Post-Quantum Cryptography (PQC) Market by Service (Migration Services, Quantum Risk Assessment), Solution (Quantum-safe Hardware, Quantum-resistant Encryption Products, Cryptographic Libraries, VPN, Authentication), and Global Forecast to 2030

Oct-2024 Formats | PDF | Category: Information and technology | Delivery: 24 to 72 Hours

Description

According to projections, the size of the post-quantum cryptography market would increase at a compound annual growth rate (CAGR) of 44.1% from USD 301.5 million in 2024 to USD 1,867.9 million by 2030.

The PQC market focusses on creating cryptographic systems that are protected from dangers posed by quantum computing, which could compromise established methods such as ECC (Elliptic Curve Cryptography) and RSA (Rivest-Shamir-Adleman). Researchers in cryptography and IT firms are creating quantum-resistant algorithms, like systems based on lattices and codes.

To standardise these standards for widespread adoption and interoperability, a number of initiatives, including the three Federal Information Processing Standards (FIPS) that the National Institute of Standards and Technology (NIST) finalised are FIPS 203: Module-Lattice-Based Key-Encapsulation Mechanism Standard (CRYSTALS-Kyber), FIPS 204: Module-Lattice-based Digital Signature Standard (CRYSTALS-Dilithium), and FIPS 205: Stateless Hash-based Digital Signature Standard (SPHINCS+).

The post-quantum cryptography market will be driven by growing cybersecurity requirements across many verticals, including government, defence, and BFSI. Therefore, the development of effective post-quantum solutions against potential quantum threats is largely dependent on ongoing technological improvements in cryptographic techniques as well as investments in research and innovation.

Impact Of Ai/Gen Ai On The Ecosystem Of The Post-Quantum Cryptography Market

PQC and AI/Gen AI together power a revolutionary market ecosystem. In order to improve PQC security, generative AI is improving PQC security protocols and helping to create quantum-resistant algorithms through data analysis and pattern recognition.

The need for AI in the market is driving up the cost of sophisticated cybersecurity solutions like PQC. While PQC recognises higher computing needs, AI’s capabilities also present a range of new risks and can pose performance issues when coupled.

All pertinent parties must carefully coordinate in order to ensure compatibility and security during the shift to PQC standards. All things considered, generative AI integration with PQC is crucial for upcoming cybersecurity initiatives.

Post-Quantum Cryptography Market Dynamics

Driver

Developing novel cryptographic algorithms

Different performance metrics apply to normal processes such as key generation and encryption/decryption times for new, quantum-safe algorithms. Post-quantum encryption techniques are extremely relevant for safeguarding censored material from adversaries using quantum computers because they offer a better level of security than standard algorithms.

These newly created cryptographic technologies can be integrated into any network, adding additional layers of defence against highly specialised cyberattacks that lack effective counters in existing algorithms. Resistance against quantum assaults is the next stage of PQC, and it is quickly taking the place of more established algorithms like RSA, Diffie-Hellman, and elliptic curves. In five to ten years, this might very well become the norm.

Restraint

Huge Implementation Costs
Because migrating to PQC necessitates significant software development and hardware improvements, the implementation costs are high. Because PQC algorithms’ calculations require more processing power due to their inherent complexity, they call for costlier hardware accelerators and larger memory capacities.

Furthermore, intricate heuristic processes are required for choosing algorithms, altering software design, and conducting validation tests—all labour- and resource-intensive operations—in order to incorporate PQC into current systems. Due to the inclusion of knowledgeable developers with prior cryptography experience, notably in PQC, the number of developers participating will also rise, increasing the overall cost. These kinds of investments are not insignificant for the majority of small and medium-sized businesses with constrained IT budgets.

Opportunity

Migration of Post-Quantum Cryptography

The impending threat of quantum computing to current encryption standards is projected to drive the move towards the post-quantum cryptography sector and create new opportunities for companies and service providers. The need for PQC solutions will increase as awareness grows. Specialised knowledge is needed for system audits, algorithm selection, implementation, and management—all tasks related to complex migration.

