The global Public Key Infrastructure (PKI) market is valued at USD 6,011.2 million in 2024. The industry was seen to have USD 5,200.0 million in 2023. The industry is projected to show a CAGR of 15.6% from 2024 to 2034. The business is set to surpass USD 25,617.7 million by the end of 2034.
The demand for public key infrastructure is growing and it is focused on different industries due to its critical role in securing digital transactions and communications. The different sectors such as BFSI, government & defense and healthcare and it help for enabling robust encryption and authentication, ensuring the confidentiality and integrity of sensitive data.
The rise of cyber threats and stricter compliance regulations, organizations are focused on adopting cloud-based PKI solutions for enhanced scalability and flexibility, while on-premises PKI hardware remains the vital for sectors with stringent security needs.
Global Public Key Infrastructure (PKI) Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 5,200.0 million |
| Estimated Size, 2024 | USD 6,011.2 million |
| Projected Size, 2034 | USD 25,617.7 million |
The technological advancements in block chain and IoT are propelling the need for more PKI software solutions to support the growing digital ecosystem. The hardware security modules are utilized for ensuring the secure generation and storage of cryptographic keys. The PKI services such as managed services and professional services are having high demand as enterprises seek to implement, maintain and audit security infrastructures effectively.
In North America, the regulatory frameworks and digital transformation are at the forefront so the PKI adoption is strong. The emphasis on securing critical infrastructure in government and financial services is propelling the growth. South Asia & Pacific are witnessing rapid PKI adoption due to the expansion of digital economies, growing cyber threats and increased investment in secure digital infrastructure.
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The below table presents the expected CAGR for the global Public Key Infrastructure (PKI) market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the Public Key Infrastructure (PKI) industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 15.3%, followed by a slightly higher growth rate of 15.8% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 15.3% (2023 to 2033) |
| H2 | 15.8% (2023 to 2033) |
| H1 | 15.0% (2024 to 2034) |
| H2 | 15.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 15.0% in the first half and remain higher at 15.9% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed an increase of 10 BPS.
Growing Adoption of PKI Solutions for Secure Digital Transactions
The adoption of public key infrastructure solutions is growing and the need for secure digital transactions is very critical in different industries. It provides encryption and authentication, enabling secure communications, data sharing and digital signatures. It is especially vital in sectors such as BFSI, healthcare and government where confidentiality and integrity of sensitive data are dominant.
The surge in digital banking, e-commerce and online government services is focused on propelling the adoption of PKI solutions. In 2023, the government of USA had mandated PKI implementation in federal systems for ensuring secure communication for 30% rise in cyberattacks on government networks. The directive is projected to propel the double-digit growth in PKI adoption across public sector applications.
Professional and Managed PKI Services Propelling Compliance and Optimization
The organization are shifting to professional and managed PKI services to ensure compliance with evolving regulatory frameworks and help to optimize their security systems. The services are providing expert support for implementing, managing and maintaining PKI infrastructures and this is particularly beneficial for industries dealing with stringent security requirements, such as defense and telecom.
In 2022, According to European Union introduced regulations under the NIS2 Directive help for emphasizing the use of PKI for securing critical infrastructure. It has led to 25% rise in demand for managed PKI services in Europe, as vendors are seeking to align with new standards for enhancing the efficiency of their security operations.
Demand for HSMs Surges Due to Increasing Cybersecurity Threats
The services are very essential for ensuring that the businesses are fully utilize the capabilities of modern NMS platforms. The growing adoption of cloud-based and AI-driven NMS tools, organizations will face skill gaps that will require extensive training programs to bridge. The ongoing support and maintenance services are very critical for minimizing downtime and ensuring system reliability.
The governments are actively promoting skill development initiatives in the IT sector for enhancing network management capabilities. In 2023, the government of India allocated USD 30 million for the program to upskill IT professionals in NMS technologies focused on cloud-based and AI-driven platforms for improving the country network management infrastructure.
Complex integration processes with existing IT infrastructure will delay PKI deployment
The integration of public key infrastructure with existing IT systems is very challenging for vendors specially with outdated technology. The legacy systems require significant customization and updates to support modern PKI solutions and it leads to long implementation times.
