The global out-of-band (OOB) authentication market size was US$ 680.19 million in 2021. The global out-of-band (OOB) authentication market size is forecast to reach US$ 4351.1 million by 2030, growing at a compound annual growth rate (CAGR) of 22.9% during the forecast period from 2022 to 2030.
Out-of-band authentication is a type of two-factor authentication that requires a secondary authentication method over another communication channel in addition to the normal ID and password. banks, financial institutions, and other organizations with high-security requirements primarily use out-of-band authentication. Using the OOB Authenticator makes account hacking difficult because an attacker would have to compromise two separate, unconnected authentication channels for access.
Factors Influencing Market Growth
Impact Analysis of COVID-19
The COVID-19 pandemic had a huge impact on all industries as most businesses started their work from home and financial institutions went online. Therefore, during the COVID-19 pandemic, the potential for online fraud and unauthorized access to the system increased. In order to protect against such online fraud and data theft issues, companies use this advanced authentication system to provide additional protection against unauthorized access, verification, and many frauds and hack to prevent. Thus, the adoption of out-of-band authentication has increased. Therefore, the out-of-band certification industry has been positively impacted by the COVID 19 pandemic.
Regional Insights
North America accounted for the largest share in the Out-of-band authentication market and is forecast to remain dominant during the forecast period. The growing number of connected devices and the Internet of Things (IoT) and the problems they pose are some of the factors driving the implementation of out-of-band authentication solutions and services. The presence of many OOBA merchants, and comprehensive response to these solutions, contribute to the market growth in the region during the forecast period.
The Asia Pacific is forecast to grow at a significant CAGR during the forecast period. The major factor contributing to market growth is the increasing adoption of out-of-band authentication by SMBs and the surge in demand for smart devices. In addition, rising digital transactions, fraud, and increased awareness and acceptance of cyberattacks are driving demand for the out-of-band authentication market in the region.
Leading Competitors
The leading prominent companies profiled in the global out-of-band authentication market are:
Scope of the Report
The global out-of-band authentication market segmentation focuses on Component, Deployment Type, Enterprise Size, Industry Vertical, and Region.
Segmentation based on Component
Segmentation based on Deployment Type
Segmentation based on Enterprise Size
Segmentation based on Industry Vertical
Segmentation based on Region
