Quantum Communication Market Size & Share, by Product Type (Hardware, Service); Security Service (Application Security, Network Security); Application (National Defense, Aerospace, BFSI, Government, Telecommunication, Enterprise, Industrial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5747
  • Published Date: Feb 28, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Quantum Communication Market size is estimated to reach USD 11 Billion by the end of 2036, growing at a CAGR of 30% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of quantum communication was USD 1 Billion. This growth of the market is poised to be dominated by growing cyber-attacks. Every day, almost 3999 new cyberattacks take place. Every 14 seconds, a business is hit by a ransomware attack that can cause catastrophic financial losses and uncover about 559,000 new malware samples. Therefore, the need for quantum communication is growing.

When they interact, a series of secret bits that are transferred quantum mechanically and referred to as a key are activated in quantum communications. A message may be encrypted (or decrypted) using this shared key and an algorithm of choice. Next, a conventional, secure communication channel is used to send the message. Furthermore, key players are investing in research & development to improve the scalability and usefulness of quantum communication solutions, and as a result, the quantum communication market is witnessing developments in quantum networks, quantum cryptography, and quantum key distribution.


Quantum Communication Market
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Quantum Communication Market: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for Smartphones - About 5 billion people use smartphones globally as of 2023, which means that approximately 84% of people on the planet are smartphone owners. These days, being mobile is essential for both personal and professional purposes. The average user spends most of their time on their mobile device each day, whether they are working, playing games, checking emails, posting to social media, or conversing with friends. Rising smartphone power and widespread availability of next-generation 4G and 5G networks have enabled people all around the world to work and play whenever and wherever they choose. A nomadic lifestyle does not, however, come without dangers. Since mobile devices allow users to access every aspect of life, users run the risk of disclosing to cybercriminals a vast array of individually identifiable, sensitive, or private data. Therefore, the integration of quantum communication is surging.
  • Rise in Deployment of IoT - A potential application of quantum secure communication to the Internet of Things (IoT) is quantum communication for IoT, a network of connected devices that exchanges and gathers data. IoT devices are susceptible to data breaches and cyberattacks as they frequently have insufficient resources and security measures. Using quantum cryptography to encrypt and authenticate data, to establish secure keys across devices, quantum communication for the Internet of Things could improve the security and privacy of data. New services and applications including quantum edge computing and quantum sensing may be made possible via quantum communication for the Internet of Things.
  • Surge in Adoption of Communication Techniques - Rapid communication techniques are driving the quantum communication market as they offer innovative solutions that leverage the unique properties of quantum mechanics to enable safe and efficient information transport. These methods have the power to fundamentally alter the way that data is provided and protected, given the increasing interconnectedness of our society. Within quantum communication, one of the most notable fast communication techniques is quantum key distribution (QKD). QKD generates and distributes encryption keys with the greatest degree of security by utilizing quantum entanglement and superposition. QKD ensures that any eavesdropping attempts are immediately detectable, establishing an impenetrable barrier for sensitive data, in contrast to traditional encryption approaches that are vulnerable to hacking.

Challenges

  • Surge in Strict Regulations
  • Need for High Investment for Implementation
  • Growing Risk of Cyber Security - Since quantum communication is through nature itself secure owing to the laws of quantum physics, quantum networking is frequently hailed for its security qualities. However, security risks continue to exist for quantum networking. Quantum networks, for instance, are susceptible to assaults that take advantage of the network's weak points, including the nodes or the connections that connect them. Researchers are creating quantum firewalls and quantum key distribution protocols as ways to counteract these security risks. These techniques, meanwhile, still need to be refined as they are in the experimental stage.

