Quantum Cryptography Market Size & CAGR (2023-2031)
The quantum cryptography market size is projected to reach US$ 533.81 million by 2031 from US$ 130.10 million in 2023. The market is expected to register a CAGR of 19.30% in 2023–2031. Increasing demand for secure communication and growing cyberattacks are likely to fuel the market growth.
Quantum Cryptography Market Analysis
Quantum cryptography uses a cryptologic key and the quantum-mechanical characteristics of light to construct secure encryption. Cryptologic secrets, the primary component used to encrypt and rewrite knowledge in cryptography, can primarily use quantum physics cryptography. Furthermore, quantum cryptography offers a low-cost and practical method of communication security, as well as a virtually impenetrable mode of information transmission.
Quantum Cryptography Market Overview
The quantum cryptography market is in its early stages, but it has huge potential to transform the cybersecurity industry. The quantum cryptography market participants are working to improve the features of their products in order to provide their clients with highly secure solutions. The emergence of quantum computing has resulted in a boom in the disclosure of secret data across businesses. Governments and corporate organizations worldwide are making considerable investments in cybersecurity. This is mostly due to the need to protect important data from unauthorized access during transit. The increased security solutions provided by market participants, including Quantum Key Distribution (QKD), virtual encryptor, quantum cryptography communication device, and Quantum Random Number Generator (QRNG), among others, aid in firmly encrypting essential data. This aspect has prompted various governments and corporations to invest in such advanced technology. Thus, increased investment in cybersecurity solutions is a crucial catalyst for the quantum cryptography market.
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Quantum Cryptography Market: Strategic Insights
Market Size Value in US$ 109.05 million in 2022 Market Size Value by US$ 314.13 million by 2028 Growth rate CAGR of 19.3% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Quantum Cryptography Market: Strategic Insights
| Market Size Value in | US$ 109.05 million in 2022 |
| Market Size Value by | US$ 314.13 million by 2028 |
| Growth rate | CAGR of 19.3% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Quantum Cryptography Market Drivers and Opportunities
Increasing Demand for Secure Communication to Favor Market
Quantum cryptography is indeed based on the laws of physics, providing a more sophisticated and secure method of encryption compared to traditional cryptographic techniques. Instead of relying on difficult-to-crack numbers, quantum cryptography utilizes the norms of quantum mechanics to ensure secure communication. This approach provides several advantages, including the ability to detect eavesdropping and provide multiple methods for security. Hence, the growing demand for secure communication boosts the market growth.
Growing Cyberattacks to Support Market Growth
In the age of digitalization, the growing frequency and complexity of cyberattacks emphasize the crucial requirement for advanced security protocols, such as quantum cryptography, to protect valuable data in an ever-evolving technological environment. The rising cyberattacks in the digitalization age highlight the critical importance of advanced security measures such as quantum cryptography to ensure the safety of sensitive data.
Rising Awareness of Cybersecurity– An Opportunity in the Market
Cybersecurity is one of the prevalent challenges facing companies today. Still, the rise of quantum computers, which employ quantum physics to power its problem-solving threatens to make existing security systems obsolete. Quantum cryptography is a promising field dedicated to understanding both how exposed digital information is and how it might build new protections that can withstand the hacking capability of quantum computers. Increasing awareness of quantum cryptography in cybersecurity presents ample opportunities for the market.
Quantum Cryptography Market Report Segmentation Analysis
Key segments that contributed to the derivation of the quantum cryptography market analysis are offering, application, and end user.
- Based on offering, the market is bifurcated into solutions and services. The solutions segment held a significant market share in 2023.
- By application, the market is segmented into network security, application security, and database security. The network security segment held a substantial share of the market in 2023.
- In terms of end user, the market is segmented into IT & telecommunication, BFSI, government & defense, healthcare, and others. The BFSI segment held a substantial share of the market in 2023.
Quantum Cryptography Market Share Analysis by Geography
The geographic scope of the Quantum Cryptography Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
The quantum cryptography market in North America has been undergoing substantial growth and is expected to continue to expand in the coming years. With the presence of developed economies such as the US and Canada, enterprises in a variety of industries, including BFSI, retail, IT & telecom, and healthcare, are fast embracing digital transformation. Furthermore, the area provides significant exposure and understanding of evolving technologies in the quantum cryptography market, encouraging enterprises from a variety of industries to adopt newer technologies and advance existing ones. As a result, the widespread adoption of modern technologies has increased the demand for cybersecurity and data security measures. An increasing number of cybersecurity risks have increased the demand for security solutions from businesses, other industries, and governments. The possibility of data loss and the impact of future cyber threats are two important drivers driving the quantum cryptography market in the region.
Quantum Cryptography Market Report Scope
Quantum Cryptography Market News and Recent Developments
The quantum cryptography market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- The Linux Foundation is excited to announce the launch of the Post-Quantum Cryptography Alliance (PQCA), an open and collaborative initiative to drive the advancement and adoption of post-quantum cryptography. The PQCA brings together industry leaders, researchers, and developers to address cryptographic security challenges posed by quantum computing through the production of high-assurance software implementations of standardized algorithms while supporting the continued development and standardization of new post-quantum algorithms.
(Source: The Linux Foundation, Press Release, 2024)
- The company announced the most significant cryptographic security upgrade in iMessage history with the introduction of PQ3. This groundbreaking post-quantum cryptographic protocol advances the state of the art of end-to-end secure messaging. With compromise-resilient encryption and extensive defenses against even highly sophisticated quantum attacks, PQ3 is the first messaging protocol to reach Level 3 security — providing protocol protections that surpass those in all other widely deployed messaging apps. PQ3 has the strongest security properties of any at-scale messaging protocol in the world.
(Source: Apple Inc., Company Website, 2024)
Quantum Cryptography Market Report Coverage and Deliverables
The “Quantum Cryptography Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Quantum cryptography market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Quantum cryptography market trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Quantum cryptography market analysis covering key market trends, major players, regulations, and recent market developments
- Quantum cryptography Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Offering, Application , and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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