PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1565169
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1565169
OOB Authentication
Global OOB Authentication Market to Reach US$6.5 Billion by 2030
The global market for OOB Authentication estimated at US$1.6 Billion in the year 2023, is expected to reach US$6.5 Billion by 2030, growing at a CAGR of 21.8% over the analysis period 2023-2030. Solutions Component, one of the segments analyzed in the report, is expected to record a 23.3% CAGR and reach US$4.9 Billion by the end of the analysis period. Growth in the Services Component segment is estimated at 17.8% CAGR over the analysis period.
The U.S. Market is Estimated at US$449.7 Million While China is Forecast to Grow at 20.7% CAGR
The OOB Authentication market in the U.S. is estimated at US$449.7 Million in the year 2023. China, the world's second largest economy, is forecast to reach a projected market size of US$970.2 Million by the year 2030 trailing a CAGR of 20.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 19.6% and 18.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.7% CAGR.
Global Out-of-Band (OOB) Authentication Market - Key Trends & Drivers Summarized
How Has OOB Authentication Enhanced Cybersecurity?
Out-of-band (OOB) authentication has emerged as a critical component in enhancing cybersecurity, particularly in the face of rising cyberattacks and identity theft. OOB authentication adds an extra layer of security by requiring users to authenticate transactions or logins through two separate communication channels, reducing the risk of attacks like man-in-the-middle or session hijacking. Traditionally, many online systems relied solely on passwords, which have proven to be increasingly vulnerable to phishing, brute force attacks, and credential stuffing. OOB authentication platforms, such as those offered by companies like RSA SecureID, Duo Security, and OneSpan, provide a more secure method by sending authentication codes or biometric requests to a separate device (often a mobile phone), ensuring that even if one communication channel is compromised, the attacker cannot gain full access. This has made OOB authentication particularly valuable for industries with high security requirements, such as banking, financial services, and healthcare.
What Trends Are Emerging in the OOB Authentication Market?
Several key trends are emerging in the OOB authentication market, reflecting the growing need for stronger cybersecurity measures in an increasingly digital world. One major trend is the rise of biometric authentication, which uses unique physiological characteristics, such as fingerprints, facial recognition, or voice patterns, to verify user identity. Biometric data adds an additional layer of security and convenience, as it is nearly impossible to replicate. Another trend is the shift towards multi-factor authentication (MFA), where OOB authentication is combined with other methods, such as biometrics or hardware tokens, to provide more comprehensive security. The increased use of mobile devices as an OOB authentication channel has also gained traction, with users receiving one-time passwords (OTPs) or push notifications on their smartphones. Additionally, the integration of AI and machine learning into authentication systems is enhancing fraud detection capabilities, identifying unusual patterns of behavior and flagging suspicious activity. Compliance with regulations such as GDPR and PSD2 is also driving demand for more secure authentication methods, especially in sectors like finance and healthcare.
How Is Technology Enhancing OOB Authentication?
Technological advancements have significantly enhanced the effectiveness and usability of OOB authentication, making it a preferred security solution for many organizations. The integration of biometrics, such as fingerprint or facial recognition, has added an extra layer of security while also improving user convenience by reducing reliance on passwords. Machine learning algorithms are being used to detect and block suspicious login attempts in real time, flagging potential threats before they can cause damage. Cloud-based authentication services have also become more popular, allowing businesses to implement OOB authentication without the need for on-premises hardware. These solutions are scalable and can be deployed across a range of devices, from smartphones to tablets and desktop computers. Mobile push notifications and secure OTP generators are now integrated into many authentication systems, providing a seamless user experience while maintaining high security. The use of blockchain technology for decentralized identity verification is another emerging area, offering a tamper-proof method for ensuring the authenticity of user credentials.
What Is Driving the Growth in the OOB Authentication Market?
The growth in the OOB authentication market is driven by several factors, particularly the rising number of cyber threats and the increasing demand for secure digital transactions. As industries such as banking, healthcare, and e-commerce continue to digitize, the need for robust, multi-layered authentication methods has become more pressing. Regulatory requirements, such as the European Union’s PSD2 (Payment Services Directive) and GDPR, have mandated stronger authentication measures, driving organizations to adopt OOB solutions. The increasing reliance on mobile devices for transactions and communications has also contributed to market growth, as mobile phones are a convenient channel for OOB authentication via push notifications or OTPs. Technological innovations, particularly in biometric authentication and AI-driven fraud detection, have enhanced the security and efficiency of OOB solutions, making them more attractive to organizations looking to protect sensitive data. Additionally, the growing trend toward remote work has heightened the need for secure authentication, as employees access corporate systems from various locations and devices.
Select Competitors (Total 44 Featured) -
- AMAG Technology, A G4S Company
- Broadcom, Inc.
- Deepnet Security Ltd.
- Nok Nok Labs, Inc.
- Ping Identity Corporation
- RSA Security LLC
- SecurEnvoy Limited
- Sixscape Communications Pte Ltd.
- SolidPass
- Thales S.A.
