Quantum Cryptography Market - Forecasts from 2021 to 2026

The quantum cryptography market is projected to grow at a CAGR of 26.04% to reach US$1,635.934 million by 2026, from US$323.478 million in 2019. Quantum cryptography refers to the technique for the creation of a cryptographic key with the use of photons, transmitted to a receiver by using a suitable communication channel. Quantum cryptography allows users to interact with secure methods which are based on invariable and fundamental principles of quantum mechanics to increase the privacy of communication.

Driving Factors

The increasing demand for quantum cryptography due to the growing cyber-attacks and data theft incidents in the era of digitization has proved to be a major driver for the quantum cryptography market in the forecast period. As digitization offers various chances to optimize operations and systems across various industry verticals. Hence, the increasing number of connected devices is leading to growing data thefts and cyber-attacks across the globe. These data theft activities and cyber-attacks at a higher rate pose a threat to growing businesses and governments of nations. Several developing and developed countries including China, the US, Turkey, Pakistan, Brazil, India have proven to be major targets of cyber-attacks and data theft activities. Also, the increasing occurrence of cyber-attacks in financial services and online banking owing to the high penetration of internet services has led to the adoption of quantum cryptography in recent years leading to its market growth.

Market Segmentation

The quantum cryptography market, based on the application of quantum cryptography is divided into application security, database encryption, network security, and others. The network security system is anticipated to grow at a promising rate as quantum cryptography is implemented to ensure application security and network security. Network security refers to the process to ensure usability and integrity of information and network. Which incorporates both hardware and software technologies. Network securities growing application in various industry verticals has led to its growing adoption.

By enterprise size, the large enterprise is expected to uphold maximum growth owing to the greater threat of cyber-attacks on enterprises or firms leading to data loss.

By end-user application, the quantum cryptography market is segmented into communication and technology, government, military and defense, retail, healthcare, BFSI, and others. The BFSI segment is anticipated to grow at a faster rate owing to the increasing adoption of quantum cryptography in the end-user segment. The growing cyber-attacks in the banking and finance sector have led to the growth of the quantum cryptography market.

Geographically the North American region in the quantum cryptography market is expected to show prominent growth owing to the rising rate of cyber-attacks in the region leading to the adoption of quantum cryptography. With the high adoption of encryption-based applications in the North American region, the rate of cyber-attacks is rising dramatically. Also, the increasing need for data privacy and the growing IT management complexity are leading to the growth of the quantum cryptography market.

Growth Factors

Growing applications across industry verticals, enterprises, and government sectors.

One of the major reasons for the growth of quantum cryptography is the application of quantum cryptography across various industry verticals including government and enterprises sectors, healthcare, BFSI industry verticals. Digitalization, automation, and Industry 4.0 have had a rapid change in the adoption of business applications. The growing consumers and business for operation agility have led to a digital transformation across industry sectors. The demand for a strong network by enterprises to support the digital transformation has led to the adoption of quantum cryptography to safeguard their data with the growing technological advancements and evolving ecosystem.

Restraints

High implementation costs associated with quantum cryptography

A major restraint in the growth of the quantum cryptography market is the high implementation costs associated with it. Although the advantages associated with the installation of quantum cryptography are quite high the higher cost of implementation and higher time consumption for implementation of quantum cryptography acts as a major hindrance to the market growth of quantum cryptography. The implementation cost associated with quantum cryptography increases with distance leading to enterprises paying a huge sum of money for the maintenance and implementation of these solutions and services leading to its less adoption.

Impact of COVID-19 on the quantum cryptography market

The COVID-19 pandemic has had a great impact on the world as a whole and has led to economic breakdown and loss of life. The COVID-19 impact on the quantum cryptography market has been positive owing to the increase in demand for digitalization. The cost of data recovery is relatively high and the growing cyber-attacks and data breaches during the course of the pandemic have led to the adoption of quantum cryptography solutions by companies to secure their data. The surging use of cloud-based software adoption across various industry verticals has fueled the growing adoption of quantum cryptography in the forecast period. Furthermore, the increasing number of cyber security firms or companies on the services and databases offered is further boosting the market growth of the quantum cryptography market.

Segmentation:

By Component

• Hardware
• Software
• Services

By Enterprise Size

• Small
• Medium
• Large

By Application

• Network Security
• Database Encryption
• Application Security
• Others

By End-User Industry

• Communication and Technology
• Government
• Military and Defence
• Retail
• Healthcare
• BFSI
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• Indonesia
• Taiwan
• Thailand
• Others