The Out-of-Band Authentication Market is a rapidly growing market with various authentication techniques that provide an additional layer of security for user login credentials. Out-of-band authentication uses a separate communication channel different than the primary network for user verification and authorization. Examples include SMS codes, email links, security tokens, or biometrics for account access.
The global Out-of-Band Authentication Market is estimated to be valued at US$ 1.36 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The global Out-of-Band Authentication Market is driven by the growing adoption of third-party authentication by various organizations to secure user access and prevent cybercrimes like account takeovers, phishing attacks, and password hacking. Continuous security breaches targeting user credentials have encouraged businesses to implement multi-factor authentication that leverages out-of-band channels. Additionally, the integration of advanced biometrics with OOB authentication solutions is expected to fortify the access management system of enterprises.
Market Dynamics
Growing adoption of third-party authentication: The use of third-party identity verification during the login process has increased significantly owing to its advantages like instant user validation and resilience to cyberattacks. Prominent industries like banking, finance, government, and healthcare have incorporated out-of-band authentication either as a mandatory or optional step to secure user accounts.
Advancements in biometric technologies: Integrating biometrics with OOB authentication provides multilayered protection and eliminates overdependence on passwords. Factors like fingerprint, facial recognition, iris scanning, and voice patterns authenticate users in a non-intrusive manner. Introduction of advanced biometrics is anticipated to bolster the growth of the OOB authentication market during the forecast timeline.
Segment Analysis
The out-of-band authentication market can be segmented based on technology, deployment mode, authentication type, organization size, and vertical. The solutions segment dominated the market in 2022 as more organizations are adopting out-of-band authentication solutions for securing employee and customer identity and access management. Solutions provide better security from advanced threats than basic password authentication.
Pest Analysis
Political: Governments across the world are introducing stringent regulations around data privacy and security like GDPR which is driving the demand for secure authentication methods.
Economic: Growing digital transformation spends of organizations and risks of data breaches are compelling companies to invest in stronger authentication.
Social: Rising instances of identity theft and phishing attacks are increasing awareness about need for advanced authentication among users.
Technological: Emergence of technologies like biometrics and behavioral analytics are enhancing the capabilities of out-of-band authentication solutions.
Key Takeaways
Global Out-Of-Band Authentication Market Demand is expected to witness high growth at a CAGR of 5.5% during the forecast period of 2023 to 2030.
Regional analysis: North America dominated the market and is expected to retain its dominance due to stringent regulations and increasing cyberattacks. Asia Pacific is expected to grow at the fastest pace due to growing digitalization and presence of major solution providers in countries like India and China.
Key players: Key players operating in the out-of-band authentication market are The Chemours Company, Daikin Industries, Ltd., 3M, The AGC Group, Solvay, HaloPolymer, OJSC, Dongyue Group Limited, Gujarat Fluorochemicals Limited, Jiangsu Meilan Chemical Co. Ltd., and Shanghai Huayi 3F New Materials Co. Ltd. Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of PTFE have opted for new product launches to sustain their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
