Post-Quantum Cryptography Market
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 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The global post-quantum cryptography (PQC) market size is projected to grow from USD 0.42 billion in 2025 to USD 2.84 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 46.2% during the forecast period. Rising cyber threats and the risk of quantum-enabled attacks are driving the urgency to replace vulnerable public key cryptography with quantum-safe alternatives to ensure data protection, compliance, and enterprise resilience. Growing investments in PQC research and government-backed standardization are further accelerating this transition.
KEY TAKEAWAYS
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BY OFFERINGSolutions hold the largest market share, as enterprises prioritize the immediate deployment of quantum-safe technologies to secure data. Meanwhile, services are poised for faster growth, as organizations increasingly rely on consulting, integration, and migration expertise to address PQC skill gaps.
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BY ORGANIZATIONLarge enterprises contribute the most to the market, as they prioritize securing extensive digital ecosystems and sensitive data assets. Meanwhile, SMEs are projected to grow faster, driven by rising awareness, cost-effective compliance needs, and regulatory pressure, which push smaller firms to adopt PQC solutions.
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BY VERTICALBFSI holds the largest share due to stringent regulatory requirements and high exposure to financial crimes. Healthcare, government, and energy sectors are witnessing strong demand, while IT & ITeS adoption is accelerating to counter evolving threats in cloud and digital services.
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BY REGIONNorth America is at the forefront of cyber threats, federal initiatives, and the adoption of technology in the banking, financial services, and insurance (BFSI) sector. Europe is experiencing growth due to the implementation of GDPR regulations and various programs in Germany, the UK, and France. The Middle East and Africa are increasing their focus on cybersecurity, particularly in the UAE, Saudi Arabia, and South Africa. Meanwhile, Latin America is seeing growth through reforms, digital banking initiatives, and cloud adoption, especially in Brazil and Mexico.
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COMPETITIVE LANDSCAPEKey players, including NXP Semiconductor, Palo Alto Networks, Thales, AWS, and Idemia, are expanding their portfolios through acquisitions and partnerships. They are increasingly focusing on integrating quantum-resistant algorithms into existing solutions and exploring new applications across industries to stay ahead of future security risks.
The growing demand for PQC is driven by the increasing digitization of enterprises and cloud adoption, as organizations rely more heavily on digital platforms, remote operations, and data-intensive applications. The shift to cloud-based infrastructure and SaaS models exposes sensitive information to evolving cyber risks, pushing enterprises to adopt PQC to secure communication, protect assets, and maintain compliance in a digital-first environment.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The post-quantum cryptography (PQC) market is reshaping industries by mitigating quantum threats, meeting regulatory mandates, and securing cloud and IoT environments. BFSI, government, defense, and healthcare sectors are adopting PQC to protect sensitive data, enable secure communications, and safeguard infrastructure. This shift compels enterprises to integrate quantum-resistant algorithms, maintain interoperability, and future-proof systems. The impact includes enhanced compliance, protection of patient and research data, secure cross-border communication, and strengthened trust, driving resilient, forward-looking cybersecurity strategies.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Integration of innovative cryptographic algorithms
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Hybrid PQC mechanisms
Level
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High implementation costs of PQC solutions
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Lack of standardized algorithms
Level
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Early development of new products and services provides a competitive edge
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Government and defense contracts
Level
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Significantly large key size and implications for performance
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Rapid expansion of shadow IT and unauthorized SaaS use
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Integration of innovative cryptographic algorithms
The integration of innovative cryptographic algorithms is driving the PQC market as enterprises adopt advanced, quantum-safe methods to protect sensitive data. These algorithms enhance security resilience against future quantum attacks while ensuring compatibility with existing systems, encouraging organizations to invest in scalable and standardized PQC solutions.
Restraint: High implementation costs of PQC solutions
High implementation costs remain a major restraint for the PQC market. Transitioning from legacy encryption systems to quantum-safe infrastructure demands significant investment in hardware, software, and skilled expertise. This cost burden particularly affects SMEs, slowing adoption despite the pressing need for future-proof security against quantum-enabled threats.
Opportunity: Early development of new products and services provides a competitive edge
Early development of PQC products and services offers a strong opportunity for vendors to gain a competitive edge. By leading innovation in hardware, encryption solutions, and migration services, companies can capture early market share, secure government and enterprise contracts, and influence emerging global PQC standards.
