Global Post-Quantum Cryptography Market Size Likely to Surpass at a CAGR of 37.1% By 2034

Post-Quantum Cryptography Market Size

As per the Post-Quantum Cryptography Market size analysis conducted by the CMI Team, the global Post-Quantum Cryptography Market is expected to record a CAGR of 37.1% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 408.28 Million. By 2034, it is anticipated that the valuation will reach USD 6,976.42 billion.

Post-Quantum Cryptography Market Overview

As per the industry experts at CMI, the Post-Quantum Cryptography market is surging as businesses around the world are gearing up for the cybersecurity challenges posed by quantum computing. Many prominent organizations, such as NXP Semiconductors, Thales Group, Amazon Web Services (AWS), and Idemia Group, are at the forefront of globally developing quantum resistant algorithms and best deploying and adopting those algorithms in hardware, cloud, and identity hardware.

These influences are also working with standards organizations like NIST and partaking in pilot programs around the world to deploy PQC across numerous industries such as finance, defense, and telecommunications. Governments and enterprise are starting to think about longer-term investments into PQC as part of their overall digital resilience building and long-term strategy to safeguard future communications and infrastructure.

PQC technologies are emerging as a critical component of the next generation of cybersecurity from cloud-based encryption services to secure embedded systems. The market is expanding rapidly with advances in research, collaborations, and partnerships across many industries to future-proof sensitive data and preserve trust in our digital ecosystems.

Post-Quantum Cryptography Market Growth Factors and Dynamics

• Expansion of Digital Infrastructure: With the rapid expansion of digital infrastructure from private and public sectors, pressure is mounting for strong and globally future-proof cybersecurity solutions. This makes post-quantum cryptography important. In implementing these digital operations globally, the security of sensitive data against potential threats is secured with PQC quantum-resistant encryption. In August 2024, the U.S. National Institute of Standards and Technology (NIST) announced their first set of post-quantum encryption standards that organizations need to start implementing as protection against future quantum computing threats. The need for PQC is extremely timely, pertinent, and essential for safeguarding the modern global digital landscape.

• Increase in Cyberattacks: The increase of cyberattacks as evidenced by frequency and complexity, and the corresponding need for strong next generation cryptographic defensive methodologies inadequately afford the required protection from recent exposures to quantum computing capabilities. Post-quantum cryptography is hence fundamental to addressing this modern cybersecurity threat landscape. Further underscoring this point is the U.S. legislation, Quantum Computing Cybersecurity Preparedness Act, passed in December 2022, that requires federal agencies to review any IT systems at risk and to start preparing for migration of their agency IT systems to PQC once NIST finalizes their standards. This highlights the urgency to begin preparing and implementing PQC to protect national data and data infrastructures and provide resilient cyber security for more spatially distributed organizations.

• IoT and Smart Devices: The exponential growth of the Internet of Things (IoT) and smart devices has considerably lengthened the cyber threat landscape. These interconnected systems tend to have little security feature layering because of limited computing capabilities. To combat this, post-quantum cryptography is currently being developed with lightweight encryption to be quantum resistant for such low performing environments. In August 2024, NIST concluded a set of PQC standards that even included algorithms for low-power devices, providing secure communication for potentially billions of IoT devices. This is a substantial step toward ensuring the ever-expanding space of smart technologies is protected from future quantum-enabled cyber threats.

Report Scope

Post-Quantum Cryptography Market SWOT Analysis

• Strengths: Growing awareness of quantum computing’s ability to crack current cryptographic algorithms is fueling the growth of the PQC market, rendering traditional encryption obsolete. The funding of research and standardization work (NIST PQC standardization project, etc.) at all levels of government and by global tech titans invests credibility and long-term commitment in the PQC market. Additionally, PQC’s ability to future-proof data protection and cybersecurity systems will make this product offering highly strategic for countries, industries/corporations (e.g. finance, defence, healthcare), and diverse organizations.

• Weaknesses: Despite the vast promise of PQC, the sector is still relatively new and consists of research, development, and testing. The lack of standardized frameworks is problematic – were PQC to catalyze widespread adoption, practical integration into legacy systems and industry-wide protocols would be laden with technical and operational hurdles. Performance trade-offs like extra computation time, larger key sizes, and so on will limit adoption within bandwidth-hungry environments and on small-footprint devices (e.g. IoT).

• Opportunities: There is enormous potential for the development of PQC Innovations across sectors looking to plan for a quantum-safe future (e.g. government infrastructure, cloud services, banking, etc.) As quantum computers mature to a practical level, there will likely be a surge in demand for quantum-resistant encryption approaches. Collaboration between modern cybersecurity firms, academic institutions, and hardware players offers scope for rapid development and innovation. Global adoption of quantum-safe networks is anticipated, establishing a first-mover opportunity for early adopters and solution providers.

• Threats: The primary threat facing PQC remains the uncertainty regarding the timeline for practical quantum computing, as many of the incentives to invest in PQC may be lost if there is any appreciable delay to urgency. Other versions of cryptography or potential breakthroughs in classical cryptography could also impact the landscape. The various implementation costs, inadequate numbers of people with the skills in PQC, and resistance from sectors that struggle to make integrations due to the volatile nature of the integration process are also factors that might inhibit growth in the market.

List of the prominent players in the Post-Quantum Cryptography Market:

• NXP Semiconductors
• Thales Group
• Amazon Web Services (AWS)
• Idemia Group
• Palo Alto Networks
• Digicert
• Kloch
• Post-Quantum
• Pqshield
• Entrust
• IBM
• Others

The Post-Quantum Cryptography Market is segmented as follows:

By Type

• Lattice-Based Cryptography
• Code-Based Cryptography
• Multivariate Cryptography
• Hash-Based Cryptography

By Service

• Design, Implementation, and Consulting
• Migration Services
• Quantum Risk Assessment

By Enterprise

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America