February 21, 2024

Projected increased investment in cybersecurity to boost the growth of the Quantum Cryptography Market

 

The global Quantum Cryptography Market is estimated to be valued at US$125.32 Mn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The Quantum Cryptography Market involves technologies focused on utilizing the principles of quantum mechanics to secure communications. Quantum cryptography  Market leverages quantum properties like quantum entanglement and superposition to encrypt messages in a way that is able to detect any eavesdropping or message modification during transit. The technologies ensure confidentiality and integrity of data transmitted through public network channels. Quantum cryptography provides the strongest possible encryption and detects any tampering or interception of encrypted quantum signals. This makes it a vital cybersecurity solution for highly sensitive commercial and government communications.

Market key trends:
One of the key trends in the Quantum Cryptography Market is growing investment from both private and public entities to advance quantum cryptography technologies. There is a continuous push to strengthen cyber defense mechanisms against increasingly sophisticated cyber threats. Quantum cryptography promises theoretically unbreakable security, which is driving increased R&D funding particularly for applications in defense, banking/finance and critical infrastructure protection. For instance, the U.S. government through the National Quantum Initiative Act committed over $1.2 billion towards quantum information research including for post-quantum cryptography. This is expected to boost development of viable commercial quantum cryptography solutions over the forecast period.
Porter’s Analysis

Threat of new entrants: The threat of new entrants in the quantum cryptography market is low due to high capital requirements for R&D and need for technological expertise.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternative solutions and potential for technology disruption.

Bargaining power of suppliers: A few companies dominate the supply market giving them significant bargaining power over buyers.

Threat of new substitutes: Emerging technologies like blockchain pose a threat of substitution in the long run.

Competitive rivalry: The market is characterized by high competitive rivalry due to presence of global key players competing on security, speed and other performance metrics.

Key Takeaways

The global quantum cryptography market is expected to witness high growth, exhibiting CAGR of 19% over the forecast period, due to increasing cyber threats and rising demand for secure communication networks. The market size for 2023 is US$125.32Mn.

Regional analysis: North America dominated the market in 2022 accounting for around 35% of the global revenue due to heavy investments by tech giants and government organizations in the U.S. and Canada. Asia Pacific is expected to be the fastest growing region during the forecast period supported by rapid digitization and increasing cybercrimes in major countries like China, India and Japan.

Key players: Key players operating in the quantum cryptography market are Magiq Technologies, Inc., Quintessencelabs, Nucrypt LLC, Qutools GmbH, Qasky, Crypta Labs Ltd, Qubitekk, Inc., PQ Solutions, Infineon Technologies AG, and Id Quantique. These players are focusing on partnerships, new product launches and expanding regional presence using competitive strategies like mergers and acquisitions.