Quantum Communication Market Size, Share, and Trends 2024 to 2033

Quantum Communication Market (By Product Type: Hardware, Services, By Application: National Defence, Aerospace, Finance, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

  • Last Updated : June 2024
  • Report Code : 4512
  • Category : ICT

Quantum Communication Market Size and Growth

The global quantum communication market size was USD 840.26 billion in 2023, calculated at USD 1,087.04 billion in 2024 and is expected to reach around USD 11,034.42 billion by 2033, expanding at a CAGR of 29.37% from 2024 to 2033. Rising security concerns across the world due to advancement in technologies and governments initiatives to combat security threats are the major drivers of the quantum communication market on a global scale.

Quantum Communication Market Size 2024 to 2033

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Quantum Communication Market Key Takeaways

  • The North America quantum communication market size reached USD 285.69 billion in 2023 and is predicted to cross around USD 38.06.87 billion by 2033, at a CAGR of 29.55% from 2024 to 2033.
  • North America dominated the market with the largest revenue share of 34% in 2023.
  • Asia Pacific is anticipated to grow at the fastest rate during the forecast period.
  • By product type, the hardware segment has held a major revenue share of 73% in 2023.
  • By product, the services segment is expected to grow at a signing rate of during the forecast period.
  • By application, the national defence segment has contributed more than 44% of revenue share in 2023. 
  • By application, the finance segment expected to show notable growth in the upcoming period for quantum communication market.

U.S. Quantum Communication Market Size and Growth2024 to 2033

The U.S. quantum communication market size was valued USD 214.27 billion in 2023 and is expected to be worth around USD 2,874.19 billion by 2033 with a CAGR of 29.64% from 2024 to 2033.

U.S. Quantum Communication Market Size 2024 to 2033

The North America held the largest market share in 2023 and thus, dominated the global quantum communication market. Government in North America has understood, the utmost importance of quantum technologies and its pivotal role in future shaping innovative technologies. Thus, major players in the United States and Canada have invested huge amount to develop quantum communication, the US has a national quantum initiative act while Canada launched a Canada's national quantum strategy are the prominent examples of the North American government’s investments to propel the technology for quantum communication.

On the other side, Europe held a considerable share of the quantum communication market in 2023. There is a significant demand for the highly secure and advance communication in various European industries like healthcare, finance, defence etc further propelling the adoption of quantum communication technologies in the Europe region. Major key players in the region like airbus, Atos are investing hugely in quantum research which enhance Europe's competitiveness in the global market.

Quantum Communication Market Share, By Region, 2023 (%)

While Asia Pacific is anticipated to grow with fastest CAGR during the forecasted years. The growth of this region holds a lucrative possibility in the upcoming period, as Asia Pacific is a home to leading research institutes and universities which fosters the region's growth exponentially. Countries like India, China, Japan are the frontier in the developing the quantum communication technologies and its deployment and to capitalize these innovations in the global market. Furthermore, government in the Asian region supporting the research for quantum communication by providing substantial funds and supporting policies with strong industry participation and number of alliances/collaborations among tech giants, institutions, research firms are the major factors driving the region's growth globally at a wider scale.

Market Overview

The quantum communication market is poised for robust growth during the forecasted years. The market growth is driven by rising need for reliable and end to end secure communication solution, across the various sectors, since communication is an inevitable part of any enterprise or business. Continues investments and research in the area of quantum communication and Technolgies will again propel the market expansion. As many sectors have been realising the importance and potential of quantum communication, its adoption rate has seen a rapid surge in the market which solidifying the position of the market as a critical component of the market on a wider scale.

Therefore, quantum communication market despite of the incubating technology, is rapidly evolving with significant contributions by government authorities and alliances by major key players fostering the innovations in the quantum communication system. As market continues to mature, demand across various sector is fuelling, which in turn, aids in rising adoption of quantum communication system.

