Certificate Authority Market Size & Overview:

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Certificate Authority Market size was valued at USD 167.7 Million in 2023 and is expected to grow to USD 442.2 Million by 2032 and grow at a CAGR of 11.4% over the forecast period of 2024-2032.

The growing digitalization for secure digital communication has fuelled the global certificate authority market owing to stringent government regulations and initiatives to improve cybersecurity frameworks undertaken by different countries around the globe. In 2023, the U.S. National Institute of Standards and Technology (NIST) reports that the percentage of encryption and digital certificates required by government demand has increased by 15% from 2022 levels with large increases in some sectors essential to national security, including healthcare and financial services. Additionally, the European Union recently tightened its regulations with GDPR (General Data Protection Regulation) and eIDAS (electronic Identification, Authentication and Trust Services) regulation that increased demand for certificate authority services. Cyberattacks rose 38% in 2023 alone as per a report by the Cybersecurity and Infrastructure Security Agency (CISA) and organizations are rapidly adopting certificate authorities to protect sensitive data. This rise in government-backed digital infrastructure initiatives, which include the Digital India initiative which also focuses on public key infrastructure (PKI), has only propelled the certificate authority industry further.

There is an increasing recognition of the importance of encryption and data security among businesses, driven by the rising sophistication and prevalence of cyberattacks. With an increase in cyber threats, companies are now making sure their sensitive information is safeguarded and the use of SSL/TLS digital certificates has become a necessity to ensure secure communication channels and avert unauthorized access. Both Europe with the General Data Protection Regulation (GDPR) and the U.S. with its California Consumer Privacy Act (CCPA) have passed laws requiring firms to bolster their cybersecurity practices and meet stringent data protection criteria. To comply with this, SSL/TLS certificates should be installed for encrypting data transmissions and confirming website identities which in turn ignites the demand for certificate authority’s services. Additionally, new technologies like IoT, AI, edge computing, and 5G networks are reshaping the digital landscape and presenting new security challenges. As AI becomes increasingly integrated into business operations, there is a heightened need to authenticate AI models, algorithms, and training data sources. This trend is also seen about 42%, of organizations that have adopted AI technology according to a recent study.

Certificate Authority Market Dynamics

Drivers

• Increasing incidences of data breaches and cyberattacks across industries are driving the demand for secure digital certificates, making certificate authorities essential for verifying digital identities and ensuring secure communications.

• The rapid growth of Internet of Things (IoT) devices in industries like healthcare, automotive, and smart cities requires secure authentication mechanisms, boosting the demand for certificates issued by CAs to protect connected devices from cyber threats.

• The growing reliance on cloud computing and Software-as-a-Service (SaaS) platforms is creating the need for robust encryption and authentication measures, driving the adoption of digital certificates for securing online transactions and data in transit.

The rising rate of cybercrimes and the growing complexity of those attacks are some of the key factors propelling growth for the Certificate Authority (CA) market. Since 43% of all cyberattacks target small businesses, having strong cybersecurity in place has never been more necessary. With the digitization of operations, organizations have become targets for threats such as phishing, ransomware, and data breaches. CAs issue digital certificates that help to create trust in the messages sent online. For example, using Transport Layer Security (TLS) certificates prevents sensitive information such as payment details and personal data from being intercepted in transit. A report released by Cybersecurity Ventures in 2023 states that global ransomware damages are predicted to hit USD 30 billion per year by 2025, highlighting the need for organizations to protect their assets.

In addition to this, regulatory requirements are another force compelling companies to implement strict measures for ensuring security. As an example, the General Data Protection Regulation (GDPR) requires businesses to maintain sufficient security posture over personal data, which includes using digital certificates for encrypted communications. DigiCert, and Sectigo move ahead with innovative approaches enabling organizations to automate the issuance and renewal of digital certificates for security while minimizing operational complexity. This increased emphasis on cybersecurity is one of the main factors pushing demand for certificate authorities in a modern digital landscape.

Restraints

• Organizations often face challenges managing a large number of digital certificates, particularly as the scale of digital infrastructure grows, leading to security gaps if certificates expire or are mismanaged.

• While digital certificates are necessary for security, the recurring costs associated with purchasing and renewing certificates, especially for large enterprises with extensive digital ecosystems, can be a financial restraint.

One of the most significant constraints in the Certificate Authority (CA) market is the complexity of certificate management. But as organizations turn to digital certificates to secure their communications and transactions, they tend to struggle with how to manage them. With the proliferation of devices and applications requiring unique certificates, keeping track of expiration dates, renewal processes, and proper installation becomes daunting.

Mismanagement can lead to expired certificates, resulting in service disruptions and security vulnerabilities. To compound the challenge, each platform has its unique procedures for handling certificates. This added complexity requires specialized skills and tools which can drive up operational costs and resource allocation for organizations. Handling plenty of certificates with human assistance involves some uncertainty and increases the risk for organizations to face data breaches or compliance issues. Consequently, organizations may hesitate to adopt or expand their reliance on certificate authorities due to these management challenges, hindering overall market growth.

