Post-Quantum Cryptography (PQC) Market

Post-Quantum Cryptography (PQC) Market Size and Share:

The global post-quantum cryptography (PQC) market size was valued at USD 310.4 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 9,403.4 Million by 2033, exhibiting a CAGR of 45.3% from 2025-2033. North America currently dominates the market, holding a market share of over 48.5% in 2024. The post-quantum cryptography (PQC) market share is expanding due to its advanced technological infrastructure, high user demand, and significant investment in innovation across key industries. 

The PQC market is mainly driven by the increasing need to safeguard sensitive data from the rising dangers posed by quantum computing. As quantum computers continue to progress, they present a significant danger to traditional cryptographic systems and various public-key cryptography standards, which are essential for modern secure communication protocols. Algorithms for encryption that are resistant to quantum attacks are increasingly in demand across multiple sectors, including finance, government, healthcare, and telecommunications. The rising need for quantum-safe solutions is propelling market growth, with initiatives from both private and public sectors playing a crucial role in its development.

There are a number of reasons why the United States is an emerging very important region for the PQC market. Firstly, the fintech sector remains an important driver for the digital economy, with the US having assumed the lead role on the world fintech innovation list. Increasing interest in convenient financial services with added security through various digital wallets, BNPL services, blockchain technologies, and cryptocurrency platforms has increased lately. Both startups and established financial institutions are using technology to provide people with personalized and efficient solutions. In addition, the regulatory scenario for fintech is gradually evolving as policymakers try to balance innovation with consumer protection and financial stability. The amalgamation of technological innovation and regulatory support is bolstering the market growth. According to the IMARC Group’s predictions, the US fintech market is expected to reach USD 157.9 billion by 2032. This will further increase the adoption of PQC.

Post-Quantum Cryptography (PQC) Market Trends:

The Heightened Threat of Quantum Computing to Current Cryptographic Systems

Rapid development in quantum computing is one of the most significant driving forces of the market. This quantum computer, with its unparalleled computational power, will be used to break the widely used cryptography algorithms, namely RSA, ECC, and DSA. Much of the global digital infrastructure depends on these aforementioned algorithms for security purposes. Traditional encryption methods are based on the difficulty of factoring large numbers, which is a mathematical problem; quantum algorithms like Shor's can solve it exponentially faster than a classical computer. A serious threat is posed to data security for industries in the finance, health, defense, and telecommunications industries because they handle sensitive information. Organizations have started adopting proactive measures in implementing quantum-safe cryptographic systems that safeguard the protection of their data and operations. The urgency to replace vulnerable encryption standards with quantum-resistant algorithms is driving both private and public investments in PQC development and adoption, positioning it as a critical component of future cybersecurity. In 2024, the Banque de France (BDF) and the Monetary Authority of Singapore (MAS) declared the fruitful completion of a major joint experiment in PQC managed across continents over conventional Internet technologies.

Increasing Adoption of Digital Technologies and Data Security Requirement

There is a widespread adoption of digital technologies as represented by the cloud, IoT, and 5G networks-is a catalyst for the need for strong cybersecurity measures, ranging from quantum-resistant cryptography to other, equally important areas. With accelerated digital transformation across industries, organizations are dealing with exponentially higher volumes of sensitive data, from financial transactions to personal information and proprietary business data, thereby is bolstering the post-quantum cryptography (PQC) market growth. New technologies like IoT and edge computing make it even more difficult to ensure security, since these networks are usually decentralized and consist of resource-constrained devices that are harder to secure. The high-profile data breaches and cyberattacks also increase the demand for quantum-safe encryption as organizations try to win back consumer trust and meet stringent data protection regulations. According to the 2024 Global Digital Trust Insights survey by PwC, the percentage of companies that saw a data breach over USD 1M increased significantly, from 27% to 36%, year-over-year.