Quantum Communication Market Growth Factors

  • Increasing development of quantum computers which holds a potential to break the encryption pattern in the established communication system.
  • Major key players and governments world widely invested heavily into the quantum communication technology development.
  • Governments support and funding for advancing the research and development over quantum communication fostering the market globally.
  • Unprecedented security and reliability offered by QKD-quantum key distribution method.
  • Rising focus on cybersecurity and defence sector across the world to mitigate risk of data leakage.

Quantum Communication Market Scope

Report Coverage Details
Market Size by 2033 USD 11,034.42 Billion
Market Size in 2023 USD 840.26 Billion
Market Size in 2024 USD 1,087.04 Billion
Market Growth Rate from 2024 to 2033 CAGR of 29.37%
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered Product Type, Application, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Quantum Communication Market Dynamics


Rising requirement for secure financial transaction

The major driver for the quantum communication market is highly secured financial transaction either by tech giants, international/national banks or by individuals. Since, hackers finds an innovative method always to gain the access of finance account, its essential to secure it with high fidelity. To achieve this, quantum communication system holds promising opportunities and spectrum of possibilities which ensures the safety of sensitive data about transactions by preserving integrity of the data. Traditional methods like encryption unfortunately fall short to safeguarding the financial data while the method like quantum key distribution provides immense safety and security protocols which creates a strong barrier between eavesdroppers or hackers to access the private finance data making it further safe from tampering and intercepting.

  • For instance, by the help of quantum key distribution, QKD- a one-time link can be provided for military regime, to plan strategically and securing the information from the invasion of cyber threats can create robust protective layers within the systems.
  • Thus, by acknowledging the rising importance of data security, authorities across the world, particularly in banking and finance industry, they are heavily investing into research and development of quantum communication system is the significant driver propelling the market globally. 


Complexities in the technicality of quantum computing

The major restraint for the quantum communication market, is handling the critical aspect of quantum technology such as its harder to manage quantum superposition state so that to manage decoherance of qubits, improving error correction technique, increasing scalability, hardware and advancements in software with cost-effective solutions and managing trained workforce. All these aspect plays important role in managing the complex system of quantum communication.

As qubits are highly unstable particles which has significant impact on quantum communication, even the smaller changes in temperature around quantum system may hinder the coherence of qubits and creates error in the form of noise which may lead to restraint factor in the quantum communication market globally. Despite of these challenges, authorities and investors are constantly chasing a quantum supremacy by involving lot of efforts and substantial capital in the research and development of it, will further creates a space to limit these challenges and increase in growth of the quantum communication market.


Huge investments by major alliances strategically

The lucrative opportunity presents in the quantum communication market is increasing alliances and collaborations by giant firms including a huge investment to surpasses the limits of quantum communication system and become superior in the race of quantum supremacy across the globe. These alliances aids in sharing the knowledge and latest empirical data about quantum states which reduces decoherence of the quantum particles, sharing the expertise so that to accelerate the innovative ideas which helps into fostering the commercialization over quantum technology.

  • For instance, to develop a Pan-European quantum communication infrastructure, European commission has supported to the quantum internet alliance by providing proper funding which further aids bringing a tech giants and research institutions within the Europe.

Similarly, major players in the market like IBM, google and Microsoft are investing billions of dollars for developing the robust system of quantum communication and computing and to carry research for it. Due to such an effort by collaborating and investing while sharing the resources for quantum communication, the market is poised to witness a scalable quantum communication solution which further leads the communication system at higher level with unprecedented security systems. Therefore, due these major reasons, the pace of innovation and adoption is compelled to foster the quantum communication market and creates lucrative opportunities by pervading every sector across the world.

Product Type Insights

The hardware segment accounted for the largest share and thus, dominated the global quantum communication market. The growth of this segment is attributed to several factors. The critical components in the hardware segment are quantum processors which helps encoding and decoding the quantum information, quantum repeaters which enables extended range for quantum communication networks by reducing loss of signal due to longer distances. Also, QKD devices are crucial for security purpose ensuring the integrity and confidentiality of the quantum communication. To achieve this, a substantial capital has been invested by both the public and private sectors are fuelling the technical advancement in the quantum hardware, thus it becomes a dominated segment of the market globally.

