Quantum-Resistant Secure Network Overlay Market Report 2025

The quantum-resistant secure network overlay market size has grown exponentially in recent years. It will grow from $1.03 billion in 2024 to $1.33 billion in 2025 at a compound annual growth rate (CAGR) of 29%. During the historical period, expansion was driven by the wider adoption of quantum-safe cryptography, growing demand for secure communication channels, a surge in cyberattacks and data breaches, stricter government data security regulations, and an increasing emphasis on safeguarding critical infrastructure.

The quantum-resistant secure network overlay market size is expected to see exponential growth in the next few years. It will grow to $3.63 billion in 2029 at a compound annual growth rate (CAGR) of 28.6%. In the forecast period, expansion is expected to be fueled by the wider rollout of quantum networks, higher investments in quantum-resistant technologies, greater integration with 5G and IoT systems, increased awareness of post-quantum security threats, and stronger enterprise demand for secure cloud services. Key trends during this period include developments in quantum key distribution, the emergence of advanced quantum-safe encryption methods, innovations in cryptography components, AI-powered security monitoring, and improvements in network infrastructure to support post-quantum security.

The rising level of cybersecurity threats is expected to drive the growth of the quantum-resistant secure network overlay market. Cybersecurity threats include any malicious actions targeting computer systems, networks, or digital data with the intent to steal, damage, disrupt, or gain unauthorized access. The increase in such threats is fueled by growing digitalization, as more sensitive data and critical operations move online, expanding potential attack surfaces. Quantum-resistant secure network overlays help counter cybersecurity threats by providing encryption and communication protocols that remain secure against attacks from quantum computers, ensuring long-term protection for sensitive information. For example, in November 2022, the Australian Cyber Security Centre, a government agency, reported over 76,000 cybercrime incidents, representing a 13% increase from the previous financial year, averaging one report every 7 minutes, up from one every 8 minutes the year before.

Companies in the quantum-resistant secure network overlay market are pursuing strategic collaborations to enhance technology, broaden solution offerings, and accelerate global adoption. Strategic collaborations involve purposeful partnerships that combine expertise and resources to achieve shared goals, such as advancing innovation or expanding market reach. For instance, in March 2024, Quantum Xchange, a US-based quantum technology company, partnered with Juniper Networks Inc. to deliver quantum-safe network security solutions for sectors such as finance, government, insurance, and managed service providers. The partnership integrates Juniper’s SRX Series Firewalls with Quantum Xchange’s Phio TX key delivery platform, enabling post-quantum encryption and protection against threats such as harvest now, decrypt later, without disrupting existing infrastructure. The solution meets compliance standards including PCI-DSS and CMMC and offers scalable, interoperable quantum-safe connectivity to protect critical data.

In May 2025, IonQ Inc., a US-based quantum computing company, acquired ID Quantique for an undisclosed amount. The acquisition allows IonQ to strengthen its quantum-safe networking and secure communications capabilities by integrating ID Quantique’s quantum key distribution, random number generation, and single-photon detection technologies into its ecosystem. ID Quantique is a Switzerland-based company providing quantum-resistant secure network overlay solutions through its quantum key distribution (QKD) technology and Centauris network encryption platform.

Major players in the quantum-resistant secure network overlay market are Microsoft Corporation, Cisco Systems Inc., Toshiba Corporation, NEC Corporation, Thales S.A., SK Telecom, Palo Alto Networks Inc., Cloudflare Inc., International Business Machines Corporation, QuantumCTek Co. Ltd., QNu Labs Pvt. Ltd., ID Quantique SA, QuintessenceLabs Pty. Ltd., ISARA Corporation, MagiQ Technologies Inc., Qrypt Inc., Crypto4A Technologies Inc., KETS Quantum Security Ltd., OpenQKD, Quantum Xchange Inc., Adva Network Security GmbH, and KEEQuant GmbH.

North America was the largest region in the quantum-resistant secure network overlays market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in quantum-resistant secure network overlay report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the quantum-resistant secure network overlay market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

A quantum-resistant secure network overlay functions as a virtual layer built atop existing communication systems. It protects data by encrypting and routing it through post-quantum cryptography, which is engineered to resist decryption by both current classical computers and future quantum machines. This ensures that sensitive communications remain private and verifiable, even if intercepted and stored for potential attacks in the quantum era.

The primary components of quantum-resistant secure network overlays include hardware, software, and services. Hardware consists of physical devices and modules engineered to support secure communications resilient against classical and quantum attacks. These overlays can be deployed on-premises, in the cloud, or in hybrid configurations and serve organizations of all sizes, from small and medium enterprises to large corporations. Key end users span sectors such as banking, financial services, and insurance (BFSI), government, healthcare, information technology and telecommunications, energy, and more.

The quantum-resistant secure network overlay market research report is one of a series of new reports that provides quantum-resistant secure network overlay market statistics, including quantum-resistant secure network overlay industry global market size, regional shares, competitors with a quantum-resistant secure network overlay market share, detailed quantum-resistant secure network overlay market segments, market trends and opportunities, and any further data you may need to thrive in the quantum-resistant secure network overlay industry. This quantum-resistant secure network overlay 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-resistant secure network overlay market consists of revenues earned by entities by providing services such as end-to-end encrypted communication, secure key exchange, authentication and identity management, data integrity verification, and confidential routing. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum-resistant secure network overlay market also includes sales of hardware security modules, cryptographic accelerators, secure routers, and authentication devices. 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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