June 23, 2024

The Growing Quantum Cryptography Market is driven by increasing cyber threats

 

Quantum cryptography or quantum key distribution (QKD) utilizes the properties of quantum mechanics to encrypt and decrypt messages with cryptographic protocols that are proven secure against even quantum computers. It helps generate and distribute cryptographic keys using the laws of quantum mechanics. Quantum cryptography products enable applications such as network security, payment security, and identification and authentication protocols.

The global Quantum Cryptography Market is estimated to be valued at US$ 125.32 million in 2024 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 key trends:

One of the major trends in the quantum cryptography market is the increasing adoption across banking and financial services. With the growing number of financial transactions taking place digitally, the need for strong encryption to protect sensitive data is rising exponentially. However, traditional public key encryption systems are vulnerable to attacks from quantum computers. Quantum cryptography provides unconditional security to protect financial networks and block any potential cyber threats in the future. Many banking giants are partnering with quantum cryptography providers to implement this next-gen encryption technology and future proof their IT infrastructure. This increasing focus on payment security will significantly drive the demand for quantum cryptography solutions over the coming years.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the quantum cryptography market is moderate as establishing cryptographic solutions requires significant capital investments and expertise in quantum mechanics. However, increasing government funding supports new market entrants.
Bargaining power of buyers: The bargaining power of buyers in the quantum cryptography market is high. Buyers have a variety of solution providers to choose from and solutions can be substituted based on specific industry needs.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as specialized components and equipment used in quantum cryptography solutions have few substitutes. However, increasing private investments are encouraging new suppliers.
Threat of new substitutes: The threat of substitutes is low as classical encryption techniques cannot provide the same levels of security as quantum cryptography in the long run. However, post-quantum cryptography remains an alternative.
Competitive rivalry: Competition in the quantum cryptography market is high and intensifying. Major players focus on product innovations and strategic partnerships to gain market share.

Key Takeaways
The global quantum cryptography market is expected to witness high growth over the forecast period supported by increasing investments to develop hack-proof communication solutions. The global Quantum Cryptography Market is estimated to be valued at US$ 125.32 million in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030.

Regional analysis: North America dominates the global quantum cryptography market currently driven by extensive R&D activities and ongoing technology trials conducted by key players in the US. Asia Pacific is anticipated to be the fastest growing regional market with countries like China and India ramping up investments to develop indigenous quantum technology capabilities.

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. Players are focusing on product launches and collaborations with research institutes to strengthen their positions in the emerging market.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it