Quantum-Safe Hardware Security Module Global Market Report 2025

The quantum-safe hardware security module market size has grown rapidly in recent years. It will grow from $1.18 billion in 2024 to $1.39 billion in 2025 at a compound annual growth rate (CAGR) of 17%. The growth during the historic period can be attributed to the increasing adoption of cloud-based security solutions, rising incidents of cybersecurity breaches, growing demand for encryption in banking and financial services, heightened awareness of quantum computing threats, and expanding digital transformation initiatives.

The quantum-safe hardware security module market size is expected to see rapid growth in the next few years. It will grow to $2.57 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. The growth in the forecast period can be attributed to the increasing demand for post-quantum cryptography solutions, rising adoption of blockchain technology across industries, growing emphasis on data sovereignty and compliance, expanding need for secure multi-cloud environments, and increasing investment in next-generation payment systems. Key trends in the forecast period include the development of standardization frameworks, creation of hybrid cryptography solutions, integration with enterprise security platforms, innovations in tamper-resistant designs, and advancements in key management capabilities.

The rising cybersecurity threats are expected to drive growth in the quantum-safe hardware security module market in the coming years. Cybersecurity threats refer to potential malicious actions or events that can compromise the confidentiality, integrity, or availability of digital systems, networks, or data. These threats are increasing due to greater digitization and connectivity, which expand the attack surface and expose more systems and data to potential cyberattacks. Quantum-safe hardware security modules strengthen protection against such threats by employing quantum-resistant encryption to safeguard sensitive data, authentication processes, and critical digital transactions. For example, in November 2023, the Australian Department of Defence reported that between 2022 and 2023, the Australian Cyber Security Centre received over 94,000 cybercrime reports, a 23% increase compared with the 2021-22 financial year. Therefore, the growing prevalence of cybersecurity threats is driving the growth of the quantum-safe hardware security module market.

Leading companies in the quantum-safe hardware security module (HSM) market are focusing on developing innovative solutions, such as post-quantum cryptography (PQC) application packages, to enhance data security against emerging quantum threats. A PQC application package is a set of software tools and libraries that implement quantum-resistant encryption algorithms to secure data from attacks by quantum computers. For example, in April 2025, Uti-Maco Software GmbH, a US-based company, launched Quantum Protect, a PQC application package for its u.trust Se-Series HSM, along with a fully functional simulator offered free of charge. The HSM modules support NIST-standardized PQC algorithms such as ML-KEM and ML-DSA, as well as stateful hash-based signature schemes such as LMS and XMSS, providing a quantum-secure foundation for cryptographic applications. Quantum Protect can be activated in the field without replacing hardware, features a patented state management solution, integrates via PKCS #11, and enables organizations to test PQC algorithms in real-world environments before deployment, reflecting the market’s shift toward practical, quantum-safe security solutions.

In May 2025, IonQ, Inc., a US-based quantum computing hardware and software company, acquired ID Quantique for an undisclosed amount. This acquisition aims to strengthen IonQ’s leadership in quantum networking and secure communications while accelerating the global development and deployment of the Quantum Internet. ID Quantique SA is a Switzerland-based quantum cryptography company that provides quantum-safe hardware security modules.

Major players in the quantum-safe hardware security module market are International Business Machines Corporation, Thales Group, Infineon Technologies AG, Atos SE, Microchip Technology Inc., Entrust Solutions Group, Rambus Inc., PQShield Ltd., Yubico AB, Securosys SA, Quantum Dice Ltd., Fortanix Inc., Utimaco GmbH, Futurex LP., QNu Labs Pvt. Ltd., QuintessenceLabs Pty Ltd., Arqit Quantum Inc., Crypto4A Technologies Inc., KETS Quantum Security Ltd., ExeQuantum Technologies.

North America was the largest region in the quantum-safe hardware security module market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in quantum-safe hardware security module 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 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.

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

A quantum-safe hardware security module (HSM) is a tamper-resistant device that securely generates, stores, and manages cryptographic keys using post-quantum cryptography (PQC) algorithms designed to resist attacks from both classical and quantum computers. It delivers essential security functions such as encryption, digital signing, and authentication, ensuring long-term protection of sensitive data and keys against emerging quantum threats.

The primary components of a quantum-safe hardware security module include hardware, software, and services. The hardware is a specialized physical device built to securely generate, store, and manage cryptographic keys using algorithms resistant to quantum computer attacks, thereby safeguarding sensitive data now and in the future. These solutions can be deployed either on-premises or in the cloud and are designed to support organizations of various sizes, from small and medium enterprises to large corporations. They are utilized across a wide range of use cases, including payment processing, authentication, code and document signing, database encryption, public key infrastructure or key management, and other applications. These solutions serve diverse end users such as banking, financial services, and insurance, government and defense, healthcare, retail, information technology and telecommunications, and other sectors.

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

The quantum-safe hardware security module market consists of revenues earned by entities by providing services such as encryption key management services, data encryption and decryption services, digital signature and authentication services, compliance and regulatory support services, and consulting and integration services. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum-safe hardware security module market also includes sales of secure key management devices, quantum key distribution (QKD) systems, quantum-ready network encryptors, and quantum random number generators. 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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