How is Increasing Number of Data Breaches Driving Demand for Key Management as a Service?
How is Increasing Number of Data Breaches Driving Demand for Key Management as a Service?
Blog Article
Improved internet connectivity has both negative and positive aspects. As a larger number of devices are connected to internet these days than ever before, the adoption of cloud solutions has risen considerably. While this has made data accessible to an increased number of people, it has also made data vulnerable to security threats. Cyber attackers can access confidential information, including social security numbers and credit card details easily. Some factors that make data vulnerable to cyber-attacks are improper configuration, weak passwords, malware attacks, and complex access permissions.
Owing to these factors, the global key management as a service (KMaaS) market attained a value of $511.9 million in 2019 and is predicted to progress at a 25.9% CAGR during the forecast period (2020–2030). Encryption keys are gaining popularity these days as the need for securing sensitive data, satisfying compliance mandates, and maximizing performance is rising. Cloud services have necessary for businesses, however, the need for accountability and retaining control is also increasing these days. Because of this, enterprises are increasingly making use of KMaaS. The two major components of this technology are services, including professional and managed, and solutions.
Between these two, the adoption of KMaaS solutions has been higher in the past, which is ascribed to the increasing shift towards a multi-cloud environment, rising need for encrypting data, and growing compliance needs. These factors are compelling organizations to purchase key management solutions for guarding their data from cyber-attacks. Other than this, the demand for key management services is also predicted to rise in the coming years as companies need after-sales and maintenance support and training for using these solutions. The major applications of KMaaS components are communication encryption, disk encryption, database encryption, cloud encryption, and file/folder encryption.
Out of all these, the need for KMaaS is expected to be the highest for file/folder encryption application in the coming years. Since individual folders and files are transferred amongst several devices in a company, the need for encrypting them is high. By deploying KMaaS solutions, enterprises are able to secure personal files on shared devices, achieve improved protection for their confidential data, and get the advantage of avoiding business disruption. It is due to such advantages that a number of industries, including aerospace & defense, banking, financial services, and insurance, healthcare, retail & e-commerce, government, and information technology & telecom, are making use of KMaaS.
The healthcare industry is projected to a create substantial demand for KMaaS solutions in the years to come, which is because of the growing focus of healthcare companies on an improved patient experience, compliance with regulations, and growing utilization of internet of things, artificial intelligence, cloud computing, and machine learning technologies. Geographically, North America emerged as the largest KMaaS market in the past, due to the swift adoption of innovative technologies for countering cyber-attacks, presence of a number of service providers, increasing utilization of data center services and analytical tools, and shift towards multi-cloud.
Hence, the demand for KMaaS is growing due to the surging number of data breaches.
Source: P&S Intelligence