Post-Quantum Cryptography Market Size, Share, Growth, and Industry Analysis, By Type (Lattice-Based, Multivariate Cryptography, Hash-Based, Code-Based), By Application (Government, BFSI, Healthcare, IT & Telecom), and Regional Insights and Forecast to 2034

•   
•   
  

  Request a Free sample to learn more about this report

    

POST-QUANTUM CRYPTOGRAPHY MARKET OVERVIEW

The global Post-Quantum Cryptography Market size was USD 0.62 billion in 2025 and is projected to reach USD 1.35 billion in 2034, exhibiting a CAGR of 9.1% during the forecast period.

Post-Quantum Cryptography (PQC) is the creation of cryptography algorithms that are resistant to attack by a future quantum computer. The popular encryption algorithms in use today, such as RSA and ECC are based on mathematical problems that can be solved easily by a large scale quantum computer, with algorithms such as Shur’s one. PQC, however, is grounded on other, more complicated mathematical problems, which are thought to be difficult to solve by both classical and quantum computers. The need of PQC can be explained by the threat of harvest now, decrypt later, where malicious entities are able to gather encrypted data now with the view of decrypting it at a later time when quantum computers become available. The major strategies of PQC are lattice-based, hash-based, as well as code-based cryptography and most importantly the National Institute of Standards and Technology (NIST) has been on the forefront to develop new algorithms as standard.

The global market of PQC is developing at a speedy rate, due to the raising awareness of the quantum threats and the necessity to secure the data in the long run. The key participants of this market are technology giants and cybersecurity governments such as IBM, AWS, Microsoft, and Thales. The current Post-Quantum Cryptography Market Share is currently the biggest in North America because of the substantial government expenditure and the existence of the large tech companies. The necessity of organizations in such industries as finance, government and healthcare to secure sensitive data and regulatory requirements also contribute to the development of the market. Implementation of PQC is complex and expensive, but transition is considered a necessary measure that needs to be made to guarantee the integrity of the digital communications and infrastructure during the quantum era.

COVID-19 IMPACT

The cardiac rehabilitation Industry Had a Negative Effect Due to Factory Closures During the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 outbreak contributed to the expansion of the Post-Quantum Cryptography (PQC) market by a few times. The abrupt and popular transformation of remote work and online operations put organizations in all spheres in great need of cloud resources, online communication systems, and online collaboration tools. This fast online revolution provided a significantly large attack surface for cyberattacks, resulting in a boom of cyberattacks such as phishing, ransomware, and information breaches. Consequently, businesses and the government felt the extreme need to be more digitally security aware and in dire need of more resilient, long-term security measures. It was a powerful stimulus of heightened attention to cybersecurity, which led to more investments in sophisticated cryptographic techniques and the relegation of PQC to a realistic issue of business and national security significance.

LATEST TRENDS

Rise of Hybrid Cryptography to Drive Market Growth

A prevailing trend in the PQC market is the Rise of Hybrid Cryptography that will offer a pragmatical solution between the current and future security requirements. This scheme is a combination of an ordinary, quantum-vulnerable algorithm (such as RSA or ECC) and a novel, quantum-resistant PQC algorithm. The approach provides critical compressibility of redundancy: in the event that one discovers a new PQC algorithm is imperfect, the classical one will still be secure. On the other hand, it works as a protection against the so-called harvest now, decrypt later attacks, in which the data encrypted today is stored to be decrypted later by quantum computers. Such a more gradual, staged migration enables organizations to be interoperable, develop crypto-agility, and initiate their PQC migration without an expensive and risky overhaul that requires a big bang, which is more popular among both enterprises and governments.

•   
•   
  

  Request a Free sample to learn more about this report

    

POST-QUANTUM CRYPTOGRAPHY MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Lattice-Based, Multivariate Cryptography, Hash-Based, Code-Based.

• Lattice-Based Cryptography: In this method, mathematical grids in the form of lattices are used, and security is relied on the complexity of solving the problems, such as which is the shortest or nearest vector to the lattice.

