by The global out-of-band authentication market is estimated to be valued at US$ 1.36 billion in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Out-of-band authentication provides an additional layer of authentication using a different communication channel than the primary channel used for login, such as text messaging or authenticator apps. It delivers secure access to online transactions, mobile banking applications, and other websites or applications. Out-of-band authentication solutions leverage secondary communication channels, such as SMS, to establish second-factor authentication and secure user access and transactions. The market is witnessing significant growth due to the rising instances of online banking frauds, phishing attempts, and identity thefts due to increasing digitization across various industries.
Market Dynamics
Rising Cyber Crimes (as highlighted in the heading): Increasing instances of cybercrimes such as data breaches, phishing attacks, and identity thefts have been witnessed in the past few years. As per Cybercrime Magazine, there were 3.5 billion data breach records in 2021 alone. This has compelled organizations across industries to adopt robust authentication solutions to secure user credentials and transactions. Out-of-band authentication provides an additional layer of protection against such cyber threats using a secondary communication channel. This is expected to drive the demand for out-of-band authentication solutions over the forecast period.
Segment Analysis
The global out-of-band authentication market is segmented by component, system type, deployment, organization size, vertical. Among components, the multi-factor authentication solutions segment is dominating as more organizations are adopting multi-factor authentication to enhance security. The solutions enable time-based one-time passwords, smart cards, and biometrics for authentication.
PEST Analysis
Political: Data privacy regulation is getting stronger globally which is driving the demand for advanced authentication solutions to ensure privacy and security of customer data during online transactions. Economic: Rising online transactions and digital payments are increasing the risk of identity theft and online fraud. This is prompting businesses to implement robust authentication system to protect their customers. Social: Younger population is fast adopting online services and willing to share their personal information online which increases the need for out-of-band authentication to securely authenticate users. Technological: Advances in biometric technologies and two-factor authentication solutions are enhancing the authentication process and strengthening security. Integration of authentication solutions with applications is also improving user experience.
Key Takeaways
The Global Out-Of-Band Authentication Market Share is expected to witness high growth at a CAGR of 19% during the forecast period of 2023 to 2030.
Regional analysis: North America region dominates the market currently as securityvendors and financial institutions in the region are actively investing in advanced authentication solutions. Asia Pacific region is expected towitness fastest growth due to increasing online transactions, digital payments, and rising awareness about identity theft in countries like India and China.
Key players: Key players operating in the out-of-band authentication market are IBM Corporation, Haivision, Brightcove, Qumu, Kaltura, Sonic Foundry, Vimeo, SprountVideo, VBrick, MediaPlatform, Dacast, Agile Content, and Wowza, and Panopto. IBM holds a leading market share for its multi-factor authentication solutions and Haivision is a growing player in video streaming authentication solutions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
