Post-Quantum Cryptography (PQC) Market by Solution (Quantum-safe Hardware, Quantum-resistant Encryption Products, Cryptographic Libraries, VPN, Authentication), Service (Migration Services, Quantum Risk Assessment) - Global Forecast to 2029
[249 Page Report] The post-quantum cryptography (PQC) market size is estimated to grow from USD 302.5 million in 2024 to USD 1,887.9 million by 2029 at a Compound Annual Growth Rate (CAGR) of 44.2% during the forecast period. The PQC market comprises developing cryptographic systems secured against quantum computing threats that may undermine traditional algorithms like RSA (Rivest-Shamir-Adleman) and ECC (Elliptic Curve Cryptography).
Cryptographic researchers and technology companies are developing quantum-resistant algorithms, such as lattice-based and code-based systems. A range of initiatives such as three Federal Information Processing Standards (FIPS) finalized by NIST (National Institute of Standards and Technology) 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+) are underway to standardize these standards for broad adoption and interoperability.
Rising cybersecurity requirements in various verticals such as BFSI, government, and defense will drive the PQC market. Therefore, continuous technological improvement of cryptographic methods and investments in research and innovation are key drivers for developing effective post-quantum solutions against emerging quantum threats.
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IMPACT OF AI/GEN AI ON THE POST-QUANTUM CRYPTOGRAPHY MARKET ECOSYSTEM
The intersection of AI/Gen AI and PQC drives a transformative market ecosystem. Regarding PQC security protocols, generative AI is refining them and aiding in developing quantum-resistant algorithms through data analysis and pattern recognition to make PQC more secure.
As market demand for AI grows, so does investment in sophisticated cybersecurity measures, including PQC. While PQC realizes increased computational demands, which, when combined with AI, can create performance challenges, AI's capabilities also introduce a variety of new vulnerabilities.
The transition to PQC standards requires careful coordination among all relevant stakeholders regarding compatibility and security. Overall, integrating generative AI with PQC is essential to future cybersecurity measures. However, the integration also poses unique challenges that call for collaborative solutions to mitigate.
POST-QUANTUM CRYPTOGRAPHY MARKET DYNAMICS
Driver: Innovation of new cryptographic algorithms
New, quantum-safe algorithms have different performance metrics for standard operations like key generation and encryption/decryption times. Post-quantum encryption algorithms provide higher security than traditional algorithms; hence, they are acutely relevant to protecting censored data against adversaries leveraging quantum computers. These new cryptographic technologies, being developed, can be embedded anywhere in the network, providing layers of protection against highly specialized cyber-attacks for which known algorithms have no viable countermeasures. The next step in PQC is resistance to quantum attacks, and it is on its way to replacing traditional algorithms like RSA, Diffie-Hellman, and elliptic curves. This may probably become mainstream in 5-10 years. The NIST drives the development of standards for PQC, while the Network Security Agency of the European Union works on adapting protocols for post-quantum systems.
Restraint: Huge Implementation Costs
Migrating to PQC involves substantial implementation costs because it requires hardware upgrades and large amounts of software development. The intrinsic complexity in the computations of PQC algorithms enforces higher processing power; therefore, it requires specialized hardware accelerators and increased memory capacity, which is very expensive. Also, to integrate PQC into existing systems, complex heuristic processes are needed for selecting algorithms, modifying software architecture, and testing with validation—all time- and resource-intensive tasks. The number of developers involved will also increase since it will include skilled developers with experience in cryptography, particularly PQC, adding to the cost. Investments like these are not trivial for most small and medium-sized companies with limited IT budgets. Yet, at the same time, considering the financial burden, such updates must be secure in a post-quantum world.
Opportunity: Post-quantum Cryptographic Migration
The shift toward the PQC market is expected to present a new opportunity for businesses and service providers, driven by the imminent threat of quantum computing to existing encryption standards. With growing awareness, demand for PQC solutions will escalate. System audits, algorithm selection, implementation, and management—all associated with complex migration—require niche expertise. This demand will further be driven by compulsory PQC adoption and regulatory compliance within data-sensitive industries. Organizations that are early PQC deployers will realize first-mover advantages, securing current operations and providing long-term protection; these will bring new market segments in consulting, implementation, PQC tool development, managed services, and education. The first movers will have a multidimensional transition, setting an organization up for success within the shifting cybersecurity landscape.
Challenge:Challenges and Strategic Considerations in Implementing Post-Quantum Cryptography
PQC uses key sizes far larger than traditional public-key algorithms. Since the size of the key is large, it takes longer to process encryption and decryption, but then again, it also means higher storage, memory, and network bandwidth requirements. Although this drop in performance over small datasets is small, it is perceptible with larger key sizes. On the other hand, these requirements pose a significant challenge to older hardware, thus, in some cases, making deployment quite tricky, especially in latency-sensitive applications such as computer vision for autonomous vehicles and resource-constrained devices like smartphones and IoT devices. Enabling support for PQC efficiently usually requires upgrades in infrastructure, even when this technology is compatible with most devices.
Post-quantum Cryptography Market Ecosystem
By service, migration services are expected to grow at the highest CAGR during the forecast period.
The growth of quantum technology is exponential; hence, the need for PQC solutions is growing, along with the demand for migration services, which will be quite high soon. Most organizations have legacy systems, which are vulnerable to quantum threats; thus, there is a need to shift to PQC alternatives, and it includes the need for migration services that will assess the current system's technical issues and help make it compliant with regulations. These services also enable companies to deal with security risks and negotiate the changing landscape of vendors. Migration services will likely occupy an increasingly important place in the PQC market due to the increasingly pressing need for PQC migration, driven by complex transitions, regulatory pressures, and security concerns.
