July 17, 2024

Global Out-Of-Band (OOB) Authentication Market Is Estimated To Witness High Growth Owing To Increasing Demand For Secure Authentication Methods

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 (2021-2030), as highlighted in a new report published by Coherent Market Insights.

A) Market Overview:

Out-of-band (OOB) authentication is a security measure that provides an additional layer of protection by using a secondary channel, such as a mobile device or email, to verify the user’s identity. This method is widely used in industries where secure authentication is crucial, such as banking, healthcare, and e-commerce. OOB authentication offers several advantages, including enhanced security, reduced risk of unauthorized access, and improved user experience.

B) Market Key Trends:

One key trend in the Out-Of-Band (OOB) Authentication Market is the increasing adoption of multi-factor authentication (MFA). MFA combines two or more authentication methods, such as passwords, biometrics, and OOB authentication, to ensure secure access to sensitive data and systems. This trend is driven by the growing need for stronger security measures to protect against cyber threats and data breaches. For example, organizations are implementing MFA solutions that utilize OOB authentication alongside other methods to provide a more robust and reliable authentication process.

C) Porter’s Analysis:

The threat of new entrants: The threat of new entrants in the out-of-band (OOB) authentication market is relatively low due to the high barriers to entry. Established players in the market have strong brand recognition, extensive customer base, and proprietary technologies, making it difficult for new entrants to compete.

Bargaining power of buyers: The bargaining power of buyers in the OOB authentication market is moderate. Buyers have the option to choose from a wide range of vendors offering OOB authentication solutions, giving them some negotiating power. However, the importance of secure authentication in industries such as banking and healthcare limits buyers’ ability to negotiate on price.

Bargaining power of suppliers: The bargaining power of suppliers in the OOB authentication market is high. Suppliers of OOB authentication technologies hold valuable intellectual property rights and have established relationships with key industry players. This gives them leverage in negotiations and allows them to command higher prices.

The threat of new substitutes: The threat of new substitutes in the OOB authentication market is low. OOB authentication is a widely accepted and effective security measure, and there are limited alternatives that can offer the same level of security and convenience.

Competitive rivalry: The competitive rivalry in the OOB authentication market is intense. The market is dominated by key players such as Broadcom, Entrust Datacard Corporation, Gemalto NV, and Symantec Corporation. These companies compete on factors such as product features, pricing, and customer service to gain a competitive edge.

D) Key Takeaways:

The global Out-Of-Band (OOB) Authentication Market is expected to witness high growth, exhibiting a CAGR of 22.8% over the forecast period. This growth is driven by the increasing demand for secure authentication methods in industries such as banking, healthcare, and e-commerce. The need to protect sensitive data from cyber threats and unauthorized access is fueling the adoption of OOB authentication solutions.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the out-of-band authentication market. This can be attributed to the presence of major players in the region, stringent data protection regulations, and high awareness of the importance of secure authentication methods.

Key players operating in the global out-of-band (OOB) 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. These key players focus on strategic collaborations, mergers and acquisitions, and product innovations to strengthen their market position and gain a competitive advantage.