Challenge: Significantly large key size and implications for performance
A key challenge in PQC adoption lies in the significantly large key sizes associated with many quantum-safe algorithms. These increase computational overhead, impact processing efficiency, and strain network performance. Balancing strong quantum resistance with manageable performance and scalability remains critical for broader enterprise and commercial adoption.
Post-Quantum Cryptography Market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Securing IoT devices with post-quantum cryptography for firmware updates and communications. | Ensures data integrity, compliance, and secure operations without costly hardware changes. |
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Quantum-safe cryptography for protecting identities, data, and communications across sectors. | Maintains secure operations and adaptability to evolving threats with minimal disruption. |
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Cloud-based PQC integration for data, applications, and key management. | Enables secure, compliant, and scalable cloud infrastructure. |
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Biometric identity and document protection using quantum-resistant algorithms. | Enhances trust, reliability, and security for identity verification. |
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PQC-based encryption in next-gen firewalls and security platforms. | Strengthens threat detection and secure communications against quantum risks. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The PQC market ecosystem spans quantum-resistant algorithms, cryptographic libraries, blockchain solutions, and cryptography services. It includes technology vendors, cloud providers, and cybersecurity firms developing quantum-safe tools and infrastructure. Collaboration across these segments ensures secure data protection, compliance, and readiness against quantum threats, driving adoption among enterprises, governments, and critical industries.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
PQC Market, By Offering
The solutions segment dominates the PQC market due to the growing adoption of encryption technologies by enterprises, hardware integration, and compliance-driven deployments. Organizations are prioritizing solutions for safeguarding sensitive data and ensuring long-term security against quantum threats, resulting in a higher market allocation in this segment compared to services.
PQC Market, By Organization Size
Large enterprises contribute the majority of the PQC market share as they deal with massive datasets, global operations, and regulatory scrutiny. Their ability to allocate significant budgets toward quantum-safe technologies accelerates the adoption of encryption solutions and hardware integration, ensuring they remain resilient against quantum-based threats.
PQC Market, By Vertical
The BFSI sector represents the largest vertical in PQC adoption, driven by stringent compliance needs, highly sensitive financial data, and reliance on secure transactions. Rising cyber threats and regulatory pressures push banks, insurers, and financial service providers to invest heavily in quantum-resistant solutions and hardware-backed cryptography.
REGION
Europe to be the fastest-growing region in the global PQC market during the forecast period.
The PQC market in Europe is driven by stringent data protection regulations, rising cyber threats, and the increasing digitization of enterprises. Major countries, such as Germany, the United Kingdom, and France, are leading the adoption, supported by initiatives in the Netherlands and Italy. BFSI and SMEs are deploying PQC for compliance and data protection, while government-backed efforts accelerate the development of quantum-safe solutions, shaping a security-focused and regulation-driven market landscape.
Post-Quantum Cryptography Market: COMPANY EVALUATION MATRIX
In the PQC market vendor evaluation matrix, NXP (star player) leads with a broad portfolio of encryption solutions and strong enterprise presence, while IBM (emerging player) is gaining traction by expanding its quantum-resistant offerings and addressing growing regulatory and security demands.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | 0.30 Billion |
| Market Forecast in 2030 (Value) | 2.84 Billion |
| Growth Rate | CAGR of 46.2% from 2025-2030 |
| Years Considered | 2023–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Billion/Million) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regions Covered | North America, Asia Pacific, Europe, South America, Middle East & Africa |
WHAT IS IN IT FOR YOU: Post-Quantum Cryptography Market REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Leading PQC Solution Provider (US) | Product Analysis: Product Matrix with detailed comparison of each player’s PQC algorithms, hybrid encryption offerings, hardware integration (HSM, QKD devices), and migration readiness. | Enhanced understanding of competitive positioning in PQC, identifying strengths in algorithm agility, performance benchmarks, and compliance certifications. |
RECENT DEVELOPMENTS
- July 2025 : Korean Quantum Computing (KQC) partnered with Crypto4A to commercialize PQC solutions, advancing quantum security and AI infrastructure. The partnership aims to strengthen Korea’s sovereignty in security tech and position it as a hub for quantum security in Asia.
