OOBA Solutions & Services Market Forecasted to Grow from USD 1.1 Billion in 2023 to USD 3.2 Billion by 2031, at a CAGR of approx. 14.8%

Market Size

• 2023 Market Value: USD 1.1 billion
• 2031 Projection: USD 3.2 billion
• Estimated CAGR (2024–2031): ~14.8%

Overview

By confirming user identity via channels other than the main login interface, including hardware tokens, email, or SMS, out-of-band authentication (OOBA) improves security.  It is commonly used to stop SIM swap fraud, account takeover, and man-in-the-middle attacks in banking, finance, e-commerce, and corporate applications.  The use of OOBA solutions is expanding internationally because to the rise in digital fraud and legal requirements for more robust authentication (such as PSD2, HIPAA, and PCI DSS).

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Market Scope

• Base Year: 2023
• Forecast Period: 2024–2031
• Report Coverage Includes: Solution types, service models, deployment approaches, end-user industries, and regional outlook
• 2023 Value: USD 1.1 B
• 2031 Forecast: USD 3.2 B
• CAGR: ~14.8%

Segmentation

By Authentication Method:

• SMS OTP
• Email OTP
• Hardware Token (e.g. key-fobs, USB devices)
• Push Notification
• Biometric OOBA
• Others

By Deployment:

• On-Premises
• Cloud-Based
• Hybrid

By Enterprise Size:

• Large Enterprises (dominant)
• SMEs (fastest-growing adoption)

By End-Use Industry:

• Banking & Financial Services
• E-Commerce & Online Payments
• Healthcare
• IT & Telecom
• Government & Public Sector
• Retail
• Others (insurance, education)

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

Major Vendors

Key players in the OOBA space include RSA (EMC), Symantec/Broadcom, Thales Group, Gemalto (Thales), SecureAuth, OneSpan, Entrust, Ping Identity, Duo Security (Cisco), Okta, Zimperium, HID Global, among others.

Regional Analysis

• North America:
  Leading market due to strong regulatory compliance, banking/financial strength, and high fraud prevention investment.
• Europe:
  Significant growth, especially in the UK, Germany, and France—propelled by regulations like PSD2 and focus on digital financial services.
• Asia-Pacific:
  Fastest-growing region, driven by mobile banking adoption, e-commerce expansion, and rising fraud awareness in countries like India, China, and Southeast Asia.
• Latin America, Middle East & Africa:
  Emerging adoption, bolstered by financial inclusion programs, mobile wallet penetration, and regulatory digitization.

Country Focus

• United States:
  Dominates the OOBA market with widespread adoption in banking, enterprise security, and government applications.
• Germany:
  Europe’s leading national market—banks and fintech firms are deploying OOBA in accordance with strong security and privacy frameworks.

COVID‑19 Impact Analysis

The pandemic accelerated digitization of banking, telehealth, and online commerce, leading to surging demand for robust authentication. Notably, OOBA saw increased deployment as organizations prioritized remote access security. Though initial OTP SMS delays impacted user experience, innovations like push-based and biometric OOBA helped mitigate risks. Post-pandemic, adoption remains strong as digital services continue expanding.

Market Growth Drivers & Opportunities

Key Drivers:

• Regulatory requirements (PSD2, PCI DSS, HIPAA) mandating stronger user authentication
• Rising digital and mobile banking fraud
• The shift toward cloud-based services and remote work
• End-user demand for seamless yet secure authentication
• Growing adoption of push-based and hardware token OOBA methods

Opportunities:

• Integration of biometric OOBA within mobile devices
• Use of adaptive OOBA—triggered by risk assessment or device profiling
• Expansion in healthcare and government sectors
• Bundling OOBA with identity verification and fraud analytics platforms

Commutator Analysis

• Platform Providers (RSA, Symantec, Thales): Offer mature, enterprise-grade OOBA suites with extensive financial institution integrations.
• Zero-Trust & Identity Vendors (Ping, Okta, SecureAuth): Provide cloud-first identity platforms with OOBA built in, suitable for hybrid environments.
• Specialists (OneSpan, Entrust): Focus on hardware token excellence and compliance-driven banking solutions.
• Push-Biometric Innovators (Duo/Cisco, Zimperium): Lead in mobile-first approaches and seamless user authentication workflows.

Key differentiating factors include user friction, integration flexibility, deployment speed, standards compliance, and fraud analytics.

Key Questions Answered

1. What was the market size in 2023?
   USD 1.1 B
2. What is the projected size by 2031 and CAGR?
   USD 3.2 B; ~14.8% CAGR
3. Which authentication method is most used?
   SMS OTP remains dominant, while push and hardware token OOBA grow fastest.
4. Which region leads and which grows fastest?
   North America leads; Asia-Pacific grows most rapidly.
5. Which sectors drive adoption?
   Banking & financial services dominate; healthcare and e-commerce are fast runners.
6. Who are the key vendors?
   RSA, Thales, Symantec/Broadcom, OneSpan, Ping Identity, Duo Security, Okta.
7. What triggered OOBA growth recently?
   Pandemic-driven digital surge, fraud spikes, and regulatory mandates.

About Maximize Market Research

Maximize Market Research is a global market intelligence provider delivering strategic insights across cybersecurity, identity management, financial technology, and digital innovation sectors. Its research leverages quantitative modeling, expert stakeholder interviews, and scenario forecasting to support decision-making and growth strategies.

Conclusion

The OOBA market is poised for strong expansion as digital services become ubiquitous and fraud continues evolving. With projected growth from USD 1.1 billion to USD 3.2 billion through 2031, providers focusing on low-friction, biometric, and push-based user experiences will lead—especially those able to navigate regulatory compliance and integrate with broader identity ecosystems. Demand is highest from banking, fintech, and healthcare sectors, with opportunities in government and e-commerce. Vendors that can deliver secure yet user-friendly OOBA solutions will capitalize on the growing need for robust digital authentication models.

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