Government Initiatives and Standardization Efforts

Government-led initiatives and standardization efforts are important drivers of the post-quantum cryptography (PQC) market demand. In the United States, for example, the National Institute of Standards and Technology (NIST) is giving efforts to expand and standardize post-quantum cryptographic algorithms. International attention has arisen from this program because other countries are making investments in comparable initiatives to safeguard such infrastructure and sensitive information. Further, laws are also being enforced to require the usage of quantum-safe encryption techniques in industries like national security, defense, and public safety. These regulatory and standardization efforts are setting a roadmap for industries to migrate to PQC solutions, driving the market's growth and facilitating global collaboration in the quantum-safe cryptography ecosystem. Furthermore, in 2024, the US Federal Government submitted a comprehensive report on PQC, which estimated an investment of around $7.1bn on PQC over the next 10 years.

Post-Quantum Cryptography (PQC) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global post-quantum cryptography (PQC) market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on solution, service, organization size, and vertical.

Analysis 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 Solutions

Quantum-safe hardware plays a significant role in the PQC ecosystem because it provides the physical infrastructure for the implementation of quantum-resistant encryption. This category encompasses specialized hardware security modules designed to store and manage cryptographic keys in quantum-safe formats. Such devices are especially valuable in high-security environments like banking, government, and defense, where physical security and performance are at least as important as the underlying algorithms.

The core element of PQC lies in quantum-resistant algorithms. Currently, these make up the biggest share in the PQC market. Quantum-resistant algorithms primarily fall into the category of lattice-based cryptography, hash-based cryptography, multivariate polynomial-based systems, among others. Ongoing standardization efforts by bodies such as NIST have facilitated the gradual introduction of these algorithms to various sectors of the industry.

Quantum-safe cryptographic libraries provide the software tools needed to implement post-quantum cryptographic algorithms in a wide range of applications. Libraries provide developers with pre-built, tested, and standardized functions that can be integrated into their systems to implement quantum-resistant encryption, thus reducing the complexity and cost of implementation.

Quantum-safe VPNs, email services, and messaging systems have secure communication channels with quantum-resistant encryption. These are especially important to organizations that will be dealing with sensitive communications. Examples of these organizations include banks, law enforcement, and the government.

Blockchain technology, commonly utilized in areas like cryptocurrency and supply chain management, encounters a major risk from quantum computing, capable of undermining the cryptographic systems that maintain blockchain integrity. Quantum-resistant blockchain solutions tackle this weakness by integrating post-quantum cryptographic methods into the design of blockchain systems.

Quantum-safe authentication solutions protect user identities and access controls from quantum-enabled attacks. These solutions use quantum-resistant algorithms to secure password-based systems, multi-factor authentication (MFA), and digital identity verification.

Quantum-resistant encryption solutions include various software and hardware implementations aimed at safeguarding data when it is stored, transmitted, and processed. These solutions employ quantum-safe algorithms to substitute conventional encryption techniques, guaranteeing that confidential data stays protected despite the progress in quantum computing.

Analysis by Service:

• Design, Implementation, and Consulting 
• Migration Services
• Quantum Risk Assessment

Design, implementation, and consulting hold 63.7% of the market share. Design, implementation, and consulting services constitute a core part of the post-quantum cryptography (PQC) market, helping organizations to comprehend, strategize, and implement quantum-safe solutions. These services include creating secure architectures that incorporate quantum-resistant algorithms, making sure systems are ready to face quantum-enabled threats. Consultants collaborate with organizations to assess their current cryptographic systems, pinpoint weaknesses, and create customized solutions that meet industry-specific demands. Moreover, implementation services concentrate on integrating quantum-safe algorithms into business systems, including secure communications, authentication protocols, and data storage solutions. This segment is fueled by the rising need for professional advice as companies and governments aim to safeguard their cybersecurity approaches against potential quantum threats. Given that the shift to PQC can be intricate and demands substantial technical knowledge, it is anticipated that dependence on consulting and implementation services will increase considerably in the years ahead.

Analysis by Organization Size:

• Small & Medium-Sized Enterprises 
• Large Enterprises

Large enterprises account for the majority of the market share, thereby offering a favorable post-quantum cryptography (PQC) market outlook. They dominate the adoption of PQC solutions due to their extensive digital infrastructure, high data security requirements, and greater exposure to cyber threats. Industries such as banking, finance, healthcare, telecommunications, and government agencies, which rely heavily on secure communication and data management, are among the early adopters of PQC technologies. These organizations often handle vast amounts of sensitive data, making them prime targets for quantum-enabled cyberattacks in the future. Large enterprises also exhibit the financial and technical resources to devote in advanced cryptographic solutions, like quantum-safe hardware, migration services, and consulting. Moreover, regulatory compliance needs and the requirement of maintaining consumer trust are increasing the adoption of quantum-resistant encryption to protect critical systems.

