Public Key Infrastructure Market By Solution (PIN Authentication, Enrollment Services, Inventory of Digital Identities, Secure Roaming, Self-Recovery, Self-Registration), Deployment (Cloud-Based, On-Premise), End-User (Aerospace and Defense, Health and Life Sciences, Human Resources, Manufacturing, Government, BFSI, Education, Retail, and Others) -Global Forecast to 2027

Public key infrastructure (PKI) is foundational, as it provides a framework for applications, policies, and practices which offer a number of security functions to help maintain the integrity of digital documents. The global public key infrastructure market was valued at USD 639.1 Mn in 2017 and is expected to register highly promising growth at a CAGR of 21.12% during the forecast period of 2018 to 2023. Increasing demand for encryption technology is expected to encourage market growth among other important factors. As such, the market's appreciation in value is expected to result in a market value of USD 1,987.1 Mn by the end of 2023.

Public key infrastructure solutions are highly scalable and offer improvement in operational efficiency which has increased its adoption significantly. PKI provides increased security via authentication & encryption processes which in turn provides cost avoidance and other benefits. Transaction security is increased which eliminated the need for mailing or faxing of signatures for the completion of official electronic transactions. As a result, there is a reduced need to store signatures on paper which leads to an overall reduction in operational costs. With the expansion of IT technology and the increasing adoption of cloud-based platforms, imminent threats are a strong factor which encourages the adoption of encryption technology. Security of information is in high demand, as is identity authentication, thus driving the demand for PKI solutions. Recognizing the efficiency with which fraud is being committed, the market has become highly competitive with a number of market players increasing their service offerings. Ongoing development of security solutions to put a damper on the increasing frequency of cyber-attacks will be another strong motivator of growth for the global public key infrastructure market.

Public key encryption is based on complex algorithms which can slow down processing speed when encrypting large volumes of data. Moreover, the deployment of PKI can add load on the network which poses a challenge to market growth. Technological advancements such as the advent of 5G and the rapid adoption IoT is expected to create a conducive environment for better data transfer, thus offering the market with significant potential for growth as IoT carried high risk. Demand for the security of connection between devices is anticipated to provide the market with ample opportunities.

The global public key infrastructure market is segmented on the basis of solution, deployment, end-users, and region. Solutions commonly employed in the public key infrastructure market include enrolment deployment, PIN authentication, secure roaming, inventory of digital identities, self-registration, and others.

Public key infrastructure is deployed on cloud-based and on-premise. The adoption rate of cloud-based deployments has been observed to be higher than on-premise due to the scalability that this platform offers as well as cost savings. The cloud-based platform is expected to retain its lead in the market while displaying the highest CAGR of 21.91% during the forecast period.

End-users of public key infrastructure include healthcare & life sciences, aerospace & defense, human resources, manufacturing, government, BFSI, retail, education & research, and others. The government segment followed by the aerospace & defense account for the most significant segments in the market due to the high requirement for security to protect sensitive government information. However, the BFSI sector is expected to grow at the highest CAGR of 23.84%, as this sector handles high volumes of sensitive data.     

Regional Analysis

North America leads the global market's growth and is closely followed by the Asia Pacific market in terms of market value. North America valued USD 239.7 Mn in 2017 and is expected to grow with an optimistic CAGR of 20.71% during the forecast period. The presence of several important market participants in the region combined with the high use of PKI solutions by the regions government sector is expected to drive the growth of the North American PKI market.

Asia Pacific is expected to grow at the highest CAGR of 23.38% during the forecast period. China accounts for the largest country-level market with a projected market value of USD 215.15 Mn by the end of 2023. Japan and India are other important country-level markets to watch out for during the assessment period.    

Competitive Tracking

Analysis of the competitive landscape in the report includes various prominent market participants such as Assa Abloy Group, SIGNiX, DocuSign Inc, Comodo Group Inc., Entrust Datacard Corporation, VeriSign Inc., Ascertia, Gemalto NV, GoDaddy Inc., GlobalSign, and Lexmark International Inc. These market players employ a number of growth strategies with the most significant players competing in terms of security, reliability, and service quality.

The public key infrastructure ecosystem consists of various regional and local service providers that are evolving to enhance their market position. The growth of the service providers is dependent on the market conditions, government support, and industry development. It is important for the service providers to ensure secure electronic transfer of information and reduce on-going operational costs to maintain their market position and gain a competitive advantage. Thus, the service providers are focusing on research & development and product expansion and are improving operational efficiency to maintain their stronghold on the market

Service providers in the public key infrastructure market are focusing towards improving and expanding their services across the world. Entrust Datacard Corporation, Assa Abloy Group, GoDaddy Inc., VeriSign Inc., Gemalto NV among others are the major companies in the market, competing in terms of security, reliability, and service quality. Their primary focus is to upgrade the quality and diversify their value-added services on a regular basis to sustain the market. The major players have strengthened their presence worldwide through the acquisition of local and regional players for expanding their services. The improvement of the economic scenario combined with advances in technology in emerging economies like China, Japan, and South Korea, is likely to fuel the market growth and expand the public key infrastructure market.

Entrust Datacard Corporation held the highest share of 14.96% in 2017. Entrust Authority PKI enables encryption, digital signature and certificate authentication capabilities to be consistently and transparently applied across a broad range of applications and platforms. In May 2017, the company announced the release of Entrust Certificate Services 12.1. This updated version of the company’s certificate services allows the users to easily deploy, audit, manage and secure their full portfolio of digital certificates.

Assa Abloy AB held a share of 11.21% in 2017. Assa Abloy is advancing its digital workspace to enrich the user experience & secure enterprise processes and is focusing on improving its operational efficiency. The company acquired HID Corporation to leverage HID’s capabilities in the innovation and development of leading-edge technology to enhance its product portfolio. HID’s multi-factor PKI authentication combines two or more independent credential-based biometric verification to authorize access in a system using public-key encryption.

VeriSign Inc. held a share of 9.21% in 2017. VeriSign manages DNS infrastructure and is a provider of domain name service and secured internet to websites and enterprise across the globe. VeriSign is exploring new technologies to integrate them with their DNS Services. Recently, the company is working towards exploring blockchain technology to identify its potential for DNS security services.

GoDaddy Inc. held a share of 7.06% in 2017. The company is recognized as a web hosting company and provides a cloud-based web platform for small businesses, web design professionals, and individuals. GoDaddy launched TrustedSite, a new website security certification, to enable small businesses to protect their online customers better. Also, GoDaddy SSL Plans have integrated McAfee SECURE to scan and certify websites for free of cost. GoDaddy acquired Sucuri, a leading provider of website security products and services to offer business owners, a suite of security tools designed to protect their website.

DocuSign, Inc. is one of the prominent players in the public key infrastructure market, holding 5.57% share. DocuSign provides eIDAS compliant digital signature solution, including EU advanced and EU qualified signatures to businesses. Moreover, the company focuses on expanding its business by partnering and collaborating with other companies to provide better services to its customers. Recently, DocuSign acquired SpringCM, a sales software startup. This acquisition is expected to help DocuSign to expand its solution beyond e-signatures.

Although these players dominate the public key infrastructure market, other players including SIGNiX, Gemalto NV, Comodo Group, Inc., Lexmark International, Inc. also have a considerable presence in the market. These players focus on collaborating with other businesses with strong market presence to expand their market reach by diversifying their product portfolio.