ICT-IOT

Quantum Cryptography Market is Expected to Reach USD 3,447.9 Million by 2031

Jun 2024

ICT-IOT

As per the report published by Kings Research, the global Quantum Cryptography Market was valued at USD 570.7 million in 2023 and is projected to reach USD 3,447.9 million by 2031, growing at a CAGR of 25.63% from 2024 to 2031.

The quantum cryptography market is growing rapidly due to increasing cybersecurity threats and the need for enhanced data protection. This focus on utilizing quantum mechanics principles to secure data transmission therefore provides unparalleled security levels compared to traditional cryptographic methods. Key factors driving market expansion include advancements in quantum computing, rising cyberattacks, and growing investments in quantum technologies by governments and private entities.

The market is witnessing significant research and development activities aimed at overcoming technical challenges and making quantum cryptography commercially viable. However, the high costs and complex implementation processes pose challenges to widespread adoption. 

Key Insights

  • Based on offerings, the solutions segment accounted for the largest market share of 64.56% in 2023
  • Based on application, the database security segment is estimated to register a valuation of USD 62.1 million in 2023
  • Based on end-use industry, the healthcare segment is poised to register a CAGR of 27.28% between 2024 and 2031
  • On the basis of region, Asia-Pacific was valued at USD 122.4 million in 2023

PQShield Collaborated with Tata Consultancy Services and eShard to Address Commercial Demand for Quantum Threat Protection

May 2023: PQShield collaborated with Tata Consultancy Services, a leading systems integrator, through a Memorandum of Understanding. This partnership aimed to assist TCS's clients in transitioning to post-quantum cryptography (PQC) solutions efficiently. Additionally, PQShield partnered with eShard to accelerate the deployment of advanced side-channel secured implementations of PQC across various industries.

The surge in global demand for PQC solutions is fueled by recent developments emphasizing quantum preparedness in cybersecurity. Major countries such as the US, UK, and Germany have initiated national quantum strategies and provided guidance on securing networks against quantum-enabled threats.

Companies Offering Enhanced Data Security Solutions to Present Lucrative Growth Opportunity

Quantum cryptography offers enhanced data security solutions by leveraging the principles of quantum mechanics. This is crucial for combating evolving cyber threats and ensuring secure communication channels. Organizations across industries are increasingly adopting quantum cryptography to safeguard sensitive information and protect against advanced cyberattacks. As quantum technologies advance, the quantum cryptography market sees an increasing demand for robust data security solutions.

Integrating Cryptography with Emerging Technologies to Offer Potential Growth Opportunities

Integrating quantum cryptography with emerging technologies such as the Internet of Things (IoT) and artificial intelligence (AI) offers a key opportunity for market development. This integration enhances the overall security posture of connected devices and systems, by addressing vulnerabilities in IoT networks and AI algorithms. By leveraging quantum cryptography's capabilities, organizations are building resilient and secure ecosystems for their digital initiatives, leading to an increased demand for quantum security solutions.

Compliance with Global Regulations to Enable Comprehensive Data Protection

Quantum cryptography presents an opportunity for developing regulatory compliance solutions on a global scale, especially in highly regulated sectors such as finance and healthcare. By adhering to stringent data protection regulations such as GDPR and HIPAA, quantum cryptography enables organizations to achieve compliance while ensuring data privacy and security. This opportunity is vital for businesses operating in multiple jurisdictions, as it provides a comprehensive approach to data protection that meets regulatory requirements globally, thereby fostering trust and credibility in the market.

Asia-Pacific to Hold a Significant Revenue Share of 23.91% by 2031

Based on region, the global quantum cryptography market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is anticipated to experience the fastest growth in the industry. This growth is primarily boosted by increasing investments in quantum cryptography technologies by governments and enterprises in countries such as China, Japan, South Korea, and India.

Rising cybersecurity threats and the growing need for advanced encryption solutions contribute to the rapid adoption of quantum cryptography in this region. Additionally, collaborations between regional players and global technology firms fuel Asia-Pacific quantum cryptography market expansion.

Companies Focus on Providing Robust Services and Products to Expand Their Market Reach

The global quantum cryptography market reveals a fragmented landscape, featuring prominent companies including ID Quantique, NEC Corporation, NuCrypt, PQShield Ltd, Quantum Xchange, QuantumCTek, Qubitekk, Inc., QuintessenceLabs, SSH Communication Security, Toshiba Digital Solutions Corporation, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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