Insider Brief
- The Quantum Insider’s latest report projects the quantum security market will grow from ~$0.7 billion today to ~$10 billion by 2030, driven by over 50% CAGR, with core segments including Post-Quantum Cryptography (PQC), Quantum Key Distribution (QKD), the Quantum Internet and Quantum Random Number Generators (QRNGs).
- PQC is advancing with NIST finalizing quantum-resistant cryptographic standards, while QKD and QRNGs provide specialized solutions for secure key exchanges and generating truly random numbers, addressing vulnerabilities posed by quantum computing.
- Initiatives like the Center for Quantum Networks (CQN) and Q-SEnSE are bridging research and real-world applications, working toward fault-tolerant quantum repeaters and ultraprecise sensing technologies critical for secure quantum communication.
The Quantum Insider has released a report detailing the growing quantum security market, emphasizing four core segments—Post-Quantum Cryptography (PQC), Quantum Key Distribution (QKD), Quantum Internet, and Quantum Random Number Generators (QRNGs)—as vital responses to potential cybersecurity risks posed by future quantum computing advances.
The report, with more than 100 pages of highly detailed facts and insights, highlights industry efforts to develop technologies that secure critical data in sectors like finance, defense and telecommunications, as conventional cryptographic systems face increased vulnerability from quantum-driven threats. According to the report, the value of the quantum security market is ~$0.7 billion today. The market is expected to reach approximately $10 billion by 2030, growing at over a 50% CAGR.
Quantum computers, while still in development, have the theoretical potential to break current cryptographic systems by solving complex mathematical problems that secure most data exchanges and storage today. Existing public-key cryptographic systems could become vulnerable, making industries dependent on digital security—including finance, defense, and telecommunications—particularly exposed to future threats.
Research in PQC is a growing interest for universities and research institutions. The report shows that the all-time total scholarly works in this field is over 300k and the total citing patents is now over 60k.
Across the globe, consortia and initiatives are moving this research from the lab to the real world. For example, the Center for Quantum Networks (CQN) and Q-SEnSE are just two initiatives that are exploring technologies critical for secure quantum communication, including PQC. CQN focuses on creating fault-tolerant quantum repeaters integrated with modern telecom infrastructure to enable error-corrected quantum networks that connect users at high speeds across metropolitan distances. Q-SEnSE enhances quantum cryptographic security through ultraprecise sensing technologies, such as atomic clocks and trapped ions, which bolster quantum key distribution systems by improving detection and synchronization capabilities crucial for safeguarding data in quantum networks.
According to the report, major efforts are underway to develop technologies that address these issues, with PQC, QKD, the Quantum Internet, and QRNGs emerging as promising tools.
Post-Quantum Cryptography
Post-Quantum Cryptography aims to secure cryptographic systems against threats from future quantum computers. Unlike traditional cryptographic algorithms, which rely on complex mathematical operations to protect data, PQC uses quantum-resistant algorithms designed to withstand the computing power of a quantum system.
The National Institute of Standards and Technology (NIST) has taken a proactive stance on PQC, launching a process in 2016 to evaluate quantum-resistant algorithms, according to the report.
After evaluating over 80 submissions, NIST announced four finalist algorithms in 2022. These standards entered their final version in August 2024, offering the U.S. a quantum-safe framework for data protection well before large-scale quantum computers become widely available.
The increased focus on PQC reflects heightened concerns over the future vulnerabilities of traditional cryptography, which still dominates most government, corporate, and individual data security.
Quantum Key Distribution (QKD)
Quantum Key Distribution is another significant focus area in the quantum security market, particularly for applications that demand the highest levels of data integrity. QKD uses the principles of quantum physics to secure key exchanges that form the backbone of encryption.
Unlike traditional methods, QKD involves sending cryptographic keys encoded in photons across optical fibers. The quantum properties of these photons make it virtually impossible to intercept and decode the information without detection, as any attempt to measure a quantum particle changes its state. This feature provides an additional layer of security, especially for industries where data breaches could have severe implications.
QKD is currently paired with existing symmetric encryption methods like AES (Advanced Encryption Standard) to authenticate communication channels, creating a secure environment for sensitive exchanges. Despite the potential, widespread adoption of QKD is still limited by infrastructure demands and compatibility challenges with existing systems.
Quantum Internet
The Quantum Internet, a still-developing concept, aims to provide a network where quantum devices can exchange information. Unlike the traditional internet, which transfers information in bits, the Quantum Internet will use qubits, leveraging quantum properties to enable highly secure communication and computational tasks.
The report notes that while significant technical hurdles remain, such as developing reliable quantum repeaters and memories, progress in these areas could eventually facilitate a new communication network built around quantum principles. In the future, the Quantum Internet could see applications in sectors such as financial risk analysis and pharmaceutical research, where computational power and data security are critical.
Quantum Random Number Generators (QRNGs)
QRNGs represent a shift in how random numbers, essential to cryptographic algorithms, are generated. Traditional random number generators depend on algorithmic or hardware solutions, which can be predictable under certain conditions.
QRNGs, however, generate random numbers from non-deterministic quantum processes, creating a sequence that is truly random and unpredictable. This technology is particularly relevant for cryptographic applications, as many current systems could be susceptible to quantum-driven decryption methods if their random number generation methods are compromised.
QRNGs typically rely on photonic methods to produce random numbers, and the report highlights their growing significance as industries adopt quantum-based solutions. By leveraging quantum randomness, QRNGs can offer security assurances that are difficult to match with classical random number generators, an advantage that is drawing attention from sectors with strict security needs.
For a complete market analysis and to understand how these technologies may affect specific industries, The Quantum Insider’s full report provides further details on each technology’s current and projected impact and is available for subscribers of The Quantum Insider platform.
Learn how you can be a subscriber and access reports, like the report on Quantum Security here.
