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Status : Published Published On : Jan, 2024 Report Code : VRICT5171 Industry : ICT & Media Available Format : Page : 170
2025
2030

Global Quantum Cryptography Market – Analysis and Forecast (2025-2030)

Industry Insight by Offering (solutions and services), By Type (quantum key distribution, quantum random number generation, and others), By End-use Industry (BFSI, cloud & datacenter, government, energy & utilities, healthcare, defense, automotive, and other end-use industry), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

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Industry Overview

Quantum cryptography leverages the principles of quantum mechanics to secure communication. Unlike classical cryptography, it relies on the inherent properties of quantum particles, such as photons, to achieve unparalleled security. Through quantum key distribution (QKD), it enables the creation of keys that are immune to eavesdropping, as any attempt to intercept the quantum information disturbs the particles, alerting users to potential breaches. This phenomenon, known as quantum entanglement, ensures a secure exchange of cryptographic keys, forming the foundation of quantum-resistant cryptographic systems. Quantum cryptography holds promise for building communication networks that are theoretically invulnerable to classical cryptographic attacks, enhancing the security landscape.

Global quantum cryptography market was worth USD 0.55 billion in 2023 and is expected reach USD 5.00 billion by 2030 with a CAGR of 43.61% during the forecast period, i.e., 2025-2030. Growing concerns about the vulnerability of classical cryptographic systems to quantum computers, the rising sophistication of cyber threats, and the need for ultra-secure communication in fields like finance and government are driving the demand for quantum cryptography.

Geographically, the global quantum cryptography market is expanding rapidly in North America, Europe, and the Asia Pacific due to increased government investments in quantum technologies, a surge in cybersecurity threats, and a growing emphasis on secure communication in sectors such as finance and healthcare, fostering innovation and adoption of quantum cryptographic solutions; however, the market confronts constraints such as high cost of quantum cryptographic solutions, technological complexity, and the need for standardized protocols. Overall, the quantum cryptography market offers potential prospects for market participants to develop and fulfill the growing needs of a wide range of industries including defense, BFSI, healthcare, and others.

Market Segmentation

Insight by Offering

Based on the offering, the global quantum cryptography market is segmented into solutions and services. In 2023, the solutions segment dominated the global quantum cryptography market. Quantum cryptographic solutions, encompassing hardware and software components, held a significant market share due to the demand for secure communication infrastructure. For instance, Quantum Key Distribution (QKD) systems, a prominent solution, enabled the creation of unhackable cryptographic keys using quantum principles. These solutions are vital for industries like finance and defense, where data security is paramount. The increasing adoption of quantum-resistant cryptographic solutions, driven by the surge in cyber threats, contributed to the dominance of the solutions segment in the evolving landscape of quantum cryptography services and products.

Insight by Type

Based on type, the global quantum cryptography market is segmented into quantum key distribution, quantum random number generation, and others. In 2023, the quantum key distribution segment dominated the global quantum cryptography market owing to its ability to provide secure key exchange by exploiting quantum principles. QKD systems, like the commercially deployed ID Quantique's Clavis2, enable the creation of cryptographic keys using the unique properties of quantum particles, ensuring unprecedented security. As cyber threats evolve, industries such as finance and healthcare increasingly rely on QKD to thwart potential breaches. The growing realization of QKD's effectiveness in addressing cybersecurity challenges contributed to its dominance in the quantum cryptography market, making it a cornerstone for secure communication infrastructure globally.

Insight by End-use Industry

Based on end-use industry, the global quantum cryptography market is segmented into BFSI, cloud & datacenter, government, energy & utilities, healthcare, defense, automotive, and other end-use industry. Healthcare industry dominated the global quantum cryptography market in 2023 due to the sector's growing emphasis on securing sensitive patient data. Quantum cryptographic solutions, like Quantum Key Distribution (QKD), became integral for healthcare organizations to safeguard electronic health records and maintain patient privacy. Notably, companies such as IBM, through initiatives like the IBM Quantum Health Hackathon, showcased the potential of quantum technologies in addressing healthcare security challenges. As the healthcare sector faced escalating cyber threats, the adoption of quantum cryptography solutions surged, underscoring the industry's pivotal role in driving the evolution and prominence of quantum security measures.

Global Quantum Cryptography Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  0.55 Billion

Revenue Forecast in 2030

U.S.D.  5.0 Billion

Growth Rate

43.61%

Segments Covered in the Report

By Type, By Offering, By End-Use Industry and By Region

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and South America

Industry Dynamics

Growth Drivers

Vulnerability of classical cryptographic systems

A key driver propelling the growth of the global quantum cryptography market is the increasing concern over the vulnerability of classical cryptographic systems to quantum computers. As quantum computing capabilities advance, conventional encryption methods become susceptible to rapid decryption, posing a significant threat to data security. Consequently, organizations across various sectors are actively seeking quantum-resistant solutions to fortify their communication channels.

For instance, the financial industry, which handles vast amounts of sensitive information, is investing in quantum cryptographic technologies like Quantum Key Distribution (QKD) to ensure secure transactions. Government agencies are also adopting quantum-safe cryptographic approaches to safeguard classified information from potential quantum threats. This heightened awareness of the impending risks posed by quantum computing serves as a compelling catalyst, driving the global demand for quantum cryptography solutions across diverse industries.

Escalating sophistication of cyber threats

The escalating sophistication of cyber threats is another pivotal driver fostering the growth of the global quantum cryptography market. Traditional cryptographic methods are increasingly susceptible to advanced hacking techniques and quantum algorithms. As cybercriminals diversify their tactics, no sector remains untouched. The projected surge to $10.5 trillion in cybercrime costs by 2025 reflects the escalating audacity and complexity of attacks and with cyberattacks becoming more intricate and potent, there is a pressing need for more secure communication channels.