By region, North America will account for the largest market size during the forecast period.
North America dominates the PQC market for several reasons. The early adoption and investments in the relevant research accounted for the growth in the region, and the developed cybersecurity infrastructure established an array of expert institutions and technology firms to help drive PQC adoption. The strict data privacy regulations for GDPR and CCPA raise demand for PQC solutions. Added to this are the major tech companies, like Palo Alto Networks, IBM, and AWS, as well as proactive government initiatives concerning funding research and developing standards. With the rising threats of quantum computing, the focus of North America in the post-quantum cryptography market ensures continuous market leadership and immense contributions from significant technology players with comprehensive regulatory measures.
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).
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The study categorizes the PQC market into North America, Europe, Asia Pacific, Rest of the World.
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
- BFSI
- Government & Defense
- Healthcare
- IT & ITES
- Retail & eCommerce
- Other verticals
By Region :
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North America
- US
- Canada
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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 (PQC). 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 are the opportunities in the post-quantum cryptography market?
The opportunities in the PQC market are vast. Some of the major opportunities include integrating PQC solutions with other emerging technologies, such as cloud computing and artificial intelligence, to improve threat detection and response. Standardization efforts by organizations such as NIST open up the possibility of broad adoption and market growth. Further innovation opportunities exist in quantum-resistant algorithms and customized solutions for sensitive data-handling industries.
What is the definition of the post-quantum cryptography market?
The post-quantum cryptography (PQC) market refers to the sector focused on developing, standardizing, and deploying cryptographic algorithms and security protocols designed to be secure against the potential threats of quantum computers. Once fully realized, quantum computers are expected to be capable of breaking many of the cryptographic systems currently in use, such as RSA and ECC (Elliptic Curve Cryptography).
Which region is expected to have the largest market share in post-quantum cryptography?
North America is expected to account for the largest market share during the forecast period.
Which are the prominent market players covered in the report?
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).
What is the current size of the post-quantum cryptography market?
The post-quantum cryptography market size is estimated to grow from USD 302.5 million in 2024 to USD 1,887.9 million by 2029 at a Compound Annual Growth Rate (CAGR) of 44.2% during the forecast period. .
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This research study used extensive secondary sources, directories, and databases, such as NIST frameworks, Quantum computing libraries, D&B Hoovers and Bloomberg BusinessWeek, to identify and collect information useful for this technical, market-oriented, and commercial study of the global PQC market. The primary sources were mainly several industry experts from the core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, alliances, and organizations related to this industry's value chain segments.
In-depth interviews were conducted with primary respondents, including key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess prospects.
Secondary Research
In the secondary research process, various secondary sources were referred to identify and collect information related to the study. Secondary sources included CSRC NIST, Quantum computing foundations, annual reports, press releases, investor presentations of PQC vendors, forums, certified publications, and whitepapers. The secondary research was used to obtain critical information on the industry's value chain, the total pool of key players, market classification, and segmentation from the market and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from the supply and demand sides of the PQC market were interviewed to obtain qualitative and quantitative information for the study. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives of various vendors providing PQC solutions and services, associated service providers, and system integrators operating in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
After the complete market engineering process (including calculations for market statistics, market breakups, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. The primary research helped identify and validate the segmentation types, industry trends, key players, a competitive landscape of PQC solutions and services offered by several market vendors, and fundamental market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies.
In the complete market engineering process, the bottom-up and top-down approaches and several data triangulation methods were extensively used to estimate and forecast the overall market segments and subsegments listed in this report. An extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
Following is the breakup of the primary study:
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Market Size Estimation
Top-down and bottom-up approaches were used to estimate and validate the size of the Post-Quantum Cryptography market and the size of various other dependent sub-segments in the overall Post-Quantum Cryptography market. The research methodology used to estimate the market size includes the following details: critical players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players, and extensive interviews were conducted for key insights from the industry leaders, such as CEOs, VPs, directors, and marketing executives.
All percentage splits and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added to detailed inputs and analysis from MarketsandMarkets
INFOGRAPHIC DEPICTING BOTTOM-UP AND TOP-DOWN APPROACHES
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Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
The Post-Quantum Cryptography (PQC) market refers to the sector focused on developing, standardizing, and deploying cryptographic algorithms and security protocols designed to be secure against the potential threats of quantum computers. Quantum computers, once fully realized, are expected to be capable of breaking many of the cryptographic systems currently in use, such as RSA and ECC (Elliptic Curve Cryptography).
Key Stakeholders
- Quantum Computing Architects
- Encryption Providers
- Crypto Agility Alliances
- Quantum Researchers
- Providers of PQC Solutions and Services
- Consulting Firms
- Third-party Vendors
- Investors and Venture Capitalists
- Technology Providers
Report Objectives
- To describe and forecast the global Post-Quantum Cryptography market based on solution, service, organization size, vertical, and region
- To provide detailed information about the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To analyze the opportunities for stakeholders by identifying the high-growth segments of the market
- To forecast the size of the market segments with respect to three regions: North America, Europe, Asia Pacific and Rest of the World
- To analyze subsegments of the market with respect to individual growth trends, prospects, and contributions to the overall market
- To profile the key players and comprehensively analyze their market sizes and core competencies
- To track and analyze competitive developments such as product enhancements and new product launches; acquisitions, and partnerships and collaborations in the market globally
Customization Options
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing to rest of to the regional market size
- Further breakup of the North American market into countries contributing to rest of to the regional market size
- Further breakup of the European market into countries contributing to rest of to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Post-Quantum Cryptography (PQC) Market