Global Post-Quantum Cryptography (PQC) Market 2025 – 2034

Reports Description

As per the Post-Quantum Cryptography (PQC) Market analysis conducted by the CMI Team, the global Post-Quantum Cryptography (PQC) 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, the valuation is anticipated to reach USD 6,976.42 Million.

Post-Quantum Cryptography (PQC) Market Overview

Post-Quantum Cryptography (PQC) describes cryptographic algorithms intended for securing digital interactions against threats posed by potential quantum computers. Traditional cryptographic methods such as RSA and ECC – commonplace today – may be readily defeated by a sufficiently powerful quantum computer.

PQC algorithms have been established on mathematical principles that are believed to be quantum secure such as lattice-based, hash-based, multivariate polynomial, and code-based cryptography. The U.S. National Institute of Standards and Technology (NIST) has been leading the global efforts to standardize PQC, and in August of 2024, NIST announced the first set of official standards.

The global PQC market is ramping up as nations, financial institutions, and technology corporations prepare to usher in the post-quantum era. Notable corporations – NXP Semiconductors, Thales Group, Amazon Web Services (AWS), and Idemia – are conducting PQC research and planning, grouping these PQC capabilities with continued cyber-breach structures, and investing in PQC capabilities to establish their business’s future cybersecurity infrastructure.

All major sectors are engaged in the action of PQC with increasing cyber security threats, regulatory requirements, and national security. As rapidly developing quantum computing technology matures, PQC will establish a foundational component of any data protection strategy in sectors such as defense, public health, financial institutions, and Cloud computing.

Post-Quantum Cryptography (PQC) Market Key Growth Drivers

The Post-Quantum Cryptography (PQC) Market Trends has tremendous growth opportunities due to several reasons:

• 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 (PQC) 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 (PQC) 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 (PQC) 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.

Post-Quantum Cryptography (PQC) Market Key Threats

The Post-Quantum Cryptography (PQC) Market has several primary threats that will influence its profitability and future development. Some of the threats are:

• Limited Awareness Among Stakeholders: The implementation of 5G infrastructure is going to require a significant capital investment through expenditures for spectrum acquisition, network equipment, site acquisition, etc. These large expenditures stand to further restrict the wider adoption of 5G, especially in developing countries. For example, the Indian government’s plan, in July 2024, in the 2024-25 budget, to increase the basic customs duty on PCBAs on specific telecom equipment from 10% to 15% has received industry pushback. While industry body COAI, which represents large telcos, warns such a duty increase will lead to higher prices for consumers and further retard roll-out of 5G, other INDIGENOUS players are readily embracing it, as are other bodies such as DIPA and VoICE, as, in particular, DIPA notes, a support of ‘Make in India’. COAI has called for all duties to be reduced to zero until the point at which domestic manufacturing “matures,” and, not surprisingly, the industry has called for the abolition of the USOF cess and a reduction of the license fee as well to lighten the burden.

• Risk of Obsolescence of Algorithms: Cryptography is a rapidly changing landscape, and one of the big issues for post-quantum cryptography (PQC) is algorithm obsolescence. Algorithms that we consider secure today may not be secure in the future due to advances in quantum computing or new methods of attack being realized. Due to this, NIST knew that their strategies had to be flexible while also adequately rigorous and made a point of taking an adaptable approach to standardization where either updating or reaffirming will be an open opportunity. When NIST selected the HQC algorithm in March 2025 to be included in their approved list of key-establishment methods, it indicated the need to incorporate robust options that are adaptive to the future. Overall, NIST’s progressive and iterative strategy will help ensure that PQC standards remain effective over time to properly secure our digital infrastructure.

Post-Quantum Cryptography (PQC) Market Opportunities

• Financial Sector Modernization: The fast-paced digital transformation of the financial sector is creating urgency for improved cybersecurity adaptations because of the sector’s susceptibility to cyber-attacks that could violate sensitive transactions or access customers’ private data. Post-quantum cryptography (PQC) can protect financial systems from potential quantum threats since it is designed against today’s adversaries. The financial sector is understanding this very real need, as there are data industry trends that signal intentions to move towards the final, NIST written PQC standards issued in August 2024, even if many of those projects will remain proprietary. Regardless, action is being taken right now to get ahead of the curve, stay aligned with regulatory bodies, and keep customer trust by putting strategies in place for a quantum-responsive financial system.

