Out of band authentication solutions and Services Market- Industry Analysis and Forecast (2023-2029)

Out of band authentication solutions and Services Market was valued at US$ 1.23 Bn. in 2022 and is expected to reach US$ 5.44 Bn by 2029 to exhibit a CAGR of 23.6% during the forecast period.
Out-of-band authentication solutions and Services Market Overview:
A two-factor authentication approach known as out-of-band authentication (OOBA) calls for the simultaneous use of two separate verification techniques from two different networks. By using this authentication mechanism, more protection is offered against unwanted access as well as fraud and hacking. Numerous thefts and hacking attempts are immediately stopped by the authentication mechanism when doing online or net banking. Call and SMS, OTP, mobile phone-based OOB authentication tokens, and other techniques are included in the out-of-band authentication method. Because two distinct, unrelated authentication channels must be compromised in order for an attacker to obtain access, using OOB authenticators makes account hacking more challenging. These intricate authentication processes safeguard against security lapses and confirmations, as well as corruption and hacker assaults. OOB authentication solutions include hardware OOB authentication tokens and mobile phone-based OOB authentication tokens such as alternative phone calls and text messages.To know about the Research Methodology :- Request Free Sample Report
Out-of-band authentication solutions and services Market Dynamics:
Market Drivers:

Rise in Volume of Online Transactions: The exponential increase in the number of online transactions is one of the main factors driving this market's growth. Due to the fact that many customers rely on the internet for their transactions, cyberattacks have become more frequent, mostly targeting websites with a high volume of online sales. Hackers prey on intrusions, enterprises are implementing authentication techniques including phone-based authentication, hardware one-time password (OTP) tokens, software OTP tokens, and others to increase the security of online transactions.

Continuous Increase in Advanced & Complex Threats: The frequency and complexity of sophisticated and complicated cyberattacks are constantly rising. Critical installations targeted by these assaults include web servers, government agencies, consumer databases, and password databases. Some of the most powerful threats have the power to bring down an attacked location's whole infrastructure. These advanced assaults cannot be stopped by simple authentication. As a result, several businesses, governments, and financial institutions are employing OOB authentication strategies such as hardware OTP token authentication to safeguard their infrastructure.

Surge in Adoption of OOB Authentication by SME Businesses: The emergence of the "bring your own device" (BYOD) trend in businesses is expected to open up a wide range of potential for the growth of the market. The demand for security solutions has grown as more people use tablets and mobile devices to access important information. Due to the lack of security on these tablets and mobile devices, there is a high likelihood of fraud and exploitation of vital corporate and company data. OOB authentication is therefore being more widely used by businesses to protect their networks from rising security risks.

All businesses managing sensitive data, including the financial services, baking, insurance, credit card, and healthcare sectors, are experiencing a surge in privacy concerns. Companies must abide by the security and privacy standards imposed by regulatory agencies; failure to do so might result in financial damage to the business. OOB authentication techniques are now being used more often as a result of this.

Rising Concern about Data Privacy: Additionally, worries about data privacy have grown across many sectors, including the financial services, credit cards, bakery, insurance, and healthcare businesses. Since a breach in compliance might result in a financial loss for the organization, these industries are obligated to abide by the privacy and security standards imposed by regulatory agencies. Out-of-band (OOB) authentication techniques have so been more widely used. Additionally, throughout the forecast period, the out-of-band (OOB) authentication solutions and Services market is expected to experience significant growth due to the rise in the use of OOB authentication by small and medium-sized organizations.

Market Restraints:

High Cost of Installations: The growth of the worldwide out-of-band authentication solutions and Services market was constrained by the significant risks associated with SMS-based out-of-band authentication and the high cost of product association. The market is expected to be significantly constrained in the forecast term due to a shortage of out-of-band authentication AI specialists. Out-of-band authentication is a complicated area of AI that is still in its infancy.

