Public Key Infrastructure Market Size, Share & Industry Analysis, By Deployment (On-premises and Cloud), By Enterprise Type (Small & Medium Enterprises (SMEs) and Large Enterprises), By Application (Application Performance Management, Infrastructure Management, Network and Security Management, and Real-Time Analytics), By Industry (Manufacturing, BFSI, Healthcare, IT & Telecom, Government & Defense, Retail, and Others) and Regional Forecast, 2024-2032

The global public key infrastructure market size was valued at USD 5.09 billion in 2023. The market is projected to grow from USD 5.84 billion in 2024 to USD 24.37 billion by 2032, exhibiting a CAGR of 19.6% during the forecast period.

A Public Key Infrastructure (PKI) is a set of software, hardware, processes, policies, and procedures required to manage, generate, distribute, use, and store digital certificates and public-keys. The PKI methodologies are designed to protect the exchange of messages and transactions among devices and systems within Internet of Things (IoT). PKI facilitates secure identification and verification of devices, as well as the encryption and decryption of data shared among them via digital certificates, public & private keys, and additional security features.

• According to a 2024 PKI & Digital Trust Report survey of 1200 respondents, the demand for PKI is growing due to 48% mobile device usage, 46% integration of AI technology, and 46% implementation of IoT devices across organizations. These are considered the driving factors of the market over the forecast period.

PKI is being increasingly relied upon to support a wide range of users, applications, and devices within intricate IT landscapes. It can be employed to verify and secure data sent from a smart home gadget to a mobile application or to confirm the identity of a medical device prior to granting access to patient information. Technological advancements have made it possible to use digital signatures, certificates, and encryption, which are driving the expansion of the global market. Furthermore, the growing demand for secure data exchange in sectors, such as banking, finance, and healthcare is accelerating the public key infrastructure market growth. The increasing awareness regarding data security is also expected to fuel market expansion.

The onset of the COVID-19 pandemic compelled governments across the globe to implement lockdowns to ensure public safety. The growing popularity of smartphones and increase in internet access, especially during the pandemic, increased the usage of PKI solutions. These changing trends and disrupted IT systems made businesses more susceptible to cyberattacks and data leaks, which in turn, boosted the demand for PKI solutions. The risk of data breaches, especially in terms of security and access protocols for managing cloud environments while working remotely, escalated with the introduction of new devices. The need for security technologies surged as more people worked from home. This was the key factor which propelled the demand for PKI solutions during the pandemic.

IMPACT of AI

AI-Integrated Public Key Infrastructure Solutions to Boost Operational Efficiency of Various Companies

Incorporating Artificial Intelligence (AI) into PKI solutions allows companies to make the most of resources, such as predictive analytics and machine learning algorithms to improve their security and identify vulnerabilities and misconfigurations. In certain instances, AI can detect vulnerabilities and suggest corrective actions. This approach positions digital infrastructure to defend itself against new threats proactively.

AI simplifies the processes for issuing, renewing, and revoking certificates, minimizing the delays and errors that come with manual operations. However, according to research, only 37% of companies are currently using a PKI solution to boost AI and gen-AI content.

Similarly, AI optimizes cryptographic functions, such as key generation and encryption, thereby enhancing their security. Integrating AI into PKI enhances operational efficiency and reduces human error, which is considered a major factor in security breaches. Many companies need help to afford PKI experts. Hence, the incorporation of artificial intelligence can help them manage PKI more effectively. Furthermore, AI offers insights into how certificates are used, identifying potential security risks. These are the factors that will boost the usage of AI-integrated PKI solutions to improve the operational efficiency of the organizations present across different industries.

Public Key Infrastructure Market Trends

Integration of IoT Devices with Public Key Infrastructure for Data Security to Fuel Market Growth

The integration of IoT devices with PKI solutions plays a critical role in securing communication, authentication, data security, and integrity and rebooting the encryption process. PKI-based authentication and identity verification protect IoT ecosystems against malicious cyberattacks and data breach activities that aim to disrupt data integrity and confidentiality. For instance,

• In May 2024, DigiCert, a provider of Digital Trust solution, launched a new IoT security solution named ‘DigiCert Device Trust Manager’ to deliver comprehensive end-to-end security to the IoT-connected devices and secure the organizations’ infrastructure from data breaches.

