3D Secure Authentication Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Solution and Services) End-User (Banks and Merchant and Payment Processor), and Geography

The 3D secure authentication market size is projected to reach US$ 1885.64 million by 2031 from US$ 756.94 million in 2023. The market is expected to register a CAGR of 12.1% during 2023–2031. Rising online transactions and growing cyberattacks are likely to remain key trends in the market.

3D Secure Authentication Market Analysis

The rise in internet penetration, rising consumer disposable income, and the rise in the adoption of digitalization are some of the factors driving the market growth. The rising e-commerce and m-commerce industry generates the demand for solutions to secure transactions, leading to market growth. With the growing number of online transactions, the concerns over online frauds drive the market.

3D Secure Authentication Market Overview

3D Secure (3DS) is an authentication method and a security proto adopted by the business to secure their payment ecosystem. It provides an additional layer of security for credit card transactions. This authentication process verifies the customer's identity during payment. The robust authentication regulation PSD2 in Europe and similar regulations in the UK, India and Australia foster the adoption of 3D secure authentication solutions for card payments.

3D Secure Authentication Market Drivers and Opportunities

Need for secure payments.

With the growing digitalization, businesses are adopting digital solutions to efficiently run their business operations. This factor leads to the adoption of solutions, making and collecting payments among the businesses. Securing the payment ecosystem is the utmost priority of any business, as building and maintaining customer trust is important. For this, businesses adopt 3D secure authentication solutions to add an extra security layer to prevent unauthorized online transactions.

Growing e-commerce industry

The e-commerce industry is gaining traction owing to rising internet penetration, sales of smartphones, and rising consumer purchasing power. The feasibility, affordable prices, and wide product portfolio are some of the advantages of online shopping compared to traditional shopping. Therefore, customers are inclined towards shopping via e-commerce platforms. This has led to increased payments by customers, leading to the 3D secure authentication market. 3D secure authentication helps companies and customers make more secure online transactions. Adoption of this solution reduces the risk of fraud and offers more security with an extra layer of authentication.

3D Secure Authentication Market Report Segmentation Analysis

Key segments that contributed to the derivation of the 3D secure authentication market analysis are the component and end-user.

• Based on the component, the 3D secure authentication market is divided into solution and services. The solution segment held the largest share of the market in 2023.
• Based on the end-user, the 3D secure authentication market is segmented into banks and merchant and payment processor. The banks segment held a significant share of the market in 2023.

3D Secure Authentication Market Share Analysis by Geography

The geographic scope of the 3D secure authentication market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Asia Pacific region held the largest market share and is expected to grow with the highest CAGR. Countries such as India, Japan, and China hold the majority of the Asia Pacific market share. The adoption of digital technologies is fueling the market growth in the region. The growing e-commerce industry is contributing to the growth of the 3D secure authentication market.

3D Secure Authentication Market Regional Insights

The regional trends and factors influencing the 3D Secure Authentication Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses 3D Secure Authentication Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

3D Secure Authentication Market Report Scope

3D Secure Authentication Market Players Density: Understanding Its Impact on Business Dynamics

The 3D Secure Authentication Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the 3D Secure Authentication Market are:

1. Netcetera
2. Gpayment Pvt Ltd.
3. ASEE GROUP
4. Asiapay Limited
5. Modirum
6. Msignia, Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

3D Secure Authentication Market News and Recent Developments

The 3D secure authentication market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the 3D secure authentication market are listed below:

• Everlink announced the completion of 3D Secure Certification and the launch of its 3D Secure Authentication Service through VISA Consumer Authentication Service (VCAS) for both Visa and Mastercard card products. As eCommerce accelerates worldwide, businesses are required to prevent fraud and ensure transactions are seamlessly approved. Currently, more than 79% of all fraud occurs through card-not-present transactions. 3D Secure Authentication delivers an added layer of security for consumers, providing an improved, more flexible cardholder experience for card-not-present transactions across multiple devices. (Source: Everlink, Press Release, January 2022)
• PayU, India's leading online payments solution provider, announced the launch of 3D Secure 2.0 SDK, offering a full native checkout and superior customer experience for all card transactions. PayU merchants can provide optimized customer experience while complying with major card network upgrades - including Visa and Mastercard while gaining better security and fraud protection. PayU's lightweight 3DS 2.0 SDK provides lowered latency and a 40% reduction in checkout time. PayU had developed this EMVCo certified offering in collaboration with Wibmo, a PayU owned full stack global PayTech company. (Source: Procurato, Press Release, February 2023)

3D Secure Authentication Market Report Coverage and Deliverables

The “3D Secure Authentication Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• 3D secure authentication market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• 3D secure authentication market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• 3D secure authentication market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the 3D secure authentication market
• Detailed company profiles