PUBLISHER: The Business Research Company | PRODUCT CODE: 1513231
PUBLISHER: The Business Research Company | PRODUCT CODE: 1513231
Quantum key distribution (QKD) stands as a secure communication method harnessing principles of quantum mechanics to generate and distribute encryption keys between parties. By leveraging quantum mechanics principles such as the uncertainty principle and the no-cloning theorem, QKD ensures the security of the key exchange process, offering a theoretically unbreakable means of secure communication.
The primary types of quantum key distribution include rigid 1-2-sided, standard multilayer, high-density interconnect, integrated circuit substrate, flexible circuits, and rigid-flex, among others. Rigid 1-2-sided quantum key distribution entails a cryptographic approach utilizing quantum mechanics to exchange encryption keys securely over communication channels, offering robust protection against eavesdropping. Key components encompass solutions and services for diverse security types, including application security and network security. This technology finds application across various sectors, including telecom and data centers, financial services, government, healthcare, transportation, retail, and others.
The quantum key distribution research report is one of a series of new reports from The Business Research Company that provides quantum key distribution market statistics, including the quantum key distribution industry's global market size, regional shares, competitors with a quantum key distribution market share, detailed quantum key distribution market segments, market trends and opportunities, and any further data you may need to thrive in the quantum key distribution industry. This quantum key distribution 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 key distribution market size has grown exponentially in recent years. It will grow from $2.10 billion in 2023 to $2.57 billion in 2024 at a compound annual growth rate (CAGR) of 22.5%. The growth witnessed in the historical period can be attributed to several factors, including the increasing demand for enhanced simulation and modeling, the escalating complexity of automotive systems, a heightened focus on cybersecurity, collaborative research initiatives, and regulatory pressures driving emissions reduction.
The quantum key distribution market size is expected to see exponential growth in the next few years. It will grow to $5.83 billion in 2028 at a compound annual growth rate (CAGR) of 22.7%. Looking ahead to the forecast period, growth is expected to be fueled by developments in autonomous vehicle technology, the expansion of the connected car ecosystem, optimization of electric vehicles, advancements in materials science, cybersecurity enhancements, streamlining of supply chains, and adherence to regulatory compliance and sustainability standards. Key trends anticipated in the forecast period include continued technological advancements, substantial investments in research and development, fostering partnerships and collaborations, expanding market reach, addressing regulatory requirements, integration with electric vehicle infrastructure, and an intensified focus on cybersecurity measures.
The escalating number of cybersecurity threats is anticipated to drive the expansion of the quantum key distribution market. Cybersecurity threats encompass malicious activities aimed at compromising the security of information systems, potentially altering data availability, integrity, or confidentiality, or disrupting digital operations. This rise in cybersecurity threats is fueled by evolving technologies and the expanding digital footprint, opening new avenues for exploitation and malicious endeavors. Quantum key distribution emerges as a solution to mitigate cybersecurity threats by harnessing quantum properties to secure communication channels through the distribution of encryption keys resistant to traditional cryptographic attacks. For example, as reported by the Department for Science, Innovation, and Technology in April 2023, cybercrime affected 11% of businesses and 8% of charities in the UK over the past 12 months. Notably, this figure surged to 26% for medium-sized businesses, 37% for large businesses, and 25% for high-income charities. Across all UK businesses, approximately 2.39 million instances of cybercrime and approximately 49,000 instances of fraud resulted from cybercrime in the last 12 months. Consequently, the mounting cybersecurity threats are expected to drive the growth of the quantum key distribution market.
Key players in the quantum key distribution market are actively developing innovative products, such as quantum key distribution systems and Quantum Random Number Generator (QRNG) chips, to cater to evolving customer needs with advanced functionalities. A quantum key distribution system employs cryptographic techniques leveraging quantum mechanics to establish secure communication channels through encryption key distribution. On the other hand, a QRNG chip is a specialized semiconductor device utilizing quantum mechanics principles to generate truly random numbers. For instance, in May 2021, QNu Labs, an India-based provider of quantum cryptography-based products and solutions, introduced a Quantum Key Distribution (QKD) system capable of surpassing a 100-km range, a significant advancement from previous models. This extended reach is pivotal for the feasible deployment of quantum-secure communication networks. Additionally, QNu has launched their QRNG chip, Ikaria, offering the highest randomness and robustness for random number generation, enhancing security by capturing the unpredictability of radioactive decay and applying it to chip-based applications without introducing bias.
In July 2021, Telsy, an Italy-based cybersecurity company, acquired a minority stake in Quantum Telecommunications Italy (QTI) for an undisclosed sum. This strategic move represents a significant advancement in the design, development, and production of quantum communications for various sectors including public and private entities, academia, and research. Quantum Telecommunications Italy (QTI) specializes in the development and production of Quantum Key Distribution systems for ultra-secure communications.
Major companies operating in the quantum key distribution market are Google LLC, Nippon Telegraph and Telephone, Huawei Technologies Co. Ltd., China Telecom Corporation Limited, Toshiba Corporation, NEC Corporation, SK Telecom Co. Ltd., ISARA Corporation, PQ Solutions, ID Quantique SA, QuantumCTek Co. Ltd., Quantum Light Metrology Co. Ltd., Oxford Quantum Circuits Ltd., QuintessenceLabs Pty Ltd., Crypta Labs Ltd., Zapata Computing Inc., Qubitekk Inc., Post-Quantum (UK) Ltd., Nucrypt LLC, Qryptal Pte Ltd, MagiQ Technologies Inc., QNu Labs Inc., Quantum Xchange Inc., Quantum Computing Inc., KETS Quantum Security Ltd.
North America was the largest region in the quantum key distribution market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the quantum key distribution market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the quantum key distribution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The quantum key distribution market includes revenues earned by entities by providing services, such as secure key generation and distribution, eavesdropper detection, quantum-safe encryption, networking capabilities, customizable solutions, and protection against denial-of-service attacks. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Quantum Key Distribution Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on quantum key distribution market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for quantum key distribution? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The quantum key distribution market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.