Post-Quantum Cryptography Market Expected to Reach $17,696.4 Million by 2034- BIS Research

Market Overview 

Market Size and Growth  

The post-quantum cryptography market is poised for exponential growth as organizations worldwide prepare for the disruptive potential of quantum computing. According to BIS Research, the market was valued at $356.4 million in 2023 and is projected to reach $17,696.4 million by 2034, growing at a CAGR of 41.47%. This surge is fueled by the urgent need to secure sensitive data from future quantum threats, especially across finance, healthcare, and government sectors. Regulatory pressure and increasing investments in cybersecurity infrastructure are further driving adoption. 

Trends and Innovation 

The market is witnessing rapid innovation as stakeholders race to build quantum-resistant encryption standards. Efforts led by NIST, alongside advancements in lattice-based cryptography, multivariate polynomial encryption, and hash-based signatures, are shaping the next generation of secure communication. Despite implementation challenges and high development costs, ongoing collaborations between academia, tech companies, and governments are accelerating real-world deployment. As digital transformation and data sensitivity grow, post-quantum cryptography is becoming essential to long-term cybersecurity strategy. 

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Key Highlights 

Report USP 

• Detailed regional insights and competitive benchmarking. 
• Comprehensive analysis of demand drivers, challenges, and growth opportunities. 
• Extensive regional segmentation and profiles of leading players. 

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Demand Drivers, Challenges and Opportunities

Demand Drivers 

Quantum computing poses a serious threat to current cryptographic systems like RSA and ECC. With quantum algorithms, such as Shor's, these systems could crack in record time, leaving sensitive data vulnerable. This escalating risk is driving businesses and governments to adopt quantum-resistant cryptography, ensuring long-term data security in the post-quantum world. 

Challenges 

Implementing post-quantum cryptography (PQC) is no easy feat. Transitioning from traditional systems to quantum-safe solutions involves high costs and technical hurdles, especially for industries like finance and healthcare. Retrofitting existing IT systems and ensuring compatibility can be resource-intensive, slowing adoption despite the urgent need for enhanced security. 

Opportunities 

Financial institutions and healthcare providers are at the forefront of adopting PQC. These sectors manage massive sensitive data volumes, making them prime targets for quantum threats. By adopting quantum-safe encryption, they’re not just securing data today but also preparing for quantum-powered threats tomorrow. The push for compliance with standards like NIST is further accelerating demand in these critical industries. 

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Market Segmentation 

Segmentation 1: based on Security Application 

•    Network Security 

•    Application Security 

Segmentation 2: based on End-Use Industry 

•    BFSI 

•    Government and Defense 

•    IT and Telecommunications 

•    Healthcare 

•    Others 

Segmentation 3: based on Solution 

•    Lattice-Based Cryptography 

•    Code-Based Cryptography 

•    Multivariate Cryptography 

•    Hash-Based Cryptography 

•    Isogency-Based Cryptography 

•    Symmetric Key Quantum Resistance 

Segmentation 4: based on Product 

•    Hardware 

        o    PQC Chips 

        o    Quantum-Resistant Processors 

        o    Cryptographic Accelerator 

        o    Quantum-Resistant HSMs 

        o    Embedded Systems with PQC 

•    Software 

        o    PQC Encryption Libraries 

        o    PQC Key Management Systems 

        o    Quantum Resistant VPNs 

        o    PQC-Integrated Security Software 

        o    PQC for Cloud Security 

Segmentation 5: based on Region 

•    North America: U.S., Canada, and Mexico 

•    Europe: Germany, France, Spain, Italy, U.K., and Rest-of-Europe 

•    Asia-Pacific: China, Japan, India, Taiwan, South Korea and Rest-of-Asia-Pacific 

•    Rest-of-the-World: Middle East and Africa and South America 

Competitive Landscape 

Key Players 

•    IBM 

•    ID Quantique 

•    ETAS 

•    Infineon Technologies AG 

•    PQShield Ltd 

•    Qrypt 

•    QuintessenceLabs 

•    SandboxAQ 

•    Thales 

•    CryptoNext, inc. 

•    Agnostiq 

•    IonQ 

•    D-Wave Quantum Inc. 

•    Crypto Quantique 

•    Quantinuum Ltd. 

•    Atom Computing Inc. 

•    PQ Solutions Limited 

•    Toshiba Corporation 

•    Microsoft 

•    Fujitsu 

•    Anhui Wentian Quantum Technology Co. Ltd. 

•    Quantum Xchange 

•    Quantum Blockchains 

Strategic Initiatives  

The post-quantum cryptography (PQC) market is gaining momentum as stakeholders recognize the vulnerabilities posed by quantum computing to classical encryption systems. Leading technology companies and national cybersecurity agencies are investing heavily in research and development, talent acquisition, and standardization efforts to ensure a secure transition to quantum-resistant cryptographic protocols. 

Case Study or Success Story 

A notable example of PQC implementation is the collaboration between IBM and the German government, where IBM integrated quantum-safe algorithms into secure communication networks for critical infrastructure. This pilot demonstrated the real-world viability of quantum-resistant encryption in protecting national data assets from future quantum-based decryption threats. 

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About BIS Research 

BIS Research is a global B2B market intelligence and advisory firm focusing on deep technology and related emerging trends, which can disrupt the market dynamics in the near future. We publish over 200 market intelligence studies annually, focusing on several deep technology verticals.   

Our strategic market analysis emphasizes market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data, and other important market parameters useful in the strategic decision-making for senior management.    

BIS Research offers syndicate and custom studies and expert consultations to firms, providing them with specific and actionable insights on novel technology markets, business models, and competitive landscapes.   

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