Post Quantum Cryptography (PQC) Market Key Takeaways
- In terms of revenue, the post-quantum cryptography (PQC) market is valued at $1.68 billion in 2025.
- It is projected to reach $29.95 billion by 2034.
- The market is expected to grow at a CAGR of 37.72% from 2025 to 2034.
- North America accounted for the biggest revenue share of 38% in 2024.
- Asia Pacific is expected to grow at the fastest CAGR of 40.6% from 2025 to 2034.
- By service, the design, implementation, and consulting segment contributed the biggest market share in 2024.
- By service, the migration services segment is expected to expand at a significant CAGR during the forecast period.
- By type, the lattice-based cryptography segment held the major revenue share of 49% in 2024.
- By type, the hash-based cryptography segment is expected to grow at a significant CAGR over the projected period.
- By solution, the quantum-resistant algorithms segment held the major market share in 2024.
- By solution, the quantum-safe authentication solutions segment is projected to grow at the highest CAGR between 2025 and 2034.
- By enterprise size, the large enterprises segment contributed the highest revenue share of 74% in 2024.
- By enterprise size, the small & medium enterprises (SMEs) segment is expected to expand at the fastest rate in the coming years.
- By vertical, the government and defense segment dominated the market in 2024.
- By vertical, the IT & ITES segment is expected to grow at the fastest CAGR during the projection period.
How Does AI Transform the Post-Quantum Cryptography (PQC) Market?
Artificial intelligence is playing a pivotal role in advancing the post-quantum cryptography market by helping to develop and optimize quantum-resistant algorithms, automate key management, and enhance overall security. AI-powered models contribute to designing more secure and efficient PQC algorithms, while also streamlining deployment by automating critical tasks such as key distribution and management.
Additionally, AI can assess the evolving threat landscape and identify potential weaknesses in PQC implementations, enabling proactive risk mitigation. With its ability to process complex datasets and automate essential functions, AI is becoming an invaluable tool in ensuring a smooth and secure transition to post-quantum cryptographic systems.
Market Overview
The post quantum cryptography market is emerging as a critical component of the cybersecurity landscape, offering solutions that defend against the disruptive impact of quantum computing on traditional encryption methods. As quantum computers advance toward practical capabilities, the threat they pose to conventional public-key infrastructure becomes more urgent. The post quantum cryptography market addresses this challenge by developing cryptographic systems that are resistant to attacks from quantum algorithms such as Shor’s and Grover’s. This market has gained momentum in enterprise environments, where data sensitivity and compliance requirements demand forward-looking security architectures.
From financial services and cloud computing to industrial IoT and digital identity management, businesses across sectors are evaluating quantum-resilient technologies to future-proof their operations. As awareness rises, the post quantum cryptography market is becoming a strategic priority for C-suite executives and boardrooms concerned with long-term data protection, regulatory alignment, and competitive differentiation in a high-risk digital environment.
Drivers
A primary driver of the post quantum cryptography market is the accelerating advancement of quantum computing, led by tech giants and research institutions investing in quantum hardware development. As breakthroughs in qubit coherence, quantum error correction, and entanglement increase the feasibility of scalable quantum systems, the urgency to secure digital assets against future quantum attacks becomes more pronounced. Financial institutions, governments, and cloud service providers are leading early adoption, recognizing that encrypted data stolen today could be decrypted once quantum capabilities are achieved—a threat known as “harvest now, decrypt later.” This risk is fueling long-term investment in the post quantum cryptography market.
Additionally, cybersecurity regulations around the world are beginning to include quantum readiness within compliance frameworks, prompting enterprises to proactively migrate. The widespread deployment of digital services and interconnected devices further intensifies the demand for resilient security protocols, giving the post quantum cryptography market additional tailwinds for growth.
Opportunities
The post quantum cryptography market is filled with emerging opportunities as organizations begin transitioning from traditional to quantum-safe systems. Enterprises that begin quantum migration early are in a strong position to lead their sectors in security compliance, customer trust, and brand resilience. One promising area is the development of hardware-accelerated cryptographic chips designed specifically for PQC algorithms. These chips can support secure boot processes, digital signatures, and communication encryption across IoT and mobile ecosystems.
The post quantum cryptography market also opens new revenue streams for software vendors offering hybrid encryption models, key management systems, and digital certificate authorities adapted for quantum resistance. Cloud platforms are integrating PQC into infrastructure-as-a-service and platform-as-a-service offerings, creating multi-tenant environments with built-in post-quantum security. Moreover, academic institutions and commercial labs are collaborating to advance algorithm design, enabling the creation of lightweight, low-latency cryptographic methods suited for constrained environments like embedded systems and wearable tech.
