The global Out-of-Band (OOB) Authentication market is estimated to be valued at $553.45 million in 2020 and is expected to exhibit a CAGR of 22.8% over the forecast period 2021-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The Out-of-Band Authentication market provides a strong and secure approach to verify user identities in various applications and industries. It ensures an additional layer of security by validating transactions or logins through an independent out-of-band channel, such as SMS, phone calls, or mobile apps. This market is witnessing significant adoption due to the increasing need for advanced security measures and protecting sensitive data from cyber threats.
B) Market Dynamics:
The Out-of-Band Authentication Market is driven by two key factors. Firstly, the rising number of cyberattacks and data breaches has compelled organizations to enhance their security measures. Out-of-band authentication offers protection against unauthorized access and reduces the risk of identity theft, making it a preferred choice for both enterprises and consumers. For example, in the healthcare industry, OOB authentication helps protect patient records from being accessed by unauthorized personnel.
Secondly, the increasing adoption of mobile devices and the growing popularity of mobile banking, e-commerce, and digital transactions have created a need for secure authentication methods. Out-of-band authentication provides an effective solution by leveraging the mobile channel, enabling users to verify their identity with ease and convenience. This has led to its widespread adoption across various industries.
C) Market Key Trends:
One of the key trends observed in the Out-of-Band Authentication market is the integration of biometric authentication methods. Biometrics, such as fingerprint or facial recognition, add an extra layer of security to the authentication process. For instance, mobile banking applications are incorporating fingerprint scanning as an additional factor to authenticate transactions, ensuring a seamless and secure user experience.
D) SWOT Analysis:
Strength 1: Enhanced Security Measures - Out-of-Band Authentication offers a robust security solution to protect sensitive data from unauthorized access.
Strength 2: Convenient User Experience - The use of mobile channels for authentication provides users with a seamless and convenient experience.
Weakness 1: Dependency on Network Connectivity - Out-of-Band Authentication relies on network connectivity for message delivery, which may be affected by factors such as poor network coverage or disruptions.
Weakness 2: Potential SMS Vulnerabilities - SMS-based authentication methods are susceptible to SIM card cloning or interception, posing a security risk.
Opportunity 1: Increasing Adoption of IoT Devices - The proliferation of Internet of Things (IoT) devices creates a need for secure authentication methods to protect data and devices from unauthorized access.
Opportunity 2: Growing Investments in Cybersecurity - Organizations are increasingly investing in advanced security solutions, including out-of-band authentication, to combat cyber threats effectively.
Threat 1: Rapid Technological Advancements - The market faces the challenge of keeping up with the evolving technologies and ensuring compatibility with diverse platforms and devices.
Threat 2: Regulatory Compliance - Compliance with data protection regulations, such as GDPR and HIPAA, poses challenges for organizations implementing out-of-band authentication due to stringent requirements and guidelines.
E) Key Takeaways:
- The global Out-of-Band Authentication market is expected to witness high growth, exhibiting a CAGR of 22.8% over the forecast period, driven by the rising need for advanced security measures.
- North America is expected to dominate the market due to its robust infrastructure and increasing adoption of mobile banking and digital transactions. Asia-Pacific is projected to be the fastest-growing region, fueled by the growing e-commerce sector and expanding consumer base.
- Key players operating in the global Out-of-Band Authentication market include Broadcom, Entrust Datacard Corporation, Deepnet Security, Early Warning Services, LLC, Gemalto NV, SecurEnvoy Ltd, StrikeForce Technologies, Inc., TeleSign, Symantec Corporation, OneSpan Inc., DynaPass Inc., and Duo, among others. These players focus on strategic partnerships, acquisitions, and product innovations to gain a competitive edge in the market.
The use of biometrics across various industries is majorly due to a higher demand of enhanced safety and security of the personnel.
Among the changing paradigm of the consumer as well as enterprise market, a significantly higher demand of biometrics from the consumer goods segment such as from smartphones, laptops, and tablets is majorly impacting the growth of the biometric industry.
Another factor driving the growth of this market is the use of biometric in anti-money laundering coupled with an increased use of biometrics in the era of blockchain.
In 2018, the government sector is estimated to be the largest market with banking and financial institutions following the lead in the global biometric authentication and identification market.
The ever-increasing demand for securing the identity of any individual and identifying the individual for any crimes has led to a surge in demand of biometrics in government application.
Another growing application sector is the banking and financial institutions which is increasingly using the biometric systems for the user identification.
