Rapid Evolution of Security Threats will Lead to a Growth in Key Management as a Software (2023 to 2033)
The Future Market Insights report estimates that key management as a service will generate revenue of US$ 1.88 billion by 2023, growing at a compound annual rate of 30%. By 2033, the market is expected to reach a value of US$ 26 billion.
Cloud technologies are becoming more popular among enterprises, and organizations need to comply with various regulatory compliances imposed by the government in order to protect mission-critical organization data, so KMaaS solutions and services are expected to grow in demand.
The market is supported by:
Progress in technology
Computer software updates
A security management system
Security services that cover the entire process
Reliable, compliant, and enhanced features
Interconnectivity of networks
A rapid rise in internet use
Cloud-based services
Demand for advanced encryption standards
Capabilities that comply with standards
Data Points
Key Statistics
Estimated Base Year Value (2022)
US$ 14 Billion
Expected Market Value (2023)
US$ 1.88 Billion
Anticipated Forecast Value (2033)
US$ 26 Billion
Projected Growth Rate (2023 to 2033)
30% CAGR
As cloud-based applications become more prevalent among enterprises, cyber security breaches continue to increase, thus increasing the demand for KMaaS solutions to grow in the market. With the process of digitization of the healthcare sector progressing at an accelerated pace, the market will likely continue to grow for quite some time.
A new version of the NCSC's cloud security guidance was published earlier this year, along with instructions on configuring a key management system (KMS) for cloud-based key management. Enterprises of all sizes are expected to dominate the key management as a service market during the forecast period.
The complexity of network systems, the high need for digital transformation, the rapidly accelerating adoption of cloud services, and the risks associated with compliance are all factors contributing to enterprises integrating key management solutions very deeply.
Various advantages of key management as a service have been increasing its use in the manufacturing industry. In addition to reducing costs, key management services eliminate the need to maintain private keys on servers and other infrastructure assets. In addition to providing users with access control, centralized storage systems can also ensure access is controlled by implementing security policies such as multi-factor authentication (MFA).
A surge in cybercrime cases and security threats is expected to boost the growth of Europe's kMaaS. Organizations seeking flexibility over business processes will also benefit from cloud-based key management solutions over the next few years, enabling them to gain market share.
North America and Europe are experiencing rapid growth in KMaaS demand. Key management solutions that are secure and automated are in demand by businesses of all sizes and sectors in these regions. With KMaaS providers in this region, they can improve efficiency and security by managing key lifecycles, managing encryption, and managing secure storage.
KMaaS can also assist organizations with ensuring compliance with regulations such as GDPR, HIPAA, and PCI. The KMaaS solution can also provide organizations with the ability to manage multiple cloud and on-premise environments, allowing for secure data management and protection.
The demand for multi-factor authentication (MFA) as a way to improve key management system security is growing rapidly. The use of two-way authentication can provide additional evidence to prove individuals' identities, such as a password and a fingerprint scan.
Blockchain technology is now being used in some cryptographic key management systems for better security and decentralization. As a result of tamper-proof records generated for each entry in a distributed ledger, key management systems based on blockchain technology provide enhanced security and decrease the risk of data breaches.
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Key Management as a Service Market Overview
Rising cyber-attacks, focus on digital transformation, and the adoption of cloud technologies are expected to propel the growth of Key Management as a Service. The Key Management as a Service market is estimated to grow US$ 1.5 Bn by 2021, with a CAGR of 25% during the forecast period 2023 to 2033.
This solution provides complete lifecycle management of cryptographic keys within the enterprises, to protect them from internal as well as external cyber-attacks.
What is Driving Demand for Key Management as a Service?
Growth in development of cloud-based key management solutions across various enterprises to offers wide range of benefits including convenient key management, scalability, flexibility, and reduced cost of IT infrastructure. Significant growth in the key management as a service offering is expected to lead to greater opportunities owing to the substantial increase in cyber threats to mission-critical data and regulatory compliance requirements.
Key Management as a Service can be utilized for managing encryption keys for cloud services, that can be used for the development of cryptographic functions. The SMEs are focused on the adoption of Key Management as a Service solution for increasing their operational efficiency, and mandates to meet stringent regulations.
Key Management as a Service offers a wide range of applications such as disk encryption, database encryption, file/folder encryption, communication encryption, and cloud encryption, among others. The reliability of such applications drives the demand for Key Management as a Service, over the coming years.
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Impact of COVID-19 Pandemic Outbreak on Key Management as a Service
The COVID-19 pandemic outbreak has disrupted many industries, including the Key Management as a Service market. The demand for Bring Your Own Encryption (BYOE) service, Bring Your Own Key-Cloud HSM, software key management, secret management, and remotely managed IT services has increased during the lockdown resulted from the COVID-19 outbreak.
As the stage of COVID-19 evolves across the world, technological developments have taken initiatives to stop the spread of COVID-19 disease. Increasing adoption of cloud-based Key Management as a Service solution for managing communication encryption such as voice encryption, email encryption, instant messaging encryption, due to global lockdowns, would further drive the Key Management as a Service demand.
USA and Canada Key Management as a Service Market Outlook
The USA is one of the largest markets for Key Management as a Service. This is attributed to the high increase in demand for Key Management as a Service for various end-users such as banking, financial services, and insurance (BFSI), government and public utilities, telecom & IT among others.
Furthermore, the growing trend of integrated key management software and the management of cryptographic keys for a cryptosystem is accelerating the demand for Key Management as a Service across North America.
The USA is the dominant country accounting for around 20%-25% of the global market share in 2021. Moreover, the growing emphasis on regulating the USA government regarding enhancing the security of data within all cloud services is also estimated to drive the Key Management as a Service solution in the USA.
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Europe Demand Outlook for Key Management as a Service
Rapid developments in new technologies/services including cloud services such as Database as a Service (DBaaS) provide simple, secure, reliable, and standard-compliant capabilities to protect and encrypt data. Hence, through the flexibility offered by such technologies, vendors offering Key Management as a Service can take the advantage of the growing opportunities in Europe.
Some of the key players such as Thales e-Security, Sophos Ltd., and others are focused on securing and offering advanced solutions that have the potential to enhancing customer experience through speed and convenience in European countries. Growing demand for advanced encryption standards (AES), and wide adoption of data encryption by the organizations are expected to have the highest impact on the Europe, over the forecast period.
Who are the Key Providers of Key Management as a Service?
Some of the leading providers Key Management as a Service include
CipherCloud
Thales (Gemalto)
Google
IBM Corporation
Egnyte
KeyNexus Inc.
Intel Corporation
Sepior ApS
Unbound Tech
Others
Key players in the market are focusing on acquisitions to complement their product portfolio to cater to the needs of a variety of customers. Market participants are also focusing on providing products directly to end users to improve direct customer relations.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
Key Segments of Key Management as a Service Market
