Quantum Cryptography Market size is expected to generate significant growth momentum during 2021-2027 primarily driven by the increasing incidence of cybercrimes. The risk of cyberattacks and cyberthreats is considerably high across key industry verticals due to the growing penetration of internet services. The increased usage of computer networks for communication and business transactions has created the need for advanced encryption techniques to ensure better security of confidential information. The increasing demand for next-generation security solutions will certainly boost the adoption of quantum cryptography.
Quantum cryptography makes use of quantum physics to secure the distribution of symmetric encryption keys. The technology allows users to communicate and exchange information in a more secure and reliable way compared to traditional techniques. The governments of numerous countries are taking active initiatives to advance exploratory research and development of quantum cryptography techniques. The rise in government investments to develop improved solutions for commercial applications will supplement the growth of the quantum cryptography market.
Quantum cryptography solutions are being widely used across BFSI, healthcare, IT & telecom, retail, and government sectors. The BFSI sector will hold a major share of the quantum cryptography industry share through 2027 as protecting the client and proprietary information is significantly crucial. With the increased dependence on online banking and online transactions, the need to boost payment security is greater than ever. A significant adoption of quantum cryptography techniques across BFSI applications will be witnessed in the forthcoming years.
In terms of the regional outlook, Europe quantum cryptography market revenue will record appreciable gains by 2027. The regional growth can be contributed to the increasing adoption of encryption-based applications. The demand for high-security encryption solutions is increasingly as the incidence of cyberattacks increases. In addition, the increasing complexity of IT infrastructure and the need for better data privacy and security will benefit quantum cryptography solutions providers in the region.
HP, Microsoft Corporation, Infineon Technologies, IBM Corporation, Crypta Labs, Toshiba, PQ Solutions, Qubitekk, ISARA, QuintenssenceLabs, MagiQ Technologies, and ID Quantique are a few notable players in the quantum cryptography market. More and more business enterprises are focusing on implementing additional layers of security measures and the demand for improved security solutions is rising. In order to capitalize on the growing market demand, the market players are testing out advanced technologies such as quantum cryptography.
In March 2021, for instance, IBM announced that it is researching and testing cryptography to offer organizations wider options to secure data and networks. Quantum-safe cryptography is one of the three critical emerging areas of security and data privacy that IBM has been exploring.
The quantum cryptography market share is witnessing a surge amid the COVID-19 pandemic owing to the increased focus on digitalization. A large number of business enterprises are investing in quantum cryptography solutions to ensure better protection against online threats. The adoption of these solutions has also increased due to the rise in cloud-based software adoption. In addition, the growing preference for cashless payments and the rise in online transactions has augmented the technology demand. The quantum cryptography industry will continue to experience rapid growth even after the coronavirus pandemic.