• AI + PQC Convergence: The ability of Artificial Intelligence (AI) to identify cyber-attacks and detect vulnerabilities can present advanced possibilities for PQC. The interaction of PQC, the AI algorithms, and quantum computing will make it possible for companies to better deploy encryption schemes in an optimal manner, including in real-time while adapting PQC algorithms to adaptive, evolving threats. I think the steps being made in this direction are promising. The U.S. government is also advocating for innovation in AI and quantum computing research as a way to foster and supply the right funding recognized through The CHIPS and Science Act of 2022. The ability to secure computing solutions that are adaptive and quantum-resilient as outlined above through their recognition of the importance of this convergence is invaluable.

Post-Quantum Cryptography (PQC) Market Category Wise Insights

By Type

• Lattice-based cryptography:  Lattice-based cryptography is on the rise as one of the more plausible candidates for post-quantum overlap through its use of tough math problems, such as the Shortest Vector Problem (SVP), and low physical cost to deploy scheme. The National Institute of Standards and Technology (NIST) in January 2025 standardized the CRYSTALS-Kyber algorithm, a key encapsulation method based on lattice structures, which issued a clear statement of the legitimacy of post-quantum solutions. A few large technology firms used recent integration into cloud services to promote their future with the increased quantum resistance in mind. These included Microsoft, Amazon Web Services, and IBM – all of which have made moves toward lattice-based cryptography as providers. The Argonne National Laboratory in the U.S. Department of Energy said they will continue to financially support lattice-based cryptography research to allow for adaptation of these schemes for large-scale solutions. This display of commitment to lattice-based schemes collectively by public and private sectors is an encouraging effort toward developing a much-needed quantum-safe security posture.

• Code-based cryptography: Code-based cryptography, which utilizes error-correcting codes to create quantum-resistant encryption and signature schemes, is valued for its robust security and straightforward structure. In 2024, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) backed pilot projects with federal agencies to integrate code-based methods for securing critical infrastructure, while the NSA explored their use in classified communications. Tech leaders like Google also adopted the Classic McEliece algorithm for experimental quantum-secure communications. Further emphasizing its importance, government funding including a 2023 DARPA grant has been directed toward improving the efficiency and adoption of code-based cryptography in defense and national security systems.

• Multivariate cryptography: Multivariate cryptography, which is based on the complexity of solving multivariate polynomial equations over finite fields, is emerging as a promising post-quantum solution, especially for digital signatures and IoT applications, due to its computational efficiency. Though still maturing compared to lattice- and code-based approaches, it has gained traction, with NIST including the Rainbow signature scheme in its PQC evaluation process in 2023. In 2024, the EU’s Horizon Europe program financed research that sought to help optimize multivariate algorithms for smart grids and automotive security, while companies such as Toshiba and NEC began the actual integration of these schemes into hardware security modules. Similarly, in the U.S., the Department of Commerce published the 2022 guidelines to promote industry adoption and support, indicative that multivariate cryptography will have a growing importance in a landscape where quantum security will eventually become the norm.

• Hash-based cryptography: Hash-based cryptography is a direction of cryptography whose object of computation is the cryptographic hash function to make digital signatures. Hash-based SIGs may afford quantum-resistant security but may afford simplicity due to their minimal construction/no/low cryptographic assumption structures. Hash-based SIGs also have the down-sides of larger signature sizes and state problems. However, hash-based is very helpful, for example, firmware updates and code signing are Hash-based cryptography use cases that are currently in use. In 2024, NASA announced the use of hash-based signature algorithms (HBSAs) in satellite communications to protect the transmission of data. The National Institute of Standards and Technology (NIST) recognized HBSAs in 2023 already, documenting the importance of using HBSAS in firmware authentication for government systems. Cisco was integrating HBSAs into all of their secure boot processes as of 2022 to demonstrate their commitment to post-quantum safety in embedded or critical infrastructure systems.

