Amid the COVID-19 crisis, the global market for quantum cryptography estimated at $93.1 million in the year 2020, is projected to reach a revised size of $291.9 million by 2026, growing at a CAGR of 20.8% over the analysis period, according to ResearchAndMarkets.
Solutions, one of the segments analyzed in the report, is projected to grow at a 18.3% CAGR to reach $194.2 million by the end of the analysis period.
Growth in the global market is set to be driven by rising frequency of cyber-attacks, increasing focus on cyber-security and evolution of sophisticated wireless networks. Quantum cryptography is gaining attention due to increasing digitalization and the resulting surge in cyber-security risks and other threats such as data security and breach. Industries across different verticals are facing increasing frequency and sophistication of cyber-attacks due to proliferation of the Internet, connected devices and online services.
The market growth is favored by high reliance of organizations and customers on computer networks for transactions and communication, which is leading to the demand for advanced technology to safeguard sensitive data. While increasing cyber-security funding and high uptake of advanced security solutions are augmenting the market growth, increasing penetration of the IoT and cloud technologies is expected to create new growth avenues. In addition, the market growth is buoyed by increasing implementation of next-generation wireless network technologies.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Services segment is readjusted to a revised 24.7% CAGR for the next 7-year period. This segment currently accounts for a 35.6% share of the global Quantum Cryptography market. The pressing need to protect the network from various vulnerabilities is driving an increasing number of industries like BFSI, defense, government, healthcare, automotive and retail to embrace quantum cryptography solutions.
The U.S. quantum cryptography market is estimated at $40.6M in 2021
The quantum cryptography market in the U.S. is estimated at $40.6 million in the year 2021. The country currently accounts for a 37.5% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of $40.6 million in the year 2026 trailing a CAGR of 19.3% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 19.5% and 21.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 21.1% CAGR while Rest of European market (as defined in the study) will reach $23 million by the end of the analysis period.
North America is projected to dominate the global market and account for the leading revenue share due to an extensive customer base, increasing incident of cyber-attacks and rising investments in R&D. The proliferation of encryption-based applications in the region has resulted in dramatic surge in frequency of sophisticated cyber-attacks, requiring companies to secure networks and applications with implementation of quantum cryptography solutions.
The Asia-Pacific market is anticipated to witness increasing efforts by providers of quantum cryptography services and solutions to join hands with clients to boost overall sales and market presence.