Exploring the Global Out-of-Band Authentication Market: Trends, Challenges, and Opportunities

The global out-of-band (OOB) authentication market is expected to grow from USD 553.45 million in 2020 to USD 4.2 billion by 2030, at a CAGR of 22.8%. The growth of the market is driven by the increasing adoption of OOB authentication by businesses and organizations to improve security and reduce the risk of data breaches.

OOB authentication is a two-factor authentication process that requires a secondary verification method through a separate communication channel, such as a phone call, text message, or email, in addition to a user's username and password. This makes it more difficult for unauthorized users to gain access to accounts, as they would need to have both the username and password, as well as the ability to access the secondary verification method.

The OOB authentication market is segmented by type, deployment, organization size, end-user, and region. By type, the market is segmented into SMS-based OOB authentication, voice-based OOB authentication, and app-based OOB authentication. SMS-based OOB authentication is the most widely used type of OOB authentication, as it is the most affordable and easy to implement. Voice-based OOB authentication is becoming increasingly popular, as it is more secure than SMS-based OOB authentication. App-based OOB authentication is the least widely used type of OOB authentication, but it is growing in popularity, as it offers a more personalized and secure experience for users.

By deployment, the market is segmented into on-premises and cloud-based. The cloud-based deployment segment is expected to grow at a faster rate than the on-premises deployment segment, as cloud-based solutions are more scalable and easier to manage.

By organization size, the market is segmented into small and medium-sized businesses (SMBs) and large enterprises. Large enterprises are expected to account for the largest share of the market, as they have a higher need for security and are more likely to be able to afford the cost of OOB authentication solutions.

By end-user, the market is segmented into financial services, healthcare, government, retail, and others. The financial services industry is expected to account for the largest share of the market, as it is a high-risk industry that is targeted by cybercriminals.

By region, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. North America is expected to be the largest market for OOB authentication, followed by Europe and Asia Pacific. The growth of the market in North America is attributed to the increasing adoption of OOB authentication by businesses and organizations in the region.

The key players in the OOB authentication market are OneSpan, Gemalto, RSA Security, Authy, and Duo Security. These players are focusing on developing innovative OOB authentication solutions that offer a more personalized and secure experience for users.

The OOB authentication market is a rapidly growing market that is expected to continue to grow in the coming years. The growth of the market is driven by the increasing adoption of OOB authentication by businesses and organizations to improve security and reduce the risk of data breaches.