March 1, 2024

Quantum Key Distribution Market Is Projected To Propelled By Growing Demand For Data Security

Quantum key distribution (QKD) enables the distribution of encryption keys with security based on the laws of quantum mechanics, ensuring messages exchanged between users remain private. It provides future-proof security as quantum computers will be able to break today’s public key encryption schemes.

The global Quantum Key Distribution Market is estimated to be valued at US$ 2.07 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing demand for advanced encryption techniques from both private organizations and government agencies is primarily driving the growth of the quantum key distribution market over the forecast period. With growing concerns regarding data security and privacy amid rising cybercrimes globally, QKD is emerging as a reliable and secure solution for generating and distributing encryption keys needed for secure communication. Its security rests on fundamental laws of quantum mechanics, making intercepted messages unusable for hackers even with quantum computers. This unique feature is expected to increase its adoption across telecom, banking, healthcare and other industries dealing with sensitive data in the coming years.

SWOT Analysis
Strength: Quantum key distribution provides unconditional secure communication that cannot be hacked. It ensures the detection of eavesdropping with strong security guarantees.
Weakness: It requires development of quantum repeater technology to extend transmission distances beyond a few hundred kilometers. Commercial applications of quantum key distribution are still in development phase with high investment costs.
Opportunity: Growing demand for cybersecurity from government, military and businesses is expected to boost the quantum key distribution market. Increasing R&D activities for quantum technologies will also support market growth.
Threats: Classical cryptography techniques are still dominant in commercial applications. Technical challenges associated with complexity, miniaturization and integration of quantum key distribution systems also pose threats.

Key Takeaways

The global Quantum Key Distribution market demand is expected to witness high growth over the forecast period of 2023 to 2030. The global Quantum Key Distribution Market is estimated to be valued at US$ 2.07 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

North America is currently the dominant region for the quantum key distribution market owing to significant investments by US government organizations in quantum technologies research. The market in Asia Pacific is expected to grow at the fastest pace led by increasing focus of China and other APAC countries on development of quantum networks and cybersecurity.

Key players

operating in the Quantum Key Distribution market are Pfizer, Inc., Bristol Myers Squibb, Janssen Pharmaceuticals, AbbVie, UCB, Amgen, Takeda Pharmaceutical, Biogen Inc., Vertex Pharmaceuticals, Novartis AG, Sanofi S.A, AstraZeneca PLC, Eli Lilly and Company, GlaxoSmithKline plc, Merck & Co., Inc., F. Hoffmann-La Roche Ltd, Teva Pharmaceutical Industries Ltd., Astellas Pharma Inc., Bayer AG, Boehringer Ingelheim GmbH, Eisai Co., Ltd., Allergan Plc, Valeant Pharmaceuticals International, Inc., Sunovion Pharmaceuticals Inc., Shire Plc, Precision Biosciences, and Sangamo Therapeutics. The increasing investments in R&D by these key players for advancing quantum technologies are supporting the growth of quantum key distribution market.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it