OOB Authentication

OOB Authentication

Global OOB Authentication Market to Reach US$6.5 Billion by 2030

The global market for OOB Authentication estimated at US$1.6 Billion in the year 2023, is expected to reach US$6.5 Billion by 2030, growing at a CAGR of 21.8% over the analysis period 2023-2030. Solutions Component, one of the segments analyzed in the report, is expected to record a 23.3% CAGR and reach US$4.9 Billion by the end of the analysis period. Growth in the Services Component segment is estimated at 17.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$449.7 Million While China is Forecast to Grow at 20.7% CAGR

The OOB Authentication market in the U.S. is estimated at US$449.7 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$970.2 Million by the year 2030 trailing a CAGR of 20.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 19.6% and 18.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.7% CAGR.

Global Out-of-Band (OOB) Authentication Market - Key Trends & Drivers Summarized

How Has OOB Authentication Enhanced Cybersecurity?

Out-of-band (OOB) authentication has emerged as a critical component in enhancing cybersecurity, particularly in the face of rising cyberattacks and identity theft. OOB authentication adds an extra layer of security by requiring users to authenticate transactions or logins through two separate communication channels, reducing the risk of attacks like man-in-the-middle or session hijacking. Traditionally, many online systems relied solely on passwords, which have proven to be increasingly vulnerable to phishing, brute force attacks, and credential stuffing. OOB authentication platforms, such as those offered by companies like RSA SecureID, Duo Security, and OneSpan, provide a more secure method by sending authentication codes or biometric requests to a separate device (often a mobile phone), ensuring that even if one communication channel is compromised, the attacker cannot gain full access. This has made OOB authentication particularly valuable for industries with high security requirements, such as banking, financial services, and healthcare.

What Trends Are Emerging in the OOB Authentication Market?

Several key trends are emerging in the OOB authentication market, reflecting the growing need for stronger cybersecurity measures in an increasingly digital world. One major trend is the rise of biometric authentication, which uses unique physiological characteristics, such as fingerprints, facial recognition, or voice patterns, to verify user identity. Biometric data adds an additional layer of security and convenience, as it is nearly impossible to replicate. Another trend is the shift towards multi-factor authentication (MFA), where OOB authentication is combined with other methods, such as biometrics or hardware tokens, to provide more comprehensive security. The increased use of mobile devices as an OOB authentication channel has also gained traction, with users receiving one-time passwords (OTPs) or push notifications on their smartphones. Additionally, the integration of AI and machine learning into authentication systems is enhancing fraud detection capabilities, identifying unusual patterns of behavior and flagging suspicious activity. Compliance with regulations such as GDPR and PSD2 is also driving demand for more secure authentication methods, especially in sectors like finance and healthcare.

How Is Technology Enhancing OOB Authentication?

Technological advancements have significantly enhanced the effectiveness and usability of OOB authentication, making it a preferred security solution for many organizations. The integration of biometrics, such as fingerprint or facial recognition, has added an extra layer of security while also improving user convenience by reducing reliance on passwords. Machine learning algorithms are being used to detect and block suspicious login attempts in real time, flagging potential threats before they can cause damage. Cloud-based authentication services have also become more popular, allowing businesses to implement OOB authentication without the need for on-premises hardware. These solutions are scalable and can be deployed across a range of devices, from smartphones to tablets and desktop computers. Mobile push notifications and secure OTP generators are now integrated into many authentication systems, providing a seamless user experience while maintaining high security. The use of blockchain technology for decentralized identity verification is another emerging area, offering a tamper-proof method for ensuring the authenticity of user credentials.

What Is Driving the Growth in the OOB Authentication Market?

The growth in the OOB authentication market is driven by several factors, particularly the rising number of cyber threats and the increasing demand for secure digital transactions. As industries such as banking, healthcare, and e-commerce continue to digitize, the need for robust, multi-layered authentication methods has become more pressing. Regulatory requirements, such as the European Union’s PSD2 (Payment Services Directive) and GDPR, have mandated stronger authentication measures, driving organizations to adopt OOB solutions. The increasing reliance on mobile devices for transactions and communications has also contributed to market growth, as mobile phones are a convenient channel for OOB authentication via push notifications or OTPs. Technological innovations, particularly in biometric authentication and AI-driven fraud detection, have enhanced the security and efficiency of OOB solutions, making them more attractive to organizations looking to protect sensitive data. Additionally, the growing trend toward remote work has heightened the need for secure authentication, as employees access corporate systems from various locations and devices.

Select Competitors (Total 44 Featured) -

• AMAG Technology, A G4S Company
• Broadcom, Inc.
• Deepnet Security Ltd.
• Nok Nok Labs, Inc.
• Ping Identity Corporation
• RSA Security LLC
• SecurEnvoy Limited
• Sixscape Communications Pte Ltd.
• SolidPass
• Thales S.A.

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