Out-of-Band (OOB) Authentication Market Overview
As per MRFR analysis, the Out-of-Band (OOB) Authentication Market Size was estimated at 1.55 (USD Billion) in 2022. The Out-of-Band (OOB) Authentication Market Industry is expected to grow from 1.8(USD Billion) in 2023 to 6.85 (USD Billion) by 2032. The Out-of-Band (OOB) Authentication Market CAGR (growth rate) is expected to be around 16.04% during the forecast period (2024 - 2032).
Key Out-of-Band (OOB) Authentication Market Trends Highlighted
The major factors influencing the growth of the Out-of-Band (OOB) Authentication market include the increase in the number of breaches as organizations seek further protective measures from intrusions. Increased usage of cloud services and work from home situations are likely to be factors increasing the need for authentication approaches that can be carried outside the usual network.
OOB Authentication is a much more secure solution compared to the traditional one whereby the OTP or other identifying information is sent to another device or channel not being serviced in the current session. Such devices include SMS and mobile applications. This strategy minimizes the likelihood of account hijacking and phishing, as the end user isn't required to log on to the same device that the attacker intends to compromise to retrieve their password.
Recent trends in Out-of-Band Authentication have seen the use of biometrics and multi-factor authentication OOB Authentication. Biometric authentication is an authentication method that uses biological characteristics such as fingerprints or facial recognition as an identity proof of an individual. Multi-factor authentication or MFA is when more than one method of authentication is used against the attacks, such as In case the Out of the Band device is compromised or stolen an extra password or a token is used as well.
Figure1: Out-of-Band (OOB) Authentication Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Out-of-Band (OOB) Authentication Market Drivers
Growing Demand for Enhanced Security Measures
The extraordinary rise in cyber threats and data breaches has prompted organizations to adopt robust security solutions. One of the response measures is out-of-band authentication, which goes beyond the single-factor approach. The solution functions through the use of other communication channels, such as SMS, email, or mobile push -notifications to confirm the identity of the user. It is also known as the multi-factor authentication approach and hence reduces unauthorized access and account takeover concerns.The solution is in high demand and is widely used in the Out-of-Band (OOB) Authentication Market Industry. The effective utilization of cloud applications and services has resulted in extreme demand for the authentication measure. Organizations are heavily relying on multi-factor authentication, or the OOB authentication, to ensure optimal security of operations on the cloud. Furthermore, regulatory compliance is also driving the growth of the Out-of-Band (OOB) Authentication Market Industry.Several governments across the world have formulated data protection laws as a result of the increased threats of cyberattacks. Some of the established data protection laws include the General Data Protection Regulation, which is operational in the European Union. At the same time, the California Consumer Privacy Act has been gazetted and is currently operational in the United States. The regulations stipulate that organizations must ensure that data is properly and securely stored and that any data movement is confirmed.Thus, multi-factor authentication or the OOB approach, is a solution that the legislation is supporting, and it has resulted in high demand.
Rising Adoption of Biometric Technologies
The integration of biometric technologies, such as fingerprint scanning, facial recognition, and voice recognition, is revolutionizing the Out-of-Band (OOB) Authentication Market Industry. Biometric authentication offers a more secure and convenient user experience compared to traditional password-based methods. By leveraging unique physical or behavioral characteristics, biometric authentication provides a higher level of assurance and reduces the risk of identity theft.The convergence of OOB authentication with biometrics is gaining traction as organizations seek to enhance their security posture. By combining the strengths of both technologies, organizations can create a robust authentication system that is resistant to phishing attacks, password cracking, and other forms of unauthorized access. This convergence is expected to drive significant growth in the Out-of-Band (OOB) Authentication Market Industry.
Advancements in Mobile Authentication
The surge in popularity of mobile devices and smartphones, in particular, has incentivized the spread and development of mobile authentication solutions. In this way, OOB authentication has accommodated this trend, presenting one of the most convenient and secure information verification methods based on mobile notifications. Being both the most widespread and most popular OOB authentication method, mobile push notifications "use mobile devices as a trusted second factor, enabling users to authenticate themselves easily and quickly".As a result, it is the most frequently encountered type of OOB authentication in various Internet banking, retail, and other applications primarily focused on mobile users.
