World Phone Based Out-of-band Authentication Products Market

This Frost & Sullivan research service World Phone Based Out-of-band Authentication Products Market provides market size, growth projections, and a detailed analysis of key market drivers, restraints, and challenges along with demand, pricing, channel distribution, legislation, and technology trends. The research includes a competitive analysis providing information on vendors and market share. In this research, Frost & Sullivan's expert analysts thoroughly examine the following solutions: knowledge based questions, tokens, smart cards, biometric readers, phone authentication.

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Market Overview

Heightened Security Threats Trigger Growth in the World Phone Based Out-of-band Authentication Products Market

With the depressed economy, the threat of identity theft and fraud is expected to increase, boosting prospects for the world phone based out-of-band authentication products markets. These robust authentication solutions are poised for increasing uptake as online financial activities gain traction among enterprises and consumers. "Online shopping and e-banking increase the probability of user information being compromised," notes the analyst of this research service. "Passwords are weak defenses against hackers and cyber criminals, and as regulations become more stringent, enterprises will resort to the use of phone based out-of-band authentication security as a means of offering users additional security."

Organizations are under pressure by local state and federal agencies to protect consumer and financial information. Data breaches continue to rise and organizations are increasingly experiencing fines for non-compliance. Costs incurred by data breaches also include the repercussions of a severely dented reputation. During 2008, the phone based out-of-band authentication market consisted of vendors with different focus areas. For some, the accent was to encourage customers to use a variety of authentication methods with phone authentication being just one of them. Others are focused on complimenting tokens through one-time enrollment, using phone authentication as a second layer of authenticating a user. Vendors in this space are exploring innovative strategies to enhance voice authentication, introducing features that optimize the use of out of band phone authentication.

Vendors Must Step Up Efforts to Spread Awareness to Ensure Deep Market Penetration

The lack of awareness of the security solutions' benefits remains a major restraint in the progress of the based out-of-band authentication products market. Enterprises commonly choose other methods of authentication such as user names and passwords, believing they are adequate for securing applications. Vendors must devote greater attention to building awareness of phone-based out-of-band authentication services, and showcase benefits including ease-of-use and cost effectiveness. This will definitely serve to boost long-term sales prospects. "Vendors that only offer phone authentication need to look at expanding services that are more geared toward authenticating a user such as voice biometrics," says the analyst.

Within the network security market, companies will develop integrated solutions facilitated by mergers or acquisitions. Additional partnerships and channel relationships must be pursued to achieve global penetration and enhanced security portfolios. Stand-alone solutions will be difficult to sell, so vendors must consider consolidation with companies that extend complementary solutions. Participants will widen their customer base by looking beyond enterprise clientele, and offering services directly to consumers. The ever-expanding base of remote workers using laptops and mobile devices will provide vendors a realistic proposition for business expansion.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Geographic Region:

• North America
• Europe: Western, central, and eastern Europe
• Asia Pacific: Countries on the western border of the Pacific Ocean including those of the
• Indo-Chinese peninsula, Pacific islands, and Central Asia
• Rest-of-World: Latin America, South America, Russia, and others not mentioned above