Quantum Communication Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

30%

Base Year Market Size (2023)

 USD 1 Billion

Forecast Year Market Size (2036)

 USD 11 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Quantum Communication Segmentation

Product Type (Hardware, Service)

The hardware segment in the quantum communication market is expected to gather the highest revenue share of about 60% during the forecast period. The fundamental nature of quantum communication technologies, which mostly depend on specialized hardware components including quantum key distribution (QKD) systems, quantum repeaters, and quantum sensors, is responsible for the hardware segment's dominance. The demand for actual quantum hardware solutions has increased as a growing number of governments and industries realize how important secure communication is. The hardware segment holds a sizable market share as a result of the development and commercialization of quantum memory devices, entangled photon sources, and processors. Furthermore, since quantum communication implementation is difficult, a strong and specialized hardware infrastructure is required; hence, the hardware segment is the main factor driving the growth of the quantum communication market. This segment share is attributed to the fact that actual hardware developments constitute the backbone of secure quantum communication networks, even though services are vital in enabling the deployment and maintenance of quantum systems.

Application (National Defense, Aerospace, BFSI, Government, Telecommunication, Enterprise, Industrial)

The national defense segment in the quantum communication market is set to generate the highest share in the revenue of about 30% over the forecast period. This growth of this segment is poised to be dominated by rising investment in national defense. In 2022, global military spending increased for the eighth year in a row, reaching an all-time high of about USD 2239 billion. In every aspect of daily life and in military operations both currently and in the future, communication is essential. But there are limits to ordinary communication as it exists today. Some of these obstacles can be solved through quantum communication, which also opens up new application areas for the military. Therefore, the demand for quantum communication is observing growth in national defense. 

Our in-depth analysis of the global quantum communication market includes the following segments:

            Product Type

  • Hardware
  • Service

           Security Service

  • Application Security
  • Network Security

           Application

  • National Defense
  • Aerospace
  • BFSI
  • Government
  • Telecommunication, Enterprise
  • Industrial

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Quantum Communication Industry- Regional Synopsis

North American Market Forecast

The North America quantum communication market is poised to generate the highest revenue share of 40% during the forecast period. The major factor for the growth of the market in this region is the rising demand for security in government applications. Additionally, the prevalence of remote working is also surging in this region. Over 31 million Americans, or almost 21% of the workforce, are predicted to work remotely by 2025. This has also increased the prevalence of hacking. Furthermore, a surge in the adoption of space quantum technology is also estimated to influence the quantum communication market share in this region.

European Market Analysis

The Europe quantum communication market is also estimated to have notable growth in the revenue over the forecast period. The next big technological advancement in safe digitalization has received approval from Europe. The testing infrastructure for quantum key distribution (QKD) has been commissioned by the European Commission to be constructed by a consortium headed by Deutsche Telekom. This will enable QKD devices made by European manufacturers to be evaluated. Hence, this factor is projected to dominate the quantum communication market expansion in Europe.

Research Nester
Quantum Communication Market Size
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Companies Dominating the Quantum Communication Landscape

top-features-companies
    • QuNu Labs Private Limited
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Airbus
    • Arqit
    • ColdQuanta, Inc. 
    • Excelitas Technologies Corp.
    • ID Quantique
    • NG Optics
    • PQ Solutions Limited
    • Princeton University
    • QuTech 

In-the-news

In The News

  • January 2, 2024: Using secure keys sent by China's quantum satellite, scientists from both China and Russia have successfully established quantum communication at a distance of 3,800 kilometres. This accomplishment shows that a quantum communication network connecting countries supporting China and Russia is technically feasible.
     
  • May 27, 2021: The launch of a QKD (Quantum Key Distribution) system with a range exceeding 100 km and a QRNG (Quantum Random Number Generator) Chip - Ikaria, the first by any private entity in the nation and one of only a few in the world, was announced by QNu Labs, the first company in India to offer commercially available quantum safe security products. The most recent achievement by QNu is a significant step towards an India that is

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5747
  • Published Date: Feb 28, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are growing demand for smartphones, rise in deployment of IoT, and surge in adoption communication techniques.

The market size of quantum communication is anticipated to attain a CAGR of 30% over the forecast period, i.e., 2024 - 2036.

The major players in the market are QuNu Labs Private Limited, Airbus, Arqit, ColdQuanta, Inc., and others.

The hardware segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Quantum Communication Market Market Report Scope
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