• Multivariate Cryptography: The security of this method depends on the difficulty of solving systems of multivariate polynomials equations, which is computationally challenging on even a classical computer.

• Hash-Based Cryptography: This kind of cryptography is mostly employed in highly secure digital signature schemes with minimum security requirements applying one-way cryptographic hash functions.

• Code-Based Cryptography: This group is founded on the difficulty of decoding general linear codes, which is a difficult problem in error-correcting codes, and one of the oldest Post-Quantum Cryptography.

By Application

Based on the Application, the global market can be categorized into Government, BFSI, Healthcare, IT & Telecom.

• Government: One of the major participants of the PQC market is government agencies, which need to ensure the unavailability of long-term and sensitive information to future quantum decryption, such as national security, classified information, and diplomatic communications.

• BFSI (Banking, Financial Services, and Insurance): The BFSI sector is now implementing PQC to secure the integrity and confidentiality of the financial systems against quantum threats by securing high-value and high-volume transactions, customer information and digital identities.

• Healthcare: The PQC plays a crucial role in healthcare to protect the most sensitive patient records, medical research information, and telehealth messages to adhere to such strict regulations as HIPAA and protect patient privacy over decades.

• IT & Telecom: The IT and telecom industry ranks among the most vital to PQC adoption, as it requires securing the digital infrastructure, network communications (including 5G), and cloud services, which form the basis of almost all other industries.          

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities, and challenges, stating the market conditions.

Driving Factors

Looming Quantum Threat to Boost the Market

Looming Quantum Threat is a major factor in the Post-Quantum Cryptography Market Growth. This attack technique is called harvest now, decrypt later and, as the name suggests, the attacker gathers large quantities of currently encrypted data, including government secrets, financial records, and intellectual property, fully understanding that it will be decrypted later when large-scale quantum computers are capable of breaking the classical encryption schemes used today, like the RSA. This is a threat to all sensitive data that have long shelf life and the sector, such as government, finance and healthcare, will have to immediately implement the PQC solutions to protect their information in the future against quantum attacks, and thus a persistent and high market demand is created.

Government Standardization and Mandates to Expand the Market

The biggest driver that is increasing the PQC market is government standardization and mandates. NIST has been able to establish a clear and trusted set of standards to be adhered to by the public and private sectors by completing quantum resistant algorithms. The official government requirements, like the U.S. National Security Memorandum 10 (NSM-10), which establishes a timeframe of 2035 in which federal agencies should have switched, assist this. This regulatory pressure at the top not only guarantees demand among the largest consumers but also sets a precedent among the private sector, forcing organizations in critical infrastructure and tightly regulated industries to accelerate their own PQC adoption, thereby ensuring compliance and security.

Restraining Factor

High Implementation Costs and Complexity Impede Market Growth

Implementation and high costs, and complexity are a major problem that prevents the growth of PQC in the market. The support of classical to Post-Quantum Cryptography is not just a software upgrade, regularly necessitating a total replacement of the cryptographic infrastructure of a business, in terms of hardware security modules (HSMs), network protocols, and a large pool of embedded systems. This is a very big rip and replace exercise, which requires a lot of capital expenditure and very specialized skills that are not possessed by many organizations, especially the small and medium-sized enterprises (SMEs). This migration process is enormous and challenging enough to put potential adopters away or postpone that of quantum computing at least.

Crypto-Agility and Migration Services for Product Opportunities in the Market

Opportunity

Migration services and emergence of crypto-agility are one of the significant product opportunities in the PQC market. Crypto-agility is the capability of an organization to switch its cryptographic algorithms and keys with the ability to swiftly and uncomplicatedly modify its overall system.

Companies are getting ready to make the PQC transition, and they require tools and services to catalog their crypto assets, find vulnerabilities, and coordinate the daunting process of substituting embedded crypto in extensive networks and old systems. This requirement is establishing a profitable niche of specialized software, consulting, and hardware to offer a staged, smooth process to the adoption of PQC.