Analysis by Vertical:

• Banking, Financial Services, and Insurance (BFSI)
• Government & Defense 
• Healthcare 
• IT & ITES
• Retail & E-Commerce 
• Others

Healthcare holds 28.5% of the market share. The healthcare sector is emerging as a key vertical in the market due to its increasing reliance on digital technologies and the critical need to secure sensitive patient data. With the adoption of electronic health records (EHRs), telemedicine platforms, and connected medical devices, the volume of healthcare data being transmitted and stored digitally has grown exponentially. This makes healthcare organizations attractive targets for cyberattacks, including potential future breaches enabled by quantum computing. PQC solutions, such as quantum-resistant encryption and secure communication protocols, are being integrated into healthcare systems to protect patient privacy, prevent unauthorized access to medical records, and secure proprietary research data. As quantum computing advances, the healthcare industry is expected to increase its investment in PQC to safeguard both operational and clinical processes.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East
• Africa

In 2024, North America holds 48.5% of the market share. The regional market is experiencing rapid growth, driven by advancements in quantum computing and the need to safeguard critical infrastructure, sensitive data, and communications from future quantum-enabled threats. The region's focus on cybersecurity across sectors such as finance, healthcare, defense, and telecommunications is a key driver of PQC adoption. High-profile cyberattacks have heightened awareness of future risks, making organizations to invest in quantum-safe encryption solutions. Additionally, the presence of major technology companies, cybersecurity vendors, and cloud service providers is facilitating innovation and commercialization of PQC technologies. As digital transformation accelerates, the increasing adoption of IoT, 5G, and cloud computing further drives demand for quantum-resistant cryptographic systems. With proactive government policies and a strong ecosystem of stakeholders, North America is poised to lead the global PQC market. In 2024, NIST launched a final set of post quantum encryption tools made to withstand the attacks made by a quantum computer.

Key Regional Takeaways:
 

United States Post-Quantum Cryptography (PQC) Market Analysis

The United States is a key player in the global market, holding a share of 81.50%, driven by the country's advanced technological ecosystem, increasing cybersecurity concerns, and significant government support. The US confronts a significant cybersecurity risk as quantum computers near the point of undermining the cryptographic systems that protect essential government and infrastructure information, as stated in a Government Accountability Office (GAO) report published in 2024. The US government has been proactive in addressing the quantum computing threat, with agencies like the National Institute of Standards and Technology (NIST) spearheading the global standardization of quantum-resistant cryptographic algorithms. This initiative is critical for industries such as finance, healthcare, defense, and telecommunications, which handle sensitive data and require long-term security solutions. Private sector participation is also fueling growth, with major technology companies and cybersecurity firms investing in R&D and offering quantum-safe solutions, including hardware, software, and migration services. The growing adoption of digital technologies such as cloud computing, 5G, and IoT is creating additional demand for PQC, as these systems must remain secure against future quantum threats. Additionally, the US market benefits from increasing awareness of quantum risks and regulatory pressures to future-proof data security. With robust innovation, significant investments, and strong public-private collaboration, the US is positioned as a leader in the global PQC market, driving adoption and shaping industry standards.

Europe Post-Quantum Cryptography (PQC) Market Analysis

The Europe PQC market is poised for growth as organizations across the region recognize the need to future-proof their cybersecurity infrastructure against the emerging threat of quantum computing. Governments and regulatory bodies are actively driving PQC adoption, with initiatives such as the European Commission’s Quantum Flagship program, which promotes research and development in quantum technologies, including quantum-safe cryptography. Industries such as banking, healthcare, and telecommunications are leading the charge in implementing PQC solutions to secure sensitive data and comply with stringent data protection laws, such as the General Data Protection Regulation (GDPR). Additionally, the increasing adoption of cloud computing, IoT, and 5G technologies across Europe is creating further demand for quantum-resistant encryption to protect these advanced systems. With strong government support, growing awareness of quantum risks, and a focus on innovation, Europe is becoming a key contributor to the global PQC market. In 2024, Eviden unveiled PQC HSMaaS, its EU sovereign Hardware Security Module (HSM) as a Service for post-quantum cryptography, backed by the Eviden HSM Trustway Proteccio™ brand.

