Enterprise Key Management Market Size, Share & Trends Analysis Report By Deployment Model (Cloud, On-Premise), By Enterprise Size (Small and Medium, Large), By Applications (Dish Encryption, File and Folder Encryption, Database Encryption, Communication Encryption, Cloud Encryption), By End-Users (BFSI, Healthcare, Government and Defense, IT and Telecom, Retail, Other End-user Verticals) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global enterprise key management market size was valued at USD 1,451.1 million in 2021. It is projected to reach USD 8,020.5 million by 2030, growing at a CAGR of 20.92% during the forecast period (2022–2030).

Enterprise key management refers to crucial expert management systems that provide encryption keys for numerous operating systems and databases. Systems for maintaining cryptographic keys for data at rest are known as enterprise key management systems (KMS). The weighted averages of the generated estimations were considered the final values due to data triangulation using various procedures and approaches. Enterprises in a variety of industries, including BFSI, healthcare, government and defense, IT and telecom, and retail, which is covered in the study, use critical management solutions and services. The potential value of surrounding management of vital cryptographic materials grows together with the adoption of encryption within an organization.

Market Dynamics

Global Enterprise Key Management Market Drivers

Loss of High-Profile Data and Compliance Issues

The prevalence of data breaches in several industries, which have exposed millions of consumer details to hackers and cost numerous businesses millions of dollars, has increased the emphasis on encryption of sensitive data and files within new companies. Additionally, the tremendous growth in structured and unstructured data due to the rapidly rising need for digital assets drives the desire for improved key management with a strategic focus on data-centric businesses. Along with government requirements like GDPR, companies need to embrace enterprise-critical management solutions since privacy is becoming a more crucial competitive differentiation in an era where customer relationships are based on openness and trust.

Massive Growth of Data Due to the Adoption of IoT and other Technologies

An IoT ecosystem's connected gadgets are becoming more prevalent on the market. Device connection is expanding along with the global uptake of the IoT. Consequently, enormous amounts of data have accumulated. The growing number of connected devices is also generating a significant part of data, which is best saved in the cloud. The introduction of 5G networks is anticipated to hasten the adoption of connected devices across several sectors already advancing toward digital transformation. With the increase in population and the rising digitalization of industrial processes, the number of PCs, laptops, smartphones, tablets, and point-of-sale terminals has expanded dramatically. The increased number of endpoints results in a more stringent need for security, increasing the demand for enterprise key management solutions.

Global Enterprise Key Management Market Restraint

Lack of Awareness and Skilled Workforce

The skill gap is a significant issue in the market because there aren't enough people with the knowledge to manage the vast amount of created data. Due to the expanding volume of data, there is a lack of professionals that can analyze and extract pertinent and sophisticated information from this influx of information. These specialists are required as businesses use data to fuel operations. The lack of qualified cybersecurity workers across all industries is one of the main factors contributing to increased cyberattacks. Less experienced cybersecurity personnel are needed to handle cyber threats for financial institutions, government organizations, and private sector/industrial firms than there is demand for them, particularly in Europe, Asia-Pacific, Latin America, and the Middle East.

Regional Analysis

The global enterprise key management market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the largest shareholder in the global enterprise key management market and is expected to grow at a CAGR of 20.99% during the forecast period. It is anticipated that North America will continue to hold the largest market share throughout the projection period. This is primarily attributable to the presence of internationally renowned enterprise key management market players like IBM, Oracle, and Hewlett Packard, all of whom encourage adoption. Additionally, local demand for business key management systems is sparked by cyber risks. The top 10 US banks have indicated a significant transition to cloud-based operations, concentrating applications through a primary cloud provider while developing new apps and moving existing apps. Retail banks have been eager to explore cloud choices. Some US banks, such as Citi and Capital One, have released APIs that permit access to their data, where cloud computing will play a crucial role in the future.

Europe is expected to grow at a CAGR of 21.34%, generating USD 2,709.6 million during the forecast period. Banks and other businesses may effectively stop impersonation schemes due to Domain-based Message Authentication, Reporting, and Conformance (DMARC), which has recently gained popularity. DMARC is an open standard for guaranteeing that only approved senders, including lookalike "defensive" domains that one proactively registers, can use one's organization's domain name in emails. The European Commission and Europol, the EU's law enforcement intelligence agency, have launched a new platform for decrypting material collected as part of a criminal investigation. These measures are anticipated to boost the use of enterprise key management tools.

In Asia-Pacific's industry sector, different encryption levels are generally used. The public sector, retail, technology, and software companies all saw considerable growth in the use of extensive encryption. In order to solve these several challenges, including restricting access, maintaining secrecy, and lowering their exposure to protocol-specific attacks, banks and financial institutions in Asia-Pacific are also employing SSL/TLS to encrypt their traffic. Japanese businesses and the government are becoming increasingly interested in enterprise key management. The government has established new legislation, methods, and facilities in response to the rise in cyberattacks against Japanese corporations. Japan is looking for bilateral partnerships with other nations to implement its cybersecurity priorities.

Latin America is one of the continents with the largest aggregation of nations that are collectively displaying significant economic growth. A powerful new version from the Mexican software startup Bridgefy includes end-to-end encrypted messages, a new feature essential for activists. Using the exact encryption mechanism as Signal, WhatsApp, and Facebook Messenger will enable individuals to send and receive notifications safely even when they don't have access to the internet. Cybersecurity threats are increasing along with the growth of digitalization. For instance, Kaspersky found that harmful attacks in the area increased by an average of 74% in 2020.

