Quantum Cryptography Market Share, Size, Trends, Industry Analysis Report, By Offering (Solutions, Services); By Security Type (Network Security, Application Security); By Vertical; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 114
- Format: PDF
- Report ID: PM3558
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global quantum cryptography market was valued at USD 511.38 million in 2023 and is expected to grow at a CAGR of 41.10% during the forecast period. The shortage of cybersecurity professionals is a significant growth factor for the quantum cryptography market. According to the Cybersecurity Workforce Study by non-profit IT security organization (ISC)² in 2022, there are currently 3.4 million cybersecurity positions open and unfilled worldwide. This scarcity of skilled cybersecurity professionals makes it difficult for many organizations to find the talent they need to secure their networks and data.
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As a result, organizations may turn to quantum cryptography as a solution to enhance their data security without relying on scarce resources. Quantum cryptography provides a highly secure way to transmit data that is easier to implement and manage than some other cybersecurity solutions. By using quantum cryptography, organizations can reduce their risk of data breaches and cyber-attacks, which can have significant financial and reputational consequences.
Industry Dynamics
Growth Drivers
With the number of breaches continuing to increase, there is a growing demand for advanced security solutions such as quantum cryptography. Between January and November 2021, there were 952.8 million breached accounts, compared to 921.8 million during the same period in 2020, representing a 3.4% year-over-year growth or 31 million breaches. Notable data breaches in 2021 included incidents affecting COMB, Clubhouse, Facebook, and Raychat.
This trend is expected to drive the growth of the quantum cryptography market, as more and more organizations seek to implement quantum cryptography solutions to protect their data from cyber threats. Quantum cryptography is a viable solution that utilizes quantum mechanics principles to secure data transmissions, making it extremely difficult to hack. This will further fuel the growth of the market in coming years.
Report Segmentation
The market is primarily segmented based on offering, security type, vertical and region.
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By Offering |
By Security Type |
By Vertical |
By Region |
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Solutions segment is expected to witness fastest growth over the forecast period
Solutions segment is expected to have faster growth for the market due to the increasing demand for secure communication systems and data protection. The growth in this segment is being driven by the increasing adoption of quantum key distribution (QKD) systems and the development of new quantum cryptography technologies. QKD systems are gaining popularity as a means of secure communication. The development of new quantum cryptography technologies is also driving the growth of the Solutions segment.
For example, researchers are working on developing new quantum-resistant encryption algorithms that can withstand attacks from quantum computers, which could pose a threat to current encryption methods. As these new technologies are developed and refined, they are likely to drive the demand for quantum cryptography solutions. NIST (National Institute of Standards and Technology) announced the first four quantum-resistant cryptographic algorithms in 2022, this is the significant development for the field of quantum cryptography, and it is a growth factor for the quantum cryptography market.
Network Security segment accounted for the largest market share
Network Security segment holds the largest market share for the market in the study period as the demand for secure communication channels and network protection continues to increase. The growth in this segment is being driven by the growing threat of cyber-attacks, and the need for enhanced network security across various industries. As cyber threats continue to evolve, traditional encryption methods are becoming less effective, and organizations are turning to quantum cryptography solutions to ensure the security of their communication networks and channels.
The increasing adoption of cloud computing and the Internet of Things (IoT) is also driving the growth of the segment. With more devices and applications being connected to the internet, the need for secure communication channels and network protection is becoming more critical than ever before.
Government segment is expected to hold the larger revenue share
Government segment is projected to witness a larger revenue share in the coming years as government agencies and military organizations are among the largest users of communication networks and generate an enormous amount of sensitive data that must be kept secure. This segment's growth is driven by the growing need for secure communication channels and data protection, which has led to an increasing adoption of quantum cryptography solutions.
One of the main factors driving the market is the growing threat of cyber-attacks on government and military networks. With the increasing sophistication of cyber-attacks, traditional encryption methods are becoming less effective, and organizations are turning to quantum cryptography solutions to ensure the security of their communication networks and channels.