Performance Overhead and Compatibility Issues Could Be a Potential Challenge

Challenge

There is a problem in terms of performance overhead and compatibility that will be a big challenge to the adoption of PQC. New algorithms may have increased key sizes and computation power needs than classical cryptography at the expense of latency and bandwidth. This gives an issue to resource-constrained devices, such as the IoT devices and embedded systems, where performance is paramount.

Moreover, the new PQC standards have the possibility of creating compatibility problems with the old systems and necessitate the need to make expensive and complicated changes to the existing hardware and software infrastructure to ensure that critical operations are not compromised.

•   
•   
  Request a Free sample to learn more about this report

    

POST-QUANTUM CRYPTOGRAPHY MARKET REGIONAL INSIGHTS

• North America

The biggest portion of the world PQC market is located in North America due to the large government investment, strong technological industry, and strategies of early adoption. The most promising market is the United States Post-Quantum Cryptography Market, that is driven by such federal mandates as the National Security Memorandum 10 (NSM-10) and the consistently developing NIST standardization process that establishes a clear roadmap of both government agencies and individual businesses. This initiative, along with the fact that large cloud providers and cybersecurity companies are located there, makes the region one of the leaders in PQC research and commercial application.

• Europe

Europe is a fast-expanding market and regulatory compliance and data sovereignty are of high priority. The European Union is currently engaged in developing its own PQC roadmap, and it has been emphasized to secure the critical infrastructure and data protection of the citizens on regulations such as GDPR. Major powers, such as Germany, France, and the UK, are also investing heavily in quantum research and cybersecurity to come up with PQC solutions that are made locally and guarantee the security of their digital economies in the long term. This overall operation intends to lessen the reliance on non-European cryptographic norms and technologies.

• Asia

It is projected that the fastest growing market of PQC will be in the Asia Pacific area because of a set of factors, including high rates of digitalization, the growing number of cybersecurity threats, and high governmental investments. China, Japan, and South Korea are leading in quantum research work, and their national strategies put the creation and implementation of quantum-resistant technologies as a primary objective. The growing 5G, IoT and cloud services adoption in the region is posing tremendous new attack surface, which is also driving the pressure behind the adoption of PQC to protect digital communications and transactions.

KEY INDUSTRY PLAYERS

Key Players Transforming the Post-Quantum Cryptography Market Landscape through Innovation and Global Strategy

Through the innovation of strategies and market development, the market players in the field of enterprise are shaping the Post-Quantum Cryptography Market. Certain of these can be seen as advancements in designs, Products of materials, and controls, besides the use of smarter technologies for the enhancement of functionality and operational flexibility. Managers are aware of their responsibility to spend money on the development of new products and processes and expand the scope of manufacturing. This market expansion also assists in diversifying the market growth prospects and attaining higher market demand for the product in numerous industries.

List Of Top Management Companies

• IBM (U.S)
• Microsoft (U.S)
• Google (U.S)
• Intel (U.S)
• Post-Quantum (U.K)
• ISARA (Canada)
• PQShield (U.K)
• ID Quantique (Switzerland)
• Fujitsu (Japan)
• Huawei (China)

KEY INDUSTRY DEVELOPMENT

March 2024: Intel has also played a great role in the PQC market by working on both the standardization of algorithms and implementation hardware. In 2024, the company significantly contributed to FIPS 205 SPHINCS+ standard in digital signatures, which assists in creating an industry standard. Furthermore, Intel is growing hardware-based totally crypto acceleration to efficaciously manage the bigger computational needs of recent PQC algorithms, on the way to facilitate a faster and greater seamless transition for his or her customers.

REPORT COVERAGE

This report is based on historical analysis and forecast calculations that aim to help readers get a comprehensive understanding of the global Post-Quantum Cryptography Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the market's growth by discovering the dynamic categories and potential areas of innovation whose Application may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points for consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies, and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.