The global out of band authentication market will reach $4.3 billion by 2032, expanding at a CAGR of 13.2 per cent between 2022 and 2032, said a report. According to Future Market Insights, the estimated value of the out of band authentication market in 2021 is $1 billion. In 2022, the market is anticipated to reach $1.2 billion.
Out of band authentication (OOBA) mandates that the communications channel used to authenticate a user be distinct from the channel used to sign in or complete a transaction. OOBA is frequently regarded as a form of two-factor or multi-factor authentication (2FA or MFA).
“Increasing adoption of advance authentication technology in major industries like Banking, retail, healthcare helps in easy operations of automated out of band authentication resulting in the growth of the market through forecasting period,” said Nikhil Kaitwade, Principal Consultant, FMI.
The report said that the market is primarily driven by the increasing demand for frictionless out of band authentication solutions among organisations and stringent data protection regulations for information security. Increasing instances of authentication-related frauds and data breaches also contribute to the expansion of the band authentication market.
In addition, numerous businesses' increasing adoption of cloud-based technologies such as artificial intelligence, big data, and blockchain propelled the market's expansion. Also, the increasing adoption of digital payment methods will increase the market's demand in the coming years. These payment methods are frequently used in financial institutions and other organisations with stringent security requirements. For the global out of band authentication market, the services segment is likely to provide lucrative opportunities, said the report.
By component, the solutions segment is anticipated to grow at a CAGR of 12.4% through 2032, while the SMEs segment is anticipated to grow at a CAGR of 12.4% during the forecast period. The U.S. market will generate $1.5 billion and grow at a CAGR of 13.1% between 2022 and 2032. FMI said that during the assessment period, the Chinese market will procure $300,010,000,000 at a rate of expansion of 12.5%.
Key Players in Out of band Authentication Market
Gemalto, CA Technologies, Symantec, Ping Identity, and RSA Security, among others, are key players in the global market for out of band authentication. Utilizing strategic collaborative initiatives, market participants increase their market share and profitability.
In June 2022, Thales Technologies signed a contract with Samsung to provide single-chip solutions of the next generation for Samsung's latest flagship smartphone. Its secure solution enables connectivity and contactless services for the Galaxy S20 series from Samsung. Combining an embedded secure element (eSE) and an embedded SIM (eSIM), the single-chip enables high-performance contactless services and a fully digitalized mobile connectivity experience for ultra-compact smartphones, smartwatches, and tablets.
In May 2022, OneSpan, a global leader in securing remote banking transactions, announced that DenizBank, a leading Turkish bank, is using OneSpan's Mobile Security Suite to protect 2.6 million mobile customers across the bank's mobile banking app MobilDeniz, mobile wallet fastPay, and card management application DenizKartm.