by Out-of-band authentication (OOBA) provides an additional layer of security during login by leveraging a separate communication channel that is different from the primary channel used for the login attempt. OOBA helps verify the identity of users to make online transactions and access sensitive services and applications more secure. It provides stronger identity verification by using a separate channel like email, SMS, or authenticator apps to confirm users are who they say they are. With the increasing instances of cybercrimes such as hacking and phishing, the need for advanced authentication solutions has increased significantly. OOBA offers improved protection against cyber threats like password theft, man-in-the-middle attacks, and automated bots.
The global Out-of-Band Authentication Market is estimated to be valued at US$ 1.36 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing popularity of multi-factor authentication and cloud-based OOBA solutions are some of the key trends in the out-of-band authentication market. Legacy single-factor authentication methods are being replaced by stronger multi-factor authentication that combines something users know like passwords with something they have like security keys or authenticator apps. Cloud-based OOBA solutions allow easier management of second channels for identity verification over cloud instead of relying on SMS or offline channels. They provide centralized authentication services to multiple applications. This reduces costs and complexity compared to on-premise solutions. Social authentication is another emerging trend where people can verify identities through social networks. Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow.
Porter’s Analysis
Threat of new entrants: Low, as this market requires significant investment and resources to develop out-of-band authentication solutions.
Bargaining power of buyers: Moderate, as there are several vendors providing solutions in this market.
Bargaining power of suppliers: Low, as raw materials required are commodity products and globally available.
Threat of new substitutes: Low, as out-of-band authentication provides additional layer of security compared to alternatives.
Competitive rivalry: High, as key players are focusing on new product launches and partnerships to gain competitive edge.
Key Takeaways
Global Out-Of-Band Authentication Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. The market was valued at US$ 1.36 Bn in 2023 and is projected to grow at a CAGR of 5.5% during the forecast period.
Regional analysis – North America is currently the largest market for out-of-band authentication owing to stringent data security regulations and early adoption of advanced authentication technologies among organizations in the region. Asia Pacific is expected to be the fastest growing market with major opportunities in countries like China and India.
Key players – Key players operating in the out-of-band authentication market are The Chemours Company, Daikin Industries, Ltd., 3M, The AGC Group, Solvay, HaloPolymer, OJSC, Dongyue Group Limited, Gujarat Fluorochemicals Limited, Jiangsu Meilan Chemical Co. Ltd., and Shanghai Huayi 3F New Materials Co. Ltd. The companies are focused on new product development and partnerships to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
