Global Out of Band Authentication Software Market 2016-2020

Overview of the global out of band (OOB) authentication software market

Market research analysts at Technavio predict that the global OOB authentication software market will grow steadily during the next four years and will post an impressive CAGR of more than 23% by 2020. This market research analysis identifies the increase in number of online transactions as one of the primary growth factors for this market. Though online financial transactions are easy and instant, financial institutions are always prone threats such as cyber-attacks. As a result, organizations have started using authentication techniques using hardware OTP tokens, e-mail, and phone-based authentication methods to make online transactions more secure. Also, mobile operators are offering high-speed mobile broadband services that allow users to use mobile transaction features, which in turn, results in a rise in the number of online transactions, leading to the increased adoption of OOB authentication software.

The emergence of next-generation hardware OTP tokens will be one of the major trends that will gain traction in this market in the next four years. These hardware tokens can be reprogrammed using NFC technology, will enable end-users to set new secret keys in them, and will also be small and light. For instance, one of the leading vendors Protectimus, has already released a new generation of hardware OTP tokens such as Protectimus SLIM and Protectimus SLIM mini that look similar to a credit card making them handy and easy to carry.

Competitive landscape and key vendors

The market is characterized by the presence of a considerable number of vendors. Since the financial sector is a major target of cyber-attacks, several vendors in the market, such as Gemalto, are offering authentication solutions especially for financial institutions that allow them to be a single stop solution for their customers' digital security needs. Out of band authentication vendors equally compete to gain a considerable share of the market and have also started creating partnerships with biometric security providers to distinguish their products.  

The leading vendors in the OOB authentication​ market are -

• CA Technologies
• Gemalto
• Strikeforce Technologies
• Swivel Secure

The other prominent vendors in the OOB authentication market are ASL, CensorNet, Deepnet Security, EZMCOM, Early Warning, SecurEnvoy, and TeleSign.

Segmentation by end-users and analysis of the OOB authentication software market

• Payment card industry (PCI)
• Banking, financial services, and insurance (BFSI)
• Government

Due to the high security requirement for transactions, the BFSI sector was the major end-user of OOB authentication software during 2015. For instance, the OTP mobile app from Citibank provides customers an alternative to the SMS OTP option and HID, a secure identity solutions provider enhanced its ActivID authentication offering for digital banking with a push notification solution that provides financial institutions a secure channel for notifying customers about pending transactions on their phones or tablet computers. Guidelines set by several countries across the globe, especially in Europe, will fuel market growth in this segment.

Geographical segmentation and analysis of the OOB authentication software market

• Americas
• APAC
• EMEA

This market study estimates that in terms of geographical regions, the Americas will be the major revenue contributor to the market throughout the forecast period. This will mainly attribute to the increasing demand for security solutions in banks, government departments, and financial institutions.

Key questions answered in the report include

• What will the OOB authentication market size and the growth rate be in 2020?
• What are the key factors driving the global OOB authentication software market?
• What are the key market trends impacting the growth of the global OOB authentication software market?
• What are the challenges to the OOB authentication market growth?
• Who are the key vendors in the global OOB authentication software market?
• What are the market opportunities and threats faced by the vendors in the global OOB authentication software market?
• Trending factors influencing the OOB authentication market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global OOB authentication software market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Advanced Authentication Market 2016-2020
• Global Multi-factor Authentication Market 2016-2020
• Global Hardware OTP Token Authentication Market 2016-2020