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.
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.
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
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
Recent Developments:
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).
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