By Service

• Design, implementation, and consulting services: Design, implementation, and consulting services in the PQC ecosystem are important aspects of supporting organizations’ transitions to quantum-resistance cryptosystems. Design, implementation, and consulting services essentially facilitate a client-specific solution, integration with existing infrastructure, and regulatory requirements. For example, Deloitte recently launched a PQC-specific consulting practice in 2023, and the U.S. GSA partnered with commercial entities in 2024 to assist regulatory agencies in the federal PQC implementation process. Similarly, IBM has been increasingly serious about consulting services for clients since 2022, specifically in sectors including finance, health and wellness, and critical infrastructure operators. All these initiatives are driven by expert-led service efforts and projects like the U.S. National Quantum Initiative Act and the subsequently developed national quantum strategy that indicates a demand for rapid, expert-driven PQC deployments.

• Migration services: Migration services are critical in the transition and upgrading of existing cryptographic systems to post-quantum cryptography, providing secure and seamless upgrades using risk assessments, hybrid implementations, and the use of phased roll-outs. Recent movement in the migration services space indicates an upward trajectory, as evidenced by the 2024 contracts awarded by the U.S. Department of Defense to Booz Allen Hamilton and Raytheon Technologies to conduct PQC migration in military systems. Additionally, Google’s Project Wycheproof (released 2023) helps software developers help their teams verify their cryptographic implementations during a migration to PQC. The U.S. Treasury also assisted financial institutions when they directed them, in 2022, to consider migrating existing cryptographic systems while relying on phased approaches and hybrid encryption as they prepared for NIST compliance.

• Quantum risk: Quantum risk assessment consists of evaluating an organization’s level of threat from quantum computing by recognizing its critical assets and systems that will require PQC upgrades and allowing better planning and priority of resources. Recent developments emphasise its escalating importance: In 2023, CISA developed and released a dedicated Quantum Risk Assessment toolkit specifically for critical infrastructure sectors like energy and finance to ease their analysis of vulnerabilities and actions to mitigate vulnerabilities. In 2024, Lockheed Martin began offering tailored quantum risk assessments for government and defense clients. the NSA’s quantum risk framework from 2022 still provides agencies with a systematic approach to assess and address the threats posed by quantum technology while ensuring that proactive security planning takes place.

By Enterprise

• Small and Medium Enterprises: Small and medium enterprises (SMEs) may be constrained by budget and technical resources, but they are increasingly recognizing the need for post-quantum cryptography (PQC), both to protect their data and to meet regulatory requirements. To help facilitate that change, the U.S. Small Business Administration launched a 2023 program that provided awareness of, and subsidized consulting services for, the use of PQC. Microsoft also recently launched its Azure Private 5G service in 2024, with multi-layer encryption using PQC and tailored to SMEs and protecting IoT and cloud-based applications. There was also support from NIST federal agencies in 2022 when they released simpler and easier guides to transitioning to new PQC implementations, which would ease the transition for SMEs. These examples show the increasing institutional support that aims to deliver solution knowledge and deployment so SMEs can acquire access to quantum-safe security while making an effort to implement it quickly.

• Large enterprises: Large enterprises are not only looking to execute post-quantum cryptography (PQC) actions rapidly, but under mandated and compliance obligations are driven to action because they have complicated IT environments and massive digital assets that are subjected to quantum risks that target the root of security. They have at their disposal an incredible wealth of people and resources around R&D internally, through strategic partnerships, and in the backing of quantum-resilient technologies and their adoption. In 2024, major banks and financial institutions like JPMorgan Chase and Bank of America shared public communication to value that they were integrating NIST-approved PQC algorithms into their systems. Google Cloud announced that in 2023 they would partner with NIST to pilot PQC encryption for large customers in their cloud. IBM announced in 2022 that they would provide quantum-safe blockchain solutions to secure transactions used by enterprises. Government organizations also provide significance to this by funding development and providing grants to enhance PQC and industry agreements for prototype development for the betterment of the field by accelerating PQC readiness.

Post-Quantum Cryptography (PQC) Market Impact of Latest Tariff Policies

The global PQC (Post-Quan The Post-Quantum Computing (PQC) marketplace is experiencing significant upheaval due to new tariffs imposed by the U.S. government. instituted a “Fair and Reciprocal Plan” that included a tariff of 10% on nearly all imports, with potential tariffs going as high as 32% from countries like Taiwan. The one major exception is semiconductors, which includes companies like SEALSQ. The timeliness of the exemption is notable, given SEALSQ’s work on NIST-compliant PQC chips, which directly ties to Executive Order 14119, which mandates all federal agencies use PQC by 2035. Tariffs strongly support SEALSQ’s position in a strategic market.