By adding hardware security modules or integrating PKI with software will be complex, costly and time-consuming. In different industries such as finance and healthcare, strict regulations helps the process even harder. Also many businesses are hesitant to adopt PKI and it will slow down the market growth due to concerns about time, cost and technical resources.
Principal Consultant
The global Public Key Infrastructure market experienced steady growth due to the rising need for secure digital transactions, increasing cyber threats and regulatory compliance across different industries such as BFSI, government and healthcare. The adoption of PKI solution, hardware and managed services grow significantly during the period 2019 to 2023 with the growth rate of 13.7%. By 2023, the global PKI market was estimated to be worth around 5,200.0 Million.
Looking forward, the PKI market is projected to see growth as the demand for robust security solutions is focused on expansion in sectors such as telecom, cloud services and IoT. The market is projected to reach 25,617.7 Million by 2034 and poised at a CAGR of 15.6%.
The growing reliance on cloud-based PKI solutions and advancements in block chain and encryption technologies is further propelling the demand. South Asia & Pacific is projected to experience rapid growth due to the expansion of digital economies and increasing investments in cybersecurity infrastructure.
Tier 1 vendors are dominating the market and cater around 45% to 50% of the total market. Tier 1 giants such as DigiCert, Entrust and GlobalSign offer comprehensive PKI solutions, hardware security modules (HSMs) and managed services focused on large enterprises and government clients. Tier 1 vendors have strong reputation, extensive product portfolios and significant investment in research and development help to enable a competitive edge.
Tier 2 giants cater around 15% to 20% of the market. Vendors such as Sectigo, Thales and IdenTrust fall into this category. The vendors is focused on providing specialized PKI services and solutions help for targeting mid-sized enterprises or specific industry verticals. They not have the same global reach as Tier 1 vendors as they are focused on offering tailored solutions that meet the unique needs of their clients.
Tier 3 vendors contains smaller, niche players and regional providers that is focused on specific markets or services. The vendors are focused on target local businesses or industries with less complex PKI requirement and it also offer cost-effective solutions and personalized service.
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The section highlights the CAGRs of countries experiencing growth in the Public Key Infrastructure (PKI) market, along with the latest advancements contributing to overall market development. Based on current estimates, USA, China and India are expected to see steady growth during the forecast period.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| China | 16.8% |
| India | 17.5% |
| Germany | 12.8% |
| Japan | 15.4% |
| United States | 13.5% |
The rising frequency of cyber threats necessitates for robust security measures to protect classified and sensitive information. According to recent article USA federal agencies are projected to allocate around USD 23 billion to cybersecurity initiatives in 2024 also with a significant portion directed towards PKI implementation.
In 2023, the Department of Defense had initiated a series of projects focused for using on PKI systems to secure military communications and ensure the integrity of classified data exchanges. Additionally, the implementation of the Federal PKI program aims to standardize the use of digital certificates across federal agencies, facilitating secure transactions and communications.
The focus for enhancing PKI solutions highlights the critical role they play in national security and defense strategies and this ill help for ensuring that sensitive information remains protected from potential breaches. In 2023, the USA NMS market is expected to surpass 1,550.4 Million with a growth of 13.5%.
The rapid growth in the e-commerce and retail sectors is focused on prompting businesses for adopting public key infrastructure solutions for enhancing security. As the online shopping continues to flourish the e-commerce sales projected to reach 2.8 trillion by the end of 2025, the need for secure online transactions has never been more critical.
Vendors are increasingly aware of the risks associated with digital fraud, leading them to implement PKI solutions to encrypt sensitive customer information and secure payment transactions. Recent government initiatives, such as the Cybersecurity Law, further emphasize the need for secure systems to protect consumer data and help to promote trust in online services.
By adopting PKI solutions, the retailers in China will not only comply with regulations but also enhance customer confidence in their online platforms. The China NMS market is estimated around 643.8 Million wand poised at a CAGR of 16.8% from 2024 to 2034.