Certificate Authority Market Segment analysis

By Component

In 2023, the certificate type segment led the certificate authority market with a 61% share. This dominance is primarily driven by the growing need for secure communication and data protection, which has forced organizations to adopt SSL/TLS certificates, code-signing certificates, and email encryption certificates. According to government statistics, the number of SSL/TLS certificates issued has steadily increased over time. For instance, a 2023 data report on the financial sector of the USA Federal Reserve says that SSL certificate adoption is above 80% for all websites in the financial sector as compared to fungibility going from 67% in 2020. The rise is related to the focus of the government regarding Security in online transactions. The increase in consciousness around data breaches along with privacy regulations including the California Consumer Privacy Act (CCPA) and within the EU GDPR have also spurred high demand for certificate types that provide strong security against unauthorized access and data tampering.

By Certificate Validation Type

In 2023, the certificate authority market was led by the domain validation (DV) segment, which held a significant revenue share of 45%. Besides, domain validation certificates are affordable and ensure basic security, so they are popular among small to medium businesses (SMEs) and individual website builders. In 2023, the UK Government’s National Cyber Security Centre (NCSC) reported that over 50% of domain validation certificate users were SMEs, an increase of 22% since the previous year. Additionally, the ever-increasing expansion of e-commerce platforms is also contributing to this growth as SMEs and start-ups need fast & cost-effective digital certification solutions to secure their websites. Moreover, recently in 2023, a report by the U.S. Small Business Administration (SBA) stated that almost 65% of new e-commerce companies chose domain validation certificates as they are simpler and more affordable than the other types. Such adoption of DV certificates has been further fueled by various government-backed initiatives across the globe that encourage SMEs to strengthen their cybersecurity postures, particularly in developing countries.

By Vertical

In 2023, the BFSI (Banking, Financial Services, and Insurance) sector accounted for the largest revenue share of 20% in the certificate authority market. The need to reduce the risk of a security breach from online transactions, mobile banking, and digital financial services within the finance industry has driven the adoption to digital certificates for authentication and encryption. Government initiatives such as the U.S. Federal Financial Institutions Examination Council (FFIEC) mandates have called for strong encryption technologies like PKI-based certificates to safeguard sensitive financial information. According to the European Central Bank, nearly 75% of financial institutions across Europe implemented enhanced certificate authority services in 2023, up from 59% in 2020. The compliance of the regulations, Payment Services Directive 2 (PSD2) which mandates strong customer authentication and encrypted communication in financial transactions further drives this growth.

Regional Analysis

The global certificate authority market was led by North America in 2023, which accounted for a revenue share of 38%. High IT infrastructure, higher cloud service adoption among organizations, and the cybersecurity regulatory landscape are some of the factors leading to dominance in the region. In 2023, the U.S. Department of Homeland Security revealed the adoption of PKI solutions amongst federal agencies had increased by 25%, which demonstrates the region's emphasis on securing government data.  In 2023, the U.S. captured the largest revenue share in NA. This growth is driven by a rising awareness of cybersecurity due to an increase in high-profile data breaches, ransomware attacks, and other security incidents. For example, in 2022, the Internet Crime Complaint Center reported 2,385 ransomware complaints, leading to adjusted losses exceeding USD 34.3 million. Ransomware can impact individuals and businesses of all sizes and industries, causing service disruptions, financial losses, and the potential permanent loss of valuable data

The APAC region, on the other hand, is expected to witness the fastest CAGR during the forecast period due to digitalization and cybersecurity government initiatives in emerging economies like China, India and South Korea. According to China’s Ministry of Industry and Information Technology, the proportion of enterprises in China applying for digital certificates has reached 68% in 2023 from only 52% in 2021. Digital certificate usage grew by 16% between 2022 and 2023, as India's Digital India initiative focused on establishing the PKI infrastructure to secure government and private data. These initiatives are stimulating rapid growth of certificate authority market in the region.

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Key Players

Key Service Providers/Manufacturers:

• DigiCert (DigiCert SSL Certificates, Certificate Lifecycle Manager)

• GlobalSign (GlobalSign SSL Certificates, CloudSSL)

• Entrust (Entrust SSL/TLS Certificates, PKI as a Service)

• Comodo CA (Positive SSL, Comodo Certificate Manager)

• Symantec (Symantec SSL Certificates, Endpoint Protection)

• GoDaddy (GoDaddy SSL Certificates, Managed WordPress Hosting)

• Sectigo (Sectigo SSL Certificates, Certificate Manager)

• Let’s Encrypt (Let’s Encrypt SSL Certificates, ACME Client)

• Trustwave (Trustwave SSL Certificates, Managed Security Services)

• Amazon Web Services (AWS) (AWS Certificate Manager, AWS CloudFront)

Users of Services and Products:

• Microsoft

• Google

• IBM

• Salesforce

• PayPal

• Apple

• Cisco

• Adobe

• SAP

Recent Developments:

• DigiCert collaborated with Oracle Cloud Infrastructure (OCI) to deliver enhanced DigiCert ONE capabilities in May 2023. Combining the rapid deployment capabilities of DigiCert ONE with OCI's secure, high-throughput architecture for single and multi-cloud deployments, this collaboration will ultimately benefit users. Through the partnership, DigiCert ONE will be integrated into the OCI ecosystem, allowing joint customers to manage their digital trust initiatives within a single framework.