by Market Overview:
Out-of-band authentication is a method of verifying the identity of users during the authentication process, which utilizes more than one communication channel. It offers an additional layer of security by using a separate channel, typically a mobile phone, to send authentication codes or alerts. The advantages of out-of-band authentication include enhanced security, protection against phishing attacks, and reduced reliance on traditional password-based authentication methods. With the increasing number of cyber threats and data breaches, the need for robust security solutions is driving the growth of the out-of-band authentication market.
Market Key Trends:
One key trend in the out-of-band authentication market is the rising adoption of multi-factor authentication (MFA) for enhanced security. MFA combines two or more authentication factors, such as passwords, biometrics, tokens, or out-of-band communication, to verify the user’s identity. This approach provides a higher level of security compared to traditional single-factor authentication methods. Organizations across various industries, including banking, healthcare, and e-commerce, are implementing MFA solutions to protect sensitive data and prevent unauthorized access. The increasing awareness of the importance of strong authentication methods is expected to drive the demand for out-of-band authentication solutions in the coming years.
The global Out-Of-Band Authentication Market Demand is estimated to be valued at US$ 443.81 Million in 2023 and is expected to exhibit a CAGR of 11.37% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of New Entrants:
The out-of-band authentication market faces a moderate threat of new entrants. While the market is growing rapidly and offers significant opportunities, there are barriers to entry in the form of high initial investment, technological expertise, and the need to establish partnerships with key players. Additionally, existing companies already possess a strong customer base and established relationships, making it challenging for new entrants to gain a foothold.
Bargaining Power of Buyers:
Buyers in the out-of-band authentication market have a moderate bargaining power. The increasing availability of various out-of-band authentication solutions and the importance of security in today’s digital landscape give buyers a certain level of power to negotiate prices and terms. However, the specialized nature of these solutions and the need for robust security measures limit the buyer’s choices to a certain extent.
Bargaining Power of Suppliers:
Suppliers in the out-of-band authentication market have a moderate bargaining power. As demand for secure authentication solutions increases, suppliers, such as technology providers and software vendors, have the advantage of offering unique and specialized products. However, the market also provides opportunities for collaboration and partnership, which can increase the bargaining power of buyers.
Threat of New Substitutes:
The out-of-band authentication market faces a low threat of new substitutes. The critical need for strong security measures and the increasing sophistication of cyber threats make out-of-band authentication a crucial component of secure systems. While there may be alternative methods of authentication available, such as biometrics or multi-factor authentication, out-of-band authentication remains a preferred choice for many organizations.
Competitive Rivalry:
The out-of-band authentication market is highly competitive, with several key players operating in the market. Companies like Broadcom, Entrust Datacard Corporation, and Symantec Corporation hold significant market shares. The competition is driven by factors such as technological advancements, product innovation, and strategic partnerships. The competitive rivalry within the market is expected to further intensify as the demand for secure authentication solutions increases.
Key Takeaways
The global out-of-band authentication market is expected to witness high growth, exhibiting a CAGR of 11.37% over the forecast period, due to increasing concerns regarding cybersecurity and the need for robust authentication solutions. The market size for 2023 was valued at US$ 443.81 million.
In terms of regional analysis, North America is the fastest-growing and dominating region in the out-of-band authentication market. The significant presence of key players, increased adoption of advanced authentication solutions, and stringent regulatory standards contribute to the region’s market dominance.
Key players operating in the 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 key players are focused on product innovation, strategic partnerships, and expanding their market presence to gain a competitive edge in the market.
In conclusion, the out-of-band authentication market is experiencing significant growth, driven by the increasing need for secure authentication solutions. The market is highly competitive, and key players are investing in technology advancements and partnerships to stay ahead. With North America leading the market, there are ample opportunities for growth and expansion within this industry.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
