DUBLIN--(BUSINESS WIRE)--The "Quantum Networking Market by Offering (Quantum Key Distribution (QKD), Quantum Random Number Generator (QRNG), Quantum Repeater, Quantum Memory, Photon Detectors, Software), End User Industry (BFSI, Government & Defense, IT & Telecom) - Global Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.
The quantum networking market is expected to be worth USD 861.8 million in 2024 and is estimated to reach USD 5.38 billion by 2029, growing at a CAGR of 44.2% between 2024 and 2029
This research report categorizes the quantum networking market based on offering, end user Industry, application, and region. The report describes the major drivers, restraints, challenges, and opportunities pertaining to the quantum networking market and forecasts the same till 2029. Apart from these, the report also consists of leadership mapping and analysis of all the companies included in the quantum networking ecosystem.
The market growth is driven by expanding use cases in secure communication, financial transactions, and defense. Also, with an increased focus of financial institutions and defense organizations toward protection and maintenance of privacy of data, demand will grow for devices such as quantum key distribution. Added to this is quantum technologies funding and initiatives by governments and corporations that further catapult the quantum networking market.
Prominent players profiled in this report are TOSHIBA CORPORATION (Japan), Terra Quantum (Switzerland), Quantumctek Co., Ltd. (China), ID Quantique (Switzerland), HEQA Security (Israel), QuintessenceLabs (Australia), MagiQ Technologies (US), Crypta Labs Limited (UK), Quantum Xchange (US), Qunnect Inc. (US), among others.
Quantum Key Distribution (QKD) system segment to hold the high market share during the forecast period.
Quantum Key Distribution (QKD) system segment will hold high market share during the forecast period. The market growth is credited to growing concerns over data security and threat towards traditional data encryption methods. This has led to increase in adoption of quantum networking solutions across banking and finance, government, and defense sectors.
The industry participants are focusing on implementations of QKD systems and running quantum networking pilot projects to gain a competitive edge in the market. For instance, in March 2024, Toshiba Corporation (Japan) announced strategic partnership with SoftBank Corp. (Japan) to demonstrate QKD operations with optical wireless communication. The partnership aims to showcase that secure QKD networks can be deployed over wireless communication infrastructure. Such significant partnership activities will propel the QKD segment growth over the forecast timeframe.
Market for Government & Defense segment is projected to hold for largest share during the forecast timeline.
Government and defense end user industry is projected to hold larger share during the forecast timeline. Quantum networking is done for the secure communication of classified information and national security in government and defense sectors. Quantum networks ensure that the communication channels can, in effect, be made immune to eavesdropping. QKD will enable the generation of cryptographic keys, which, by the very law of Physics itself, are safe against any form of computational attack, including those coming from the future quantum computers.
This opens up a way to protect sensitive information, assure military communications integrity, and protect national secrets. In addition, quantum-secured military communications are supposed to be kept confidential and authenticated against advanced cyber threats; therefore, they become exceedingly important for secret defense operations and strategic planning.
North America is expected to hold for largest share during the forecast timeline.
North America will occupy the largest share during the forecast period since the US is home to research institutions and innovation hubs of worldwide repute, leading from the forefront in quantum networking research. Universities like MIT, Stanford, and the University of Chicago, along with national laboratories such as Argonne and Los Alamos, are leading different cutting-edge researches in quantum communication and networking. Recently, The U.S. Department of Energy declared USD 24 million, in funding for three projects driving the research into quantum networks.
The focus will be on scalable quantum network communications. The funding will go to three projects whose objectives are threefold: allowing distributed quantum computers, integrating precision quantum sensors, and giving rise to new network architectures and protocols that will realize improved quantum information flow and error mitigation.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 273 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $861.8 Million |
| Forecasted Market Value (USD) by 2029 | $5382 Million |
| Compound Annual Growth Rate | 44.2% |
| Regions Covered | Global |
Market Dynamics
Drivers
- Increasing Complexity of Cyber-Attacks in Digital Era
- Rising Data Generation from IoT and Cloud Computing Devices
- Mounting Demand for Secure Communication Channels
Restraints
- High Costs of Quantum Networking Hardware
- Standardization and Interoperability Issues
Opportunities
- Rising Emphasis on Data Protection and Privacy
- Increasing Allocation of Funds for Developing Quantum Technologies
- Emergence of Smart Cities and Industrial Automation
Challenges
- Sensitivity of Quantum Systems to Electromagnetic Radiation
- Technical Compatibility Issues
Technology Analysis
- Key Technologies
- Quantum Sensing
- Quantum Computing
- Complementary Technologies
- Post-Quantum Cryptography
- Integrated Quantum Circuits
- Adjacent Technologies
- Photonics and Optoelectronics
Case Study Analysis
- Global Tech Solutions Adopts Qrng-Integrated Ezquant Security Key to Enable Secure Passwordless Authentication
- Hitachi Energy and Id Quantique Partner to Secure Mission-Critical Networks with Quantum Encryption
- Epb, Qubitekk, and Aliro Unite to Enable Secure and Scalable Communication with Epb Quantum Network
- Quantum Communications Hub Deploys Qkd Across Ukqn and Ukqntel Networks to Establish Secure Quantum Communication
- Thales Trusted Cyber Technologies Adopts Luna T-Series Hsms with Id Quantique's Qrng Chip to Address Cyber Threats
Regulatory Landscape
Porter's Five Forces Analysis
Impact of AI on Quantum Networking Market
- Case Study: Application of AI in Marl-based Approach for Decentralized Resource Allocation in Quantum Computing Networks
Companies Featured
- Toshiba Corporation
- Id Quantique
- Heqa Security
- Quantumctek Co. Ltd.
- Quintessencelabs
- Terra Quantum
- Magiq Technologies
- Crypta Labs Limited
- Quantum Xchange
- Qunnect Inc.
- Qubitekk, Inc.
- Aliro Technologies, Inc.
- Qunu Labs Private Limited
- Arqit
- Miraex
- Speqtral Pte Ltd
- Kets Quantum Security Ltd.
- Aegiq Ltd.
- Qubalt GmbH
- Ssh
- Qusecure, Inc.
- Veriqloud
- Qrypt
- Quside Technologies
- Luxquanta Technologies S.L.
For more information about this report visit https://www.researchandmarkets.com/r/gg9cua
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
