Quantum Communication Market Market Analysis

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: