The out of band authentication trade is estimated at USD 1.0 Billion in 2021. The market is expected to reach USD 1.2 Billion in 2022. According to the analysis, the global out of band authentication market is anticipated to secure USD 4.3 Billion in 2032, while flourishing at a 13.2% CAGR from 2022 to 2032.
Increasing adoption of advanced authentication technology in major industries like banking, retail, and healthcare helps in easy operations of automated out of band authentication resulting in the growth of the market through the forecasting period
| Attributes | Details |
|---|---|
| Out of band authentication Market CAGR (2022 to 2032) | 13.2% |
| Out of band authentication Market (2032) | USD 4.3 Billion |
| Out of band authentication Market Attraction | Increasing digitalization and advancement in technology and increasing cyber-attacks boosted the use of authentication services by government and enterprises is likely to drive the market in the forecast period. |
Growing security and data privacy concerns to propel the growth of the market
Out of band authentication enable data security and data privacy, which is expected to be the most significant factor driving the market during the forecast period. Data privacy is the main concern in industries, such as financial services, payment cards, baking, insurance, and healthcare sectors. All these companies follow the data privacy and security requirement set by regulatory authorities. This results in increased demand for band authentication.
Also, the presence of stringent rules and regulations related to data privacy contributed to the growth of the out-of-band authentication market in the coming years. Also, developments in artificial intelligence (AI), the Internet of Things (IoT), and big data technologies are projected to boost the application of data privacy solutions among organizations.
Growing online transaction and compliance requirements boost the growth of the out-of-band authentication market
A growing number of online transactions and compliance requirements are one of the major driving factors of the out-of-band authentication market. The frequency of cyber-attack is high in online transactions thus to minimize the cyber-attack many organizations are adopting authentication methods such as phone-based authentication, software OTP tokens, hardware one-time passwords (OTP) tokens, and others to make secure online transactions. Moreover, hackers always target lucrative sectors, which have a huge online customer base.
For instance, in April 2019, Worldpay, Inc., a global payment technology provider, announced the launch of ‘FraudSight’, which is a new solution designed to prevent fraud and optimize approval rates, potentially boosting revenue across all channels. According to Worldpay, Inc., FraudSight can make transaction validity decisions for merchants of all sizes.
The increasing use of laptops, tablets, smartphones, and smart gadgets has increased the usability of various internet-based solutions and services across the world. For instance, as of April 2022, there were five billion internet users worldwide, which is 63% of the global population. Increasing use of cloud-based technology such as Artificial intelligence, big data, and blockchain in many enterprises impelled the growth of the market.
The growing trend of bring your own device (BYOD) in many industries allows their employees to utilize the benefits of greater flexibility, collaboration, and work-life balance for improving productivity due to this, there is a sudden hike in the number of businesses implementing enterprise mobility solutions that enable and encourage employees to work at anytime, anywhere, from a wide range of devices. This trend has raised security-related issues which are expected to drive the growth of the band authentication market.
With a major emphasis on the precision of out-of-band authentication, governments are augmenting capabilities by incorporating advanced systems such as information technology, cloud computing, AI, and cyber security among others. Innovative progression in authentication services to provide high security in financial institutions and different industries is a key factor driving market growth.
Adopting software solution that generates one-time passcodes (OTPs) and is sent using via email or SMS text message is expected to drive the out-of-band authentication market Also rising adoption of out-of-band authentication by small and medium-sized businesses is expected to provide numerous opportunities for out-of-band authentication market globally during the forecast period. Attributed to these promising trends, it is no surprise that demand for Out of band authentication systems is projected to rise significantly in forthcoming years.
High risks involved in out-of-band authentication with SMS and the high product association cost hampered the global out-of-band authentication market growth. The lack of out-of-band authentication AI experts is anticipated to act as a significant restraint to the market in the forecast period. Out-of-band authentication AI is at a nascent stage and is complex in nature.
Therefore, organizations demand expertise in managing out-of-band authentication solutions powered by AI. The technology offers various benefits, however, lack of awareness, inadequate funding, and poor investments are likely to hamper the market growth in the forecast period. Also, uncertain regulations are also projected to hinder the industry growth.