Organizations thus need management experience for AI-powered out-of-band authentication solutions. Technology has several advantages, but throughout the forecast period, market growth is expected to be constrained by a lack of knowledge, insufficient funding, and subpar investments. Additionally, it is expected that unclear legislation may impede industry growth.
Segment Analysis:
Based on Organization Size, the Out of band authentication solutions and Services Market is segmented into Small and Medium Enterprises (SMEs) and Large Enterprises. The category of SMEs is expected to see the greatest CAGR growth throughout the forecast period due to the rising frequency of cyberattacks on these businesses. SMEs are tiny in terms of size, yet they serve a vast number of clients on a worldwide scale. Because small businesses have limited resources, it is difficult for them to establish robust and comprehensive security solutions. But in 2018, the market for out-of-band authentication is dominated by the large corporate category.

Based on the Solution, the Out of band authentication solutions and Services Market is segmented into Software and Hardware Solution. Authentication Channels, suite, and development kit formats are all accessible for software solutions. Soft tokens, which may be downloaded into mobile devices, can be given to users in place of the requirement to carry hardware devices for authentication. Businesses are searching for software-based authentication solutions that are very user-friendly and carry a low level of complexity as the BYOD trend spreads throughout businesses. SMS, email, push notifications, and biometrics are just a few of the popular authentication methods supported by software-based systems. The need for software solutions is rising as a result of the difficulty in managing hardware-based solutions and the increased flexibility provided by software solutions.
Regional Insights:
The North America region dominated the market with a 30 % share in 2022. The North America region is expected to witness significant growth at a CAGR of 21 % through the forecast period. The market in North America is expected to increase as a result of a number of important factors, including the growing Internet of Things (IoT), cloud usage, the Bring Your Own Device (BYOD) trend and rising internal and external threats.

The number of smart devices and the BYOD trend is growing in both established and emerging countries in APAC, which is helping the APAC market gain traction. In the APAC area, both SMEs and large-scale enterprises are starting to employ OOBA solutions and services to address the rising incidence of identity theft and fraud.

The objective of the report is to present a comprehensive analysis of the global Out of band authentication solutions and services Market to the stakeholders in the industry. The past and current status of the industry with the forecast market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Out of band authentication solutions and services Market dynamic, structure by analyzing the market segments and projecting the Out of band authentication solutions and services Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Out of band authentication solutions and services Market make the report investor’s guide.
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Out of band authentication solutions and services Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $1.23Bn.


Forecast Period 2023 to 2029 CAGR:
23.6%
Market Size in 2029:
US $ 5.44 Bn.


 Segments Covered:
by Solution
Software Solution
Hardware Solution


by Authentication Channels
SMS
Email
Push Notification
Voice
Token-Based
Others


by Organization Size
Small and Medium Enterprises (SMEs)
Large Enterprises


by Service
Managed Services
Professional Services


by Deployment
On Premises
On Cloud



Out-of-band authentication solutions and Services Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Out of band authentication solutions and services Market Key Players
1. Gemalto
2. CA Technologies Symantec
3. Ping Identity
4. RSA Security
5. Entrust Datacard EZMCOM
6. Duo Security
7. StrikeForce Technologies
8. Nok Nok Labs
9. SolidPass
10.Protectimus
11.SAASPASS
12.DynaPass
13.i-Sprint Innovations
14.CensorNet
15.Deepnet Security
16.Early Warning Services
17.Gemalto N.V.
18.SecurEnvoy Ltd.

Frequently Asked Questions:

1] What segments are covered in the Global Out of band authentication solutions and services Market report?
Ans. The segments covered in the Out of band authentication solutions and services Market report are based on Service, Solution, Deployment, Organization Size, and Authentication Channels.

2] Which region is expected to hold the highest share in the Global Out of band authentication solutions and services Market?
Ans. The North America region is expected to hold the highest share in the Out of band authentication solutions and services Market.

3] What is the market size of the Global Out of band authentication solutions and services Market by 2029?
Ans. The market size of the Out of band authentication solutions and services Market by 2029 is expected to reach US$ 5.44 Bn.

4] What is the forecast period for the Global Out of band authentication solutions and services Market?
Ans. The forecast period for the Out of band authentication solutions and services Market is 2023-2029.

5] What was the market size of the Global Out of band authentication solutions and services Market in 2022?
Ans. The market size of the Out of band authentication solutions and services Market in 2022 was valued at US$ 1.23 Bn.