The global Public Key Infrastructure (PKI) industry is projected to witness substantial growth, driven by an escalating demand for secure digital transactions and communications. With a industry valuation of USD 5,200.0 million in 2023, the industry is expected to grow significantly, reaching USD 6,011.2 million by 2024. This robust growth trajectory reflects the increasing reliance of businesses across various sectors on secure cryptographic technologies to protect sensitive data. The industry is poised to expand at a compound annual growth rate (CAGR) of 15.6%, culminating in a forecasted size of USD 25,617.7 million by 2034.
The need for enhanced security protocols in the face of rising cyber threats, as well as stringent data protection regulations, is fueling the demand for PKI solutions. PKI serves as a foundational security architecture, offering encryption, authentication, and digital signature solutions to ensure the confidentiality and integrity of communications. Industries such as banking, financial services, insurance (BFSI), government and defense, healthcare, and retail are increasingly adopting PKI systems to safeguard their operations and customer interactions.
One of the primary trends shaping the future of the PKI industry is the ongoing shift toward cloud-based PKI solutions. With businesses seeking scalable, cost-effective, and flexible security solutions, cloud PKI is becoming a preferred option. This shift is particularly relevant in the context of digital transformation, where organizations are looking for solutions that align with their cloud-centric infrastructure. While cloud-based PKI is gaining traction, on-premises PKI hardware remains essential for industries that require stringent security measures, particularly those handling highly sensitive or classified data.
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Technological advancements in blockchain and the Internet of Things (IoT) are also driving the PKI industry. As these technologies continue to grow, the demand for robust PKI solutions to secure their digital transactions and communications is increasing. Hardware security modules (HSMs), which ensure secure key generation and storage, are seeing higher demand as they form a crucial component of PKI systems. Additionally, the rise of managed and professional PKI services is enabling organizations to efficiently implement, maintain, and audit their security infrastructures, further fueling industry growth.
What Factors are Propelling Public Key Infrastructure (PKI) Demand?
As digitalization develops across several industries, the need for a digital authentication strategy to safeguard organisational infrastructure grows. As a result, the public key infrastructure industry is expected to grow. The growing need to reduce authentication costs across a wide range of industries, including banking, healthcare, and e-commerce, is driving the usage of PKI solutions and, consequently, the expansion of the public key infrastructure market.
Companies rely on PKI to restrict data access and authenticate the identities of people, systems, and devices on a broad scale as they rely more on digital information and face more sophisticated assaults.
As businesses try to keep the lights on and the bottom line in control, security solutions will become more efficient. Security officers will be asked to do more with less resources. In 2022, greater focus will be placed on technology that enables enterprises to accomplish more with less, and automation will play a big part in security innovation. According to a recent study by DigiCert, around 91% of organizations are contemplating automating PKI certificate administration. AI and machine learning (ML) technologies will remain crucial in accelerating automation.
Key Takeaways from Industry Study:
The global PKI industry was valued at USD 5,200.0 million in 2023 and is estimated to reach USD 6,011.2 million in 2024.
The industry is expected to grow at a CAGR of 15.6%, reaching USD 25,617.7 million by 2034.
Cybersecurity threats and compliance requirements are driving the adoption of PKI solutions across multiple industries.
Cloud-based PKI solutions are gaining traction due to their scalability, flexibility, and cost-effectiveness.
On-premises PKI remains critical for sectors requiring the highest levels of security.
Blockchain and IoT advancements are increasing the demand for secure PKI solutions.
Managed and professional PKI services are in high demand as organizations seek effective implementation and auditing solutions.
North America remains a dominant region in PKI adoption, with increasing focus on securing critical infrastructure in sectors like government and financial services.
South Asia & Pacific are experiencing rapid growth in PKI adoption due to the digital transformation and heightened cybersecurity awareness.
Region-wise Analysis
Which Region is projected to Offer the Largest Opportunity for Public Key Infrastructure (PKI) Market?
North America is the most lucrative region with a double-digit projected growth. The increasing use of various cutting-edge technologies and solutions in developed nations such as the United States and Canada presents appealing opportunities for key players in the PKI market. Furthermore, the presence of multiple technological behemoths will drive up demand for public key infrastructure solutions and services.