As per the analysis, by component, the solution segment is likely to expand at a CAGR of 12.4% during the forecast period. The solution segment is expected to flourish owing to the increasing demand for out-of-band authentication-based platforms across various spheres of enterprises to assure safe transaction models in their business units. On the other hand, the services segment is projected to witness significant demand in the coming time. The growth can be attributed to the growing demand for out-of-band authentication services like professional services and managed services is expected to boost the segment growth.
By organization size, the SME segment is projected to record a 12.4% CAGR in the forecast period. The segment is projected to garner a larger market share in the coming time. The growth of the segment can be attributed to the growing incidences of cyber-attacks on enterprises. SMEs serve many customers all over the world. On the other hand, the large enterprise segment is expected to record significant growth due to the growing investments in out-of-band authentication platforms by governments.
According to the analysis, the global market is estimated to be dominated by North America. The USA is anticipated to garner the largest market share in the forecast period. It is estimated at USD 1.5 Billion, recording a CAGR of 13.1% during the forecast period. Also, the government in the USA is focused on deploying band authentication-based solutions in various spheres.
Increasing adoption of the use of information systems to support its basic and essential business functions in the region boost the growth of the market. North America accounts for the highest share during the forecast period due to the presence of many out-of-band authentication vendors. For instance, the Government of Canada uses an out-of-band token, a combination of a physical device (e.g., mobile phone, landline telephone), and a secret that is transmitted to the device by a verifier each time authentication is required.
Europe is likely to garner considerable market share with the UK contributing USD 179.2 Million, expanding at 12.3% CAGR. Sectors such as ITC, automotive, media, and entertainment, among others, are some of the most significant consumers. Also, rapid digitalization is expected to positively benefit the market in the region in the coming time. In addition, growing partnerships among players are expected to augment the market in the UK.
Asia Pacific is projected to be the most lucrative market in the assessment period. The region is witnessing rapid adoption of advanced technologies, which acts as a salient factor boosting the market in APAC.
Emerging nations such as China, Japan, and South Korea are recognized to be the most remunerative markets. As per the analysis, China, Japan, and South Korea are projected at USD 300.1 Million, USD 242.0 Million, and USD 151.0 Million respectively.
Also, the three countries are expected to flourish at a healthy CAGR with China expanding at 12.5%, Japan at 11.5%, and South Korea at 10.6% in the forecast period. The development of the region can be attributed to the increasing investments by governments.
Country-wise Forecast CAGRs for the Out of Band Authentication Market.
| Countries | Estimated CAGR |
|---|---|
| USA | 13.1% |
| UK | 12.3% |
| China | 12.5% |
| Japan | 11.5% |
| South Korea | 10.6% |
Key players in the global out-of-band authentication market include Gemalto, CA Technologies, Symantec, Ping Identity, and RSA Security among others. Market players are leveraging strategic collaborative initiatives to increase their market share and increase their profitability.
Recent developments among key players are:
Table 1: Global Market Value (US$ Million), By Authentication Channels, 2015 to 2021
Table 2: Global Market Value (US$ Million), By Authentication Channels, 2022 to 2032
Table 3: Global Market Value (US$ Million), By Component, 2015 to 2021
