The global quantum key distribution market has recently seen an increase in demand due to advantages like the provision of provable security based on information theory and forward secrecy. There has been a greater demand for these services in comparison to their other traditional alternatives.
The necessity of modernizing safe communication by offering security based on basic physical principles. This has further pushed the demand for the quantum key distribution market upwards. These factors have further propelled the demand for quantum key distribution thus, increasing the dependence on this market.
Rapid usage of quantum key distribution in the financial sector, by the government, in the military, and in defense fosters remarkable progress in the global quantum key distribution market. The increase in the number ofIoT devices and cloud-based services has indirectly fueled the demand for this market. The market consistently undergoes a series of developments in order to provide better services.
Advantages such as being simple to use as well as virtually unhackable encourage further adoption of the quantum key distribution market in the long run. A telecommunications solution supplier, ADVA Optical Networking SE, and ID Quantique teamed in December 2019 to ensure long-term security for crucial data transferred across optical networks. Considering these factors, it is reasonable to say that the global quantum key distribution market is growing at an appreciable compound annual growth rate (CAGR) of 23.6%. It is expected that the market might acquire a size of USD 9.38 billion during the forecast period, that is, 2021-31.
Quantum key distribution is a safe method of communication for sharing encryption keys that are only known to shared parties (QKD). The communication method makes use of characteristics of quantum physics to communicate cryptographic keys in a secure manner that can be verified. The security of quantum key distribution is based on quantum physics, in contrast to conventional public key cryptography, which is based on the computational complexity of exact mathematical algorithms and lacks any statistical evidence as to the actual complexity of reversing the one-way functions used.
The significant rise in the demand for long-term secrecy-providing services has led to a tremendous rise in the growth of the global quantum key distribution market. Future networks will be more resistant to changes in technology thanks to it. End users are seeking quantum key distribution and security solutions that can guard data and halt data misuse as a result of the rise in cyberattacks. Data security is ensured by quantum key distribution. As a result, a surge in hacking and cyber attacks is a fundamental factor driving the demand for quantum key distribution.
However, there are several restrictions related to the worldwide market for quantum key distribution. They rely on using trusted traditional communication methods. Its dependence on hardware prevents it from being flexible enough for updates or security patches. In spite of all these restraints, the market is expected to experience a considerable rate of growth with new additions and developments that might take place in the market during the forecast period, that is, 2021-31.
The key players in the global quantum key distribution market are SeQureNet, Quintessence Labs, MagiQ Technologies, Toshiba, QuantumCTek, Qasky, and Qudoo among others. These players operate in the market and adopt a number of strategies to stay in the market and establish themselves at a higher position than their competitors.
Network Security Type to Remain the Most Lucrative Segment
It is predicted that reliable network infrastructure will accelerate the adoption of QKD technology. Scientists and digital security experts are developing technology and solutions to increase industrial interest in QKD-enabled products. Companies in the quantum key distribution industry must invest in ongoing R&D to develop expertise in critical infrastructure and guarantee long-term security across a range of end-use scenarios.
The Military and Defense Segment to Remain Dominant During the Study Period
The global quantum key distribution market is divided into finance, government, military and defence, and other segments based on application. Globally, improved cryptographic technologies are required because national defence applications have made cyber security a top priority. Global demand exists for cutting-edge cryptographic technologies because national military applications now place a high focus on cyber security. This is obvious considering that it is projected that this market segment will produce significant revenue during the forecast period for the distribution of quantum keys.
North America is Expected to Render Ample Investment Avenues
North America is anticipated to maintain its dominance of the market share throughout the projected period. This area consistently generates new chances for businesses in the quantum key distribution market, leaving enough room for the industry to expand during the projected period.
Covid-19 Impact and Market Status
The crisis of the novel coronavirus was received by different industries in varying manners. The production process got adversely affected and the flow of raw materials was disturbed. The demand and supply chain was impacted negatively. Due to various regulatory measures imposed by the government, the manufacturers had to bear a number of challenges. With the exception of the groups that provide medical supplies and life support items, most projects have been strongly influenced, as have Quantum Key Distribution (QKD) activities. Despite these setbacks, the quantum key distribution (QKD) market is all geared up to acquire a moderate rate of growth during the forecast period, that is, 2021-31 as the restrictions are gradually being relaxed.
Latest Innovations in the Global Quantum Key Distribution (QKD) Market: a Snapshot
• To draw in more clients, major quantum key distribution vendors like Toshiba Corporation, IBM Corporation, ID Quantique, Infineon Technologies AG, ISARA Corporation, and QuantumXchange, Inc. are putting their efforts into developing more affordable quantum key distribution.
• In January 2020, the Quantum Key Distribution (QKD) patent portfolio of the British multinational defence technology company QinetiQ was sold to Qubitekk, Inc.
Quantum Key Distribution (QKD) Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2032||USD 9.38 billion|
|Growth Rate||CAGR of 23.6% during 2021-2031|
|Segment Covered||by Security Type, by Application, by End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||SeQureNet, Quintessence Labs, MagiQ Technologies, Toshiba, QuantumCTek, Qasky, and Qudoo among others.|
Key Segments of the Global Quantum Key Distribution (QKD) Market
Security Type Overview, 2021-2031 (USD Billion)
- Network Security
- Application Security
Application Overview, 2021-2031 (USD Billion)
- Military and Defense
Regional Overview, 2021-2031 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
- South Africa