Despite the context of the exemption from the tariffs for semiconductors, the broader PQC market is reacting to rising costs and instability of supply chains. Even domestic companies in the U.S. relying on importing components for quantum applications are reporting a 5-10% increase in their overall operational expenses. Due to raising operating costs as a result of tariffs or potential tariffs, companies in the finance, defense, and/or public sector may face delays in transitioning to PQC technology due to uncertain pricing models.

To address their unpredictability, some companies are also examining the function or ongoing availability of their suppliers and/or changing logistics altogether with some suppliers. Those decisions will have the unfortunate impact of reducing short-term growth but hopefully provide their company an opportunity for stability at a time that will allow for continued domestic supply and offer a competitive advantage while domestic suppliers become increasingly resilient for future operations.

In light of these circumstances, some companies are trying to innovate and manufacture domestically. For example, SEALSQ is currently standing up an outbound Outsourced Semiconductor Personalization & Test Center, and having a domestic Outsourced Semiconductor Personalization & Test center is another means for SEALSQ to minimize reliance on foreign suppliers. This is consistent with CHIPS Act initiatives, and it directly connects to U.S. national cybersecurity goals. Steps like this help to ensure stability for a company working within a domestic environment.

Report Scope

Post-Quantum Cryptography (PQC) Market Regional Perspective

The Post-Quantum Cryptography (PQC) Market can be divided across different regions such as North America, Europe, Asia-Pacific, and LAMEA. This is a cursory overview of each region:

• North America: The U.S. has taken the early lead on post-quantum cryptography (PQC) with NIST finalizing multiple PQC algorithms by 2024 to roll out in US federal systems. This represents a major milestone in securing government infrastructure against quantum threats in the future. In support of this rollout, the federal government intends to invest $7.1 billion to facilitate this transition by 2035. Major tech corporations, such as IBM and Microsoft, are collaborating with federal agencies to create PQC solution pilot programs/projects. Their focus is on the real-life use cases, with a general requirement of showing quantum resilience in PQC implementation. Overall, this demonstrates the federal government’s commitment to retaining its cybersecurity leadership on a national basis, and by taking these actions now, the U.S. is likely to lead the way on quantum-safe cryptography in the adoption of PQC.

• Europe: Countries in Europe are demonstrating the potential that post-quantum cryptography (PQC) holds through efforts such as the European Quantum Communication Infrastructure (EuroQCI) program, which is aimed at developing quantum-safe networks in the European Union. Germany’s Federal Office for Information Security (BSI) is providing support for projects that are aimed at researching PQC in critical infrastructure. In 2024, the European Space Agency’s initiative launching the Eagle-1 satellite to test Quantum key distribution in space demonstrates Europe’s plans to move towards testing quantum-safe secure communications as a means of securing services across Europe. Overall, these programs demonstrate the overall effort to encourage regional movement towards realizing quantum-resistant security technologies and protecting critical arteries of the economy from future quantum risks.

• Asia-Pacific: India launched the National Quantum Mission in 2023, allocating over ₹6,000 crore to advance quantum technologies, including post-quantum cryptography (PQC). The mission provided a means to establish thematic research hubs amongst leading institutions in order to advance innovation and development. In the meantime, Singapore’s NQSN+ program, which also originated in 2023, is focused on establishing national quantum-safe networks with businesses, which will also allow businesses to access PQC solutions to protect their data. Both countries are making strategic investments to develop quantum resilience and secure their critical digital infrastructure from future threats.

