Owing to digital transformation, a large number of companies have shifted to cloud-based solutions. While this certainly has had its advantages, cloud-based solutions also make the data more susceptible to breaches. Weak passwords, complex access permissions, improper configuration, and malware attacks are some of the key factors that can help cybercriminals in accessing confidential data. As per a 2019 Cost of Data Breach Report by International Business Machines Corporation Security, co-published with Ponemon Institute, on an average, 25,575 documents are accessed during a data breach globally, and every data breach costs approximately $3.92 million on an average.
 | |
| Key Management as a Service Market Analysis and Demand Forecast Report |
Because of these factors, enterprises across the globe are making use of key management as a service (KMaaS). Encryption key management refers to the management of tasks that are involved with storing, protecting, organizing, and backing up encryption keys. According to P&S Intelligence report, the global key management as a service market generated a revenue of $511.9 million in 2019, progressing at a 25.9% CAGR during the forecast period (2020–2030). Both services and solutions are offered under KMaaS solutions, between which the demand for solutions was higher in the past.
This is because of the increasing compliance requirements, a multi-cloud environment, and the rising need for encrypting the data. In addition, the demand for KMaaS services is also predicted to increase in the near future, which is ascribed to the fact that after obtaining key management solutions, organizations need maintenance, training, and after-sales support for utilizing these solutions efficiently. KMaaS has a number of applications, namely communication encryption, disk encryption, database encryption, cloud encryption, and file/folder encryption. Among these, the demand for KMaaS was the highest for file/folder encryption applications.
Individual folders and files are transferred among several devices in an organization, which is why it is important to encrypt them. Attributed to this, companies get improved protection for their confidential data and are able to guard their personal files on shared devices. Companies are further provided with the benefit of avoiding business disruption. Several industries make use of KMaaS solutions and services, including aerospace & defense, banking, financial services, & insurance (BFSI), healthcare, retail & e-commerce, government, and information technology (IT) & telecom. The healthcare industry is expected to adopt KMaaS the fastest in the coming years, due to the increasing focus of healthcare firms on improving patient experience, usage of the cloud computing, machine learning, internet of things, and artificial intelligence, and complying with regulations.
North America made the most use of KMaaS in the past, owing to the utilization of data center services and analytical tools, swift adoption of innovative technology for countering cyber-attacks, shift towards multi-cloud, and presence of a large number of cloud service providers in the region. In the coming years, Asia-Pacific is expected to emerge as the fastest growing key management as a service market. This is ascribed to the increasing need for cloud solutions, enhancing key management lifecycle processes, and growing awareness regarding cyber-attacks and ways to counter them.
In conclusion, the demand for KMaaS is projected to rise because of the surging number of data breaches and adoption of cloud solutions.
