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Out of Band Authentication Market Research Report – Segmented By Component (Solution (Hardware, Software), Service), Authentication Channel (SMS, Email, Push Notification Voice, Token-Based, Others), Deployment Type (Cloud and On-Site), Organization Size (SMEs and Large), Vertical (Banking, Financial And Insurance Services, Payment Card Industry, Government, Healthcare and Others), and Region - Forecast to 2027

Published: January, 2022
ID: 8330
Pages: 170

Global Out of Band Authentication Market Size (2021–2026)

The global out-of-band authentication market is likely to develop from $1,241 million in 2020 to $2,965 million in 2026, at a compound annual growth rate (CAGR) of 24.5% over the calculated period.

Out-of-band authentication (OOBA) is a validation process that involves a communication channel different from the main communication channel of entities that are planning to create a secured connection. This provides better security for the organization as the use of a separate channel makes it much more difficult for an attacker to intercept and corrupt the authentication process, as it forces the attacker to compromise two communication channels.

The rapid penetration of consumer electronics products such as laptops, tablets, smart phones, and smart devices has increased the usability of various Internet solutions and services worldwide.

For example, in 2019, global internet users reached 4.38 billion and individual mobile users, 5.1 billion. It has forced service providers to move away from tape authentication solutions to avoid compromising their services in the future. Furthermore, the increasing adoption of the cloud in most companies and the growth of emerging technologies, such as artificial intelligence, big data and blockchain among various end-users, have also stimulated the market.

Market growth and trends:

The BFSI segment should experience significant growth and stimulate the market.

  • Increased Internet penetration, growing mobile commerce market and early adoption of online payment services are expected to drive the market for out-of-band authentication, which is often used in financial institutions and other organizations with high security requirements.
  • Most financial institutions use different forms of out-of-band authentication methods, for example, the fingerprint technology used to provide biometric verification by the user or the user is asked to send the text shown after the login of your smartphone registered in the institution. Secure communications with only a slight increase in complexity for a user. Furthermore, the methods are also much cheaper to implement for financial institutions than the more complex security key fobs or biometric methods and are therefore expected to drive the market.
  • In addition, the number of security concerns associated with mobile payments is increasing and is expected to offset the growth of the market. For example, malicious app clones are a major problem when it comes to Android phones as these apps are released in less regulated alternative app stores or distributed as standalone.apk packages. In the case of iOS fraudsters, they attack via devices with prison. Because of this, various providers are spending more and more on payment security and connecting with out of band authentication providers and accelerating the market.

Market Drivers and Restraints:

The growing adoption of OOBA by online banking sites is a key driver driving the market. The implementation of robust two-factor authentication to comply with legal directives in highly regulatory sectors is a notable trend that reinforces the demand for OOBA. In the wake of the growing tenacity of authentication fraud and the resulting loss of revenue, the demand for strong two-factor authentication, such as OOBA, is imperative in economies around the world.

However, there is a big caveat. The effectiveness of OOBA in saving online fraud largely depends on strict adherence to secondary procedures. For example, the method is more effective if financial institutions strictly adhere to regulatory guidelines. If the hacker clones the phone or changes the mobile phone number registered with the bank, the organization still needs to request additional authorization. On the other hand, the dizzying increase in digital payment methods, especially in developing economies, is also creating lucrative ground for the expansion of the out-of-band authentication market. Small and medium-sized businesses, especially in the e-commerce industry, are increasingly realizing the benefits of OOBA and are therefore integrating it into their authentication methods. Growing adoption of connected devices based on rapid advancements in IoT is catalyzing the growth of the global out-of-band authentication market.

OUT OF BAND AUTHENTICATION MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2020 – 2026

Base Year

2020

Forecast Period

2022 - 2027

CAGR

24.5%

Segments Covered

By Component, Authentication Channel, Deployment Type, Organization Size, Vertical and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Gemalto (Netherlands), CA Technologies (USA), Symantec (USA), Ping Identity (USA), RSA Security (USA), Entrust Datacard (USA), EZMCOM (United States), Duo Seguridad (United States), StrikeForce Technologies (United States), Nok Nok Labs (United States), SolidPass (Turkey), Protectimus (United Kingdom), SAASPASS (United States), DynaPass (United States), and I-Sprint Innovations (Singapore) and Others.

 

Market Segmentation

Out of Band Authentication Market - By Componen

  1. Solutions

  2. Services

Out of Band Authentication Market - By Organization Size

  1. Large Companies

  2. Small and Medium-Sized Enterprises

Out of Band Authentication Market - By Deployment Type

  1. Cloud

  2. On-Site

Out of Band Authentication Market - By Authentication Channel

  1.  SMS

  2. Email

  3. Push Notification Voice

  4. Token-Based

  5. Others

Out of Band Authentication Market - By Vertical

  1. Banking, financial and insurance services

  2. Payment Card Industry

  3. Government

  4. Healthcare

  5. Others

Out of Band Authentication Market - By Region

  1. North America
  2. Europe
  3. Asia-Pacific
  4. LAMEA

North America is expected to hold a significant share of the out-of-band authentication market due to the increase in the number of Internet of Things (IoT) and connected devices and the vulnerabilities associated with them are some of the factors that motivate the adoption of OOBA solutions and services.