TABLE OF CONTENTS
I. METHODOLOGY
II. EXECUTIVE SUMMARY
- 1. MARKET OVERVIEW
- Influencer Market Insights
- World Market Trajectories
- Global Economic Update
- OOB Authentication - Global Key Competitors Percentage Market Share in 2024 (E)
- Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2024 (E)
- 2. FOCUS ON SELECT PLAYERS
- 3. MARKET TRENDS & DRIVERS
- Growing Threat of Cybersecurity Attacks Spurs Demand for Enhanced Security Through OOB Authentication
- Increasing Regulatory Compliance Requirements, Such as GDPR and PSD2, Propel Adoption of OOB Authentication Solutions
- Rising Focus on Protecting High-Value Transactions and Sensitive Data Strengthens the Business Case for OOB Authentication
- Growing Adoption of Multi-Factor Authentication (MFA) Expands the Use of OOB Authentication for Added Security Layers
- Increasing Use of Biometrics in OOB Authentication Solutions Generates Opportunities for More Secure User Verification
- Rise of Remote Work and BYOD (Bring Your Own Device) Expands Market Opportunities for OOB Authentication
- Growing Emphasis on Securing Mobile Banking and Online Financial Transactions Drives Demand for OOB Authentication in Fintech
- Technological Advancements in Real-Time Threat Detection Enhance the Effectiveness of OOB Authentication Solutions
- Rising Adoption of Cloud-Based Security Solutions and Platforms Expands Demand for OOB Authentication Among Enterprises
- Increasing Incidence of Account Takeover Fraud Strengthens the Case for OOB Authentication in E-Commerce
- Growing Use of OOB Authentication in Healthcare and Medical Data Security Expands Adoption in the Healthcare Sector
- AI and Machine Learning Enhance Fraud Detection and Prevention in OOB Authentication Solutions
- Increasing Demand for Zero Trust Security Architectures Drives Integration of OOB Authentication in Network Access Control
- 4. GLOBAL MARKET PERSPECTIVE
- TABLE 1: World OOB Authentication Market Analysis of Annual Sales in US$ Thousand for Years 2014 through 2030
- TABLE 2: World Recent Past, Current & Future Analysis for OOB Authentication by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 3: World 7-Year Perspective for OOB Authentication by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets for Years 2024 & 2030
- TABLE 4: World Recent Past, Current & Future Analysis for Solutions by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 5: World 7-Year Perspective for Solutions by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2024 & 2030
- TABLE 6: World Recent Past, Current & Future Analysis for Services by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 7: World 7-Year Perspective for Services by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2024 & 2030
- TABLE 8: World Recent Past, Current & Future Analysis for BFSI by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 9: World 7-Year Perspective for BFSI by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2024 & 2030
- TABLE 10: World Recent Past, Current & Future Analysis for Retail by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 11: World 7-Year Perspective for Retail by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2024 & 2030
- TABLE 12: World Recent Past, Current & Future Analysis for Government & Defense by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 13: World 7-Year Perspective for Government & Defense by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2024 & 2030
- TABLE 14: World Recent Past, Current & Future Analysis for Other End-Uses by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 15: World 7-Year Perspective for Other End-Uses by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2024 & 2030
III. MARKET ANALYSIS
- UNITED STATES
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2024 (E)
- TABLE 16: USA Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 17: USA 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 18: USA Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 19: USA 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- CANADA
- TABLE 20: Canada Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 21: Canada 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 22: Canada Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 23: Canada 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- JAPAN
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2024 (E)
- TABLE 24: Japan Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 25: Japan 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 26: Japan Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 27: Japan 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- CHINA
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2024 (E)
- TABLE 28: China Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 29: China 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 30: China Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 31: China 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- EUROPE
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2024 (E)
- TABLE 32: Europe Recent Past, Current & Future Analysis for OOB Authentication by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Thousand for Years 2023 through 2030 and % CAGR
- TABLE 33: Europe 7-Year Perspective for OOB Authentication by Geographic Region - Percentage Breakdown of Value Sales for France, Germany, Italy, UK and Rest of Europe Markets for Years 2024 & 2030
- TABLE 34: Europe Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 35: Europe 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 36: Europe Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 37: Europe 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- FRANCE
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2024 (E)
- TABLE 38: France Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 39: France 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 40: France Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 41: France 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- GERMANY
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2024 (E)
- TABLE 42: Germany Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 43: Germany 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 44: Germany Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 45: Germany 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- ITALY
- TABLE 46: Italy Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 47: Italy 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 48: Italy Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 49: Italy 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- UNITED KINGDOM
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2024 (E)
- TABLE 50: UK Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 51: UK 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 52: UK Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 53: UK 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- REST OF EUROPE
- TABLE 54: Rest of Europe Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 55: Rest of Europe 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 56: Rest of Europe Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 57: Rest of Europe 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- ASIA-PACIFIC
- OOB Authentication Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2024 (E)
- TABLE 58: Asia-Pacific Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 59: Asia-Pacific 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 60: Asia-Pacific Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 61: Asia-Pacific 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
- REST OF WORLD
- TABLE 62: Rest of World Recent Past, Current & Future Analysis for OOB Authentication by Component - Solutions and Services - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 63: Rest of World 7-Year Perspective for OOB Authentication by Component - Percentage Breakdown of Value Sales for Solutions and Services for the Years 2024 & 2030
- TABLE 64: Rest of World Recent Past, Current & Future Analysis for OOB Authentication by End-Use - BFSI, Retail, Government & Defense and Other End-Uses - Independent Analysis of Annual Sales in US$ Thousand for the Years 2023 through 2030 and % CAGR
- TABLE 65: Rest of World 7-Year Perspective for OOB Authentication by End-Use - Percentage Breakdown of Value Sales for BFSI, Retail, Government & Defense and Other End-Uses for the Years 2024 & 2030
IV. COMPETITION