North America registered with the highest growth rate and larger revenue share
North America is projected to witness the higher growth rate and larger revenue share for the market. The growing demand for secure communication channels is also driving the growth of the market. The region has several critical infrastructure industries such as finance, healthcare, and government that require secure communication channels to transmit sensitive information. The demand for these secure communication channels is expected to drive the growth and revenue of the market in the region. The fact that the United States experienced the highest number of data breaches in 2021 compared to any other country indicates a significant need for more advanced cybersecurity measures in the region.
Surfshark's statistics indicate that the United States has the highest number of data breaches compared to any other country, with 212.4 million users being affected in 2021 (compared to 174.4 million in 2020). As a result, the quantum cryptography market is expected to grow in North America as more organizations seek to implement quantum cryptography solutions to mitigate the risks associated with cyber threats and protect their valuable data.
Asia Pacific is expected to grow prominently over the forecast period
The region is expected to witness significant growth due to the increasing adoption of quantum technologies, rising cybersecurity threats, and the growing need for secure communication channels. Countries such as China, Japan, and South Korea are leading in the adoption of quantum technologies and are investing heavily in the development of quantum cryptography solutions.
The region has many technology companies, startups, and academic institutions working on quantum cryptography, which is expected to drive the growth of the market in the region. The development of a homegrown quantum computer by Japan and the goal of having 10 million people using quantum technology by 2030 could lead to increased investment and innovation in the field, which could drive growth in the quantum cryptography market in Asia Pacific and globally.
Competitive Insight
Some of the major players operating in the global market include ID Quantique, QuintessenceLabs, Crypta Labs, MagiQ Technologies, Toshiba, Qubitekk, QuTech, PQ Solutions, Post-Quantum, Xanadu, Cryptography Research Centre, Cambridge Quantum Computing, SK Telecom, Nokia, Alibaba, Cambridge Quantum, Rigetti Computing, Microsoft, IBM, Google, D-Wave Systems, Zapata Computing, Honeywell, PsiQuantum, Entanglement Partners, Quantum Motion, QuSecure, Qnami, QuNu Labs, Quantum Xchange, Raytheon Technologies, NEC, Secure Communication Systems, Huawei Technologies, CryptoExperts, Cygnacom, QuantumCTek, SwissQuantum, Universal Quantum & Quantum Machines.
Recent Developments
In April 2023, European Telecommunications Standards Institute (ETSI) published ETSI GS QKD 016, a Protection Profile (PP) designed for the security assessment of quantum key distribution (QKD) modules.
In February 2023, SK Telecom & ID Quantique jointly unveiled a new cryptographic chip for securing the communication of IoT devices in collaboration with the Korea Computer & Systems (KCS).
Quantum Cryptography Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 720.33 million |
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Revenue forecast in 2032 |
USD 11,336 million |
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CAGR |
41.10% from 2024 - 2032 |
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Base year |
2023 |
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Historical data |
2019 - 2022 |
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Forecast period |
2024 - 2032 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2032 |
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Segments covered |
By Offering, By Security Type, By Vertical, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
ID Quantique, QuintessenceLabs, Crypta Labs, MagiQ Technologies, Toshiba, Qubitekk, QuTech, PQ Solutions, Post-Quantum, Xanadu, Cryptography Research Centre, Cambridge Quantum Computing, SK Telecom, Nokia, Alibaba, Cambridge Quantum, Rigetti Computing, Microsoft, IBM, Google, D-Wave Systems, Zapata Computing, Honeywell, PsiQuantum, Entanglement Partners, Quantum Motion, QuSecure, Qnami, QuNu Labs, Quantum Xchange, Raytheon Technologies, NEC, Secure Communication Systems, Huawei Technologies, CryptoExperts, Cygnacom, QuantumCTek, SwissQuantum, Universal Quantum & Quantum Machines. |
FAQ's
The Quantum Cryptography Market report covering key are offering, security type, vertical and region.
Quantum Cryptography Market Size Worth 11,336 Million By 2032.
The global quantum cryptography market expected to grow at a CAGR of 41.1% during the forecast period.
North America is Quantum Cryptography Market.
key driving factors in Quantum Cryptography Market are Rising cyberattacks in digitalization era.
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