Quantum Cryptography - Global Market Trajectory & Analytics

Global Quantum Cryptography Market to Reach US$291.9 Million by the Year 2026

Quantum cryptography harnesses the quantum-mechanical properties of light for creating a secure encryption and enabling secure data transfer between any two parties. Quantum cryptography presents a more practical and cost-effective approach for securing communications, with a virtually unbreakable mode of relaying information, as the technology is based on the principles of quantum mechanics, a time-tested universal scientific model, rather than complex mathematical algorithms. Growth in the global market is set to be driven by rising frequency of cyber-attacks, increasing focus on cyber-security and evolution of sophisticated wireless networks. 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.

Organizations are increasingly implementing quantum cryptography solutions to boost network and application security. 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. 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.

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$291.9 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 to reach US$194.2 Million by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Services segment is readjusted to a revised 24.7% CAGR for the next 7-year period. This segment currently accounts for a 35.6% share of the global Quantum Cryptography market. 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 U.S. Market is Estimated at $49 Million in 2022, While China is Forecast to Reach $40.6 Million by 2026

The Quantum Cryptography market in the U.S. is estimated at US$49 Million in the year 2022. The country currently accounts for a 37.5% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$40.6 Million in the year 2026 trailing a CAGR of 19.3% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 19.5% and 21.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 21.1% CAGR while Rest of European market (as defined in the study) will reach US$23 Million by the end of the analysis period. North America is projected to dominate the global market and account for the leading revenue share due to an extensive customer base, increasing incident 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 Asia-Pacific 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.

Select Competitors (Total 97 Featured) -

• Fraunhofer Institute for Applied Optics and Precision Engineering
• ID Quantique SA
• MagiQ Technologies, Inc.
• Nippon Telegraph and Telephone Corp.
• Nucrypt LLC
• Oki Electric Industry Company Ltd
• QuintessenceLabs, Inc.
• Raytheon BBN Technologies
• SK TELECOM CO., LTD.
• Toshiba Corp.

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