Asia Pacific Post-Quantum Cryptography (PQC) Market Analysis

The Asia Pacific PQC market is experiencing rapid growth, driven by increasing investments in quantum computing research and the rising adoption of digital technologies such as IoT, 5G, and cloud computing. Governments in countries such as Japan, China, and South Korea are spotlighting quantum-safe solutions to shield critical infrastructure and sensitive data from future quantum threats. Key industries, including banking, healthcare, and telecommunications, are actively adopting PQC to address cybersecurity concerns and meet evolving regulatory standards. With a strong focus on innovation and growing awareness of quantum risks, the region is becoming a significant player in the global PQC market. Moreover, according to an article published by the Economic Times in 2024, India is investing in building a quantum computing center in Bangalore, which will be ready to operate in the next 3 years. This initiative is poised to increase the need for PQC in the country.

Latin America Post-Quantum Cryptography (PQC) Market Analysis

The Latin America PQC market is growing as organizations increasingly recognize the need to protect sensitive data against emerging quantum computing threats. Financial services, government institutions, and telecommunications are the key sectors driving demand for PQC solutions in the region. Rising digital transformation initiatives, coupled with growing concerns over cybersecurity, are fostering the adoption of quantum-safe encryption technologies. However, limited awareness and technical expertise remain challenges, though government investments and international collaborations are helping to address these barriers.

Middle East and Africa Post-Quantum Cryptography (PQC) Market Analysis

The Middle East and Africa PQC market is gradually expanding, driven by increasing cybersecurity concerns and the adoption of advanced technologies such as IoT, cloud computing, and 5G. Key sectors like government, finance, and critical infrastructure are discovering PQC solutions to protect sensitive information against future quantum threats. While awareness of quantum risks is still developing in the region, growing digital transformation efforts and investments in cybersecurity are expected to boost the adoption of quantum-safe encryption technologies in the coming years. Moreover, The UAE Cyber Security Council, in partnership with the Technology Innovation Institute (TII) hosted the CyberQ: Security in the Quantum Era on 2th and 13^th November, 2024 at ADNEC in Abu Dhabi. The opening event convened global specialists, influential policymakers, and industry leaders to address the core challenges of cybersecurity in the quantum era.

Competitive Landscape:

One of the primary strategies employed by leading PQC market players is significant investment in research and development (R&D). Companies are allocating substantial resources to develop and refine quantum-resistant cryptographic algorithms and protocols to address the vulnerabilities posed by quantum computing. Another focus area for PQC companies is product innovation and diversification. Market leaders are developing a range of quantum-safe solutions, including quantum-resistant encryption software, hardware security modules (HSMs), secure communication systems, and cryptographic libraries. In 2024, NXP Semiconductors revealed its new i.MX 94 family of applications processors integrated with PQC, created and developed to present safe connectivity for industrial and automotive edge operations.

The report provides a comprehensive analysis of the competitive landscape in the post-quantum cryptography (PQC) market with detailed profiles of all major companies, including:

• Nxp Semiconductors
• Thales Group 
• Amazon Web Services (AWS) 
• Idemia Group
• Palo Alto Networks 
• Digicert 
• Kloch 
• Post-Quantum 
• Pqshield
• Entrust 
• IBM 

Latest News and Developments:

• July 2024: Thales Group partnered with IBM Consulting to promote PQC readiness with various tools and solutions. Their newest partnership features the IBM Consulting “Quantum-Safe 360” transformation project, designed to enhance and expedite customer PQC preparedness.
• January 2024: Thales Group collaborated with Quantinuum to launch its PCQ starter Kit to help companies prepare for PQC by testing quantum-hardened PQC-ready encryption keys.
• December 2024: Amazon Web Services (AWS) showcased its idea for drifting to post-quantum cryptography (PQC), defining its current evolution in the migration process.

Post-Quantum Cryptography (PQC) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the post-quantum cryptography (PQC) market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global post-quantum cryptography (PQC) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the post-quantum cryptography (PQC) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.