Quantum Networking Global Market Report 2025

The quantum networking market size has grown exponentially in recent years. It will grow from $0.52 billion in 2024 to $0.73 billion in 2025 at a compound annual growth rate (CAGR) of 40.1%. The growth during the historic period can be attributed to factors such as the growing demand for ultra-secure communication, the rising need for data privacy, increasing reliance on cloud computing, the rise of digital transformation initiatives, and the expanding applications of edge computing.

The quantum networking market size is expected to see exponential growth in the next few years. It will grow to $2.78 billion in 2029 at a compound annual growth rate (CAGR) of 39.7%. The growth during the forecast period can be attributed to factors such as the rise in cyberattacks, increasing government investments, the emergence of quantum internet, growing adoption in financial services, and the expansion of 5G and future 6G networks. Key trends during this period include the development of quantum key distribution, collaborations among research institutions, technological advancements in quantum hardware, corporate investments in quantum technology, and the development of quantum-safe encryption.

The growing concern over cyberattacks is expected to fuel the expansion of the quantum networking market. Cyberattacks are deliberate attempts by individuals or groups to breach information systems, often to steal data, disrupt operations, or cause damage. This concern has intensified as digital systems become more complex and interconnected, providing more opportunities for hackers to find and exploit security vulnerabilities. Quantum networking addresses these concerns by utilizing quantum key distribution (QKD) to create unbreakable encryption, making it nearly impossible for attackers to intercept or decode sensitive information without detection. For example, in May 2024, the Information Commissioner's Office (ICO), a UK-based public body, reported that cyber-related incidents accounted for 25.9% of all personal data breaches between 2022 and 2023. This figure increased to 32.5% in the last 12 months. As a result, the growing concern over cyberattacks is expected to drive the growth of the quantum networking market.

Leading companies in the quantum networking market are developing advanced solutions, including orchestration software, to minimize manual intervention. Orchestration software automates and coordinates complex tasks, workflows, and processes across multiple systems or platforms to ensure efficient operation. For example, in October 2024, Aliro Quantum, a US-based quantum network simulation provider, launched AliroNet Quickstart, a multi-vendor operational quantum network. This solution enables the deployment of entanglement-based quantum networks by combining hardware for network implementation with software for orchestration and data management. It offers quantum-safe data security by generating shared keys through entanglement, eliminating the need for public key exchanges. The system incorporates a layered defense strategy with post-quantum cryptography (PQC), and it is adaptable for production, pilot, or test environments, supporting various physical-layer hardware for entangled photon measurement.

In November 2024, IonQ Inc., a US-based quantum computing company, acquired Qubitekk Inc. for an undisclosed amount. This acquisition enhances IonQ’s position in quantum networking by improving its hardware and security capabilities. It will also accelerate the development of quantum internet infrastructure, further strengthening the company’s growth prospects in the field. Qubitekk Inc. is a US-based company specializing in quantum networking solutions.

Major players in the quantum networking market are Google LLC, Microsoft Corporation, Raytheon Technologies Corporation, IBM Corporation, Toshiba Corporation, Infineon Technologies AG, Xanadu Quantum Technologies Inc., Terra Quantum AG, ID Quantique SA, Nu Quantum Ltd., IonQ Inc., MagiQ Technologies Inc., QNu Labs Private Limited, QphoX B.V., AegiQ Ltd., Miraex SA, Qunett UG, Qunnect Inc., Aliro Technologies Inc.

North America was the largest region in the quantum networking market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in quantum networking report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the quantum networking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Quantum networking involves utilizing quantum principles such as superposition and entanglement to facilitate communication and data transfer across networks. This technology focuses on developing quantum computers, communication protocols, and cryptography to create networks that are faster, more secure, and more efficient. Quantum networking has the potential to revolutionize fields such as telecommunications, cybersecurity, and data science, especially through advancements in quantum key distribution (QKD) for ultra-secure communications.

The primary components of quantum networking include hardware, software, and services. Hardware refers to the physical components and devices within computing systems, such as processors, memory units, and network infrastructure. Quantum networking is applied in areas such as distributed quantum computing, quantum clock synchronization, quantum sensing and metrology, secure communication, secure financial transactions, and secure voting. Key end-users include sectors such as banking, financial services, and insurance, energy and utilities, government and defense, healthcare and life sciences, information technology and telecom, manufacturing, and others.

The quantum networking market research report is one of a series of new reports that provides quantum networking market statistics, including quantum networking industry global market size, regional shares, competitors with a quantum networking market share, detailed quantum networking market segments, market trends and opportunities, and any further data you may need to thrive in the quantum networking industry. This quantum networking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The quantum networking market consists of revenues earned by entities by providing services such as quantum internet development, quantum cloud services, quantum cryptography consulting, network simulation and testing. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum networking market also includes sales of quantum repeaters, quantum modems, single-photon detectors and network switches. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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