Mandatory PQC implementation and regulatory compliance in data-sensitive businesses will also fuel this demand. Early adopters of PQC will benefit from first-mover advantages that secure ongoing operations and offer long-term security. These organisations will also open up new market sectors for managed services, consultancy, implementation, PQC tool development, and education. The early adopters will benefit from a multifaceted change that positions their company for success in the evolving cybersecurity market.

Challenge

Difficulties and Strategic Issues in Putting Post-Quantum Cryptography (PQC) into Practice: PQC employs key sizes that are significantly greater than those of conventional public-key algorithms. The enormous size of the key results in lengthier encryption and decryption times, but it also raises the needs for memory, storage, and network bandwidth. With bigger key sizes, this slight decrease in efficiency over small datasets is noticeable. However, these demands present a major obstacle to older technology, which can make deployment difficult in some situations.

This is particularly true for latency-sensitive applications like computer vision for autonomous vehicles and devices with limited resources like smartphones and Internet of Things devices. Even in cases when PQC is compatible with the majority of devices, optimal support for this technology typically necessitates infrastructure changes.

Post-quantum Cryptography Market Segment Analysis

During the course of the forecast period, migration services are anticipated to increase at the fastest rate per service.

Due to the exponential rise of quantum technology, there will soon be a significant need for migration services, which will increase the need for PQC solutions. These services also help businesses manage security threats and navigate the ever-changing vendor ecosystem. Migration services are expected to become more and more crucial in the post-quantum cryptography industry because PQC migration is becoming more and more necessary due to complicated transitions, regulatory requirements, and security concerns.

Post-quantum Cryptography Market Regional Outlook

The post-quantum cryptography market is dominated by North America for a number of reasons. Growth in the region was driven by early acceptance and investments in pertinent research, and the built cybersecurity infrastructure generated a range of specialised institutions and technology enterprises to support the implementation of PQC. PQC solutions are in higher demand as a result of the stringent GDPR and CCPA data protection laws. Major IT firms like Palo Alto Networks, IBM, and AWS are added to this, along with proactive government programs for standard-setting and research financing. Given the growing risks associated with quantum computing, North America’s emphasis on the post-quantum cryptography sector guarantees sustained market leadership and substantial contributions from major technology companies while implementing stringent regulatory measures.

Post-quantum Cryptography Market Key Players

The key players in the post-quantum cryptography market are NXP Semiconductor (Netherlands), Thales (France), AWS (US), IDEMIA (France), Palo Alto Networks (US), DigiCert (US), Kloch (US), Post-Quantum (UK), PQ Shield (US), Entrust (US), and IBM (US).

Scope of the Report

Report Metrics	Details
Market size available for years	2024–2030
Base year considered	2023
Forecast period	2024–2030
Forecast units	Value (USD Million/USD Billion)
Segments Covered	By Solution, Service, Organization Size, Vertical, Region.
Geographies covered	North America, Europe, Asia Pacific, Rest of the World
Companies covered	Major vendors in the post-quantum cryptography market include NXP Semiconductor (Netherlands), Thales (France), AWS (US), IDEMIA (France), Palo Alto Networks (US), DigiCert (US), Kloch (US), Post-Quantum (UK), PQ Shield (US), Entrust (US), IBM (US), Utimaco (Germany), Crypto Quantique (US), Crypto4A (Canada), CryptoNext (France), QNU Labs (India), Qrypt (US), Enquantum (Israel), Xiphera (Finland), Sixscape (Singapore), Keyfactor (US), ResQuant (Poland), Rambus (US), Archon (British Virgin Island), and Riscure (Netherlands)

Segment Covered in the report are

By Solution

Quantum-safe hardware
Quantum-resistant algorithms
Quantum-safe cryptographic libraries
Quantum-safe VPN, email service, and messaging systems
Quantum-safe blockchain solutions
Quantum-safe authentication solutions
Quantum-resistant encryption products

By Service

Design, Implementation, & Consulting services
Migration services
Quantum risk assessment

By Organization Size

SME’s
Large Enterprises

By Vertical

By Region:

North America
- US
- Canada
Europe
- UK
- France
- Asia Pacific
- China
- Japan
- Rest of the World

Recent Developments

In April 2024, NXP Semiconductors (Netherlands) and Utimaco (Germany) formed a collaboration, prompting the need for migration to post-quantum cryptography market. NXP, a global semiconductor designer, has taken proactive steps by implementing secure firmware signing on its chips using PQC. In collaboration with Utimaco, NXP is making its infrastructure quantum-resistant. This session covers best practices for migrating to PQC, a case study on NXP’s quantum security efforts with Utimaco, and an introduction to secure signing solutions using the CRYSTALS-Dilithium PQC algorithm.

