Post-Quantum Cryptography Market Size, Share, Analysis 2030

Report Description

Market Outlook:

The Global Post-Quantum Cryptography Market is expected to commercialize PQC solutions and services from the year 2024. It is expected to value at USD 158.3 Million in 2024 and is expected to reach USD 8,763.8 Million in 2030, expanding at a CAGR of 95.2% during the forecast period.

Post-quantum cryptography, also known as quantum-proof, quantum encryption, and quantum-resistant or quantum-safe, is the creation of encryption systems for classical computers that can withstand quantum computer attacks. Post-quantum cryptography typically refers to public-key cryptography methods that are designed to be resistant to quantum computer-based attacks. It equips users with the future of quantum computing by modifying existing mathematical-based algorithms and standards.

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Market Dynamics

Growing cyber-attack incidents

Data breaches and cyber-attacks have become more common and prominent than ever before with the advent of digitization. The growing number of connected devices is complicating cyber risk management and causing undesirable cyber events all around the world. As a result, cyber-attacks are becoming more common and are increasingly targeting corporations and governments. Cyber-attackers primarily target the United States, Europe, Brazil, India, China, Turkey, Pakistan, and Algeria.

Post Quantum Cryptography approaches are anticipated to be used by IT executives to combat quantum technology as they are quantum-resistant or quantum-safe. These organizations are anticipated to be inclined to adopt quantum technology more quickly than the adoption rate of artificial intelligence, which in turn, is expected to propel the Global Post-Quantum Cryptography Market during the forecast period.

Evolution of Wireless Network Technologies

Wireless networks are important modes of communication. As a result, protecting the security of data carried across wireless networks is critical. Classical cryptography provides conditional security with multiple flaws for wireless networks, whereas post-quantum cryptography is unconditionally safe.

The primary shortcoming of classical cryptography is that it does not allow the sender and receiver to detect the presence of an adversary. As quantum computers become practical, various classical cryptosystems become breakable. Rising awareness about the various flaws in classical cryptosystems among people is anticipated to boost the use of alternatives for safeguarding future electronic communication.

Post-quantum cryptography addresses the numerous flaws encountered in traditional cryptosystems. The benefit of post-quantum cryptography over classic cryptographic systems is that it provides unconditional security to combine with wireless networks. Thus, boosting the market in the coming years.

Rising Demand for Security Solutions Across Several Industry Verticals

The BFSI and government sectors are implementing security solutions to secure their transactions. Daily transactions are rising due to the rapid rise in the number of online enterprises. It is critical to protect customer and proprietary information in banking transactions and apps. Thus, post-quantum cryptography is expected to become integral for the security of these transactions in the coming years.

Financial institutions offer online banking and online transactions to their consumers, which is projected to increase payment security as a result of next-generation post-quantum cryptography technologies. Furthermore, government agencies are required to securely communicate massive amounts of confidential data globally, which increases susceptibility to cyber-attacks. Post-quantum cryptography provides the best key generation procedures for extremely secure crypto operations and banking solutions.

It creates keys for the use in security applications and cryptographic processes, including authentication, digital signatures, and secure access control. Furthermore, it assists governments protect mission-critical data and delivers high-performance layer encryption. These factors are projected to expand rapidly during the forecast period.

High Implementation and Installation Costs

Although the use of quantum cryptography solutions improves communication security, they are costly and time-consuming to implement, which is expected to restrain the use of post-quantum cryptography solutions in the near future. Their installation costs rise with the growing distance; as a result, enterprises have to pay high fees for implementing and sustaining these solutions and services, which may become burdensome.

Furthermore, the adoption necessitates costly infrastructure, increasing the cost for businesses. Post-quantum cryptography is expected to be a practical alternative for enterprises, as it requires fewer computing infrastructure changes while replacing present encryption techniques.

However, the move is challenging for businesses that need to negotiate a diverse protocol landscape. The challenge is accentuated by the transition that takes time and requires frequent software upgrades, which are anticipated to restrict the market.

Growing Need for Next-Generation Security Solutions for Cloud and IoT Technologies

The Internet of things (IoT) is a network that connects the physical and cybernetic worlds. IoT-based applications such as smart cities, healthcare, meteorology, agriculture, and smart grids use small, low-cost devices with limited resources. Lightweight security primitives and protocols are necessary to secure these resource-constrained devices.

Traditional lightweight security primitives and protocols are projected to be broken by quantum computers. Furthermore, IoT networks are subject to attacks such as Sybil, eclipse, replay, side-channel, and fake data injection. Thus, security vulnerabilities with IoT devices are harmful and must be addressed. Classical and lightweight cryptographic primitives and protocols are vulnerable to quantum attacks. A real-time application that uses traditional or lightweight cryptographic primitives and protocols, which does not provide complete security. Lightweight post-quantum cryptography systems need to be included due to their resistance to quantum attacks. Thus, the rising demand for cybersecurity tools on IoT, blockchain technologies, cloud storage, and computing technologies is expected to create lucrative opportunities in this market in the coming years.

Scope of the Report

The report on the Global Post-Quantum Cryptography Market includes an assessment of the market, trends, segments, and regional markets. The overview and dynamics have also been included in the report.

Segmental Outlook

The Global Post-Quantum Cryptography Market is segmented on the basis of type, security type, organization size, industry vertical, and regions.

In terms of Type, the Post-Quantum Cryptography Market is segmented into Lattice-based Cryptography, Multivariate Cryptography, Hash-based Cryptography, Code-based Cryptography, Symmetric Key Quantum Resistance, and Isogeny-Based Cryptography. Lattice-based Cryptography is expected to dominate the market in 2024, owing to its efficiency and versatility, with use cases ranging from the foundational building blocks of cryptography to highly complex protocols.

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On the basis of Security type, the Post-Quantum Cryptography market is segmented into Application Security and Network Security. The network security segment is expected to hold a substantial share of the market during the forecast. As it protects private information shared between two communicating parties from a third party.

Based on Organization size, the Post-Quantum Cryptography Market is segmented into Large Enterprise and Small & Medium Enterprises. The large enterprise segment is expected to dominate the market in 2024. As large enterprises companies make huge investments in R&D for new technologies.

In terms of Industry vertical, the Post-Quantum Cryptography Market is segmented into Banking & Finance, Information Technology, Government, Military & Defense, Telecommunication, Automotive & Transportation, and Others. Banking & Finance is expected to dominate the market in 2024, as it deals with highly sensitive information, such as financial transactions, personal data, and account information.

Regional Outlook

Based on regions, the Post-Quantum Cryptography Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in the Asia Pacific is projected to expand at a significant CAGR during the forecast period. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period due to the rising cyberattack incidents brought on by rapid digitalization, growing cybersecurity funding, ongoing adoption of next-generation security solutions for the cloud and IoT, and developing next-generation wireless network technologies.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Post-Quantum Cryptography Market
• Historical, Current and Projected Market Size in terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Post-Quantum Cryptography Market Performance