Table 4: Global Market Value (US$ Million), By Component, 2022 to 2032
Table 5: Global Market Value (US$ Million), By Organization Size, 2015 to 2021
Table 6: Global Market Value (US$ Million), By Organization Size, 2022 to 2032
Table 7: Global Market Value (US$ Million), By Vertical, 2015 to 2021
Table 8: Global Market Value (US$ Million), By Vertical, 2022 to 2032
Table 9: Global Market Value (US$ Million), By Deployment Type, 2015 to 2021
Table 10: Global Market Value (US$ Million), By Deployment Type, 2022 to 2032
Table 11: Global Market, By Region, 2015 to 2021
Table 12: Global Market, By Region, 2022 to 2032
Table 13: North America Market Value (US$ Million), By Authentication Channels, 2015 to 2021
Table 14: North America Market Value (US$ Million), By Authentication Channels, 2022 to 2032
Table 15: North America Market Value (US$ Million), By Component, 2015 to 2021
Table 16: North America Market Value (US$ Million), By Component, 2022 to 2032
Table 17: North America Market Value (US$ Million), By Organization Size, 2015 to 2021
Table 18: North America Market Value (US$ Million), By Organization Size, 2022 to 2032
Table 19: North America Market Value (US$ Million), By Vertical, 2015 to 2021
Table 20: North America Market Value (US$ Million), By Vertical, 2022 to 2032
Table 21: North America Market Value (US$ Million), By Deployment Type, 2015 to 2021
Table 22: North America Market Value (US$ Million), By Deployment Type, 2022 to 2032
Table 23: North America Market, By Country, 2015 to 2021
Table 24: North America Market, By Country, 2022 to 2032
Table 25: Latin America Market Value (US$ Million), By Authentication Channels, 2015 to 2021
Table 26: Latin America Market Value (US$ Million), By Authentication Channels, 2022 to 2032
Table 27: Latin America Market Value (US$ Million), By Component, 2015 to 2021
Table 28: Latin America Market Value (US$ Million), By Component, 2022 to 2032
Table 29: Latin America Market Value (US$ Million), By Organization Size, 2015 to 2021
Table 30: Latin America Market Value (US$ Million), By Organization Size, 2022 to 2032
Table 31: Latin America Market Value (US$ Million), By Vertical, 2015 to 2021
Table 32: Latin America Market Value (US$ Million), By Vertical, 2022 to 2032
Table 33: Latin America Market Value (US$ Million), By Deployment Type, 2015 to 2021
Table 34: Latin America Market Value (US$ Million), By Deployment Type, 2022 to 2032
Table 35: Latin America Market, By Country, 2015 to 2021
Table 36: Latin America Market, By Country, 2022 to 2032
Table 37: Europe Market Value (US$ Million), By Authentication Channels, 2015 to 2021
Table 38: Europe Market Value (US$ Million), By Authentication Channels, 2022 to 2032
Table 39: Europe Market Value (US$ Million), By Component, 2015 to 2021
Table 40: Europe Market Value (US$ Million), By Component, 2022 to 2032
Table 41: Europe Market Value (US$ Million), By Organization Size, 2015 to 2021
Table 42: Europe Market Value (US$ Million), By Organization Size, 2022 to 2032
Table 43: Europe Market Value (US$ Million), By Vertical, 2015 to 2021
Table 44: Europe Market Value (US$ Million), By Vertical, 2022 to 2032
Table 45: Europe Market Value (US$ Million), By Deployment Type, 2015 to 2021
Table 46: Europe Market Value (US$ Million), By Deployment Type, 2022 to 2032
Table 47: Europe Market, By Country, 2015 to 2021
Table 48: Europe Market, By Country, 2022 to 2032
Table 49: Asia Pacific Market Value (US$ Million), By Authentication Channels, 2015 to 2021
Table 50: Asia Pacific Market Value (US$ Million), By Authentication Channels, 2022 to 2032
Table 51: Asia Pacific Market Value (US$ Million), By Component, 2015 to 2021
Table 52: Asia Pacific Market Value (US$ Million), By Component, 2022 to 2032
Table 53: Asia Pacific Market Value (US$ Million), By Organization Size, 2015 to 2021
Table 54: Asia Pacific Market Value (US$ Million), By Organization Size, 2022 to 2032
