Global Quantum Cryptography Market Size, Share & Industry Trends Analysis Report By Vertical, By Security Type (Network Security and Application Security), By Offering, By Regional Outlook and Forecast, 2023 - 2030

Global Quantum Cryptography Market Size, Share & Industry Trends Analysis Report By Vertical, By Security Type (Network Security and Application Security), By Offering, By Regional Outlook and Forecast, 2023 - 2030

The Global Quantum Cryptography Market size is expected to reach $5.6 billion by 2030, rising at a market growth of 40.0% CAGR during the forecast period.

With the proliferation of mobile technology, governments around the world have adopted mobile devices to increase worker productivity and enhance the operation of public sector departments. Therefore, Government & Defense segment will register a 2/5th share in the market by 2030. They must work on confidential data, intelligence reports, and other information. It can assist in protecting sensitive data from hackers and offer a secure platform for conducting transactions and exchanging data. Additionally, it can protect communication networks, including those utilized by government organizations. Moreover, the military and defense sector are paramount to every nation, requiring stringent safeguards for equipment and communication. Quantum cryptography implementation in this industry ensures secure communication channels and prohibits unauthorized access or tampering. Some of the factors impacting the market are the growing number of cyber-attacks, increase in demand from various industry verticals, and substantial implementation cost.

The increase in cyberattacks has sparked the development and widespread use of quantum cryptography. It is a technology that secures communication channels using the principles of quantum mechanics. It provides a level of security that traditional cryptographic methods cannot compromise. Even in the face of increased cyberattacks, organizations can reduce the risk and expense of a data breach by taking a proactive approach to security. With the increase in cyberattacks, the market is anticipated to develop due to these advantages of quantum cryptography. Moreover, the opportunity for the implementation of quantum cryptography is presented by the rising demand for security solutions across numerous industries. The financial sector offers a case study of quantum cryptography in light of the surge in demand for security solutions. Quantum cryptography can secure communication within transportation systems, such as connected vehicles, traffic management, and logistics networks. Since, it is being more widely used, the market is expected to grow significantly in the coming years.

However, the expensive cost of quantum cryptography is one of its key limitations. Quantum cryptography requires expensive apparatus, which is yet not widely available or accessible to all industries. Specialized hardware is still costly and challenging to produce in large quantities, but it is essential for harnessing the potential of quantum principles. In addition, there needs to be more expertise and knowledge needed to design and operate quantum cryptography systems. Professionals with a profound understanding of quantum mechanics and cryptographic protocols are in great demand, driving up prices further.

Vertical Outlook

On the basis of vertical, the market is fragmented into government & defence, BFSI, healthcare & life sciences, retail & e-commerce, IT & telecom, and others. The BFSI segment garnered a significant revenue share in the market in 2022. A customer's checking account details and banking activities are critical. A security breach could lead to a massive financial event if this information is not adequately protected. Financial institutions and banks must safeguard their transactions and communicate with their customers. Every day, thousands of transactions involving millions of dollars occur between banks. This communication must adhere to strict security standards for identification, secrecy, and consistency.

Security Type Outlook

By security type, the market is bifurcated into network security and application security. The application security segment projected a prominent revenue share in the market in 2022. Many applications require long-term security, in which data must remain confidential and safe for extended periods. Quantum cryptography has the potential to provide long-term security due to the quantum mechanics principles that underlie its security mechanisms. The potential threat quantum computers pose to classical encryption techniques drives the need for quantum cryptography in application security.

Offering Outlook

Based on offering, the market is segmented into solution and services. The solution segment held the highest revenue share in the market in 2022. Quantum computers threaten classical encryption and infrastructure security methods, entropy starvation enables covert eavesdropping, and publicly exposed channels increase the risk associated with the exchange of vital information. These solutions are essential for providing storage networks for long-term data protection and point-to-point security. In addition, the R&D platform solutions is acquiring traction within the scientific community as the need for quantum-safe encryption to counter the threat posed by a quantum computer increases.

Solution Type Outlook

Under solution, the market is divided into quantum key distribution, quantum random number generation, and others. In 2022, the quantum key distribution segment witnessed the largest revenue share in the market. Photons transmit data across an optical link as part of quantum key distribution (QKD). The objective here is to ensure the preservation and security of the data, and QKD facilitates this objective owing to systems created with quantum cryptography. This is because QKD is most frequently utilized in communication channels.

