Authentication ICs Will Be Revenue Champions in Anti-Counterfeiting, Brand Protection and Authentication Markets

New York, New York - July 21, 2011

IC-based security chips, while amounting to just over 5% of all anti-counterfeiting, brand protection and authentication solutions shipped between 2010 and 2016, will contribute more than 32% of all revenues for the segment, according to latest ABI Research forecasts. Authentication ICs will account for the bulk of that revenue, and will show startling growth rates in a market expected to be worth $6 billion in 2016.

Demand for anti-counterfeiting, brand protection and authentication (ACBP) is growing rapidly, driven by the threats from increasingly sophisticated counterfeiting techniques. Multiple solutions are usually required to achieve adequate levels of security.

A relatively new class of products, authentication ICs overlap with the secure memory ICs already found in some anti-counterfeiting and authentication applications. The difference, says group director John Devlin, is one of capabilities, flexibility and features. “Typically, authentication ICs are mounted on a printed circuit board. They have no contactless capability as yet, but that is in development. The likely inclusion of contactless will add to this market’s growth potential, since it will allow authentication ICs to be used in more (non-electronic) applications and products, and in form factors such as tags and stickers.”

Authentication ICs are manufactured by some well-known chip-makers including NXP, STMicroelectronics, Infineon, Inside Secure, Maxim, and Renesas. However, they don’t have the market sown up: “As a new market it is relatively open,” Devlin notes. “These vendors have an edge due to experience and proven products in smart card applications, but there are still opportunities for other companies from more traditional ACBP and document security backgrounds, or elsewhere from other chip and semiconductor backgrounds. RFID is one area from which companies might look to move in this direction.”

ABI Research’s new “Anti-counterfeiting, Brand Protection and Authentication” study breaks down the market for each of the key vertical groups with solution attach rates and revenues forecast for each sector. Review of the developing ecosystem, brand owners’ decision making, and best practices to enter and serve this fast growing market are also included.

It is part of the firm’s Smart Cards and Embedded Security Research Service which also includes other Research Reports, Market Data, ABI Insights, an ABI Vendor Matrix, and analyst inquiry support.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

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