Table 55: Asia Pacific Market Value (US$ Million), By Vertical, 2015 to 2021
Table 56: Asia Pacific Market Value (US$ Million), By Vertical, 2022 to 2032
Table 57: Asia Pacific Market Value (US$ Million), By Deployment Type, 2015 to 2021
Table 58: Asia Pacific Market Value (US$ Million), By Deployment Type, 2022 to 2032
Table 59: Asia Pacific Market, By Country, 2015 to 2021
Table 60: Asia Pacific Market, By Country, 2022 to 2032
Table 61: MEA Market Value (US$ Million), By Authentication Channels, 2015 to 2021
Table 62: MEA Market Value (US$ Million), By Authentication Channels, 2022 to 2032
Table 63: MEA Market Value (US$ Million), By Component, 2015 to 2021
Table 64: MEA Market Value (US$ Million), By Component, 2022 to 2032
Table 65: MEA Market Value (US$ Million), By Organization Size, 2015 to 2021
Table 66: MEA Market Value (US$ Million), By Organization Size, 2022 to 2032
Table 67: MEA Market Value (US$ Million), By Vertical, 2015 to 2021
Table 68: MEA Market Value (US$ Million), By Vertical, 2022 to 2032
Table 69: MEA Market Value (US$ Million), By Deployment Type, 2015 to 2021
Table 70: MEA Market Value (US$ Million), By Deployment Type, 2022 to 2032
Table 71: MEA Market, By Country, 2015 to 2021
Table 72: MEA Market, By Country, 2022 to 2032
Figure 1: Global Market Value (US$ Million) and Year-on-Year Growth, 2015 to 2032
Figure 2: Global Market Absolute $ Historical Gain (2015 to 2021) and Opportunity (2022 to 2032), US$ Million
Figure 3: Global Market Share, By Authentication Channels, 2022 & 2032
Figure 4: Global Market Y-o-Y Growth Projections, By Authentication Channels-2022 to 2032
Figure 5: Global Market Attractiveness Index, By Authentication Channels - 2022 to 2032
Figure 6: Global Market Share, By Component, 2022 & 2032
Figure 7: Global Market Y-o-Y Growth Projections, By Component - 2022 to 2032
Figure 8: Global Market Attractiveness Index, By Component - 2022 to 2032
Figure 9: Global Market Share, By Vertical, 2022 & 2032
Figure 10: Global Market Y-o-Y Growth Projections, By Vertical - 2022 to 2032
Figure 11: Global Market Attractiveness Index, By Vertical - 2022 to 2032
Figure 12: Global Market Share, By Organization Size, 2022 & 2032
Figure 13: Global Market Y-o-Y Growth Projections, By Organization Size - 2022 to 2032
Figure 14: Global Market Attractiveness Index, By Organization Size - 2022 to 2032
Figure 15: Global Market Share, By Deployment Type, 2022 & 2032
Figure 16: Global Market Y-o-Y Growth Projections, By Deployment Type - 2022 to 2032
Figure 17: Global Market Attractiveness Index, By Deployment Type - 2022 to 2032
Figure 18: Global Market Share, By Region, 2022 & 2032
Figure 19: Global Market Y-o-Y Growth Projections, By Region - 2022 to 2032
Figure 20: Global Market Attractiveness Index, By Region - 2022 to 2032
Figure 21: North America Market Value (US$ Million) and Year-on-Year Growth, 2015 to 2032
Figure 22: North America Market Absolute $ Historical Gain (2015 to 2021) and Opportunity (2022 to 2032), US$ Million
Figure 23: North America Market Share, By Authentication Channels, 2022 & 2032
Figure 24: North America Market Y-o-Y Growth Projections, By Authentication Channels - 2022 to 2032
Figure 25: North America Market Attractiveness Index, By Authentication Channels - 2022 to 2032
Figure 26: North America Market Share, By Component, 2022 & 2032
Figure 27: North America Market Y-o-Y Growth Projections, By Component - 2022 to 2032
Figure 28: North America Market Attractiveness Index, By Component - 2022 to 2032
Figure 29: North America Market Share, By Vertical, 2022 & 2032
Figure 30: North America Market Y-o-Y Growth Projections, By Vertical - 2022 to 2032
Figure 31: North America Market Attractiveness Index, By Vertical - 2022 to 2032
Figure 32: North America Market Share, By Organization Size, 2022 & 2032
Figure 33: North America Market Y-o-Y Growth Projections, By Organization Size - 2022 to 2032
