The Rising Demand for Out-of-Band Authentication: A Comprehensive Market Analysis

Overview

Out-of-band (OOB) authentication is a type of two-factor authentication that requires users to verify their identity using a separate device or channel, in addition to their username and password. This additional layer of security helps to protect against account takeovers and other cyberattacks.

OOB authentication can be implemented using a variety of methods, including:

• Text message: Users receive a one-time code (OTP) via SMS that they must enter to authenticate their login.
• Voice call: Users receive an OTP via a voice call that they must enter to authenticate their login.
• Email: Users receive an OTP via email that they must enter to authenticate their login.
• Authenticator app: Users install an authenticator app on their smartphone and generate an OTP using the app to authenticate their login.

Market Size and Growth

The global OOB authentication market is expected to grow from $553.45 million in 2020 to $4.2 billion by 2030, at a CAGR of 22.8%. The growth of the market is being driven by a number of factors, including:

• Increase in cyberattacks: The number of cyberattacks has been increasing in recent years, and OOB authentication can help to protect against these attacks.
• Growing adoption of mobile devices: Mobile devices are becoming increasingly popular, and OOB authentication can be used to authenticate users on mobile devices.
• Regulatory requirements: Some regulations, such as the European Union's General Data Protection Regulation (GDPR), require organizations to implement strong authentication measures.

Market Segmentation

The global OOB authentication market can be segmented by:

• Type: Text message, voice call, email, authenticator app.
• Organization size: Large enterprises, small and medium-sized enterprises (SMEs).
• Industry: Banking, financial services, and insurance (BFSI), healthcare, retail, IT and telecommunications, government, others.
• Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa.

Key Players

Some of the key players in the global OOB authentication market include:

• Google
• Microsoft
• Okta
• Authy
• Duo Security
• RSA
• OneSpan
• Gemalto
• Ping Identity
• Cisco Systems

Conclusion

The global OOB authentication market is expected to grow significantly in the coming years. The growth of the market is being driven by a number of factors, including the increase in cyberattacks, the growing adoption of mobile devices, and regulatory requirements.

OOB authentication is a valuable tool that can help organizations to protect their users from cyberattacks. By implementing OOB authentication, organizations can add an additional layer of security to their systems and help to prevent account takeovers and other malicious activities.