Quantum Communication Market Share, By Product Type , 2023 (%)

on the other hand, the services segment is expected to witness a significant growth during the forecast period. The growth of this segment is due to the rising need for expertise in the implementing and manging quantum technologies as these are sophisticated and need to be handled with notable skills. Services incorporate with continues monitoring, management and optimization of the quantum networks to work efficiently without the need for in-house expertise. To deploy and maintain these highly technical systems, organization are looking for specialized and highly skilled professionals to provide a service is the major factor fuelling the growth of the service segment in the quantum communication market.

Application Insights

The national defence segment held the largest market share owing to its priority of reliable communication and security purpose, hence dominated the global market. Governments and defence authorities are heavily investing into quantum communication to safeguard a sensitive data and thus to enhance cybersecurity which fall short by conventional encryption method for securing the online communication. Here, the QKD-quantum key distribution method provides unparalleled security by leveraging the principles of quantum mechanics such as quantum entanglement which further propelling the segments growth in the market.

The finance segment is expected to show notable growth in the upcoming period for quantum communication market. Due to the rising threats of hackers, the adoption rate of quantum communication system in the finance sector plays a pivotal role to safeguard a sensitive financial; statements. moreover, collaborations between the financial institutions and tech giants are propelling the innovative methods to secure the transmission of the data tailored for finance sector so that these technologies can aids streamline the process like cross border transaction, payments leading to significant operational cost savings.

Quantum Communication Companies

Quantum Communication Market Companies

  • AmberFlux
  • ATandT
  • Aliyun (Alibaba Cloud)
  • Atos
  • Fujitsu
  • Huawei Noah's Ark Lab
  • ID Quantique
  • MagiQ
  • Mitsubishi
  • NEC Corporation
  • NTT Laboratories
  • Raytheon/BBN
  • Toshiba
  • Quantumctek Co, Ltd

Recent Developments

  • In April 2024, IBM and the Japanese national research laboratory RIKEN have reached an agreement for the installation of IBM's best-performing quantum processor and next-generation quantum computer architecture at the RIKEN Centre for Computational Science in Kobe, Japan.
  • In April 2024, in collaboration with KT Corporation (KT), a top telecommunications service provider and partner in quantum secure communication in South Korea, Toshiba Digital Solutions Corporation (Toshiba Digital Solutions), the Toshiba Group company advancing industry-leading solutions in digital and quantum technology, has demonstrated how banks and financial networks can be protected from cyberattacks by quantum computers by implementing hybrid quantum secure communications, which consists of quantum key distribution (QKD)*1 and post-quantum cryptography (PQC)*2.
  • 07 Sept 2023, Together, ID Quantique (IDQ), the global pioneer in quantum-safe security solutions, and PacketLight, a top supplier of DWDM and OTN equipment, launched combined solutions that would deliver quantum-safe security to clients transferring critical data and needing ultra-secure encryption over their network

Segments Covered in the Report

By Product Type

  • Hardware
  • Services

By Application

  • National defence
  • Aerospace
  • Finance
  • Others

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

The global quantum communication market size is expected to increase USD 11,034.42 billion by 2033 from USD 840.26 billion in 2023.

The global quantum communication market will register growth rate of 29.37% between 2024 and 2033.

The major players operating in the quantum communication market are AmberFlux, ATandT, Aliyun (Alibaba Cloud), Atos, Fujitsu, Huawei Noah's Ark Lab, ID Quantique, MagiQ, Mitsubishi, NEC Corporation, NTT Laboratories, Raytheon/BBN, Toshiba, Quantumctek Co, Ltd, and Others.

The driving factors of the quantum communication market are the rising requirement for secure financial transaction and rising focus on cybersecurity and defense sector.

North America region will lead the global quantum communication market during the forecast period 2024 to 2033.

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