Out-of-band authentication is a sort of two-factor authentication that requires an additional verification mechanism via a different communication channel in addition to the usual ID and password. Banking and financial institutions, as well as other companies with high security requirements, frequently use out-of-band authentication. Hacking an account with OOB authenticators is more challenging since an attacker would have to penetrate two different and unconnected authentication channels.
Increased online transactions in every industry have resulted
in an increase in cyber-attacks, necessitating the use of secure transactions.
Furthermore, mobile carriers are providing consumers with high-speed mobile
broadband connections, allowing them to use mobile transaction capabilities,
resulting in a growth in the volume of online transactions and the adoption of
out-of-band authentication. Furthermore, the expansion of the out-of-band
authentication market is fueled by an increase in the volume of online
transactions, a steady increase in advanced and complicated threats, and an
increase in compliance requirements. However, dangers associated with OOB
authentication via SMS and the high cost of product association limit market
expansion.
The growing
need for frictionless Out-of-Band
Authentication Market among organisations, stringent data protection
regulations for information security, increasing instances and sophistication
of authentication-related frauds and data breaches, and growing adoption of
digital payment modes are the main drivers of the market. Components (solutions
and services), authentication channels, deployment type, organisation size,
vertical, and geography are all used to segment the market. Both hardware- and
software-based solutions are included in the market by solution. During the
forecast period, the software solution sector of the Out-of-Band
Authentication Market is predicted to have the greatest market size. Individuals, Small and
Medium-sized Enterprises (SMEs), and major enterprises are all worried about
user authentication, hence the market for services is growing.