Actually it's possible to use the CA system on a closed LAN.
A) register a domain. For example company-lan.com.
B) assign each server on your Lan with a name and (local) address. Eg, daisy.company-lan.com, resolving to say 192.168.1.1
Clearly this address is only useful when used inside your lan.
C) provision certificates for this address using the DNS-Challenge approach rather than the HTTP-challenge approach.
(Bonus tip; using a DNS provider with a good API makes the process automateable).
Systems like this are all over. Almost every IoT device is an example. More seriously, networking hardware is in this category. You can’t make connectivity to networking hardware depend on a working network with Internet access to obtain certificates without introducing a circular dependency and the possibility of making it very hard to recover from downtime.
As a result, security of network control planes is often abysmal.
To be clear, the solution above requires no incoming access. Its 100% client, there's no server access. (Client to the DNS Api, client to ACME.
If the device does not have client access to anything then the certificate can be obtained from another device. You would then need some mechanism to put the certificate on the device.
I agree that IoT devices are problematic, they either need client access to the Internet (which most don't get) or they need to run a "server" of some kind to receive the certificate updates. If you're lucky this could be automated.
Such things use ssh rather than TLS, or should.
The other "bonus" is that due to CT it leaks the internal name to basically everyone on the internet. It may or may not be a problem but definitely something to be aware of.
It is possible to add your own root certificate to clients on the LAN. so the equivalent of hand-distributed keys. Granted, this leads to unwelcome other problems (you can't limit your root to your local domain) so it's not often done, but it is possible.
Personally I prefer the DNS-challenge approach I described in a sibling comment.
This limitation in browsers is IMO an utter embarrassment.
Isn't this possible with NameConstraints?
Thus isn't the only issue with distributing your own root, but it is a significant one.
Thanks again.
Might break some things, and I'm not aware of any mainstream uses, but obviously it'd be really handy if it's usable.
I’m actually generally disappointed that TLS in the context of web browsers essentially only uses the CA system for identification and security. It’s wrong at both ends of the spectrum. There are systems where manual key distribution would be fine, and avoiding the CAs as a weak point would be beneficial. And there are systems where the CA system flat out does not work (e.g. anything where the servers are not connected to the Internet and do not even have every-few-days Internet access). Neither of these use cases are handled well by web browsers. (DNSSEC doesn’t help either, of course.)