Quantum cryptography and network market is growing
|Richard Harris in Quantum Computing Friday, May 5, 2023|
According to Astute Analytics, the Quantum cryptography and network market is growing and set to reach 8,136M USD by 2031. We cover the key insights of the global quantum cryptography and network market report, some recent developments, and the top market players.
The global quantum cryptography and network market was valued at US$ 698.31 million in 2022 and is projected to reach US$ 8,136.60 million by 2031 at a projected CAGR of around 32.99% during the forecast period 2023-2031. The increasing need for secure communication and data transfer, along with the rising adoption of quantum cryptography solutions by governments and defense agencies, are some of the key factors driving the market growth.
The emergence of quantum-based computing and communication technologies is opening up new opportunities for businesses and governments in various sectors such as finance, healthcare, and defense, to improve security and reliability. Furthermore, the increasing investments in research and development activities to explore the potential of quantum technologies are expected to boost market growth.
However, the complexity and interference from the environment remain significant restraints to the adoption of quantum cryptography and network solutions, particularly in industries where high levels of precision and reliability are required. To address this challenge, industry organizations are working to develop solutions that can mitigate the effects of external factors on quantum systems.
North America is expected to dominate the global quantum cryptography and network market, accounting for over 46% of the revenue share, followed by Europe and the Asia Pacific region. The presence of several key players in the region, including IBM, Microsoft, and Google, who are investing heavily in research and development of quantum computing and network solutions, is driving the market growth.
Key insights of the global quantum cryptography and network market
The solution segment, including quantum key distribution systems, quantum random number generators, and post-quantum cryptography solutions, is expected to dominate the market, accounting for over 62% of the revenue share.
Network security solutions, including network encryption, VPNs, and IDPS, are expected to dominate the market, accounting for over 71.30% of the revenue share.
Quantum key distribution is expected to dominate the market for network types, accounting for more than 66% of the revenue share, due to its ability to provide unbreakable security for sensitive data transfers.
Symmetric encryption algorithms, including AES, DES, and 3DES, are expected to capture over 76% of the revenue share in the cryptography encryption type segment, due to their efficiency and simplicity.
3DES is expected to dominate the cryptography encryption algorithm segment, accounting for 42% of the revenue share, due to its high level of security provided by the use of three keys for encryption and decryption.
Large enterprises are expected to dominate the quantum cryptography and network market, accounting for over 72% of the revenue share, due to the high cost of developing and deploying quantum cryptography and network solutions.
Quantum Leap: Asia Pacific emerges as lucrative hub for quantum cryptography and network market with revenue opportunity of 2,567M by 2031
The Asia Pacific region is witnessing strong growth in the market due to the increasing adoption of quantum technologies and the rising demand for secure communication and data transfer. The region is projected to generate a revenue of $2,567 million by 2031, which is around 14 folds higher than in 2022. This growth can be attributed to several factors.
China and India, two of the largest economies in the region, are leading the way in the adoption of quantum cryptography and network solutions. The Chinese government has made significant investments in the development of quantum technologies, with the goal of becoming a global leader in the field. The country is also home to several leading companies in the quantum computing and network solutions space, including Alibaba and Huawei.
Similarly, the Indian government has also taken steps to promote the adoption of quantum technologies in the Asia Pacific quantum cryptography and network market, with the establishment of the National Mission on Quantum Technologies and Applications (NM-QTA). The mission aims to develop and promote quantum technologies in India, with a focus on areas such as cryptography, communication, and computing.
The governments in the region are also providing funding for research and development in the field of quantum cryptography and network solutions. For example, the Chinese government has launched several quantum research programs, including the National Key Research and Development Program and the National Laboratory for Quantum Information Sciences. The Indian government has also allocated funding for quantum research through the NM-QTA.
In addition to government funding, private funding is also driving growth in the region. Several startups in the quantum cryptography and network space have emerged in recent years, backed by private investors. For example, Singapore-based SpeQtral raised $1.9 million in seed funding in 2020 to develop its quantum communication technology.
New projects are also being launched in the Asia Pacific quantum cryptography and network market to develop and deploy quantum cryptography and network solutions. For instance, the Chinese Academy of Sciences is developing a quantum communication satellite network to provide secure communication for government agencies and financial institutions. Similarly, the Indian Space Research Organization (ISRO) is developing a quantum communication satellite, called Quantum Experiments Using Satellite Technology (QUEST), to provide secure communication for the Indian government.
IBM leads the pack with 13% market share: A look at the competitive landscape of the global quantum cryptography and network market
The global market is highly competitive, with many companies providing a range of products to meet the increasing demand for secure communication and data transfer. The market is characterized by monopolistic competition, with the cumulative market share of the six major players close to 40.55%. IBM leads the market with over 13% market share, followed by Google with 7.46% and Intel with 6.28%. Other major players in the market include Toshiba, Microsoft, and D-Wave, among others.
IBM has a strong presence in the market with its quantum roadmap leading to increasingly larger and better chips. The company aims to build national quantum ecosystems, develop workforces, and accelerate R&D on a national and global scale. IBM is said to have a worldwide virtual monopoly on the market and its products are used in major quantum computers.
With the global quantum cryptography and network market expected to grow significantly in the coming years, the competition among the players is expected to intensify, with companies expanding their geographical boundaries by acquiring small brands and domestic companies to increase their market share.
Honeywell Quantum Solutions acquired Cambridge Quantum Computing (CQC) to expand its portfolio of quantum solutions and services.
IonQ went public through a merger with dMY Technology Group III, raising $650 million in gross proceeds to fund its quantum computing initiatives.
UK-based Arqit Limited announced a merger with a special purpose acquisition company (SPAC), Centricus Acquisition Corp, to become a publicly traded company and raise up to $400 million to support the development of its quantum encryption technology.
Japanese multinational corporation NEC announced a partnership with quantum software startup SeeQC to co-develop superconducting technologies for quantum computers in the global quantum cryptography and network market.
The US Department of Defense (DoD) announced a $34 million funding opportunity for research and development in quantum technology, including quantum cryptography and network solutions.
The US Department of Energy announced funding of over $9.1 million in funding for 13 projects in Quantum Information Science.
Some of the top market players are:
Isara and Post-Quantum
Quantum Computing Inc (QCI)
Other Prominent Players
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