Figure 34: North America Market Attractiveness Index, By Organization Size - 2022 to 2032
Figure 35: North America Market Share, By Deployment Type, 2022 & 2032
Figure 36: North America Market Y-o-Y Growth Projections, By Deployment Type - 2022 to 2032
Figure 37: North America Market Attractiveness Index, By Deployment Type - 2022 to 2032
Figure 38: North America Market Share, By Country, 2022 & 2032
Figure 39: North America Market Y-o-Y Growth Projections, By Country - 2022 to 2032
Figure 40: North America Market Attractiveness Index, By Country - 2022 to 2032
Figure 41: Latin America Market Value (US$ Million) and Year-on-Year Growth, 2015 to 2032
Figure 42: Latin America Market Absolute $ Historical Gain (2015 to 2021) and Opportunity (2022 to 2032), US$ Million
Figure 43: Latin America Market Share, By Authentication Channels, 2022 & 2032
Figure 44: Latin America Market Y-o-Y Growth Projections, By Authentication Channels - 2022 to 2032
Figure 45: Latin America Market Attractiveness Index, By Authentication Channels - 2022 to 2032
Figure 46: Latin America Market Share, By Component, 2022 & 2032
Figure 47: Latin America Market Y-o-Y Growth Projections, By Component - 2022 to 2032
Figure 48: Latin America Market Attractiveness Index, By Component - 2022 to 2032
Figure 49: Latin America Market Share, By Vertical, 2022 & 2032
Figure 50: Latin America Market Y-o-Y Growth Projections, By Vertical - 2022 to 2032
Figure 51: Latin America Market Attractiveness Index, By Vertical - 2022 to 2032
Figure 52: Latin America Market Share, By Organization Size, 2022 & 2032
Figure 53: Latin America Market Y-o-Y Growth Projections, By Organization Size - 2022 to 2032
Figure 54: Latin America Market Attractiveness Index, By Organization Size - 2022 to 2032
Figure 55: Latin America Market Share, By Deployment Type, 2022 & 2032
Figure 56: Latin America Market Y-o-Y Growth Projections, By Deployment Type - 2022 to 2032
Figure 57: Latin America Market Attractiveness Index, By Deployment Type - 2022 to 2032
Figure 58: Latin America Market Share, By Country, 2022 & 2032
Figure 59: Latin America Market Y-o-Y Growth Projections, By Country - 2022 to 2032
Figure 60: Latin America Market Attractiveness Index, By Country - 2022 to 2032
Figure 61: Europe Market Value (US$ Million) and Year-on-Year Growth, 2015 to 2032
Figure 62: Europe Market Absolute $ Historical Gain (2015 to 2021) and Opportunity (2022 to 2032), US$ Million
Figure 63: Europe Market Share, By Authentication Channels, 2022 & 2032
Figure 64: Europe Market Y-o-Y Growth Projections, By Authentication Channels - 2022 to 2032
Figure 65: Europe Market Attractiveness Index, By Authentication Channels - 2022 to 2032
Figure 66: Europe Market Share, By Component, 2022 & 2032
Figure 67: Europe Market Y-o-Y Growth Projections, By Component - 2022 to 2032
Figure 68: Europe Market Attractiveness Index, By Component - 2022 to 2032
Figure 69: Europe Market Share, By Vertical, 2022 & 2032
Figure 70: Europe Market Y-o-Y Growth Projections, By Vertical - 2022 to 2032
Figure 71: Europe Market Attractiveness Index, By Vertical - 2022 to 2032
Figure 72: Europe Market Share, By Organization Size, 2022 & 2032
Figure 73: Europe Market Y-o-Y Growth Projections, By Organization Size - 2022 to 2032
Figure 74: Europe Market Attractiveness Index, By Organization Size - 2022 to 2032
Figure 75: Europe Market Share, By Deployment Type, 2022 & 2032
Figure 76: Europe Market Y-o-Y Growth Projections, By Deployment Type - 2022 to 2032
Figure 77: Europe Market Attractiveness Index, By Deployment Type - 2022 to 2032
Figure 78: Europe Market Share, By Country, 2022 & 2032
Figure 79: Europe Market Y-o-Y Growth Projections, By Country - 2022 to 2032
Figure 80: Europe Market Attractiveness Index, By Country - 2022 to 2032
Figure 81: Asia Pacific Market Value (US$ Million) and Year-on-Year Growth, 2015 to 2032
