The global out-of-band (OOB) authentication market is estimated to be valued at US$553.45 million in 2020 and is expected to exhibit a CAGR of 22.8% over the forecast period 2021 to 2030, as highlighted in a new report published by Coherent Market Insights.

A) Market Overview:

Out-of-band authentication is a method used to verify the identity of users accessing online platforms or systems. It involves the use of two different communication channels to authenticate a user, providing an extra layer of security. OOB authentication is widely adopted in industries such as banking, healthcare, e-commerce, and government to mitigate the risk of identity theft and data breaches.

The Out-of-Band Authentication Market offers various products and solutions for out-of-band authentication, including SMS authentication, voice authentication, email authentication, and push notifications. These solutions help organizations authenticate user identities and protect sensitive information from unauthorized access.

B) Market Dynamics:

The global out-of-band authentication market is driven by two main factors: increasing cybersecurity concerns and the growing adoption of cloud-based solutions. 

One driver contributing to the market growth is the rise in cyber attacks and data breaches globally. Organizations are increasingly facing the challenge of securing their networks and protecting sensitive data from hackers. Out-of-band authentication provides an effective solution to mitigate the risk of unauthorized access and ensure the authenticity of user identities.

For example, in 2020, the COVID-19 pandemic led to a surge in cyber attacks targeting remote workers. Hackers took advantage of the increased use of online platforms and exploited vulnerabilities in authentication systems. As a result, organizations have recognized the need for stronger security measures, including out-of-band authentication, to protect their networks and sensitive data.

Another driver fueling market growth is the growing adoption of cloud-based solutions. With the increasing digitization of businesses and the shift towards remote work, organizations are relying more on cloud-based platforms and services. Out-of-band authentication provides an added layer of security for cloud-based applications, ensuring that only authorized users can access sensitive data stored in the cloud.

C) Segment Analysis:

The out-of-band authentication market can be segmented based on the authentication method, end-user industry, and region. 

Based on the authentication method, the SMS authentication segment dominates the market, as it is widely adopted by organizations due to its simplicity and ease of implementation. SMS authentication involves sending a One-Time Password (OTP) to the user's mobile device, which they enter to authenticate their identity.

D) PEST Analysis:

The PEST analysis for the out-of-band authentication market is as follows:

- Political: Governments worldwide are increasingly focusing on strengthening cybersecurity regulations and frameworks to protect critical infrastructure and personal data. This creates a favorable environment for the adoption of out-of-band authentication solutions.

- Economic: The market for out-of-band authentication is expected to grow as organizations invest in cybersecurity solutions to safeguard their digital assets and maintain customer trust.

- Social: With the increasing frequency of data breaches and cyber attacks, individuals are becoming more aware of the importance of secure authentication methods. This drives the demand for out-of-band authentication to protect their personal information.

- Technological: Advancements in technology, such as the widespread use of mobile devices and the Internet of Things (IoT), provide opportunities for the adoption of out-of-band authentication solutions across various industries.

E) Key Takeaways:

- The global out-of-band authentication market is expected to witness high growth, exhibiting a CAGR of 22.8% over the forecast period, due to increasing cybersecurity concerns and the growing adoption of cloud-based solutions.

- North America is considered the fastest-growing and dominating region in the market, driven by the presence of major cybersecurity solution providers and strict regulations pertaining to data security.

- Key players operating in the global 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 players are actively investing in research and development to enhance their