Key Management Market Projected to Hit US$6 Billion by 2030 Amid Cloud Adoption and Post-Quantum Security Advances

The cryptographic services market is rapidly expanding to handle exponential digital transformation and the prospect of post-quantum cryptographic breakthroughs, with Key Management Services (KMSs) emerging as a prominent and quickly growing sub-segment. ABI Research, a global technology intelligence firm, forecasts that the 2024 US$1.5 billion global KMS market will grow to almost US$6 billion by 2030. At the edge of innovation in this space is an increasing impetus to future-proof security for the post-quantum era, consequentially leading to the prioritization of interoperable, crypto-agile KMSs and evolving away from traditional vendor lock-in style offerings.

“The growing reliance on Internet of Things (IoT) technology and widespread migration to the cloud are increasing the number of cryptographic keys within organizations. This, combined with the expanding volume and diversity of enterprise data, is driving demand for KMSs to help manage the rising complexity of digital trust, explains Aisling Dawson, Industry Analyst at ABI Research. “Concurrently, given the rising importance of integrating post-quantum algorithms into cryptosystems and maximizing system crypto agility, the enhanced control, visibility, and efficiency which KMSs provide render these services a fundamental pillar of quantum-resistant security for enterprises, further propelling KMSs to the forefront of the cryptographic market.”

Prominent vendors, including Thales, Entrust, Utimaco, and Fortanix, offer modular KMS platforms emphasizing customizability alongside flexible and heterogeneous deployment across on-premises, virtual, and cloud infrastructures. Meanwhile, cloud hyperscalers like Microsoft, AWS, Google, and Oracle provide corresponding KMSs with their cloud services, supporting vendor-agnostic integration with third-party KMS.

Progressive security customers, including banks and financial institutions, are early adopters of post-quantum KMSs, which integrate the NIST-approved post-quantum algorithms into key management and prioritize interoperability with legacy hardware and applications. The 2030 Commercial National Security Algorithm (CNSA) deadline is expected to act as a catalyst within this sub-segment, with post-quantum revenue in the KMS space expected to rise by US$63 million between 2024 and 2028, leading to further refinement of post-quantum KMS use cases and vertical-specific solutions.

KMSs offer a significant opportunity for vendors to capitalize on continuing cloud migration and mercurial post-quantum cryptographic priorities, boasting strong commercial viability across regions and demonstrating increasing maturity in the system capabilities and deployment options on offer. “Although the transition towards post-quantum cryptography is a crucial driver in the expansion of the KMS market, the migration process is expected to be slow as organizations grapple with interoperability and performance issues. Thorough testing of new quantum keys and their impact on KMS infrastructure will be a prerequisite to migration success. Meanwhile, the vendors leading the charge in KMS innovation are maximizing the crypto agility of their services using AI and machine learning capabilities,” Dawson concludes.

These findings are from ABI Research’s Key Management Systems and Services application analysis report. This report is part of the company’s Quantum Safe Technologies research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.