Quantum Communication Market size was valued at USD 1.06 billion in 2024 and is poised to exceed USD 30.23 billion by the end of 2037, registering over 29.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of quantum communication is evaluated at USD 1.31 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.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
29.4% |
Base Year Market Size (2024) |
USD 1.06 billion |
Forecast Year Market Size (2037) |
USD 30.23 billion |
Regional Scope |
|
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 |
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Security Service |
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Application |
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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.
Author Credits: Abhishek Verma
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