In 2019, almost 4.57 billion people, or 58% of the global population, were active internet users. This was a surge of over 200 million users from 2018. With the increasing number of people and entities on the internet, ensuring that they are authentic and guarding the cyber space against unauthorized access become important. Therefore, many organizations host campaigns emphasizing secured web access, which is prompting websites to obtain digital certificates that authenticate their identity.
Thus, with the burgeoning internet penetration, P&S Intelligence expects the certificate authority market value to increase to $285.7 million by 2030 from $81.7 million in 2019, at a 12.3% CAGR during 2020â€“2030. A certificate authority is an entity that issues digital certificates, which is why they are making big business with the increasing number of websites, applications, and internet users. Further, COVID-19 has accelerated this trend, as being confined to their homes, a large number of people have shifted to online shopping and payments, which is a key internet application that must be secured.
During 2017â€“2018, the total value of goods purchased online grew by 15%. With the continuing shift of people to online shopping, e-commerce is expected to account for 17% of the global retail sales in 2021, driven by not only the COVID containment protocols but the various advantages of online shopping itself, including discounts, freedom to compare from a variety of products, online payments, and home delivery. Since money matters are already sensitive, the fact that they can be hacked while they are being conducted online has made digital certificates extremely important.
Currently, the demand for digital certificates is the highest in North America, which is home to numerous companies offering such authentication and has stringent data protection laws. For instance, the laws implemented in the U.S. in this regard include the U.S. Privacy Act of 1974, Childrenâ€™s Online Privacy Protection Act (COPPA) of 2000, and Health Insurance Portability and Accountability Act (HIPAA) of 1996. Moreover, every state has its own law in this regard, which compels companies even more to have a public key certificate for their website.
In the years to come, the fastest growth in the certificate authority market will be witnessed in Asia-Pacific (APAC), where the number of online businesses and internet users is surging sharply. This is mainly because of the rapid digital transformation, for which the governments of China and India are pouring hefty sums. Similarly, the burgeoning adoption of IoT, in part due to the many smart city projects underway, is driving the demand for digital certificates in the region.
Hence, with the rising IoT adoption and growing traffic on online shopping websites, the demand for digital certificates will continue increasing.