Segmental Analysis

The global enterprise key management market is segmented by deployment model, enterprise size, application, and end-users.

By Deployment Model Analysis

Based on the deployment model, the global enterprise key management market is bifurcated into cloud and on-premise.

The cloud segment is the highest contributor to the market and is expected to grow at a CAGR of 22.3% during the forecast period. Essential creation and escrow outside of the cloud platform prevent vendor-lock, giving customers the freedom to switch to a different cloud provider if a contingency plan requires it. BYOK is especially helpful for companies who utilize a different cloud platform as a failover solution in disaster recovery situations because the necessary keys are generated outside the old cloud provider and do not need to be translated for the D/R cloud instance. Critical management services are already available from public cloud providers. Organizations using multi-cloud and hybrid cloud environments, or those operating internationally, can discover an easy-to-use solution to encryption key management without compromising security with a cloud-neutral HSM as a Service.

By storing apps and data in company data centers, on-premise options enable businesses to manage expenses. Where usage patterns are well known and predictable, this method of delivering the entire infrastructure could be the most economical. On-premise solutions are available from reputable providers. Amazon, Google, and Microsoft generate a unique key for each data element. These businesses provide a fine assortment of critical management services. Companies looking to utilize the resources and assistance given by significant cloud providers while maintaining the level of security supplied by on-premise HSMs are looking for a solution that meets the following requirements.

By Size of Enterprise Analysis

Based on the size of enterprise, the global enterprise key management market is bifurcated into small and medium and large.

The small and medium enterprise segment owns the highest market share and is expected to grow at a CAGR of 23.58% during the forecast period. SMEs are expected to secure their customers' personal information against security flaws because they own that information. Due to rising security awareness and digital changes, SMEs are adopting cloud-based enterprise key management solutions to manage the whole lifetime of the keys used to safeguard data. Smaller companies typically have inferior cyber defense, making them more appealing targets for attackers than larger companies with more sophisticated security measures. Small businesses are the target of numerous types of cyberattacks. KeyZone is a program for managing keys that are intended for small businesses. This application has critical holder administration functionality, allowing listing/blocklisting, API integration, system control, and cyber security.

Large enterprises have several tools and systems to manage keys across their infrastructure and public clouds. This may be an expected outcome of organic expansion, mergers, and acquisitions, as well as the gradual use of encryption to comply with security standards like ISO 27001 and privacy laws like the General Data Protection Regulation (GDPR) or California Consumer Privacy Act (CCPA). The need for large enterprises to rely on reputable key management service providers will become increasingly more pressing as technology grows more complicated and attack vectors become more frequent and sophisticated.

By Application Analysis

Based on application, the global enterprise key management market is bifurcated into dish encryption, file and folder encryption, database encryption, communication encryption, and cloud encryption.

The dish encryption segment is the highest contributor to the market and is expected to grow at a CAGR of 21.03% during the forecast period. Dealing with the creation, trade, storage, utilization, and replacement of keys is included. The design of cryptography protocols, critical servers, user procedures, and other pertinent protocols are all included. Key management relates to keys shared between users or systems at the user level. The full-disk encryption (FDE) of data as it is written is supported by NetApp hardware-based encryption. The data cannot be read without the encryption key saved on the firmware. Only an authenticated node has access to the encryption key in turn. Azure Disk Encryption uses the BitLocker feature of Windows for Windows VMs to enable full disc encryption for the OS and data discs. Additionally, when the Volume Type parameter is set to "All," it offers encryption of the temporary disc. End-to-end encryption using a customer-managed key is provided when the content flows encrypted from the VM to the Storage backend.

By End-Users Analysis

Based on end-users, the global enterprise key management market is bifurcated into BFSI, healthcare, government and defense, IT and telecom, retail, and other end-user verticals.

The BFSI segment is the highest contributor to the market and is expected to grow at a CAGR of 21.42% during the forecast period. The BFSI sector operates in hazardous and intricate settings. Data security is always of utmost significance, and as it undergoes a digital transformation, control and management are becoming more and more challenging. The payment ecosystem is also going through a significant change. FinTech, virtual banks, mobile payments, and blockchain developments will end the dominance of financial behemoths, credit card firms, payment processors, and banks over the payments ecosystem. The foundation of the non-cash payment industry will continue to be security modules and data protection.

Impact of covid-19

When the world witnessed the noble Coronavirus breakout, it disrupted all nations' economies. The government imposed lockdowns to slow the disease's rapid spread. Productions were stopped, all workplaces were closed, public interactions were limited, and temporary manufacturing and trading operations suspensions were implemented globally. Implementing the lockdown and public exchange caused interruption causing a cutting down of the market's operations. The social distancing norms of the government also disrupted the supply chain. Because of lockdowns imposed by the government, businesses and employees could not use the equipment. This forced the farmers to lean towards the help provided by autonomous tractors pushing the autonomous tractor market growth further.

The South Korean nation faced many problems due to the social distancing and public interaction restrictions imposed by the government, which resulted in a workforce shortage. Travel restrictions imposed also restricted the movement of emigrant laborers into the nation. So the country had to ultimately shift towards using autonomous machines to continue their production and operations, to generate income during tough times. But still, during the era of covid, the market had to face a few bumps, such as the level of participation by the companies in the market declined, suppliers and distributors also slowed down their operations, and this negatively affected the farm machinery industry supply chain, resulting in a delay of deliveries of agricultural machinery.

Recent Developments

• July 2022- Telit and Thales announced the creation of a leading western IoT solutions provider: Telit Cinterion.