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A $291.8 Million Global Opportunity for Quantum Cryptography by 2026

Amid the COVID-19 crisis, the global market for Quantum Cryptography estimated at US$128.9 Million in the year 2022, is projected to reach a revised size of US$291.8 Million by 2026, growing at a CAGR of 20.8% over the analysis period. Solutions, one of the segments analyzed in the report, is projected to grow at a 18.3% CAGR, while growth in the Services segment is readjusted to a revised 24.7% CAGR. The global market is predicted to display an impressive growth rate in the coming years on account of rising frequency of cyber-attacks, increasing focus on cyber-security and evolution of sophisticated wireless networks. Quantum cryptography technology leverages quantum physics for securing symmetric encryption key distribution. These solutions help users in ensuring reliable and more secure communication and data transmission in comparison to conventional options. Quantum cryptography is gaining attention due to increasing digitalization and the resulting surge in cyber-security risks and other threats such as data security and breach. Industries across different verticals are facing increasing frequency and sophistication of cyber-attacks due to proliferation of the Internet, connected devices and online services.

The market growth is favored by high reliance of organizations and customers on computer networks for transactions and communication, which is leading to the demand for advanced technology to safeguard sensitive data. While increasing cyber-security funding and high uptake of advanced security solutions are augmenting the market growth, increasing penetration of the IoT and cloud technologies is expected to create new growth avenues. In addition, the market growth is buoyed by increasing implementation of next-generation wireless network technologies. These factors are poised to bolster the demand for quantum cryptography solutions intended to thwart emerging cyber-attacks and mitigate cyber-security concerns. Furthermore, ongoing efforts by various countries to support R&D related to quantum cryptography solutions are anticipated to supplement overall growth of the market in the coming years.

The market is receiving a strong contribution from the network security segment that is predicted to exhibit the fastest growth rate in the coming years. Organizations are increasingly implementing quantum cryptography solutions to boost network and application security. The network security process relies on software and hardware technologies to ensure desirable level of usability and integrity of data and network. The approach focuses on various risks and prevents malware and other malicious components from entering into the system to bolster security. The pressing need to protect the network from various vulnerabilities is driving an increasing number of industries like BFSI, defense, government, healthcare, automotive and retail to embrace quantum cryptography solutions. The trend is providing a notable impetus to expansion of the network security segment.

The quantum cryptography market is slated to witness new opportunities owing to increasing uptake of these solutions in the government and BFSI verticals. Participants in these verticals are paying attention to advanced solutions to improve security and make transactions more secure. The increasing shift of banking institutions towards online platform and surge in transactions has created a pressing need for organizations to ensure secure and authenticated transactions, which is poised to bolster the demand for quantum cryptography solutions. Financial institutions providing their customers with online banking and transactions services are paying increasing attention to sophisticated quantum cryptography solutions to ensure payment security while protecting proprietary and consumer data. On the other side, government organizations are using these solutions to ensure security of massive volumes of confidential information transmitted globally. The data is highly susceptible to cyber-attack risk and drives the adoption of quantum cryptography for key generation and secure crypto operations like digital signatures, secure access and user authentication. These solutions enable government organizations and agencies to safeguard sensitive data and achieve the desirable encryption layer. These demand patterns are anticipated to create new growth opportunities for providers of quantum cryptography solutions.

The quantum cryptography market is driven by the BFSI sector that is estimated to maintain its strong position through 2027. Companies in the industry maintain a consistent focus on implementation of sophisticated solutions to protect proprietary and consumer data from cyber-attacks. The increasing transition of the BFSI vertical towards online transactions and banking has created an urgent need for companies to ensure secure payments. These factors are playing an important role in driving the uptake of quantum cryptography solutions within the BFSI sector.

North America is projected to dominate the global quantum cryptography market and account for the leading revenue share due to an extensive customer base, increasing incidents of cyber-attacks and rising investments in R&D. The proliferation of encryption-based applications in the region has resulted in dramatic surge in frequency of sophisticated cyber-attacks, requiring companies to secure networks and applications with implementation of quantum cryptography solutions. The market growth is also propelled by increasing requirement for data security and privacy along with rising investment in R&D activities and evolution of sophisticated wireless networks. In addition, various countries in the region, primarily the US, are making significant investment to come up with advanced quantum cryptography solutions that are anticipated to find broader uptake in the coming years. The European market for quantum cryptography is predicted to post an impressive growth in value terms. The regional market is expected to be buoyed by rising uptake of encryption-based applications and the resulting increase in cyber-attack risk. On the other side, the Asia-Pacific market for quantum cryptography is forecast to exhibit significant growth rate in the coming years. The regional market is anticipated to witness increasing efforts by providers of quantum cryptography services and solutions to join hands with clients to boost overall sales and market presence.