• LAMEA: In support of national security measures, amongst other factors, the UAE in the Middle East is prioritizing investment in quantum research to be able to integrate PQC into their legal entity cybersecurity approaches. Some governments in the region are ramping up investment and establishing partnerships with international technology companies to build quantum resistant infrastructures. Other countries in the region are looking to build similar partnerships and could borrow from the office of the national cyber director in the UAE. In Africa, South Africa has initiated research programs with universities with a focus on quantum-safe cryptographic approaches that are collaborative in nature. These initiatives signify and outline the beginning of the continent’s adoption of PQC technologies. In both regions, there is acceptance and recognition of the importance of preparing for quantum threats and the need to develop the expertise and necessary infrastructure for secure quantum communication and data, whether through the energy of a national program of support or through the past impetus of collaboration with the private sector. This increased focus globally is indicative of a commitment to accelerating the adoption of PQC as a security practice across all sectors, beyond traditional technology innovation hubs.

Post-Quantum Cryptography (PQC) Market Key Developments

In recent years, the Post-Quantum Cryptography (PQC) Market has experienced several crucial changes as the players in the market strive to grow their geographical footprint and improve their product line and profits by using synergies.

• In October 2024, the Global Entrust Report reveals that while awareness of post-quantum cryptography (PQC) is high among organizations worldwide, widespread action to prepare for quantum threats is lagging. Despite 61% of respondents planning to migrate to PQC within five years, less than half (41%) are actively preparing, and 38% lack the necessary scale or technology for the transition. Key challenges include unclear ownership, insufficient skills, fragmented requirements, and poor visibility into cryptographic assets. The report highlights a critical gap between recognition of the quantum threat and actual readiness, emphasizing the need for organizations to improve cryptographic asset management, upskill teams, and activate robust PQC strategies as the era of quantum computing approaches.

• In November 2024, The DigiCert blog highlights rapid progress in post-quantum cryptography (PQC) driven by the threat quantum computing poses to current encryption. In August 2024, NIST released three new PQC standards—FIPS 203, 204, and 205—to protect data from quantum attacks while continuing to explore more algorithms. Adoption is growing, with PQC support integrated into protocols like TLS, SSH, and IKEv2, often using hybrid classical-quantum methods for a smooth transition. The U.S. government’s CNSA 2.0 mandates full PQC adoption by 2035 with phased implementation timelines. Despite this progress, challenges like large key sizes and evolving compliance frameworks remain. Organizations are advised to enhance crypto-agility and stay updated on changing standards to ensure future quantum-resistant security.

These important changes facilitated the companies’ ability to widen their portfolios, to bolster their competitiveness, and to exploit the possibilities for growth available in the Post-Quantum Cryptography (PQC) Market. This phenomenon is likely to persist since most companies are struggling to outperform their rivals in the market.

Post-Quantum Cryptography (PQC) Market Competitive Landscape

The Post-Quantum Cryptography (PQC) Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

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

These firms apply a sequence of strategies to enter the market, including innovations, mergers and acquisitions, as well as collaboration.

The Post-Quantum Cryptography (PQC) market is driven by key industry leaders such as NXP Semiconductors, Thales Group, Amazon Web Services (AWS), and Idemia Group, each contributing specialized solutions to meet growing quantum security demands. NXP Semiconductors is advancing PQC integration in secure hardware, focusing on IoT devices and automotive sectors to provide robust quantum-resistant protection at the chip level. Meanwhile, Thales Group offers end-to-end cryptographic services, combining PQC algorithms with cybersecurity frameworks designed for governments and critical infrastructure, ensuring secure communication and data integrity in sensitive environments.

AWS has been actively expanding its cloud platform by embedding PQC capabilities, allowing enterprises to deploy quantum-safe encryption easily and at scale. This empowers organizations across industries to future-proof their data and applications against the rise of quantum computing threats. Idemia Group is enhancing biometric and identity verification technologies by incorporating PQC solutions, helping secure access control systems and digital identities with quantum-resistant safeguards. These companies are at the forefront of innovation, addressing diverse market needs from cloud security to secure hardware and identity management.

Global and regional collaborations further accelerate PQC adoption, with these major players partnering with telecom providers, governments, and enterprises worldwide. This synergy between global technology leadership and localized deployment strategies is enabling faster, cost-effective implementation of PQC solutions across sectors such as finance, healthcare, telecommunications, and public safety. As quantum computing advances, the combined efforts of NXP Semiconductors, Thales, AWS, Idemia, and their partners are vital in building a resilient cybersecurity landscape capable of withstanding future quantum threats.

The Post-Quantum Cryptography (PQC) 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