The quantum cryptography market is expected to grow from US$ 109.05 million in 2022 to US$ 314.13 million by 2028; it is estimated to grow at a CAGR of 19.3% from 2022 to 2028.
Quantum cryptography generates a cryptologic key and harnesses the quantum-mechanical properties of light to create secure encryption. Cryptologic secrets, the major component accustomed to encoding and rewriting knowledge in cryptography, can primarily employ quantum physics cryptography. Furthermore, quantum cryptography presents a cost-effective and practical approach for communication security, with a virtually unbreakable mode of relaying information.
The quantum cryptography market is at a nascent stage with massive potential to break through the cybersecurity industry. The quantum cryptography market players are constantly engaging themselves in advancing their solution features intending to offer highly secured solutions to their clients. The rise in quantum computing has led to the surge in expose of confidential data across industries. The governments of different countries across the globe as well as various private organizations are significantly investing in cybersecurity. This is majorly attributed to secure critical data from unauthorized individuals while transferring. The enhanced security solutions offered by the market players including Quantum Key Distribution (QKD), virtual encryptor, quantum cryptography communication device and Quantum Random Number Generator (QRNG) among others facilitate in strongly encrypting critical data. This factor is attracting several governments and industries to invest in such advanced technology. Thus, the rising investment towards cybersecurity solutions is a key catalyzer for quantum cryptography market.
Strategic Insights
Infineon Technologies, IBM Corporation, Qubitekk, Quintessence Labs, Qutools GmbH, and Toshiba Corporation are among the well-known key players and financially strong companies in the global quantum cryptography market. In terms of application, the network security segment accounted for the largest market share in 2021. Also, the market for the same segment is anticipated to witness steady growth during the forecast period. The components of network security comprise hardware and software. The security of any network is among the most critical tasks for IT companies, as cybercrime activities have been spurring over the years. The quantum hacking plan includes divergence of the implementation from the ideal model to gather information regarding the secured key. Thus, robust encryption of any network has become essential. Almost every company across sectors heavily emphasizes protecting respective networks from malicious activities, thereby driving the market growth for the network security segment.
Regional Analysis of Quantum Cryptography Market Share
North America dominated the quantum cryptography market with the largest share in 2021. With the presence of developed economies such as the US and Canada, companies in various verticals, including BFSI, retail, IT & telecom, and healthcare, across these countries are rapidly adopting digital transformation. Also, the region provides strong exposure and awareness about the emerging technologies available in the quantum cryptography market, which encourages companies in diverse verticals to adopt newer technologies and make advancements in the existing technologies. Therefore, the high adoption of advanced technologies has propelled the need for cybersecurity and data security tools. As the internet plays a critical role in the region, a growing number of cybersecurity threats have accelerated the requirements for security solutions by enterprises, different industries, and governments. The threat of losing data and the impact of potential cyber threats are two major factors contributing to the quantum cryptography market growth in the region.
Lucrative Regions: Quantum Cryptography Market Share
Market Insight – Quantum Cryptography Market
End User Based Insights
Based on end users, the quantum cryptography market is segmented into IT & telecommunication, BFSI, government & defense, healthcare, and others. In 2021, the IT & telecommunication segment accounted for the largest quantum cryptography market share. IT & telecommunication is one of the early adopters of advanced technologies and is constantly at risk of cyber-attacks. In addition, the sector continuously serves billions of individuals working in numerous organizations over an open or closed network. Coupling this fact with the rise in quantum computing, the risk of data loss is significantly high. Moreover, mobile traffic growth increases the risk of data breaches and other cybercrimes. Therefore, the telecommunication market players are exhibiting significant demand for quantum cryptography to secure their customer data and company information.
Players operating in the quantum cryptography market are developing advanced and efficient products.
- In May 2021, ID Quantique (IDQ), one of the leading quantum-safe security solutions providers, launched the Cerberis XG at the Inside Quantum Technology conference (IQT). The company claims that this first series would provide the highest level of trust to governments and enterprises for future-proof data protection in smaller and optimized form factors.
- In December 2020, a group of Japanese firms such as Toshiba Corp., NEC Corp., and Nomura Holdings Inc. launched the country’s first study on quantum cryptography to enhance stock trading security. In addition, they connected a cryptographic device developed by Toshiba to a trading system at Nomura Securities Co., the brokerage unit of Nomura Holdings, and test-run encryption using virtual customer details and trading data.
The quantum cryptography market is segmented into five major regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South America. In 2022, North America led the market with a substantial revenue share, followed by Europe. However, Asia Pacific is expected to register the highest CAGR in the market from 2022 to 2028. ID Quantique, Infineon Technologies, Magiq Technologies, IBM Corporation, NuCrypt, Anhui Qasky Quantum Technology Co. Ltd., Qubitekk, Quintessence Labs, Qutools GmbH, and Toshiba Corporation are among the key players operating in the quantum cryptography market.