The global SSL certificate market is estimated to be valued at US$187 million in 2023, and it is projected to exhibit a CAGR of 12% over the forecast period from 2023 to 2030, according to a new report by Coherent Market Insights.
SSL certificates are digital certificates that authenticate the identity of a website and enable secure communication between a website and its users. They provide encryption and help protect sensitive information such as credit card details, login credentials, and personal data from being intercepted by hackers.
As online security threats continue to rise, the demand for SSL certificates is expected to grow significantly. SSL certificates not only secure e-commerce websites but also play a crucial role in securing online banking, communication platforms, and cloud-based applications. The need for robust security measures to prevent data breaches and maintain user trust is driving the adoption of SSL certificates across various industries.
Market Key Trends:
One key trend in the SSL certificate market is the increasing adoption of EV (Extended Validation) certificates. EV certificates provide the highest level of authentication and display a green address bar in web browsers, which indicates to users that the website they are visiting is secure. This increased level of trust can boost user confidence and lead to increased online sales and conversions.
EV certificates are especially beneficial for e-commerce websites and online banking platforms, as they provide stronger protection against phishing attacks and help establish a secure connection between the website and the user. With the growing emphasis on online security, the demand for EV certificates is expected to witness significant growth in the coming years.
Threat of New Entrants: The SSL certificate market is characterized by high barriers to entry, which will limit the threat of new entrants. The industry requires significant technological expertise and large investments in infrastructure. Moreover, established players have already built strong relationships with clients, making it difficult for new entrants to penetrate the market effectively.
Bargaining Power of Buyers: Buyers in the SSL certificate market have moderate bargaining power. While individual buyers have limited negotiation power due to the standardized nature of SSL certificates, large organizations and government entities can leverage their volume purchases to negotiate better deals. However, the switching costs for buyers are relatively low, giving them some power in the market.
Bargaining Power of Suppliers: Suppliers in the SSL certificate market have low bargaining power. There are several SSL certificate authorities (CAs) offering similar products, giving buyers the ability to switch suppliers easily. Additionally, CAs rely on their reputation and track record to attract customers, which limits their bargaining power in negotiations.
Threat of New Substitutes: The threat of new substitutes in the SSL certificate market is low. SSL certificates are an industry standard for securing websites and online transactions. While there are alternatives such as self-signed certificates or other encryption protocols, they do not offer the same level of trust and security as SSL certificates. Therefore, the demand for SSL certificates is expected to remain strong.
Competitive Rivalry: The competitive rivalry in the SSL certificate market is high. There are numerous players in the market, offering similar products and services. Key players in the market compete based on factors such as pricing, brand reputation, and customer service. This intense competition puts pressure on the profitability of SSL certificate providers and encourages continuous innovation.
The Global SSL Certificate Market Demand is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period (2023-2030). This growth can be attributed to the increasing adoption of e-commerce, online banking, and other digital transactions, which creates a higher demand for secure website connections. The market is also driven by growing cybersecurity concerns and regulatory requirements for data protection.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the SSL certificate market. This can be attributed to the presence of major e-commerce companies, increasing digitalization across industries, and stringent data protection regulations in countries like the United States and Canada.
Key players operating in the SSL certificate market include DigiCert Inc., GlobalSign, Comodo CA (now Sectigo), GoDaddy Inc., Entrust Datacard, Thawte, GeoTrust, Symantec (now part of DigiCert), RapidSSL, SSL.com, Network Solutions, Let’s Encrypt, IdenTrust, Trustwave Holdings, and Buypass AS. These players compete based on factors such as brand reputation, product offerings, and customer support, driving innovation and quality in the market.