Quantum cryptography, with its foundation in the principles of quantum mechanics, offers a fundamentally secure approach. Industries like healthcare, where the protection of sensitive patient data is paramount, are embracing quantum-resistant solutions to preempt cyber vulnerabilities. For instance, companies like QuintessenceLabs provide quantum-enhanced cybersecurity solutions, including quantum key distribution and random number generation, catering to the rising demand for robust defenses against evolving cyber threats. This cybersecurity arms race is propelling the adoption of quantum cryptography as a proactive measure to counter increasingly sophisticated and persistent cyber adversaries.

Challenge

Complex And Stringent Regulatory Requirements

A significant challenge for the global quantum cryptography market lies in the high cost associated with developing and implementing quantum-resistant cryptographic solutions. Quantum technologies demand substantial investments in research, development, and infrastructure. The expenses related to building quantum key distribution (QKD) systems and other quantum cryptographic solutions can be prohibitive for some organizations, hindering widespread adoption. Overcoming this financial barrier is crucial for the market's growth, as it requires balancing technological advancements with cost-effectiveness to make quantum-resistant security measures accessible to a broader range of industries and entities.

Geographic Overview

  • North America

  • Europe

  • Asia Pacific (APAC)

  • Middle East and Africa (MEA)

  • South America

The global quantum cryptography market is segmented into North America, Europe, the Asia-Pacific, South America, and the Middle East and Africa region. The global quantum cryptography market was dominated by North America in 2023 due to robust growth in quantum research initiatives and investments, particularly in the United States and Canada. Strong collaborations between government agencies, academic institutions, and private enterprises fueled advancements in quantum technologies. Additionally, the presence of leading quantum technology companies and their strategic partnerships with key industries, such as finance and defense, propelled the adoption of quantum cryptographic solutions. North America's proactive approach to embracing quantum advancements and its thriving ecosystem contributed to its leadership in shaping the trajectory of the quantum cryptography market in 2023.

Competitive Insight

Google holds a significant position in the global quantum cryptography market, largely driven by its pioneering efforts in quantum computing. Google's quantum supremacy achievement with the quantum processor named ‘Sycamore’ marked a breakthrough, showcasing computational capabilities that surpass classical supercomputers. While not directly focused on quantum cryptography, Google's quantum computing advancements underscore its commitment to quantum technologies, indirectly influencing the quantum cryptography landscape. Additionally, Google has been actively engaged in quantum research, exploring potential applications for cryptography and security. Collaborations with research institutions and contributions to quantum algorithms further solidify Google's impact on shaping the future of quantum cryptography, positioning the company as a key player in the evolving quantum technology ecosystem.

Microsoft is another formidable player in the global quantum cryptography market, leveraging its expertise in quantum computing and commitment to advancing quantum technologies. Through its Azure Quantum platform, Microsoft provides cloud-based access to quantum computing resources, enabling developers and researchers to explore quantum applications, including quantum cryptography. Microsoft's collaboration with leading organizations, such as Case Western Reserve University, reflects its commitment to driving quantum research and development. Moreover, Microsoft has actively participated in quantum-safe cryptography initiatives, contributing to the development of post-quantum cryptographic standards. These strategic moves and investments position Microsoft as a key influencer in the quantum cryptography space, reinforcing its role in shaping the industry's future.

Recent Development by Key Players

In November 2023, Singapore-based startup – SpeQtral expanded its collaboration with Toshiba's Digital Solutions unit, known for quantum key distribution (QKD) hardware. This partnership follows SpeQtral's recent designation as a key participant in Singapore's National Quantum-Safe Networks+ (NQSN+), aimed at establishing the country's inaugural quantum-secured network. The initiative, announced by Singapore's Infocomm Media Development Authority, involves a partnership with telecoms company SPTel.

In October 2023, Cloudflare launched post-quantum cryptography for various services and internal systems, aiming to enhance privacy standards for the post-quantum era. This feature, building on beta support for the X25519+Kyber cipher, is now widely available for most inbound and outbound connections, covering major services like 1.1.1.1, API Gateway, and Cloudflare Tunnel. Additional services, such as Cloudflare Gateway and Cloudflare DNS, are set to receive post-quantum cryptography support in the coming weeks.

Key Players Covered in the Report

IBM, Microsoft, Google, Intel, Alibaba, ID Quantique, QuintessenceLabs, Toshiba, Nucrypt, MagiQ Technologies, Qubitekk, Post-Quantum, Crypta Labs, PQShield, and ISARA Corporation.

The Quantum Cryptography Market Report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

  • By Offering

  • Solution

  • Services

  • By Type

  • Quantum Key Distribution

  • Quantum Random Number Generation

  • Others

  • By End-Use Industry

  • BFSI

  • Cloud & Datacentre

  • Government

  • Energy & Utilities

  • Healthcare

  • Automotive

  • Defense

  • Other end-use industry

Region Covered in the Report

  • North America

  • U.S.

  • Canada

  • Mexico

  • Europe

  • Germany

  • U.K.

  • France

  • Italy

  • Spain

  • Russia

  • Rest of Europe

  • Asia-Pacific (APAC)

  • China

  • Japan

  • India

  • South Korea

  • Rest of Asia-Pacific

  • Middle East and Africa (MEA)

  • Saudi Arabia

  • U.A.E

  • South Africa

  • Rest of MEA

  • South America

  • Argentina

  • Brazil

  • Chile

  • Rest of South America

Quantum Cryptography Market Size and Market Analysis

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