Out-of-Band (OOB) Authentication Market Segment Insights
Out-of-Band (OOB) Authentication Market Authentication Method Insights
The Out-of-Band (OOB) Authentication Market is segmented by Authentication Method into SMS-Based OTP, Email-Based OTP, Push Notifications, Physical Tokens, and Biometrics. Among these segments, SMS-Based OTP held the largest market share in 2023, accounting for over 40% of the market revenue. The dominance of SMS-Based OTP can be attributed to its widespread adoption across various industries and its cost-effectiveness. Email-based OTP is another popular authentication method, particularly for online transactions and account recovery processes.
Push Notifications, on the other hand, are gaining traction due to their convenience and real-time delivery capabilities. Physical Tokens, such as hardware tokens and smart cards, provide a higher level of security but may not be as convenient for daily use. Biometrics, including fingerprint and facial recognition, offer the highest level of security but may require specialized hardware and can be more expensive to implement. The Out-of-Band (OOB) Authentication Market is expected to witness significant growth over the forecast period, driven by the increasing adoption of digital technologies, rising concerns over data security, and growing regulatory compliance requirements.This growth will be fueled by the increasing adoption of cloud-based authentication solutions, advancements in biometric technologies, and the growing popularity of mobile authentication methods.
Figure2: Out-of-Band (OOB) Authentication Market, By Authentication Method, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Out-of-Band (OOB) Authentication Market Application Insights
The Out-of-Band (OOB) Authentication Market is segmented by application into Banking and Financial Services, Healthcare, E-commerce and Online Transactions, Government and Public Sector, Enterprise Authentication, and others. The Banking and Financial Services segment is expected to account for the largest share of the market in 2023, owing to the increasing need for strong authentication methods to protect financial transactions from fraud and unauthorized access. The Healthcare segment is also expected to grow significantly, driven by the rising adoption of electronic health records (EHRs) and the need to protect patient data from cyberattacks.
The E-commerce and Online Transactions segment is expected to witness substantial growth, fueled by the increasing popularity of online shopping and the need to protect sensitive customer information. The Government and Public Sector segment is also expected to grow steadily, driven by the increasing adoption of OOB authentication methods to protect access to government systems and data. The Enterprise Authentication segment is expected to grow at a moderate pace, driven by the rising adoption of OOB authentication methods to protect access to enterprise networks and applications.
Out-of-Band (OOB) Authentication Market Deployment Model Insights
The Out-of-Band (OOB) Authentication Market is segmented by Deployment Model into Cloud-Based, On-Premise, and Hybrid. Among these segments, the Cloud-Based segment is expected to hold the largest market share in 2023, owing to the increasing adoption of cloud-based security solutions due to their scalability, flexibility, and cost-effectiveness. The Cloud-Based segment is projected to register a CAGR of 18.5% during the forecast period from 2024 to 2032. The On-Premise segment is expected to hold a significant share of the market in 2023 due to the preference for on-premise solutions among enterprises that require high levels of security and control over their data.The Hybrid segment is expected to grow at a steady pace during the forecast period, as it offers a combination of the benefits of both cloud-based and on-premise solutions.
Out-of-Band (OOB) Authentication Market Regional Insights
The regional segmentation of the Out-of-Band (OOB) Authentication Market offers crucial insights into the geographical distribution of market growth. North America, with its advanced technological infrastructure and early adoption of innovative solutions, is projected to dominate the market, accounting for a significant share of the revenue. Europe, known for its stringent data protection regulations and high demand for secure authentication methods, is expected to follow closely behind North America. APAC, a rapidly growing region with emerging economies and a large population base presents immense growth potential for the Out-of-Band (OOB) Authentication Market.South America and MEA, while smaller in market size, are anticipated to experience steady growth due to increasing awareness of cybersecurity threats and the adoption of digital technologies.