PKI also enables safe communication among IoT devices and the backend IT infrastructure of organizations, which leads to forming encrypted connections through digital certificates to protect sensitive data from unauthorized access. PKI is used in IoT for various applications, including secure firmware updates, protecting data exchange between IoT devices, and safe remote access. It also helps in managing permissions and access control by using certificates and defining and enforcing policies on what each device or user is allowed to do. Through this, the PKI can be used to authenticate and validate the firmware updates, which helps maintain the integrity of the data.

Thus, the integration of IoT devices with PKI to enhance data integrity and security is the key factor that will drive the growth of the market.

Public Key Infrastructure Market Growth Factors

Adoption of Cloud-based Services to Secure Business Applications from Cyberattacks to Drive Market Growth

Public key infrastructure provides a secure way to transmit data and protect it against cyber threats. With the increasing use of digital communication channels, such as emails, messaging apps, and online transactions, the demand for PKI is growing rapidly. It enables secure communication by using public and private key cryptography.

Various businesses are moving their data and applications to the cloud, and the need for secure communication and data protection is increasing. PKI provides a way to secure cloud-based data and applications using encryption and digital certificates. It helps protect cloud-based services by providing authentication and authorization mechanisms. It enables users to securely access cloud-based resources by verifying their identity using digital certificates. It makes sure that only authorized users can access sensitive applications and data.

• According to a research survey, in 2022, 92% of organizations experienced cyberattacks at one point in the past, whereas 73% of them faced severe cyberattacks in the last 12 months. It indicates that there is an increasing need to adopt security and data encryption solutions to protect the organization's confidential data.

Moreover, PKI safeguards cloud-based data by encrypting it using private and public key cryptography. It helps protect the data from unauthorized access and a large number of cyber threats to ensure secure and authenticated communication among users and cloud-based services. Therefore, the increasing adoption of cloud-based services is driving the demand for PKI as businesses need to confirm the security of their applications and data in the cloud.

RESTRAINING FACTORS

Complex Implementation of PKI Solutions to Hamper Market Growth

Integrating PKI into the existing IT infrastructure and applications can be complex and time-consuming, requiring specialized knowledge and expertise. Additionally, managing and maintaining PKI systems can be demanding, involving activities, such as certificate lifecycle management and key distribution.

Expiration of certificate validity, integration of several connected devices, and implementation of new standards have made it increasingly challenging for SecOps and NetOps teams to keep their certificate infrastructures in perfect working order. Thus, implementing PKI solutions across various businesses is comparatively complex, which disrupts the productivity of businesses worldwide. Hence, the complex nature of PKI will hinder the growth of the public key infrastructure market over the forecast period.

Public Key Infrastructure Market Segmentation Analysis

By Deployment Analysis

Adoption of Cloud-based PKI to Rise to Improve Organization's Performance

By deployment, the market is divided into on-premises and cloud.

The cloud segment is projected to record the highest CAGR over the forecast period. The demand for cloud-based PKI solutions in small and medium enterprises is high compared to on-premises solutions due to complexity and pricing issues. As cloud solutions are easily accessible, scalable, and cost-effective, the demand for cloud-based PKI solutions in SMEs is high compared to that of on-premises.

• According to a 2024 PKI & Digital Trust Report, 75% of respondents mentioned that their companies need to hire more resources to maintain and manage their public key infrastructure. Thus, the demand for reliable, affordable, and easily accessible cloud solutions is high as compared to that of on-premises PKI solutions.

Similarly, the cloud environment enables enterprises with limited infrastructure and expertise to deliver comprehensive data security solutions that aim to deliver cloud-based services to their consumers across the globe. Thus, the demand for cloud-based solutions is high.

The on-premises segment dominated the global PKI market share in 2023. The on-premises solutions aim to secure data privacy and resolve data loss issues, along with authentication, encryption key management, and access control rules, which are widely used across different industry verticals as part of their security strategy. On-premises security solutions integrate hardware and software components, which significantly increases the cost and complexity of the PKI system. Thus, demand for on-premises solutions will be low as compared to that of cloud-based solutions during the forecast period.

