prevalence of counterfeit products has increased the demand for effective authentication solutions to protect brands and ensure consumer safety.

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