- May 2025 : NxtGen has partnered with Thales to bring PQC to India’s sovereign cloud, securing sensitive data against quantum threats. The partnership ensures full data sovereignty and regulatory-aligned protection for AI and enterprise workloads.
- March 2025 : Vodafone partnered with IBM to integrate PQC products into Vodafone Secure Net, protecting users from future quantum threats. The partnership tests quantum-resistant encryption across mobile networks and products while supporting industry-wide PQC adoption.
- September 2024 : Quside and PQShield have partnered to deliver quantum-safe cryptography, combining Quside’s Quantum Random Number Generators with PQShield’s post-quantum solutions for seamless adoption
- Febraury 2024 : The Linux Foundation, with AWS, Cisco, Google, IBM, NVIDIA, and others, launched the Post-Quantum Cryptography Alliance (PQCA) to advance PQC, develop new algorithms, and enhance global cybersecurity for the quantum computing era.
Table of Contents
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Methodology
Exhaustive secondary research was done to collect information on the post-quantum cryptography (PQC) industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, including top-down and bottom-up methods, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the PQC market.
Secondary Research
The market for companies offering PQC solutions and services is determined by secondary data obtained from paid and unpaid sources, analyzing the product portfolios of major companies in the ecosystem, and evaluating companies based on their performance and quality. Various sources were consulted during the secondary research process to identify and collect information for this study. The secondary sources include annual reports, press releases, investor presentations from companies, white papers, journals, certified publications, and articles from recognized authors, as well as directories and databases.
During the secondary research process, various secondary sources were consulted to identify and collect information relevant to the study. Secondary sources included annual reports, press releases, investor presentations of PQC vendors, forums, certified publications, and white papers. The secondary research was utilized to gather essential information on the industry’s value chain, the total pool of key players, market classification, and segmentation from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various supply and demand sources were interviewed to obtain qualitative and quantitative information for this report. 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 from various key companies and organizations operating in the PQC market.
After completing the market engineering process (calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers derived. Primary research was also conducted to identify the segmentation types, industry trends, competitive landscape of PQC solutions offered by various market players, and fundamental market dynamics, including drivers, restraints, opportunities, challenges, industry trends, and key player strategies.
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list the key information/insights throughout the report.
Note: The companies have been categorized based on their total annual revenue: Tier 1 companies have revenue greater
than USD 10 billion, Tier 2 companies have revenue between USD 1 billion and USD 10 billion,
and Tier 3 companies have revenue between USD 500 million and USD 1 billion.
Other levels include sales managers, marketing managers, and product managers.
Source: MarketsandMarkets Analysis
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Top-down and bottom-up approaches were employed to estimate and validate the size of the global PQC market, as well as the size of various other dependent subsegments. The research methodology used to estimate the market size includes the following details: key players in the market were identified through secondary research, and their market shares in the respective regions were determined through a combination of primary and secondary research. This entire procedure involved studying the annual and financial reports of the top market players, and extensive interviews were conducted with key industry leaders, including CEOs, VPs, directors, and marketing executives, to gather valuable insights.
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, examined in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data is consolidated and added to detailed input and analysis from MarketsandMarkets.
Post-quantum Cryptography (PQC) Market : Top-Down and Bottom-Up Approach
Data Triangulation
After determining the overall market size using the market size estimation processes explained above, the market was segmented 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
According to MarketsandMarkets, “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).”
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 (PQC) market by offering, organization size, vertical, and region
- To forecast the market size of the five main regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa, and Latin America
- To provide detailed information related to significant factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall market
- To profile the key players of the PQC market and comprehensively analyze their market shares and core competencies
- To analyze the opportunities in the market for stakeholders and provide the competitive landscape details of major players
- To map the companies to get competitive intelligence based on company profiles, key player strategies, and game-changing developments such as product developments, collaborations, and acquisitions
- To track and analyze competitive developments, including product enhancements, product launches, acquisitions, partnerships, and collaborations, in the PQC market globally
Available Customizations
With the given market data, MarketsandMarkets offers customizations based on company-specific needs. The following customization options are available for the report:
Geographic Analysis as per Feasibility
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
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Growth opportunities and latent adjacency in Post-quantum Cryptography (PQC) Market