Several companies are increasingly spending and collaborating to strengthen and secure their servers, boosting regional demand for PKI. For example, Entrust PKI services will be incorporated into Device Authority's KeyScaler IoT IAM platform, extending the current relationship for Hardware Security Module services to allow device trust, data trust, and IoT-scale automation. By connecting to Federal Information Processing (FIP) Compliant Entrust PKI and HSM services, one may execute PKI security operations such as device PKI authentication, onboarding, certificate creation, machine identity lifecycle management, and cryptographic activities. It will also use KeyScaler's pre-built service connectors and flexible connection architecture to integrate security operations into any cloud application or platform.
Furthermore, the rising internet penetration and high reliance of organizations on the internet, as well as associated solutions and services, will drive up demand for PKI in this area.
Industry's Prime Determinants of Trends, and Opportunities:
Several factors are driving the growth and shaping the trends within the PKI industry. These include:
Cybersecurity Threats: The growing sophistication of cyber threats is a key driver for PKI adoption. As organizations face increasing risks from data breaches and cyber-attacks, PKI systems provide robust encryption and authentication methods to secure communications and sensitive data.
Compliance Regulations: Stricter data protection regulations, such as the GDPR and CCPA, are pushing organizations to adopt PKI solutions to ensure compliance. These regulations often require businesses to encrypt sensitive customer information and verify identities, functions that are effectively addressed by PKI systems.
Cloud and IoT Integration: The rise of cloud computing and IoT technologies is creating a demand for scalable and secure PKI solutions. Cloud PKI solutions offer flexibility and cost-effectiveness, while IoT devices require robust security to prevent data breaches and unauthorized access.
Blockchain and Digital Transformation: As blockchain technology and digital transformation continue to evolve, the need for secure PKI solutions will remain strong. Blockchain's decentralized nature relies on PKI for digital signatures and secure transactions, further driving industry growth.
Key Companies & Industry Share Insights:
The Public Key Infrastructure industry is highly competitive, with several key players dominating the industry. These companies offer a wide range of PKI solutions, including hardware, software, and managed services, catering to diverse industries worldwide. Some of the major players in the industry include:
DigiCert, Inc.
Entrust
GlobalSign
Thales Group
Gemalto (now part of Thales)
Microsoft Corporation
Comodo Group, Inc.
These companies have significant industry shares due to their comprehensive offerings, strong brand recognition, and established customer bases. Their continued investment in research and development (R&D) ensures that they remain at the forefront of technological advancements in PKI solutions, particularly in areas like cloud PKI and hardware security modules.
Growth Drivers:
The PKI industry is primarily driven by the increasing need for data security across all sectors. The rise of digital payments, e-commerce, and remote work has amplified the demand for secure communications, creating substantial growth opportunities for PKI providers. Additionally, regulatory pressures and compliance requirements continue to drive the adoption of PKI solutions in sectors like banking, government, healthcare, and retail.
Technological advancements in IoT, blockchain, and cloud computing are also fueling the demand for PKI solutions. These innovations require secure encryption methods to protect data and ensure the integrity of digital transactions. As organizations continue to embrace these technologies, the need for PKI systems will only increase.
Regional Analysis of Public Key Infrastructure (PKI) Industry:
North America leads the global PKI industry, driven by the region's strong regulatory frameworks and the rapid pace of digital transformation in sectors such as government, finance, and healthcare. The increasing focus on securing critical infrastructure in these sectors is propelling the demand for PKI solutions.
Europe also shows significant growth due to stringent data protection laws, including the GDPR, which require organizations to implement encryption and secure communication protocols. As the region's digital landscape evolves, PKI adoption is expected to grow further.
Asia-Pacific is witnessing rapid growth, particularly in South Asia and the Pacific region, as digital economies expand, and cyber threats become more prevalent. Increased investments in secure digital infrastructure are driving the demand for PKI solutions, making this region a key growth area in the coming years.
Latin America and the Middle East & Africa are experiencing moderate growth, with increasing awareness of cybersecurity risks and a focus on regulatory compliance contributing to PKI adoption. However, these regions face challenges in terms of infrastructure and investment in cybersecurity, limiting the pace of industry expansion.
Public Key Infrastructure (PKI) Industry Segmentation
By Component:
In terms of component, the segment is divided into Public Key Infrastructure Hardware Security Modules (HSM), Public Key Infrastructure Solutions and Public Key Infrastructure Services.
By deployment:
In terms of deployment, the segment is segregated into cloud based and on premise.
By Enterprise size:
In terms of enterprise size, the segment is segregated into Small & Mid-Sized Enterprise and Large Enterprise.
By Vertical:
In terms of industry, the segment is segregated into BFSI, Government and Defense, IT and Telecom, Retail, Healthcare, Manufacturing and Other.
By Region:
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa.