Figure 82: Asia Pacific Market Absolute $ Historical Gain (2015 to 2021) and Opportunity (2022 to 2032),US$ Million
Figure 83: Asia Pacific Market Share, By Authentication Channels, 2022 & 2032
Figure 84: Asia Pacific Market Y-o-Y Growth Projections, By Authentication Channels - 2022 to 2032
Figure 85: Asia Pacific Market Attractiveness Index, By Authentication Channels - 2022 to 2032
Figure 86: Asia Pacific Market Share, By Component, 2022 & 2032
Figure 87: Asia Pacific Market Y-o-Y Growth Projections, By Component - 2022 to 2032
Figure 88: Asia Pacific Market Attractiveness Index, By Component - 2022 to 2032
Figure 89: Asia Pacific Market Share, By Vertical, 2022 & 2032
Figure 90: Asia Pacific Market Y-o-Y Growth Projections, By Vertical - 2022 to 2032
Figure 91: Asia Pacific Market Attractiveness Index, By Vertical - 2022 to 2032
Figure 92: Asia Pacific Market Share, By Organization Size, 2022 & 2032
Figure 93: Asia Pacific Market Y-o-Y Growth Projections, By Organization Size - 2022 to 2032
Figure 94: Asia Pacific Market Attractiveness Index, By Organization Size - 2022 to 2032
Figure 95: Asia Pacific Market Share, By Deployment Type, 2022 & 2032
Figure 96: Asia Pacific Market Y-o-Y Growth Projections, By Deployment Type - 2022 to 2032
Figure 97: Asia Pacific Market Attractiveness Index, By Deployment Type - 2022 to 2032
Figure 98: Asia Pacific Market Share, By Country, 2022 & 2032
Figure 99: Asia Pacific Market Y-o-Y Growth Projections, By Country - 2022 to 2032
Figure 100: Asia Pacific Market Attractiveness Index, By Country - 2022 to 2032
Figure 101: MEA Market Value (US$ Million) and Year-on-Year Growth, 2015 to 2032
Figure 102: MEA Market Absolute $ Historical Gain (2015 to 2021) and Opportunity (2022 to 2032), US$ Million
Figure 103: MEA Market Share, By Authentication Channels, 2022 & 2032
Figure 104: MEA Market Y-o-Y Growth Projections, By Authentication Channels - 2022 to 2032
Figure 105: MEA Market Attractiveness Index, By Authentication Channels - 2022 to 2032
Figure 106: MEA Market Share, By Component, 2022 & 2032
Figure 107: MEA Market Y-o-Y Growth Projections, By Component - 2022 to 2032
Figure 108: MEA Market Attractiveness Index, By Component - 2022 to 2032
Figure 109: MEA Market Share, By Vertical, 2022 & 2032
Figure 110: MEA Market Y-o-Y Growth Projections, By Vertical - 2022 to 2032
Figure 111: MEA Market Attractiveness Index, By Vertical - 2022 to 2032
Figure 112: MEA Market Share, By Organization Size, 2022 & 2032
Figure 113: MEA Market Y-o-Y Growth Projections, By Organization Size - 2022 to 2032
Figure 114: MEA Market Attractiveness Index, By Organization Size - 2022 to 2032
Figure 115: MEA Market Share, By Deployment Type, 2022 & 2032
Figure 116: MEA Market Y-o-Y Growth Projections, By Deployment Type - 2022 to 2032
Figure 117: MEA Market Attractiveness Index, By Deployment Type - 2022 to 2032
Figure 118: MEA Market Share, By Country, 2022 & 2032
Figure 119: MEA Market Y-o-Y Growth Projections, By Country - 2022 to 2032
Figure 120: MEA Market Attractiveness Index, By Country - 2022 to 2032
The out of band authentication market is estimated at USD 1.0 Billion in 2021.
The global out of band authentication market is expected to value USD 4.3 Billion, recording a CAGR of 13.2% during the forecast period.
Growing adoption of advance authentication technology in major industries is projected to offer significant opportunities in the coming time.
Gemalto, CA Technologies, Symantec, Ping Identity, RSA Security among others are some of the established players in out of band authentication market.
High cost associated with implementation of out of band authentication services is anticipated to act as a significant restrain to the market in the forecast period.
The USA market is estimated to expand at a 13.1% growth rate during the forecast period.
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Out of Band Authentication Market
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