Out of Band Authentication Market Size (2024 - 2029)

The out of band authentication market is experiencing significant growth driven by the increasing digitalization and technological advancements that have led to a rise in cyber-attacks. This has prompted governments and enterprises to adopt authentication solutions to safeguard their services. The proliferation of consumer electronics and the growing use of internet-based services have further fueled the demand for these solutions. Additionally, the widespread adoption of cloud technologies and emerging technologies like artificial intelligence and blockchain across various sectors is contributing to the market's expansion. The shift towards enterprise mobility solutions, driven by the need for flexibility and productivity, is also enhancing the market's scope, as businesses seek to address security concerns through out of band authentication methods.

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Market Size of Out of Band Authentication Industry

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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 11.37 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Out of Band Authentication Market Major Players

*Disclaimer: Major Players sorted in no particular order

Out of Band Authentication Market Analysis

  • The global out of band authentication market was valued at USD 443.81 million in 2020, and it is expected to reach a value of USD 846.80 million by 2026, registering a CAGR of 11.37% over the forecast period 2021 - 2026. Digitalization and advancement of technology have increased the number of connected devices that have fueled the frequency of cyber-attacks and boosted the adoption of authentication solutions and services by governments and enterprises.
  • Rapid penetration of consumer electronics such as laptops, tablets, smartphones, and smart gadgets has increased the usability of the various internet-based solutions and services across the world. For instance, in 2019, the global internet users reached 4.38 billion, and unique mobile users stood at 5.1 billion. It has forced the services providers to opt-out of band authentication solutions to prevent any compromise of their services in the future. Moreover, growing cloud adoption across most enterprises and the growth of emerging technologies, such as artificial intelligence, big data, and blockchain across various end-users have also impelled the market.
  • Additionally, widespread adoption of portable own devices in a modern work environment provides flexibility, reduces IT costs and enhances employee's productivity. Due to this, there is a sudden spike in the number of businesses implementing enterprise mobility solutions that enable and encourage employees to work at any time, anywhere, from a wide range of devices.
  • Some studies show that BYOD (bring your own device) approach lets employees utilize the benefits of greater flexibility, collaboration, and work-life balance to improve productivity by up to 34%. However, it also raised security-related issues which are expected to drive the out of band authentication market as many enterprises are increasingly adopting software solution that generates one-time passcodes (OTPs) and sent using via email or SMS text message to establish a secure connection to secure their networks from the security threats.

Out of Band Authentication Industry Segmentation

Out of band authentication (OOBA) is an authentication process that utilizes a communications channel that is separate from the main communication channel of two entities trying to establish an authenticated connection. This offers better security to the organization as using a separate channel makes it significantly more difficult for an attacker to intercept and corrupt the authentication process because it requires the attacker to compromise two communications channels.

By Components
Software
Services
By Deployment
Cloud
On-Premise
By Authentication Channel
SMS
Email
Token-Based
Other Authentication Channels
By End-User Industry
BFSI
IT and Telecommunication
Retail and E-commerce
Government
Media and Entertainment
Other End-User Industries
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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Out of Band Authentication Market Size Summary

The out of band authentication market is experiencing significant growth, driven by the increasing digitalization and technological advancements that have led to a surge in connected devices and cyber-attacks. This has prompted governments and enterprises to adopt robust authentication solutions to safeguard their services. The proliferation of consumer electronics and the growing adoption of cloud technologies, artificial intelligence, big data, and blockchain have further fueled the demand for out of band authentication. The rise of enterprise mobility solutions, which allow employees to work flexibly from various devices, has also contributed to the market's expansion. However, this flexibility has raised security concerns, leading to a greater reliance on software solutions that generate one-time passcodes to secure networks.

The market is particularly driven by the increasing internet penetration, the burgeoning m-commerce sector, and the early adoption of online payment services, especially in financial institutions with high-security needs. Out of band authentication methods, such as voiceprint technology and SMS-based codes, offer a cost-effective and secure way to enhance communication security. The growing security concerns related to mobile payments, such as malicious app clones, are prompting vendors to invest in payment security and collaborate with out of band authentication providers. North America is expected to hold a significant market share due to the rise in IoT devices and the vulnerabilities associated with them. The COVID-19 pandemic has further accelerated the market growth in this region, as mobile payments and digital banking have seen substantial increases. The market is dominated by major players like NortonLifeLock Inc., Cisco Systems Inc., and others, who are expanding their global presence through strategic collaborations, while mid-size and smaller companies are also gaining traction by securing new contracts and entering new markets.

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Out of Band Authentication Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Need for Frictionless Solutions Among Enterprise

      2. 1.2.2 Stringent Data Protection Regulations for Information Security

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Compliance Requirements and High Cost of Product

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Porters 5 Force Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Components

      1. 2.1.1 Software

      2. 2.1.2 Services

    2. 2.2 By Deployment

      1. 2.2.1 Cloud

      2. 2.2.2 On-Premise

    3. 2.3 By Authentication Channel

      1. 2.3.1 SMS

      2. 2.3.2 Email

      3. 2.3.3 Token-Based

      4. 2.3.4 Other Authentication Channels

    4. 2.4 By End-User Industry

      1. 2.4.1 BFSI

      2. 2.4.2 IT and Telecommunication

      3. 2.4.3 Retail and E-commerce

      4. 2.4.4 Government

      5. 2.4.5 Media and Entertainment

      6. 2.4.6 Other End-User Industries

    5. 2.5 Geography

      1. 2.5.1 North America

      2. 2.5.2 Europe

      3. 2.5.3 Asia-Pacific

      4. 2.5.4 Latin America

      5. 2.5.5 Middle East and Africa

Out of Band Authentication Market Size FAQs

The Out of Band Authentication Market is projected to register a CAGR of 11.37% during the forecast period (2024-2029)

NortonLifeLock Inc., Cisco Systems, Inc., Censornet Ltd., Early Warning Services LLC and Deepnet Security Ltd. are the major companies operating in the Out of Band Authentication Market.

Out of Band Authentication Report Snapshots

Out of Band Authentication Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)