The Government of Canada and the United States rely heavily on the use of information systems to support their basic and essential business functions and to deliver programs and services to its citizens. For example, the Government of Canada uses an out-of-band token, which is a combination of a physical device (for example, a mobile phone, a landline phone) and a secret that an auditor transmits to the device each time authentication is required.

Key Market Players

  1. Gemalto (Netherlands)

  2. CA Technologies (USA)

  3. Symantec (USA)

  4. Ping Identity (USA)

  5. RSA Security (USA)

  6. Entrust Datacard (USA)

  7. EZMCOM (United States)

  8. Duo Seguridad (United States)

  9. StrikeForce Technologies (United States)

  10. Nok Nok Labs (United States)

  11. SolidPass (Turkey)

  12. Protectimus (United Kingdom)

  13. SAASPASS (United States)

  14. DynaPass (United States)

  15. I-Sprint Innovations (Singapore)

Recent Developments:

  • June 2020: Thales Technologies has signed a contract with Samsung under which it will provide next-generation single-chip solutions integrated into Samsung's latest flagship smartphone. The single chip combines an Integrated Secure Element (eSE) and an Integrated SIM Card (eSIM) that allows high-performance contactless services and a complete digital connectivity for highly compact devices like smartphones, smart watches and tablets.
  • May 2020: OneSpan, a leading security provider for banking transactions, announced the use of OneSpan's Mobile Security Suite in DenizBank of Turkey to offer protection to 2.6 million mobile customers worldwide. MobilDeniz mobile banking app, FastPay mobile wallet and DenizKart?m card management app.

Impact of Covid-19 on the Global Out of Band Authentication Market

The COVID-19 pandemic has resulted in a surge in mobile payments in the United States of America. For example, San Francisco-based AppsFlyer, a mobile software-as-a-service (SaaS) analytics and attribution platform, reports a 22% increase in in-app purchases during the month of March. This, as residents of the United States, began to become even more dependent on their mobile devices while trapped in their homes due to the global coronavirus pandemic (COVID-19).

