Quantum Cryptography Market Size to Reach USD 7,531.6 Million in 2031
The Quantum Cryptography Market size was USD 583.8 Million in 2023 and is expected to register a revenue CAGR of 37.6% during the forecast period
December 24, 2024 – The global Quantum Cryptography market size reached USD 583.8 Million in 2023 and is expected to register a revenue CAGR of 37.6% during the forecast period. Government adoption in quantum cryptography is the key factor driving market revenue growth.
Quantum encryption, which is based on photon-based key transfers via fiber optic cables, is potentially unbreakable because any effort to intercept the key affects the photon state and causes an alert, resulting in highly secure data transmission. The Japanese government has pledged to developing quantum encryption technology by 2030, engaging corporations such as Toshiba and NEC in a public-private partnership worth tens of billions of yen over five years, beginning in 2025, to guard against next-generation cyberattacks. Despite Japan’s advances in key generation speed and transmission distance, other countries, such as China, the EU, and Singapore, are ahead in practical quantum encryption applications, with China having built large-scale quantum communication networks and successfully tested satellite-based encrypted communications.
On April 2024, QuEra Computing, a global leader in neutral-atom quantum computing technology, has been awarded a 6.5 billion JPY contract (~US 41 million) by Japan’s National Institute of Advanced Industrial Science and Technology (AIST) to deliver a state-of-the-art quantum computer and advance quantum capabilities in Japan. This computer will be installed on-site, alongside the NVIDIA-powered ABCI-Q supercomputer. This strategic endeavor intends to create a powerful hybrid quantum-classical computing platform by combining QuEra’s unique quantum computing technology with AIST’s ABCI-Q supercomputer, with the goal of building a hybrid platform for high-fidelity simulations and quantum AI applications.
However, the revenue growth of quantum cryptography market is facing high initial setup and maintenance costs. QKD differs from classical cryptography in that it depends on the physical characteristics of quantum systems for security. Its security relies on particular physical layer communications, which frequently call for specialized tools like fiber optic connections or free-space optical transmitters. Due to these criteria, QKD systems may be costly and challenging to implement widely. Furthermore, to send data over long distances, QKD networks usually need reliable relays, which adds to the expense of secure infrastructure and facilities.
Key Highlights:
- Healthcare segment is expected to register a fast revenue growth rate over the forecast period. In 2022, the Department of Health and Human Services (HHS) Office for Civil Rights (OCR) received complaints of 720 data breaches involving 500 or more records, marking another increase in data breaches. Cyberattacks on healthcare institutions continued to escalate in 2023, setting two new milestones: the most breached records and the most reported data breaches. Over 133 million records were exposed or improperly released in 725 data breaches that were reported to OCR in 2023.
- BFSI segment is expected to account for a significant revenue share over the forecast period. Global interest in the quantum business has exploded, leading to billions of dollars in investment. China has invested at least USD 15 billion on the development of quantum communications and computing, which is equal to the total amount invested by all other nations combined. Developments in this field have been accelerating rapidly in recent years and show no indications of slowing down anytime soon.
- North America accounted for largest revenue share in the quantum cryptography market in 2023 driven be adoption of encryption methods such as cryptography. On September 2024, Quantum Bridge, a provider of cutting-edge quantum-safe data security solutions, announced its acceptance into a government procurement program that is expedited. This comes after the company’s Symmetric-Key Distribution System (SDS) underwent comprehensive testing by the Canadian Government. This unique system currently combines several Post-Quantum Cryptography (PQC) algorithms, such as the Module-Lattice-Based Key-Encapsulation Mechanism (ML-KEM), with Distributed Symmetric Key Establishment (DSKE) technology.
- Some major companies in the market report include IBM, Infineon Technologies AG, Toshiba Corporation, QuantumCTek Co., Ltd., NEC Corporation, QuintessenceLabs Pty. Ltd., ID Quantique, Quantum Xchange, Agnostiq, Inc., Nucrypt LLC, AUREA Technology, Crypto4A Technologies, ISARA Corporation, and Thales Group.
- On September 2023, Arqit Quantum Inc., a pioneer in quantum-safe encryption, has announced the release of its third application, Arqit WalletSecure. Arqit offers a fundamental Symmetric Key Agreement Platform-as-a-Service that may be utilized to perform any encryption task. radeSecure offers a Symmetric Key Agreement upgrade for digital assets used by banks for international payments and global trade finance, while NetworkSecure offers a Symmetric Key Agreement upgrade for firewalls that has already been integrated into the products of two market leading firewall vendors.
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Navistrat Analytics has segmented into quantum cryptography market based on component, transmission module, deployment, organization size, application, industry vertical, and region:
- Component Outlook (Revenue, USD Million; 2021-2031)
- Hardware
- Quantum Random Number Generator (QRNG) Appliances
- Quantum Key Generation Appliances
- Quantum Key Distribution (QKD) Appliances
- Software
- Services
- Integration
- Consulting
- Support and Maintenance
- Hardware
- Transmission Module Outlook (Revenue, USD Million; 2021-2031)
- Fiber Optic Cable Transmission
- Satellite Based Transmission
- Deployment Outlook (Revenue, USD Million; 2021-2031)
- On Premise
- Cloud
- Organization Size Outlook (Revenue, USD Million; 2021-2031)
- Small and Medium Enterprise
- Large Enterprise
- Application Outlook (Revenue, USD Million; 2021-2031)
- Application Security
- Cloud Encryption
- Database Encryption
- Network Encryption
- End-Use Outlook (Revenue, USD Million; 2021-2031)
- BFSI
- IT & Telecommunication
- Government & Defense
- Healthcare
- Retail & E-commerce
- Energy and Utilities
- Others
- Regional Outlook (Revenue, USD Million; 2021-2031)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Benelux
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- GCC Countries
- Israel
- South Africa
- Turkey
- Rest of MEA
- North America