by Market Overview:
Out-of-Band Authentication refers to a security technique in which two different communication channels are used for the authentication process. This provides an extra layer of security and reduces the risk of unauthorized access to data. The market offers various products such as hardware tokens, biometric devices, and SMS-based authentication solutions to ensure secure access to sensitive information. These products find applications in industries like banking, healthcare, IT and telecommunications, and government, among others.
Market Dynamics:
The Out-of-Band Authentication market is driven by the increasing incidences of cyber-attacks and data breaches worldwide. With the rising adoption of cloud technology and the growing use of mobile devices, the need for secure data access has become paramount. Additionally, stringent government regulations regarding data privacy and security are further boosting the market growth. The integration of advanced technologies like biometrics and behavioral analytics in authentication systems is providing lucrative opportunities for market growth. However, the high cost associated with implementing these solutions and the lack of awareness about their benefits may hinder market growth to some extent.
Segment Analysis:
The out-of-band authentication market can be segmented based on authentication type, component, end-user, and vertical. In terms of authentication type, the SMS-based authentication segment dominates the market. SMS-based authentication allows users to receive a one-time password (OTP) via SMS for secure access to their accounts. This method is widely adopted due to its simplicity, low cost, and compatibility with most mobile devices. Additionally, SMS-based authentication provides an extra layer of security as the OTP is sent to a separate channel, reducing the risk of fraudulent access.
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.
PEST Analysis:
Political: The political landscape can impact the out-of-band authentication market. Governments worldwide are increasingly focusing on cybersecurity regulations and standards. This can drive the adoption of out-of-band authentication solutions to meet compliance requirements and protect sensitive information.
Economic: The economic factors influencing the market include the overall growth and spending capacity of businesses and consumers. As more organizations prioritize cybersecurity to safeguard their digital assets, the demand for out-of-band authentication solutions is expected to increase.
Social: The growing concern for data privacy and identity theft among individuals is driving the need for stronger authentication methods. People are becoming more aware of the risks associated with weak passwords and are seeking out-of-band authentication solutions to enhance their security.
Technological: Technological advancements, such as the widespread use of mobile devices and the adoption of cloud-based services, are driving the out-of-band authentication market. These technologies provide a convenient and secure platform for implementing out-of-band authentication methods.
Key Takeaways:
This growth can be attributed to increasing cybersecurity concerns, the rise in identity theft incidents, and the need for stronger authentication methods.
In terms of regional analysis, North America is the fastest-growing and dominating region in the out-of-band authentication market. This can be attributed to the presence of major key players in the region, increased adoption of advanced authentication solutions, and strong government regulations for data protection.
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 companies offer a wide range of out-of-band authentication solutions and play a crucial role in driving market growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