1. Introduction                                 

                1.1 Market Definition                    

                1.2 Scope of the report                

                1.3 Study Assumptions                 

                1.4 Base Currency, Base Year and Forecast Periods                          

2. Research Methodology                                           

                2.1 Analysis Design                         

                2.2 Research Phases                      

                                2.2.1 Secondary Research           

                                2.2.2 Primary Research 

                                2.2.3 Data Modelling      

                                2.2.4 Expert Validation  

                2.3 Study Timeline                          

3. Report Overview                                        

                3.1 Executive Summary                

                3.2 Key Inferencees                       

4. Market Dynamics                                       

                4.1 Impact Analysis                         

                                4.1.1 Drivers      

                                4.1.2 Restaints  

                                4.1.3 Opportunities        

                4.2 Regulatory Environment                       

                4.3 Technology Timeline & Recent Trends                            

5. Competitor Benchmarking Analysis                                    

                5.1 Key Player Benchmarking                     

                                5.1.1 Market share analysis        

                                5.1.2 Products/Service  

                                5.1.3 Regional Presence               

                5.2 Mergers & Acquistion Landscape                      

                5.3 Joint Ventures & Collaborations                        

6. Market Segmentation                                              

                6.1 Out of Band Authentication Market, By Component                

                                6.1.1 Solution    

                                6.1.2 Services    

                                6.1.3 Market Size Estimations & Forecasts (2022 - 2027)   

                                6.1.4 Y-o-Y Growth Rate Analysis             

                                6.1.5 Market Attractiveness Index          

                6.2 Out of Band Authentication Market, By Authentication Channel                        

                                6.2.1 SMS           

                                6.2.2 Email          

                                6.2.3 Push Notification Voice     

                                6.2.4 Token-Based          

                                6.2.5 Market Size Estimations & Forecasts (2022 - 2027)   

                                6.2.6 Y-o-Y Growth Rate Analysis             

                                6.2.7 Market Attractiveness Index          

                6.3 Out of Band Authentication Market, By Deployment Type                    

                                6.3.1 Cloud         

                                6.3.2 On-Site     

                                6.3.3 Market Size Estimations & Forecasts (2022 - 2027)   

                                6.3.4 Y-o-Y Growth Rate Analysis             

                                6.3.5 Market Attractiveness Index          

                6.4 Out of Band Authentication Market, By Organization Size                     

                                6.4.1 SMEs         

                                6.4.2 Large         

                                6.4.3 Market Size Estimations & Forecasts (2022 - 2027)   

                                6.4.4 Y-o-Y Growth Rate Analysis             

                                6.4.5 Market Attractiveness Index          

                6.5 Out of Band Authentication Market, By Vertical                         

                                6.5.1 Banking, Financial And Insurance Services 

                                6.5.2 Payment Card Industry      

                                6.5.3 Government          

                                6.5.4 Healthcare              

                                6.5.5 Market Size Estimations & Forecasts (2022 - 2027)   

                                6.5.6 Y-o-Y Growth Rate Analysis             

                                6.5.7 Market Attractiveness Index          

7. Geographical Landscape                                         

                7.1 Global Identity Governance and Administration Market, by Region                  

                7.2 North America - Market Analysis (2022 - 2027)

                                7.2.1 By Country              

                                                7.2.1.1 USA

                                                7.2.1.2 Canada

                                7.2.2 By Component      

                                7.2.3 By Authentication Channel              

                                7.2.4 By Deployment Type          

                                7.2.5 By Organization Size            

                                7.2.6 By Vertical               

                7.3 Europe                         

                                7.3.1 By Country              

                                                7.3.1.1 UK

                                                7.3.1.2 France

                                                7.3.1.3 Germany

                                                7.3.1.4 Spain

                                                7.3.1.5 Italy

                                                7.3.1.6 Rest of Europe

                                7.3.2 By Component      

                                7.3.3 By Authentication Channel              

                                7.3.4 By Deployment Type          

                                7.3.5 By Organization Size            

                                7.3.6 By Vertical               

                7.4 Asia Pacific                  

                                7.4.1 By Country              

                                                7.4.1.1 China

                                                7.4.1.2 India

                                                7.4.1.3 Japan

                                                7.4.1.4 South Korea

                                                7.4.1.5 South East Asia

                                                7.4.1.6 Australia & NZ

                                                7.4.1.7 Rest of Asia-Pacific

                                7.4.2 By Component      

                                7.4.3 By Authentication Channel              

                                7.4.4 By Deployment Type          

                                7.4.5 By Organization Size            

                                7.4.6 By Vertical               

                7.5 Latin America                             

                                7.5.1 By Country              

                                                7.5.1.1 Brazil

                                                7.5.1.2 Argentina

                                                7.5.1.3 Mexico

                                                7.5.1.4 Rest of Latin America

                                7.5.2 By Component      

                                7.5.3 By Authentication Channel              

                                7.5.4 By Deployment Type          

                                7.5.5 By Organization Size            

                                7.5.6 By Vertical               

                7.6 Middle East and Africa                           

                                7.6.1 By Country              

                                                7.6.1.1 Middle East

                                                7.6.1.2 Africa

                                7.6.2 By Component      

                                7.6.3 By Authentication Channel              

                                7.6.4 By Deployment Type          

                                7.6.5 By Organization Size            

                                7.6.6 By Vertical               

8. Key Player Analysis                                    

                8.1 Gemalto                      

                                8.1.1 Business Description           

                                8.1.2 Products/Service  

                                8.1.3 Financials 

                                8.1.4 SWOT Analysis       

                                8.1.5 Recent Developments       

                                8.1.6 Analyst Overview 

                8.2 CA Technologies                       

                8.3 Symantec                    

                8.4 Ping Identity                              

                8.5 RSA Security                               

                8.6 Entrust Datacard                      

                8.7 EZMCOM                     

                8.8 Duo Seguridad                          

                8.9 StrikeForce Technologies                     

                8.10 Protectimus                             

9. Market Outlook & Investment Opportunities                                

Appendix                                           

                List of Tables                     

                List of Figures                   

  1. Global Out of Band Authentication Market By Region, From 2022 - 2027 ( USD Billion )
  2. Global Out of Band Authentication Market By Component, From 2022 - 2027 ( USD Billion )
  3. Global Solution Market By Region, From 2022 - 2027 ( USD Billion )
  4. Global Services Market By Region, From 2022 - 2027 ( USD Billion )
  5. Global Out of Band Authentication Market By Authentication Channel, From 2022 - 2027 ( USD Billion )
  6. Global SMS Market By Region, From 2022 - 2027 ( USD Billion )
  7. Global Email Market By Region, From 2022 - 2027 ( USD Billion )
  8. Global Push Notification Voice Market By Region, From 2022 - 2027 ( USD Billion )
  9. Global Token-Based Market By Region, From 2022 - 2027 ( USD Billion )
  10. Global Out of Band Authentication Market By Deployment Type, From 2022 - 2027 ( USD Billion )
  11. Global Cloud Market By Region, From 2022 - 2027 ( USD Billion )
  12. Global On-Site Market By Region, From 2022 - 2027 ( USD Billion )
  13. Global Out of Band Authentication Market By Organization Size, From 2022 - 2027 ( USD Billion )
  14. Global SMEs Market By Region, From 2022 - 2027 ( USD Billion )
  15. Global Large Market By Region, From 2022 - 2027 ( USD Billion )
  16. Global Out of Band Authentication Market By Vertical, From 2022 - 2027 ( USD Billion )
  17. Global Banking, Financial And Insurance Services Market By Region, From 2022 - 2027 ( USD Billion )
  18. Global Payment Card Industry Market By Region, From 2022 - 2027 ( USD Billion )
  19. Global Government Market By Region, From 2022 - 2027 ( USD Billion )
  20. Global Healthcare Market By Region, From 2022 - 2027 ( USD Billion )

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