Quantum cryptography utilizes quantum-mechanic phenomena to guarantee secure encryption keys that can detect any eavesdropping or cyber-attacks. It helps provide unconditional security for applications such as code signing, e-commerce transactions, securing IoT devices and more. The growing demand for robust cyber security across various end-use industries is driving the need for quantum cryptography.
The global Quantum Cryptography Market is estimated to be valued at US$ 125.32 million 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 key trends:
The quantum cryptography market is expected to witness significant growth over the forecast period owing to the enhancing need for cyber security with the increasing instances of cyber-attacks and data breaches across the globe. Quantum cryptography provides unconditional security by detecting any attempts of eavesdropping or cyber espionage, as it relies on the principles of quantum mechanics. With rising digitalization across industries and governments storing highly confidential data over cloud and other digital platforms, the demand for powerful cyber security technologies like quantum cryptography is growing at a rapid pace. This is anticipated to drive the market substantially during the forecast period.
Strength: Quantum cryptography leverages the principles of quantum mechanics to provide unconditional security for cryptographic systems. It addresses limitations of traditional public-key cryptosystems.
Weakness: Quantum cryptography infrastructure is still evolving and expensive to deploy at large scale due to challenges with long-range quantum key distribution. Implementation issues related to photon loss and noise also impact performance and usability.
Opportunity: Rapid commercialization of quantum computing by major tech players is driving investments in post-quantum cryptography solutions like quantum key distribution. Increasing instances of cyberattacks are raising awareness about security loopholes of conventional systems.
Threats: Advancement in quantum computing capabilities could render existing cryptosystems insecure over the long run. Emergence of alternate quantum-resistant security solutions pose competition. Alignment challenges with classical networks also impact integration and scalability.
The global quantum cryptography market is expected to witness high growth over the forecast period of 2023 to 2030. The global Quantum Cryptography Market is estimated to be valued at US$ 125.32 million in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030.
The regional analysis indicates that North America holds the highest market share currently due to heavy investments by government and private players in the U.S. and Canada to develop quantum technologies. The Asia Pacific region is expected to grow at the fastest pace due to increasing funding in quantum research from China, India, Japan and South Korea.
Key players operating in the quantum cryptography market are Magiq Technologies, Inc., Quintessencelabs, Nucrypt LLC, Qutools GmbH, Qasky, Crypta Labs Ltd, Qubitekk, Inc., Infineon Technologies AG, and Id Quantique. These companies are focussing on new product launches and technological advancements to address scalability, performance and integration challenges. Partnerships with telecom operators and cloud service providers are also helping expand applications and commercialization of quantum cryptography based solutions.
- Source: Coherent Market Insights, Public sources, Desk research
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