As the digital transformation are focused on accelerating in India, the IT and Telecom industries are focusing on Public Key Infrastructure for secure identity verification and communications. The rapid expansion of digital services and the rising number of internet users projected to reach 1.2 billion by 2025 and they are focused on propelling the demand for robust security measures.
Vendors are adopting PKI solutions for ensuring secure access to digital services and protect sensitive data from unauthorized access. In 2023, According to government of Indian are focused on investment USD 10 billion in cybersecurity initiatives, which involves promoting the adoption of PKI solutions across different sectors. The investment is very crucial as the IT and Telecom sectors are facing due to rising threats from cyberattacks.
The implementation of the Digital India initiative and the emphasizes for the need of secure identity management systems is propelling the demand for PKI. The government of India help to enhance their security. By 2024, the NMS market in this sector is projected to reach around 326.3 Million and it grows at CAGR of 17.5%.
The section provides detailed insights into key segments of the Public Key Infrastructure (PKI) market. The deployment category includes cloud based and on premise. Enterprise size category such as small & mid-sized enterprise and large enterprise. Among these, cloud based is growing quickly. The cloud-based hold largest market shares in Public Key Infrastructure (PKI).
| Deployment Mode | Cloud-Based |
|---|---|
| CAGR (2024 to 2034) | 17.2% |
The cloud-based public key infrastructure growing rapidly due to organizations are seeking for more flexible and scalable solutions to secure digital communications. The increasing cyber threats and the necessity for secure data transactions and the businesses are shifting towards to cloud-based PKI for enhancing their security measures. According to article of government indicate that the global cloud technology adoption is growing at a CAGR of 25% annually, with public sector investments in cloud security expected to reach USD 15 billion by the end of 2025.
In 2023, To protect federal communications, highlighting the critical need for robust digital security the Department of Homeland Security USA adopted a cloud-based PKI strategy. The approach helps to supports remote work and digital transformation across sectors such as healthcare and finance. The cloud-based NMS market is expected to reach 2,578.8 Million and grows at a CAGR of 17.2%.
| Enterprise Size | Large Enterprise |
|---|---|
| Value Share | 57.4% |
Large enterprises are dominating the public key infrastructure (PKI) market due to their complex IT needs and significant security requirements. The rising cyber threat and the organizations are focused on investment in PKI to safeguard sensitive data and comply with strict regulations.
According to USA government and they are focused on allocation and the government had allocated USD 10 billion for enhancing cybersecurity across federal agencies, such as improvements to PKI systems. The investment highlights the importance of PKI in protecting critical infrastructure. The large enterprises are focused on shifting to cloud-based PKI solutions help to streamline operations and improve efficiency.
By automating certificate management and integrating security protocols the organizations help to enhance their security frameworks. Large enterprises are expected to hold over 60% of the PKI market share by 2025. The large enterprises are expected to dominate 59.2% of the NMS market and valued at 3,558.6 Million in 2024.
The competition in the public key infrastructure market is increasingly intense as the demand for secure digital communications rises. The major giants such as DigiCert, Sectigo and Thales are focused on expanding their offerings to include cloud-based solutions and advanced security features. The new entrants and partnerships are focusing on quantum security, are also shaping the landscape prompting established companies to innovate.
Industry Update
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.
In terms of deployment, the segment is segregated into cloud based and on premise.
In terms of enterprise size, the segment is segregated into Small & Mid-Sized Enterprise and Large Enterprise.
In terms of industry, the segment is segregated into BFSI, Government and Defense, IT and Telecom, Retail, Healthcare, Manufacturing and Other.
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.
The Global Public Key Infrastructure (PKI) industry is projected to witness CAGR of 15.6% between 2024 and 2034.
The Global Public Key Infrastructure (PKI) industry stood at USD 6,011.2 million in 2024.
The Global Public Key Infrastructure (PKI) industry is anticipated to reach USD 25,617.7 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 16.3% in the assessment period.
The key players operating in the Global Public Key Infrastructure (PKI) industry are DigiCert, Thales, Sectigo, GlobalSign and Entrust, Keyfactor, Comodo and Venafi.
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