By Enterprise Type Analysis

Adoption of Public Key Infrastructure Solutions in SMEs to Rise Due to its Scalable and Cost-effective Nature

By enterprise type, the market is divided into small & medium enterprises (SMEs) and large enterprises.

The small & medium enterprises (SMEs) segment is estimated to record the highest CAGR over the forecast period. The rising data security and privacy concerns are increasing the demand for cost-effective and scalable data encryption and reliable security solutions. This factor is driving the demand for PKI across SMEs and helping customers gain personalized experience.

Furthermore, the large enterprises segment accounted for the largest public key infrastructure market share in 2023. Increasing investments by large companies to adopt different data and application security solutions to secure large volumes of data generated via extended digital environments will fuel the adoption of PKI solutions. This factor helped large enterprises lead the market in 2023.

By Application Analysis

Increasing Need for Securing Data Applications from Data Breaches to Spur Demand for Application Performance Management

Based on application, the market is divided into application performance management, infrastructure management, network & security management, and real-time analytics.

The application performance management segment is projected to record the highest CAGR over the forecast period. Application performance management is a form of PKI that ensures secure access, permissions, encryption, and confirmation for applications. It guarantees the safety and exclusive access of applications, resources, and services. Additionally, it secures applications against security flaws, data breaches, and various forms of cyber threats. Thus, the demand for this application is high as compared to other solutions.

Furthermore, the network & security management segment held the largest market share in 2023. Network & security management is a category of PKI that offers secure access, permissions, encryption, and confirmation for networks. It facilitates secure and dependable communication and data storage and also defends network systems against unauthorized entry, cyber threats, and network failures. These factors helped network & security management segment lead the market in 2023.

By Industry Analysis

Increased Digitalization in IT & Telecom to Secure Customers’ Personal Data Boosted Demand for PKI Solutions

By industry, the market is segregated into manufacturing, BFSI, healthcare, IT & Telecom, government & defense, retail, and others.

The IT & telecom segment accounted for the highest market share in 2023. This growth can be attributed to increased digitalization of financial and welfare services, rise in online transactions, and increasing usage of cloud-based deployment solutions. The IT & telecom sector deals with a huge amount of confidential data, including Social Security Numbers (SSNs) and customers' personal details. This necessitates the implementation of security measures to protect the data, leading to a boost in the adoption of PKI solutions across the IT & telecom sector to bring innovation.

Furthermore, the manufacturing industry segment is estimated to record the highest CAGR during the forecast period. Growing need for maintaining the integrity and security of confidential manufacturing data to reduce the risks of data breach is a key factor that will boost the demand for PKI solutions in the manufacturing sector over the forecast period.

The manufacturing sector is followed by BFSI and healthcare industries, which will also showcase healthy growth due to the increasing need for specialized expertise in securing digital identities and data over the next few years.

REGIONAL INSIGHTS

The market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

North America accounted for the largest market share in 2023. The emergence of advanced digital technologies in various countries across the region and the adoption of a well-established digital IT infrastructure among different industries, such as healthcare, BFSI, and government will drive the demand for public key infrastructure solutions during the forecast period. Furthermore, the presence of small & medium-sized and large-sized PKI solution providers in countries, such as the U.S. and Mexico will boost the growth of the market over the forecast period.

Asia Pacific is projected to record the highest CAGR over the forecast period. It is due to the increasing number of cyberattacks in different industry verticals. Moreover, the rising demand for cloud-based security solutions due to the advanced IT infrastructure of various businesses present across countries, such as India, China, Japan, and Australia will drive the growth of the market over the forecast period.  

Europe is estimated to record a moderate growth rate over the forecast period. The government investments are growing to develop cyber security solutions for SMEs and large enterprises present across European countries, such as the U.K., Germany, France, Italy, and Spain. This will boost the adoption of PKI solutions to improve the operational security of companies in different industry verticals. This factor aims to drive the growth of the market over the forecast period.

