PUBLISHER: The Business Research Company | PRODUCT CODE: 1706188
PUBLISHER: The Business Research Company | PRODUCT CODE: 1706188
Quantum security involves employing principles of quantum mechanics to safeguard information and ensure secure communication. It encompasses techniques and technologies leveraging unique properties of quantum particles to bolster security in data transmission and storage, providing robust defense against diverse cyber threats, including those posed by classical and quantum computers. Quantum security offers a solution to address vulnerabilities in classical cryptographic systems, ensuring steadfast security amidst evolving cyber threats and the emergence of quantum computing.
The primary components of quantum security comprise hardware, software, and services. Hardware in the quantum security market comprises physical components and devices facilitating secure quantum communication, such as quantum key distribution systems, quantum repeaters, and quantum sensors. These solutions can be deployed via cloud or on-premise models and find applications across various sectors including banking, finance, government and defense, lotteries and online gaming, business, among others.
The quantum security market research report is one of a series of new reports from The Business Research Company that provides quantum security market statistics, including the quantum security industry global market size, regional shares, competitors with quantum security market share, detailed quantum security market segments, market trends, and opportunities, and any further data you may need to thrive in the quantum security industry. This quantum security 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 security market size has grown exponentially in recent years. It will grow from $1.14 billion in 2024 to $1.7 billion in 2025 at a compound annual growth rate (CAGR) of 49.0%. The growth in the historic period can be attributed to the demand for enhanced simulation and modeling, the increased complexity of automotive systems, the increased focus on cybersecurity, collaborative research initiatives, and regulatory pressure.
The quantum security market size is expected to see exponential growth in the next few years. It will grow to $8.29 billion in 2029 at a compound annual growth rate (CAGR) of 48.6%. The growth in the forecast period can be attributed to increasing data traffic, increased demand for quantum key distribution, electric vehicle optimization, supply chain optimization, industry collaboration, and partnerships. Major trends in the forecast period include technological advancements, research and development investments, product innovations, integration with electric vehicles, and the launch of on-premise quantum computers.
The surge in cybersecurity threats is anticipated to drive the expansion of the quantum security market. Cybersecurity threats, characterized by malicious activities aimed at compromising the integrity, availability, or confidentiality of information systems, are escalating due to technological advancements, evolving cybercriminal tactics, and the increasing value and accessibility of data. Quantum security presents a significant advancement in cybersecurity, offering tools and techniques grounded in the principles of quantum mechanics to fortify data protection and secure communication channels. For instance, ASTRA IT Inc. reported in February 2024 that over 343 million individuals fell victim to cyberattacks in 2023, representing a staggering 72% increase from 2021. Consequently, the burgeoning number of cybersecurity threats is poised to fuel the growth of the quantum security market.
Key players in the quantum security market are striving to develop innovative products, such as those based on quantum cryptography, to cater to customers with advanced features and gain a competitive edge. Quantum cryptography-based products utilize the principles of quantum mechanics to secure communication channels and safeguard data transmission. These devices leverage techniques such as quantum key distribution (QKD) to offer a higher level of security compared to classical cryptographic systems. For example, in August 2023, SKY Perfect JSAT Corporation introduced a quantum cryptography optical communication device featuring satellite-based quantum key distribution (QKD) and cryptography technology. This product aimed to conduct demonstration experiments between space and ground, establishing a secure satellite communication network impervious to eavesdropping or decryption, even with advancements in computational technology.
In June 2022, Quantum Computing Inc., a US-based software company, acquired QPhoton Inc. for an undisclosed amount. This strategic move positions Quantum Computing Inc. to deliver the first fully functional quantum photonic system (QPS), developed by QPhoton, for practical commercial purposes, accessible even to non-quantum specialists. QPhoton Inc. specializes in quantum photonics innovation, offering security products such as quantum authentication with applications in cybersecurity.
Major companies operating in the quantum security market are Google LLC, Microsoft Corporation, China Telecom Corporation Limited, International Business Machines Corporation (IBM), Toshiba Corporation, SK Telecom Co. Ltd., ISARA Corporation, ID Quantique SA, QuantumCTek Co. Ltd., Oxford Quantum Circuits Ltd., Zapata Computing Inc., QuintessenceLabs Pty Ltd., Crypta Labs Limited, Qrypt Inc., PQSecure Technologies LLC, Qubitekk Inc., Nucrypt LLC, QNu Labs Pvt. Ltd., QuEra Computing Inc., KETS Quantum Security Ltd., VeriQloud Inc., MagiQ Technologies Inc., Quantum Xchange Inc., Anhui Qasky Quantum Technology Co. Ltd., Kudelski Group SA.
North America was the largest region in the quantum security market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the quantum security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the quantum security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The quantum security market consists of revenues earned by entities by providing services such as quantum key distribution (QKD), quantum random number generation, quantum-safe cryptography, and key exchange services. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum security market also includes sales of quantum-resistant IP, tamper-resistant quantum computer architectures, specialized quantum control hardware, and the integration of classical computing resources. 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.
Quantum Security Global Market Report 2025 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 security 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 security ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The quantum security 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.