Out of Band Authentication Market to Hit USD 6.0 Billion by 2035 Amid Rising Cybersecurity and Compliance Challenges

Out of Band Authentication Market

Out of Band Authentication market to grow steadily as manufacturers address rising cybersecurity threats and strict compliance demands.

NEWARK, DE, UNITED STATES, August 8, 2025 /EINPresswire.com/ -- The global Out of Band Authentication market is on track to grow from USD 1.7 billion in 2025 to USD 6.0 billion by 2035, reflecting a robust CAGR of 13.2% over the forecast period. This growth is being fueled by the urgent need for advanced, compliance-ready cybersecurity solutions capable of countering the rapid rise in sophisticated phishing, credential theft, and social engineering attacks.

For manufacturers, the stakes are higher than ever. With expanding digital footprints, increased supply chain connectivity, and heightened exposure to global cyber risks, manufacturers require authentication systems that not only protect sensitive intellectual property but also meet stringent regulatory standards. Out of band authentication provides exactly that—a secure, independent verification channel that drastically reduces credential compromise risks.

Why Manufacturers Are Prioritizing Out of Band Authentication

Manufacturers are increasingly reliant on interconnected systems, remote work infrastructure, and cloud-based operations. This transformation has multiplied both operational efficiency and cybersecurity vulnerability. Out of band authentication delivers a strategic advantage by introducing an additional verification layer, decoupled from the primary login channel, thus fortifying access controls without creating excessive user friction.

The technology’s ability to integrate biometric verification, mobile push notifications, and AI-driven anomaly detection aligns with manufacturers’ dual goals: secure systems while maintaining seamless user experience for employees, partners, and customers.

Solutions Segment Dominance – 57.8% Market Share

The solutions segment, commanding 57.8% of the market in 2025, is the preferred choice for enterprises seeking scalable, configurable, and multi-channel authentication platforms. For manufacturers, these solutions address challenges ranging from IP theft to unauthorized system access, offering flexible frameworks that can be adapted to factory floor systems, ERP access points, and cloud-hosted product design platforms.

Industry vendors are enhancing their portfolios with AI-powered analytics, contextual access controls, and mobile-first verification features—critical for manufacturers adopting Industry 4.0 principles.

SMEs Driving Adoption

Small and medium-sized enterprises (SMEs) account for 43.2% of the market, underscoring the sector’s growing cybersecurity awareness. For manufacturing SMEs, which often operate with lean IT resources, the availability of cost-effective, subscription-based, and cloud-hosted OOBA solutions has been pivotal. These solutions allow SMEs to meet compliance requirements, prevent costly downtime from cyber incidents, and secure customer and supplier transactions without heavy infrastructure investments.

SMS Channel Leadership

SMS remains the most widely used authentication channel, holding 38.5% of the market share. Its ubiquity, independence from internet connectivity, and low infrastructure cost make it an effective verification method—particularly for manufacturing plants in remote areas or emerging markets. While push notifications and biometrics are gaining ground, SMS remains a vital complementary factor in multi-factor authentication frameworks for geographically dispersed operations.

Growth Drivers for the Next Decade

Key factors propelling market expansion include:

Data Privacy Mandates: Compliance with data protection rules in sectors like finance and healthcare is setting a precedent for manufacturing.

Surge in Online Transactions: Manufacturers increasingly conduct high-value transactions and supplier payments digitally, requiring advanced authentication.

Adoption of BYOD Policies: Factory and field teams accessing systems via personal devices necessitate robust access controls.

Integration with AI & IoT: As factories adopt AI-driven predictive maintenance and IoT-based monitoring, OOBA solutions safeguard these connected ecosystems.

Challenges to Overcome

The market faces hurdles such as SMS vulnerability risks, high product association costs, shortage of AI-skilled authentication professionals, and inconsistent global regulations. However, growing awareness, government-backed cybersecurity initiatives, and advancements in AI-powered authentication are expected to gradually address these challenges.

Regional Outlook

North America leads the market, driven by high adoption rates and strong regulatory frameworks. The USA alone is projected to reach USD 1.5 billion by 2035 at a 13.1% CAGR.

Europe is experiencing growth through rapid digitalization, with the UK expanding at 12.3% CAGR.

Asia-Pacific is the fastest-growing region, with China (12.5% CAGR), Japan (11.5%), and South Korea (10.6%) benefiting from significant government and private sector investments in secure authentication solutions.

Key Players and Strategic Moves

Prominent players shaping the market include Gemalto, CA Technologies, Symantec, Ping Identity, RSA Security, Entrust Datacard, EZMCOM, Duo Security, StrikeForce Technologies, and Nok Nok Labs.

Recent strategic developments include:

Thales Technologies partnering with Samsung to deliver secure, integrated mobile authentication solutions.

OneSpan enabling DenizBank to secure over 2.6 million mobile banking customers through its Mobile Security Suite.

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The Road Ahead for Manufacturers

For manufacturers navigating the challenges of intellectual property theft, operational downtime, and compliance, out of band authentication offers a future-ready pathway. By adopting flexible, multi-channel authentication strategies, manufacturers can not only safeguard their operations but also maintain agility in an increasingly competitive global landscape.

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Editor’s Note:
This report underscores the role of out of band authentication as a mission-critical security investment for manufacturers. With escalating cyber risks and compliance mandates, OOBA solutions deliver both protection and operational efficiency—two pillars essential for sustainable industrial growth.

Rahul Singh
Future Market Insights Inc.
+1 347-918-3531
email us here

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