Challenges
Despite the strong momentum, the post quantum cryptography market faces several technical and operational challenges that must be overcome to achieve widespread adoption. Many of the currently proposed PQC algorithms are resource-intensive, requiring more bandwidth, processing power, and memory than classical algorithms. This can pose difficulties when deploying in performance-sensitive applications such as mobile apps, real-time communication platforms, and smart devices. Another challenge lies in the complexity of migrating legacy infrastructure, especially when mission-critical systems are built on deeply embedded cryptographic frameworks.
The lack of a universally accepted implementation standard also creates confusion, as organizations weigh the risks of adopting algorithms that may not become the long-term industry norm. Vendor interoperability and algorithm agility remain significant concerns, as PQC solutions must be integrated into diverse technology stacks with minimal disruption. Additionally, the skills gap in quantum-safe cybersecurity expertise hinders the pace at which organizations can train personnel and build internal capacity to manage these new technologies.
Regional Insights
The post quantum cryptography market is seeing varying levels of advancement across global regions. In North America, particularly in the United States and Canada, public-private partnerships are playing a crucial role in fostering quantum security innovation. U.S. federal agencies are prioritizing the transition to quantum-safe systems, with funding directed toward both algorithm development and infrastructure deployment. Europe is also a major contributor to the post quantum cryptography market, with nations such as Germany, France, and the Netherlands driving regional initiatives through EU programs like Horizon Europe and the European Cybersecurity Act.
These efforts focus on securing digital sovereignty and ensuring that data protection laws are aligned with quantum-era threats. In the Asia Pacific region, China is making aggressive strides in quantum computing and cryptography, investing heavily in government-backed research and private sector solutions. Japan and South Korea are also active participants, incorporating PQC into long-term ICT strategies. While Latin America, Africa, and the Middle East are at earlier stages of adoption, they are expected to play a growing role as regional infrastructure and cybersecurity awareness improve.
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Recent Developments
Several recent developments have further solidified the growth trajectory of the post quantum cryptography market. The announcement by NIST of its first standardized post-quantum algorithms marked a significant turning point, offering a clear path forward for vendors and governments alike. Following this, technology leaders have begun integrating these algorithms into existing products and services, including cloud infrastructure, VPNs, messaging apps, and TLS stacks. Companies like Google, Microsoft, and IBM are conducting large-scale field tests to measure the impact of PQC on latency and throughput. Additionally, new consortiums and working groups have been formed to facilitate cross-industry knowledge sharing and establish best practices.
Innovation is also occurring in algorithm diversity and agility frameworks, allowing organizations to switch between classical and quantum-safe cryptography depending on the application context. The post quantum cryptography market is further benefiting from increased media and investor attention, driving funding into startups and scale-ups focused exclusively on quantum-safe technologies.
Post Quantum Cryptography (PQC) Market Companies
- NXP Semiconductor
- Thales
- IDEMIA
- Palo Alto Networks
- DigiCert
- Kloch Technologies, LLC
- PQ Solutions Limited
- PQShield Ltd
- Entrust Corporation
- IBM Corporation
Latest Announcement by Industry Leader
- In March 2025, Unisys launched the first of several new Post-Quantum Cryptography (PQC) capabilities and services within its cybersecurity portfolio. The cryptographic posture assessment is part of a consistent rollout of comprehensive offerings designed to help organizations prepare for and defend against future quantum threats by providing clients with a complete inventory and analysis of their cryptographic environment. Manju Naglapur, senior vice president and general manager, Cloud, Applications & Infrastructure at Unisys, said, “Through our holistic set of services, we empower organizations to hit head-on the challenges of post-quantum cryptography, help them navigate the complexities, and create a program designed to protect their IT estate from cyber threats now and in the future.”
Segments Covered in the Report
By Services
- Design, Implementation, and Consulting
- Migration Services
- Quantum Risk Assessment
By Type
- Lattice-Based Cryptography
- Code-Based Cryptography
- Multivariate Cryptography
- Hash-Based Cryptography
- Others
By Solution
- Quantum-Resistant Algorithms
- Quantum-Safe Cryptographic Libraries
- Quantum-Safe Authentication Solutions
- Quantum-Resistant Encryption Solutions
- Quantum-Safe VPN, Email, Messaging
- Quantum-Safe Blockchain Solutions
- Quantum-Safe Hardware
By Enterprise Size
- Small & Medium Enterprises (SMEs)
- Large Enterprises
By Vertical
- BFSI
- Retail & E-commerce
- Healthcare
- Government and Defense
- IT & ITES
- Others
By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
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