Regional Outlook

Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region led the market by generating the highest revenue share. North America comprises economically prosperous, technologically advanced, and well-developed nations like the US and Canada. Various leading academic institutions and private companies in the field have made North America a significant center for quantum cryptography research and development. North America has been at the forefront of developing quantum technology and its applications, so quantum cryptography has a substantial presence in the region.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include IBM Corporation, Hewlett Packard Enterprise Company, Toshiba Corporation, NEC Corporation, MagiQ Technologies, Inc., Crypta Labs Limited, Qubitekk, Inc., ISARA Corporation, Nucrypt LLC, and Qrypt

Strategies Deployed in Quantum Cryptography Market

Jul-2023: Crypta Labs announced a collaboration with Blueshift Memory, a UK-based technology company that addresses the von Neumann bottleneck in high-performance computing. Through this collaboration, both companies aim to develop a cybersecurity memory solution that would have the capability of countering the threats from quantum computing.

Jun-2023: Toshiba Digital Solutions Corporation came into collaboration with Classiq Technologies Ltd., a software company that provides an end-to-end platform for designing, executing, and analysing quantum software. With this collaboration, both companies are aiming to develop new and innovative technologies through QX (Quantum Transformation), by combining the Classiq platform and Toshiba Group’s quantum technology and expertise in AI.

Jun-2023: ISARA Corporation signed a partnership with LightBridge Group, a provider of business consulting services for quantum technology companies. With this partnership, both companies would strengthen the post-quantum cryptography solutions and provide threat management services across the U.S. government.

May-2023: Qrypt came into partnership with Carahsoft Technology Corp., a Public Sector IT Solutions Provider, supporting Federal, State, and Local Government agencies and Education and Healthcare markets. With this partnership, both companies would provide the government with quantum-secure encryption technology and help the agencies to keep their data safe and secure from any kind of new threat.

May-2023: IBM Corporation announced the launch of Quantum Safe technology, a comprehensive set of tools and capabilities integrated with IBM's deep security expertise. With the launch of Quantum Safe technology, IBM would be able to provide a safe and secure end-to-end solution for enterprises as well as governmental agencies.

Nov-2022: Qubitekk, Inc. collaborated with EPB, an American electric power distribution and telecommunications company. Through this collaboration, both companies designed and developed a quantum network for the private as well as government sectors. In addition, this quantum network would provide advanced infrastructure that allows quantum equipment and software to bring quantum technologists to Market.

Nov-2022: IBM Corporation announced the collaboration with Vodafone Group, a British multinational telecommunications company. Through this collaboration, IBM would help the Vodafone group to speed up the adaptation of quantum technology and implement quantum-safe technology as they provide an entire ecosystem of operators, regulators, and the open-source community.

Jul-2022: Toshiba America, Inc., a regional subsidiary of Toshiba Digital Solutions Corporation signed a partnership with Safe Quantum, a company that provides solutions to data-driven companies to define, develop and deploy quantum-safe technologies. Through this partnership, Toshiba America Inc. would be able to deliver to their customers a safe and secure solution for the transmission of sensitive information. Moreover, this collaboration would also help Toshiba to expand and strengthen its quantum key distribution business in North America.

Jun-2022: Qrypt announced a partnership with Vaultree, a company that provides solutions to solve the industry’s fundamental security issues. Through this partnership, Qrypt would provide its key generation technology with a one-time pad proxy tunnel to deliver endless key and data security systems in Vaultree's SDK. Moreover, both companies aim to tackle the threats against key distribution and data transmission.

Jan-2020: Qubitekk, Inc. took over the Quantum Key Distribution portfolio of QinetiQ, an integrated global defense and security company focused on mission-led innovation. Through this Acquisition, all the patented products and technologies of QKD segments of QinetiQ would be added to Qubitekk's portfolio. Further, this acquisition would help Qubitekk to advance its data security, cybersecurity, and end-to-end encryption technologies.

Scope of the Study

Market Segments covered in the Report:

By Vertical

• Government & Defense
• Retail & eCommerce
• IT & Telecom
• BFSI
• Healthcare & Lifesciences
• Others

By Security Type

• Network Security
• Application Security

By Offering

• Solution
• Quantum Key Distribution
• Quantum Random Number Generation
• Others
• Services

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• IBM Corporation
• Hewlett Packard Enterprise Company
• Toshiba Corporation
• NEC Corporation
• MagiQ Technologies, Inc.
• Crypta Labs Limited
• Qubitekk, Inc.
• ISARA Corporation
• Nucrypt LLC
• Qrypt

Unique Offerings from KBV Research

• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free