Satellite Quantum-Internet Global Market Report 2025

The satellite quantum-internet market size has grown exponentially in recent years. It will grow from $1.03 billion in 2024 to $1.37 billion in 2025 at a compound annual growth rate (CAGR) of 33%. The growth during the historic period is driven by rising demand for secure communication, government funding for quantum research, increasing cyber threats, economic recovery supporting IT budgets, and greater adoption in the defense and government sectors.

The satellite quantum-internet market size is expected to see exponential growth in the next few years. It will grow to $4.25 billion in 2029 at a compound annual growth rate (CAGR) of 32.7%. The growth projected for the forecast period is supported by expansion of banking and financial services utilizing quantum-secure communication, increasing adoption in healthcare and telemedicine, rising investments in quantum-ready network infrastructure, public-private partnerships and regulatory support, and growing venture capital and sovereign fund investments. Key trends in the forecast period include proliferation of low-earth orbit satellite constellations, integration with 5G and IoT networks, miniaturization and mass production of small satellites, deployment of digitized payloads and autonomous satellite functions, and advancements in quantum key distribution (QKD) via satellite.

The rising cyber threats are expected to drive growth in the satellite quantum-internet market. Cyber threats are malicious activities intended to damage, disrupt, or gain unauthorized access to computer systems, networks, or digital information. These threats are increasing due to digital transformation, as organizations adopt more digital tools, cloud services, and connected systems, which expose them to additional vulnerabilities and attacks. Growing cyber threats are boosting demand for quantum-secured satellite communication networks, which provide unhackable quantum encryption protocols to protect sensitive data from even the most sophisticated cyberattacks. For example, in November 2023, the Australian Signals Directorate reported that Australia experienced a significant surge in cyber threats during 2022-23, with nearly 94,000 cybercrime reports submitted, a 23 percent increase from the previous year, while the cost of cybercrime to businesses rose by 14 percent compared to the previous financial year. The increase in cyber threats is therefore supporting growth in the satellite quantum-internet market.

Companies in the satellite quantum-internet market are developing high-precision free-space optical links to enable secure, long-distance quantum communication. These links are laser-based communication channels between satellites and ground stations that transmit data using light with extreme accuracy, allowing fast, secure, and long-distance quantum information transfer without relying on fiber-optic cables. For example, in September 2024, TNO, a Netherlands-based organization, launched the Qu-STAR project to explore the role of satellites in building a global quantum internet. In collaboration with Airbus Central Research and Technology, the project focuses on developing high-precision free-space optical links between satellites and ground stations, testing long-distance quantum information transmission, and defining the architecture of a global quantum network. Qu-STAR also aims to strengthen international collaboration through initiatives such as the Quantum Internet Alliance, with results made openly accessible to the scientific community.

In May 2025, IonQ Inc., a US-based commercial quantum computing and networking company, acquired ID Quantique SA for an undisclosed amount. Through this acquisition, IonQ aims to strengthen its leadership in quantum networking and secure communications by combining its high-performance quantum computing capabilities with ID Quantique SA’s expertise in quantum-safe communications and quantum detection systems. This enables the development of comprehensive quantum solutions and the future Quantum Internet. ID Quantique SA is a Switzerland-based company specializing in quantum-safe networking, quantum key distribution systems, quantum random number generators, and single-photon detection technologies.

Major players in the satellite quantum-internet market are Honeywell International Inc., Nokia Corporation, Toshiba Europe Limited, Thales S.A., SK Telecom Co. Ltd., SES S.A., SITAEL S.p.A., QNu Labs Pvt. Ltd., Cailabs S.A.S., QuSecure Inc., Synergy Quantum Inc., Officina Stellare S.r.l., QEYnet Inc., Arqit Quantum Inc., SpeQtral Inc., SKY Perfect JSAT Holdings Inc., ThinkQuantum Inc., SpeQtral Pte. Ltd., KETS Quantum Security Ltd., and QuantumCTek Co. Ltd.

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

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 sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

The satellite quantum-internet market research report is one of a series of new reports that provides satellite quantum-internet market statistics, including satellite quantum-internet industry global market size, regional shares, competitors with the satellite quantum-internet market share, satellite quantum-internet market segments, market trends, and opportunities, and any further data you may need to thrive in the satellite quantum-internet industry. This satellite quantum-internet 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.

Satellite quantum internet is a communication network that employs satellites to transmit quantum information over long distances, utilizing quantum mechanics principles such as entanglement and superposition. It provides ultra-secure data exchange by making eavesdropping detectable through quantum key distribution. The technology aims to connect distant nodes globally, overcoming the distance limitations of fiber-optic quantum networks.

The primary components of satellite quantum internet include hardware, software, and services. Hardware encompasses the physical elements that enable quantum-secure satellite communication, making large-scale quantum links possible. It can be deployed via ground-to-satellite, satellite-to-satellite, and satellite-to-ground connections. Satellite quantum internet is used for applications such as secure communication, quantum key distribution, data transmission, networking, and other purposes, serving end-users in sectors including government and defense, banking, financial services and insurance (BFSI), healthcare, information technology and telecommunications, research and academia, and other industries.

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

The satellite quantum-internet market consists of revenues earned by entities by providing services such as quantum key distribution, secure communication, quantum network access, quantum cloud computing, high-speed data transmission, research and development access, and encryption-as-a-service. The market value includes the value of related goods sold by the service provider or included within the service offering. The satellite quantum-internet market also includes sales of quantum processors, quantum random number generators, quantum memory devices, quantum repeaters, secure communication terminals, and ground station equipment. 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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