A new report estimates the demand for quantum cryptography on a whooping increase at a CAGR of nearly 30% over the decade (from 2021 to 2031). The market revenue is expected to be valued at approximately US$ 550 Million globally, at present.
According to another research by VerifiedMarketResearch, Quantum Cryptography Market was valued at USD 121.86 Million in 2019. It is further expected to reach USD 1405.77 Million by 2027, growing at a CAGR of 35.78%.
Also, MarketsAndMarkets reveal this global market size may reach USD 214 million by 2025 from USD 89 million in 2020, at a CAGR of 19.1%.
Of course, there have been several cyber-attacks, and thus leading to an increase in demand for cloud security solutions and cyber security funding along with rising demand for IoT technologies, in the era of digitization.
Altogether these are driving the growth of the global quantum cryptography market, as the pandemic evolves and amid the crisis of COVID-19.
Impact of COVID-19 on Quantum Cryptography Market
Most organizations have been significantly noting data recovery and its importance in the digital world. However, this is becoming costlier for the safeguarding or software development companies, to overcome the cyber-attacks.
In recent times, amid the COVID-19 pandemic, companies have been buying quantum cryptography solutions which are turning to be the ultimate solution for the protection of data. The use of quantum cryptography solutions with the integration of cloud-based software secures data across different industries or businesses.
Training and consulting services are being incorporated to ensure the effective deployment of quantum cryptography solutions with increasing demand for corporates of enterprises. Additionally, the encryption market is completely being guided by the growing establishment of software companies and their services.
Quantum Cryptography Market
- BFSI (Banking, Financial Services, and Insurance)
- Government and Defense
The BFSI sector is projected to take the top spot in the adoption of quantum cryptography technology. The security of critical data with customer’s bank accounts and financial transactions plays a key role.
- Deployment and Integration
- Consulting and Advisory
- Support and Maintenance.
The top mentioned service segment- ‘Deployment and Integration’ ranked at the highest among the three with the largest market share.
By Security Type
• Network Security
• Application Security.
The network security segment with leading demand is expected to grow at the highest CAGR in Quantum Cryptography Market. It’s a process intended to ensure the usability and integrity of information while combing both hardware and software technologies.
- North America
- Asia Pacific
- Rest of the world.
Best security solutions across industry verticals
The BFSI and government sectors are primarily sourcing across the adoption of security solutions for safeguarding the transactions and accounts data. Online businesses are on the next level of growth with the already existing businesses expanding their portfolio, while new players including the small and medium retailersshowcasing their products online.
Quantum cryptography is an essential need for BFSI, with the expectation of payment security to grow massively. Remote Healthcare is another area where these solutions are ascending, as the patients and doctors are virtually coordinating amid the pandemic, and the growth rate is expected to grow on a bigger scale in the near future.
Quantum Cryptography Market Dynamics: Services
The start: Growing cyber-attack incidents in the era of digitization
With digitization are occurring various frauds and attacks in cyberspace, across different industry verticals. The interchange of data between multiple devices or connections among devices is paving the way to complexities in cyber risk management. There have been cyber-attacks noted on a greater frequency, especially targeting businesses and governments.
Countries on the target of cyber-attackers
Restriction: High implementation cost
Quantum cryptography solutions have been on a productive implementation for better results to increase the safety of communication. Yet, the cost parameter and time consumption need to be reiterated to hold a place for affordability and speedy process respectively.
The distances to be covered lead to an increase in cost with these solutions. However, with the advancement of technology solutions or systems, multiple organizations benefit from having a share of investments in security at a time, while the cost is approximately USD 50,000 to connect only two parties currently.
Challenge: Commercialization of Quantum Cryptography Market
Nothing can be set for free, nor Quantum Cryptography. Commercializing it is a major challenge for the developers and implementers, as there’s a lack of customer awareness in this particular technology, although an effective way to secure data.
Innovation with relevant market information is yet to be widely spread with growing new concepts, and major challenges coming in place. The awareness of quantum cryptography solutions with customer awareness can drive the best implementation.
Usage with Security Type
Quantum Cryptography in Network Security
Interconnected networks across multiple devices can be really challenging for withstanding cyber-attacks. The utmost responsibility by the providers can only limit the failure of one component in a network to avoid a complete shutdown.
Hence, hackers can easily target networks with any redundancy in the services provided to the clients/ customers. The only additional solution of Quantum Cryptography Market implementation that’s important can also drive additional security to networks.
Quantum Cryptography in Application Security
The usage of smart devices is growing each day, and each user has multiple applications on their respective devices. A creamy layer of security such as the quantum crypto across applications by its providers with permissions can reduce the security issues.
American Continent plunging with largest market size
Among the countries list of rating in Quantum Cryptography Market, the Americas region may hold the highest stake over the next decade. One of the significant reasons for such growth is the rise in cyber-attacks in this region.
There’s a large adoption of encryption-based applications in the Americas, and hence these make the possibilities for attacks increasing. Among the other reasons, is the growing IT management complexity, with an enhanced need for data privacy and security.
4 American Countries generating significant revenue
The industry landscape can significantly expand across major regions including America’s, Europe, APAC, and middle-East Asia (MEA). However, the North American region or Canada is expected to witness quantum technology with a CAGR of around 26% in the 2021-2031 period.