Figure3: Out-of-Band (OOB) Authentication Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Out-of-Band (OOB) Authentication Market Key Players And Competitive Insights
Major players in the Out-of-Band (OOB) Authentication Market industry are constantly innovating and developing new technologies to stay ahead of the competition. Leading Out-of-Band (OOB) Authentication Market players are investing heavily in research and development to create new and improved products and services. This has led to a number of new developments in the Out-of-Band (OOB) Authentication Market, including the introduction of new authentication methods, such as biometrics and behavioral analysis. These new technologies are making it more difficult for attackers to compromise accounts and steal data.One of the leading companies in the Out-of-Band (OOB) Authentication Market is Google. Google offers a variety of authentication methods, including two-factor authentication, which requires users to enter a code sent to their phone in addition to their password. Google also offers a variety of security features, such as encryption and malware scanning, to protect user data.A competitor to Google in the Out-of-Band (OOB) Authentication Market is Microsoft. Microsoft offers a variety of authentication methods, including Windows Hello, which uses biometrics to authenticate users. Microsoft also offers a variety of security features, such as BitLocker and Windows Defender, to protect user data.
Key Companies in the Out-of-Band (OOB) Authentication Market Include
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Duo Security
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Centrify
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Symantec
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RSA Security
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SecureAuth
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CyberArk Software
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Ping Identity
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HID
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Imprivata
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CyberArk
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SafeNet
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Gemalto
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Okta
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VASCO Data Security
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Auth0
Out-of-Band (OOB) Authentication Market Industry Developments
The Out Of Band (OOB) Authentication Market is projected to reach USD 6.85 billion by 2032, exhibiting a CAGR of 16.04% from 2024 to 2032. The increasing adoption of two-factor authentication (2FA) and multi-factor authentication (MFA) solutions to enhance security measures is driving market growth. The rising demand for secure remote access solutions, coupled with the growing prevalence of cloud-based applications and services, is further fueling market expansion. Additionally, the increasing adoption of OOB authentication in various industries, including banking, financial services, and e-commerce, is contributing to market growth. Recent developments include the launch of new OOB authentication solutions by major vendors, such as RSA Security's SecurID Access and Microsoft's Azure Multi-Factor Authentication.
Out-of-Band (OOB) Authentication Market Segmentation Insights
Out-of-Band (OOB) Authentication Market Authentication Method Outlook
- SMS-Based OTP
- Email-Based OTP
- Push Notifications
- Physical Tokens
- Biometrics
Out-of-Band (OOB) Authentication Market Application Outlook
- Banking and Financial Services
- Healthcare
- E-commerce and Online Transactions
- Government and Public Sector
- Enterprise Authentication
Out-of-Band (OOB) Authentication Market Deployment Model Outlook
- Cloud-Based
- On-Premise
- Hybrid
Out-of-Band (OOB) Authentication Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.55(USD Billion) |
| Market Size 2023 |
1.8(USD Billion) |
| Market Size 2032 |
6.85(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
16.04% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Duo Security, Centrify, Symantec, RSA Security, SecureAuth, CyberArk Software, Ping Identity, HID , Imprivata, CyberArk, Safenet, Gemalto, Okta, VASCO Data Security, Auth0 |
| Segments Covered |
Authentication Method, Application, Deployment Model, Regional |
| Key Market Opportunities |
Growing adoption of cloud-based services Increasing mobile device penetration Rising security concerns Expanding use in financial transactions and Government regulations |
| Key Market Dynamics |
Increasing mobile penetration, rising security breaches, growing regulatory compliance, adoption of cloud-based services, proliferation of IoT devices |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Out of Band (OOB) Authentication Market is anticipated to grow from USD 1.8 billion in 2023 to USD 6.85 billion by 2032, registering a CAGR of 16.04%.
North America is expected to dominate the OOB Authentication Market throughout the forecast period from 2024 to 2032.
The increasing adoption of multi-factor authentication and stringent regulatory mandates are primarily driving the growth of the OOB Authentication Market.
OOB Authentication finds applications in various sectors, including banking and finance, e-commerce, healthcare, and government.
Some of the prominent players in the OOB Authentication Market include RSA Security LLC, HID Corporation, Gemalto NV, Duo Security Inc., and Yubico.
The OOB Authentication Market in the Asia-Pacific region is expected to reach a valuation of USD 2.15 billion by 2032.
The OOB Authentication Market in Europe is projected to expand at a CAGR of 15.2% during the forecast period.
The OOB Authentication Market in the Middle East and Africa is anticipated to reach USD 0.47 billion by 2032.
The rising adoption of cloud-based authentication services and the increasing demand for secure remote access solutions are key trends shaping the OOB Authentication Market.
The OOB Authentication Market in Latin America is projected to reach a valuation of USD 0.78 billion by 2032.
