The Europe Out-of-band (OOB) Authentication Market would witness market growth of 15.4% CAGR during the forecast period (2025-2032).
The Germany market dominated the Europe Out-of-band (OOB) Authentication Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $249.1 Million by 2032. The UK market is showcasing a CAGR of 14.4% during (2025 - 2032). Additionally, The France market is expected to witness a CAGR of 16.1% during (2025 - 2032). The Germany and UK led the Europe Out-of-band (OOB) Authentication Market by Country with a market share of 21.1% and 19.7% in 2024.The Spain market is expected to witness a CAGR of 16.9% during throughout the forecast period.
The Europe out-of-band (OOB) authentication market has grown along with the region's strong focus on protecting consumer data, digital security, and financial digitization. As online banking and e-government services grew, people stopped using passwords and PINs and started using SMS-based one-time passwords (OTPs) and hardware tokens. Regulatory milestones like PSD2 and its Strong Customer Authentication requirements sped up the use of out-of-band (OOB) methods like mobile one-time passwords (OTPs) and push approvals. Government agencies and standards groups pushed for risk-based authentication, which included OOB as part of larger digital identity systems. Mobile-based authentication was made even better by the fact that so many people use smartphones. OOB authentication is now widely used in banking, public administration, healthcare, and enterprise IT.
Regulations are driving a lot of the current trends in the market, with PSD2 and GDPR pushing companies to use authentication models that are safe, easy to audit, and focused on privacy. European businesses are choosing app-based and biometric-backed OOB methods over SMS more and more because they are safer and give users better experience. Zero Trust strategies also rely on OOB authentication, which makes adaptive and contextual access control possible. Vendors put compliance-first design, mobile-centric innovation, and privacy-by-design principles at the top of their lists. It is common for companies to form strategic partnerships with banks, fintechs, telecom companies, and cloud providers. Competition is based on how well the rules are followed, how secure the system is, how easy it is to integrate, and how much users trust it.
Based on Components, the market is segmented into Software and Services. The Software market segment dominated the Germany Out-of-band (OOB) Authentication Market by Components is expected to grow at a CAGR of 13.4 % during the forecast period thereby continuing its dominance until 2032. Also, The Services market is anticipated to grow as a CAGR of 14.4 % during the forecast period during (2025 - 2032).
Based on Deployment, the market is segmented into Cloud and On-Premise. With a compound annual growth rate (CAGR) of 14.5% over the projection period, the Cloud Market, dominate the UK Out-of-band (OOB) Authentication Market by Deployment in 2024 and would be a prominent market until 2032. The On-Premise market is expected to witness a CAGR of 14.2% during (2025 - 2032).
Free Valuable Insights: The Global Out-of-band (OOB) Authentication Market will Hit USD 4.59 Billion by 2032, at a CAGR of 15.8%
Germany has a very organized and rules-based out-of-band (OOB) authentication market. It is widely used in banking, industry, government, healthcare, and enterprise IT. The need for secure, multi-factor authentication is growing because of more cyber threats and strict enforcement of data protection laws. Increasingly, organizations are choosing app-based and cryptographic OOB methods over SMS to improve security and compliance. Adoption is speeding up because it works with zero-trust frameworks, conditional access policies, and cloud-native IAM platforms. Edge and on-device authentication are becoming more popular in the industrial and operational technology sectors. Designs that protect users' privacy and make things easy to use are very important. Competition between domestic providers and global vendors is still strong, with a focus on compliance, reliability, and innovation.
By Components
By Deployment
By Authentication Channel
By End-User Industry
By Country
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