The Middle East & Africa are projected to register the second-fastest CAGR due to the increasing adoption of PKI solutions to address the security challenges of complex IT infrastructure, improve efficiency, and enhance communication among service providers and customers.

The market in South America is in the development stage due to growing investments by the governments to bring digital transformation in the cyber security industry and increase in awareness about the usage of PKI solutions in countries, such as Brazil and Argentina. This factor will propel the adoption of pubic key infrastructure solutions over the forecast period.

KEY INDUSTRY PLAYERS

Technological Developments by Leading Companies to Aid Their Market Proliferation

The companies operating in the market include Microsoft Corporation, Entrust Corporation., Fortinet, DigiCert, GlobalSig, and PKI Solutions LLC. These firms are focusing on bringing innovations in their public key infrastructure solutions. To enhance their operations throughout the world, they are using various strategic methods, such as partnerships, product launches, investments, acquisitions, and mergers.

List of Top Public Key Infrastructure Companies:

• Microsoft Corporation (U.S.)


• Entrust Corporation. (U.S.)


• Fortinet (U.S.)


• DigiCert (U.S.)


• GlobalSign (Georgia)


• PKI Solutions LLC (U.S.)


• Securosys SA. (Switzerland)


• Fortanix (U.S.)


• SIGNIX Inc. (U.S.)


• Nexus Group (Sweden)


• Amazon Web Services, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2024: Accenture formed a partnership with SandboxAQ to address critical data breach issues from AI-driven cybersecurity attacks. This partnership will help strengthen data encryption and secure the organization's sensitive data against future threats.


• April 2024: The National Information Technology Development Agency (NITDA) declared its collaboration with the National Identity Management Commission (NIMC) on Digital Public Infrastructure (DPI) and National Public Key Infrastructure (PKI). The partnerships will initiate secure data exchange across Nigeria, strengthen the payment ecosystem, boost digital identity, and improve digital trust in accordance with NITDA’s strategic roadmap.


• November 2023: Microsoft Corporation launched the Microsoft Cloud PKI solution and expanded the Microsoft Intune product suite. The newly launched solution helps organizations achieve digital transformation by simplifying the certificate management process and shifting it to the cloud.


• July 2022: PKI Solutions, a provider of public key infrastructure solutions, services, and cybersecurity solutions, launched the updated version of PKI Spotlight, the industry’s only PKI management solution. The latest version of PKI Spotlight can monitor and alert users in real-time about the security and availability of PKI and Hardware Security Module (HSM) environments.


• April 2021: Toppan Printing, a security, communication, and electronic solutions provider, entered a partnership with ISARA Corporation and developed smart cards equipped with post-quantum public key cryptography. The smart cards aim to safeguard information communication by ensuring secure access.

REPORT COVERAGE

The study on the market includes prominent areas globally to help readers gain enhanced knowledge of the industry verticals. Moreover, it offers insights into the most recent endeavors and industry developments and an analysis of high-tech solutions being adopted promptly worldwide. It also highlights some of the growth-stimulating factors and limitations, allowing the reader to obtain a comprehensive understanding of the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 19.6% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Deployment On-premise Cloud By Enterprise Type Small & Medium Enterprises (SMEs) Large Enterprises  By Application Application Performance Management Infrastructure Management Network and Security Management Real-Time Analytics By Industry Manufacturing BFSI Healthcare IT & Telecom Government & Defense Retail Others (Education, Automotive, etc.) By Region North America (By Deployment, By Enterprise Type, By Application, By Industry, and By Country) U.S. Canada Mexico Europe (By Deployment, By Enterprise Type, By Application, By Industry, and By Country) U.K. Germany France Italy Spain   Russia Benelux Nordics Rest of Europe Asia Pacific (By Deployment, By Enterprise Type, By Application, By Industry, and By Country) China India Japan South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Deployment, By Enterprise Type, By Application, By Industry, and By Country) Turkey Israel GCC South Africa North Africa Rest of the Middle East & Africa South America (By Deployment, By Enterprise Type, By Application, By Industry, and By Country) Brazil Argentina Rest of South America