In May 2024, Palo Alto Networks (US) and IBM (US) announced a strategic partnership to enhance AI-powered security solutions. IBM will integrate Palo Alto Networks’ platforms into its security consulting services and train over 1,000 consultants on these products. As part of the collaboration, Palo Alto Networks will acquire IBM’s QRadar SaaS assets and migrate QRadar customers to its Cortex XSIAM platform, which offers advanced AI-driven threat protection. IBM will continue supporting existing QRadar on-premise clients and receive additional payments to facilitate migrations. This partnership addresses cybersecurity challenges through integrated AI solutions and improved security operations.

In February 2024, The Linux Foundation, in collaboration with AWS, Cisco, Google, IBM, NVIDIA, and others, launched the Post-Quantum Cryptography Alliance (PQCA). This initiative aims to advance and promote post-quantum cryptography (PQC) to address the security challenges posed by future quantum computers. The PQCA will work on high-assurance software implementations and support the development of new PQC algorithms. Founding members include IntellectEU, Keyfactor, Kudelski IoT, QuSecure, SandboxAQ, and the University of Waterloo, contributing to projects like the Open Quantum Safe and PQ Code Package projects. The alliance aims to enhance global cybersecurity and prepare for the quantum computing era.

In January 2024, Thales (France), in collaboration with Quantinuum (US), launched a Post-Quantum Cryptography (PQC) Starter Kit to help enterprises prepare for the challenges posed by quantum computing. This kit enables businesses to test quantum-hardened encryption keys and assess the impact of quantum computing on their security infrastructure. Incorporating Thales’ Luna HSMs and Quantinuum’s quantum random number generation technology, the kit provides a trusted lab environment for testing various security scenarios, including PKI, code-signing, TLS, and IoT. This initiative aims to help organizations transition smoothly to quantum-safe protocols and address potential weaknesses before quantum computing becomes a significant threat.

Frequently Asked Questions (FAQ):

What opportunities exist in the market for post-quantum cryptography?

The market for post-quantum cryptography offers a plethora of prospects. To enhance threat detection and response, integrating PQC systems with other cutting-edge technologies like cloud computing and artificial intelligence is one of the main potential. Efforts to standardise made by groups like NIST create opportunities for widespread adoption and industry expansion. Further innovation opportunities exist in quantum-resistant algorithms and bespoke solutions for sensitive data-handling businesses.

What is the market for post-quantum cryptography defined as?

The field devoted to creating, standardising, and implementing cryptographic algorithms and security protocols made resistant to the possible dangers posed by quantum computers is known as the post-quantum cryptography market. When quantum computers reach their full potential, it is predicted that they would be able to crack numerous cryptographic schemes, including RSA and ECC (Elliptic Curve Cryptography).

Which geographical area is anticipated to hold the biggest share of the post-quantum cryptography market?

Over the course of the projection period, North America is anticipated to hold the biggest market share.

Which well-known industry participants are included in the report?

NXP Semiconductor (Netherlands), Thales (France), AWS (US), IDEMIA (France), Palo Alto Networks (US), DigiCert (US), Kloch (US), Post-Quantum (UK), PQ Shield (US), Entrust (US), IBM (US), Utimaco (Germany), Crypto Quantique (US), Crypto4A (Canada), CryptoNext (France), QNU Labs (India), Qrypt (US), Enquantum (Israel), Xiphera (Finland), Sixscape (Singapore), Keyfactor (US), ResQuant (Poland), Rambus (US), Archon (British Virgin Island), and Riscure (Netherlands) are prominent vendors in the post-quantum cryptography market.

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