Quantum-Safe Identity Federation Market Report 2025

The quantum-safe identity federation market size has grown exponentially in recent years. It will grow from $0.86 billion in 2024 to $1.15 billion in 2025 at a compound annual growth rate (CAGR) of 33.3%. The growth in the historic period was driven by rising concerns about cybersecurity breaches, greater adoption of cloud-based identity solutions, increasing dependence on digital authentication, stricter compliance requirements, and the growing risks associated with classical cryptographic vulnerabilities.

The quantum-safe identity federation market size is expected to see exponential growth in the next few years. It will grow to $3.6 billion in 2029 at a compound annual growth rate (CAGR) of 33%. The growth in the forecast period can be attributed to the rising urgency to address quantum computing threats, increasing government mandates for quantum readiness, growing investments in quantum-resistant infrastructure, stronger collaboration between identity and cryptography vendors, and increasing demand for secure cross-border identity federation. Key trends anticipated during this period include the adoption of post-quantum cryptography standards, the creation of hybrid cryptographic frameworks, the advancement of quantum-resistant authentication protocols, innovations in key management systems, and the integration of zero-trust architectures with quantum security.

The growing complexity and frequency of cyber threats are expected to drive the growth of the quantum-safe identity federation market in the coming years. Cyber threats are malicious activities targeting computers, networks, or digital data with the goal of compromising, disrupting, or destroying systems. The increase in such threats is fueled by the rising number of internet-connected devices, which create more points of vulnerability for attackers, leading to more frequent and difficult-to-prevent incidents. Quantum-safe identity federation helps defend against these risks by using quantum-resistant cryptography to secure identity verification and data exchanges, ensuring that authentication and authorization processes remain protected against both current and future quantum-enabled attacks. For example, in November 2022, the Australian Cyber Security Centre, a government agency, reported over 76,000 cybercrime incidents, reflecting an increase of nearly 13% from the previous financial year. This equates to one report every 7 minutes, compared to one every 8 minutes the year before. These trends demonstrate how rising cyber threats are driving demand for quantum-safe identity federation solutions.

Companies in the quantum-safe identity federation market are advancing new technologies, such as post-quantum safe suites of tools, to strengthen secure identity management, authentication, and data protection across federated systems. These suites include software and cryptographic solutions designed to protect digital infrastructures from quantum computing threats by offering encryption, authentication, and data integrity using quantum-resistant algorithms. In May 2023, International Business Machines Corporation (IBM), a U.S.-based technology and consulting company, introduced its end-to-end Quantum Safe technology. This comprehensive suite provides governments and enterprises with tools to safeguard critical data against future quantum risks that could undermine existing encryption. The IBM Quantum Safe solution offers capabilities to identify cryptographic assets, assess vulnerabilities, and implement remediation strategies, guiding organizations through the transition to quantum-safe systems with automation and crypto-agility. The initiative also aligns with new quantum-safe requirements introduced by U.S. federal agencies and supports emerging cryptographic standards through IBM’s Quantum Safe Roadmap.

In May 2025, IonQ Inc., a U.S.-based provider of commercial quantum computing and networking solutions, acquired ID Quantique SA for an undisclosed sum. The acquisition enhances IonQ’s portfolio by adding advanced quantum-safe security technologies and expanding its position in quantum-safe identity federation and quantum cryptography. ID Quantique SA, based in Switzerland, specializes in quantum-safe encryption and secure communication solutions.

Major players in the quantum-safe identity federation market are Microsoft Corporation, Amazon Web Services Inc., International Business Machines Corporation (IBM), Thales Group, Okta Inc., Cloudflare Inc., Entrust Corporation, DigiCert Inc., SEALSQ Corp, SSH Communications Security Corporation, Arqit Quantum Inc., PQShield Ltd., Post-Quantum Ltd., EvolutionQ Inc., Crypto4A Technologies Inc., Quside Technologies S.L., ResQuant GmbH, Quranium B.V., Patero Inc., Cavero Quantum GmbH.

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

Quantum-safe identity federation is a security framework that enables organizations and domains to exchange and verify digital identities while remaining resilient against threats from quantum computing. It employs quantum-resistant cryptographic methods to protect authentication, authorization, and data sharing across federated networks. The primary objective is to ensure seamless and trusted identity interoperability without relying on conventional encryption methods that are vulnerable to quantum-based attacks.

The main components of quantum-safe identity federation are solutions and services. Solutions consist of systems and tools designed to secure digital identities and data transmissions against both quantum and traditional cyber threats. These are deployed through on-premises or cloud-based models and are adopted by organizations of all sizes, including large enterprises as well as small and medium-sized businesses. Applications span industries such as banking and financial services, government, healthcare, IT and telecommunications, retail, and others, serving both public and private sector end users.

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

The quantum-safe identity federation market consists of revenues earned by entities by providing services such as secure identity verification, federated access management, post-quantum cryptography implementation, and compliance and audit support. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum-safe identity federation market also includes sales of quantum-resistant cryptographic algorithms, secure identity federation platforms, post-quantum key exchange mechanisms, digital signature solutions, and quantum-safe authentication protocols. 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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