Global Out-of-band (OOB) Authentication Market Size, Share & Industry Analysis Report By Components (Software and Services), By Deployment (Cloud and On-Premise), By Authentication Channel (SMS, Token-Based, Email and Other Authentication Channel), By End

The Global Out-of-band (OOB) Authentication Market size is expected to reach USD 4.59 billion by 2032, rising at a market growth of 15.8% CAGR during the forecast period.

Key Highlights:

• The North America Out-of-band (OOB) Authentication market dominated Global AI Video Market in 2024, accounting for a 36.90% revenue share in 2024.
• The U.S. Out-of-band (OOB) Authentication market is projected to maintain its leadership in North America, reaching a market size of USD 1.22 billion by 2032.
• Among the various End-User Industry, the BFSI segment dominated the Germany market, contributing a revenue share of 43.28% in 2024.
• In terms of Authentication Channel, SMS segment is expected to lead the North America market, with a projected revenue share of 39.19% by 2032.
• The Cloud segment emerged as the leading Deployment segment in 2024, capturing a 37.16% revenue share, and is projected to retain its dominance during the forecast period.

Out-of-band (OOB) authentication refers to a security method that verifies user identity through a secondary, independent communication channel-like voice calls, SMS, push notifications, or authenticator apps, separate from the primary login process. This approach reduces the risk of unauthorized access by requiring attackers to compromise multiple channels. With the increased instances of cyber-attacks, more sophisticated and password-only authentication has proven insufficient, OOB authentication has gained prominence as a core component of multi-factor authentication (MFA). Further, OOB authentication has transformed from a niche solution to a mainstream requirement, especially in industries handling sensitive data like banking, e-commerce, and government services. Advances in cloud and mobile technologies have enhanced its usability and scalability, reinforcing its role in modern digital security frameworks.

OOB authentication is largely embedded within broader identity and access management (IAM) ecosystems that focus on adaptive, layered, and risk-based security. Leading market trends include integration with contextual signals like user-behaviour and device intelligence, rising adoption driven by remote work and cloud services, and a gradual shift toward password-less and phishing-resistant authentication models that build on OOB principles. Key market players position themselves by offering comprehensive IAM platforms that combine OOB capabilities with MFA and adaptive authentication, while aligning closely with regulatory standards to serve compliance-driven sectors.

COVID 19 Impact Analysis

The COVID-19 pandemic had a good effect on the Out-of-Band (OOB) Authentication Market because companies quickly moved to remote work and digital operations. The need for secure user verification grew as more people were able to access business systems from outside the office, which led to the use of OOB authentication. A rise in online transactions in banking, e-commerce, and healthcare made the need for strong multi-factor authentication even greater. Organizations had to add extra layers of security because of the rise in cyber threats and attempts to commit fraud during the pandemic. OOB authentication helped lower the chances of phishing, account takeovers, and identity theft. The growth of the market was also helped by faster adoption of cloud and digital transformation projects. Because of this, businesses started to use OOB authentication increasingly in their identity and access management systems. Thus, the COVID-19 pandemic had a positive impact on the market.

Components Outlook

Based on components, the out-of-band (OOB) authentication market is characterized into software and services. The services segment attained 33% revenue share in the out-of-band (OOB) authentication market in 2024.  The services segment plays a critical role in supporting the effective deployment and management of out-of-band (OOB) authentication solutions. These services include implementation, system integration, consulting, training, maintenance, and ongoing support.

Deployment Outlook

On the basis of deployment, the out-of-band (OOB) authentication market is classified into cloud and on-premise. The on-premise segment recorded 35% revenue share in the out-of-band (OOB) authentication market in 2024.  On-premise out-of-band (OOB) authentication remains relevant for organizations that require direct control over authentication infrastructure and sensitive data. This deployment model is preferred by regulated industries such as BFSI, government, and healthcare, where compliance and data residency are critical.

Regional Outlook

Region-wise, the out-of-band (OOB) authentication market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 37% revenue share in the out-of-band (OOB) authentication market in 2024. The out-of-band authentication market is anticipated to grow at a significant rate in the North America region. This is because of advanced IT infrastructure, strong cybersecurity awareness, and early adoption of secure authentication solutions across key industries such as healthcare, government, and BFSI. Canada and the United States lead demand due to strict regulatory mandates and high investment in digital security technologies, with major providers and continued innovation, resulting in accelerated adoption. Further, North America’s market is expanding due to remote work trends, robust cloud migration, and many organizations prioritizing secure access control. Moreover, the European OOB authentication market is flourishing, driven by stringent data protection frameworks like PSD2 and GDPR that require improved authentication measures for digital services and transactions. The European market in Germany, France, and the UK is experiencing solid OOB solution adoption in banking, telecom, and e-commerce sectors, propelled by consumer privacy concerns, regulatory compliance, and mature digital ecosystems that focus on secure identity verification.

In the Asia Pacific, the out-of-band (OOB) authentication market is witnessing substantial growth during the forecast period. This is due to increasing internet and smartphone penetration, rapid digital transformation, and expanding cloud and mobile service usage. Nations such as India, China, Japan, and Australia are experiencing great demand for secure authentication driven by expanding e-commerce, online banking, and digital payment adoption, along with rising cybersecurity awareness. The region’s accelerating IT investment and large population base position it for strong OOB authentication adoption. The LAMEA out-of-band authentication market is predicted to grow at a steady pace. This is because of rising awareness of cyber threats, and governments start enforcing security regulations. LAMEA region, such as Mexico and Brazil are largely adopting OOB solutions in government and financial services. The Middle East and Africa are experiencing increasing digitalization and security investments that offer opportunities for authentication technologies as part of broader identity and access management strategies.

List of Key Companies Profiled

• OneSpan, Inc.
• Ping Identity Holding Corp.
• RSA Security LLC (Symphony Technology Group)
• SecurEnvoy Limited (Shearwater Group PLC)
• Thales Group S.A.
• Broadcom, Inc.
• Censornet Ltd.
• Cisco Systems, Inc.
• Deepnet Security
• i-Sprint Innovations Pte Ltd.

Global Out-of-band (OOB) Authentication Market Report Segmentation

By Components

• Software
• Services

By Deployment

• Cloud
• On-Premise

By Authentication Channel

• SMS
• Token-Based
• Email
• Other Authentication Channel

By End-User Industry

• BFSI
• IT & Telecommunication
• Retail & E-commerce
• Government
• Media & Entertainment
• Other End-User Industry

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

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