Summary

The quantum networking market is expected to be worth USD 861.8 million in 2024 and is estimated to reach USD 5,382.0 million by 2029, growing at a CAGR of 44.2% between 2024 and 2029. 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.
“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 let 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 showcases 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.
Extensive primary interviews were conducted with key industry experts in the quantum networking market space to determine and verify the market size for various segments and subsegments gathered through secondary research. The break-up of primary participants for the report has been shown below: The break-up of the profile of primary participants in the quantum networking market:
• By Company Type: Tier 1 – 40%, Tier 2 – 35%, and Tier 3 – 25%
• By Designation: C Level – 45%, Director Level – 35%, Others-20%
• By Region: North America – 40%, Europe – 18%, Asia Pacific – 35%, ROW- 7%
The report profiles key players in the quantum networking market with their respective market ranking analysis. 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.
Apart from this, Qubitekk, Inc. (US), Aliro Technologies, Inc. (US), QuNu Labs Private Limited. (India), Arqit Quantum Inc. (UK), Miraex (Switzerland), SpeQtral Pte Ltd (Singapore), KETS QUANTUM SECURITY LTD (UK), Aegiq Ltd. (Sheffield), QuBalt GmbH (Germany), SSH (Finland), QuSecure, Inc. (US), VeriQloud (France), Qrypt (New York), Quside Technologies. (Spain), LuxQuanta Technologies S.L. (Spain), are among a few emerging companies in the quantum networking market.
Research Coverage: 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.
Key Benefits of Buying the Report The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall quantum networking market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
• Analysis of key drivers (expanding cyber threats; the surge in data generation necessitating robust and scalable security solutions capable of handling large volumes of sensitive information) influencing the growth of the quantum networking market.
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the quantum networking market.
• Market Development: Comprehensive information about lucrative markets – the report analysis the quantum networking market across varied regions
• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the quantum networking market

• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like TOSHIBA CORPORATION (Japan), Terra Quantum (Switzerland), Quantumctek Co.,Ltd. (China), ID Quantique (Switzerland), HEQA Security (Israel), among others in the quantum networking market.

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Table of Contents

1 INTRODUCTION 24
1.1 STUDY OBJECTIVES 24
1.2 MARKET DEFINITION 24
1.3 STUDY SCOPE 25
1.3.1 MARKETS COVERED AND REGIONAL SCOPE 25
1.3.2 INCLUSIONS AND EXCLUSIONS 26
1.3.3 YEARS CONSIDERED 26
1.4 CURRENCY CONSIDERED 27
1.5 LIMITATIONS 27
1.6 STAKEHOLDERS 27
2 RESEARCH METHODOLOGY 28
2.1 RESEARCH DATA 28
2.1.1 SECONDARY DATA 29
2.1.1.1 List of key secondary sources 29
2.1.1.2 Key data from secondary sources 30
2.1.2 PRIMARY DATA 30
2.1.2.1 List of primary interview participants 31
2.1.2.2 Breakdown of primaries 31
2.1.2.3 Key data from primary sources 32
2.1.2.4 Key industry insights 33
2.1.3 SECONDARY AND PRIMARY RESEARCH 34
2.2 MARKET SIZE ESTIMATION METHODOLOGY 35
2.2.1 BOTTOM-UP APPROACH 37
2.2.1.1 Approach to arrive at market size using bottom-up analysis
(demand side) 37
2.2.2 TOP-DOWN APPROACH 38
2.2.2.1 Approach to arrive at market size using top-down analysis
(supply side) 38
2.3 MARKET BREAKDOWN AND DATA TRIANGULATION 39
2.4 RESEARCH ASSUMPTIONS 40
2.5 RISK ANALYSIS 41
2.6 RESEARCH LIMITATIONS 41
3 EXECUTIVE SUMMARY 42
4 PREMIUM INSIGHTS 46
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN QUANTUM NETWORKING MARKET 46
4.2 QUANTUM NETWORKING MARKET, BY OFFERING 47
4.3 QUANTUM NETWORKING MARKET, BY END-USE INDUSTRY 47
4.4 QUANTUM NETWORKING MARKET, BY COUNTRY 48
4.5 QUANTUM NETWORKING MARKET, BY REGION 48
5 MARKET OVERVIEW 49
5.1 INTRODUCTION 49
5.2 MARKET DYNAMICS 50
5.2.1 DRIVERS 50
5.2.1.1 Increasing complexity of cyber-attacks in digital era 50
5.2.1.2 Rising data generation from IoT and cloud computing devices 51
5.2.1.3 Mounting demand for secure communication channels 51
5.2.2 RESTRAINTS 53
5.2.2.1 High costs of quantum networking hardware 53
5.2.2.2 Standardization and interoperability issues 53
5.2.3 OPPORTUNITIES 54
5.2.3.1 Rising emphasis on data protection and privacy 54
5.2.3.2 Increasing allocation of funds for developing quantum technologies 55
5.2.3.3 Emergence of smart cities and industrial automation 55
5.2.4 CHALLENGES 56
5.2.4.1 Sensitivity of quantum systems to electromagnetic radiation 56
5.2.4.2 Technical compatibility issues 57
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS 58
5.4 PRICING ANALYSIS 58
5.4.1 AVERAGE SELLING PRICE TREND OF KEY PLAYERS, BY OFFERING 59
5.4.2 AVERAGE SELLING PRICE TREND, BY REGION 60
5.5 VALUE CHAIN ANALYSIS 61
5.6 ECOSYSTEM ANALYSIS 63
5.7 INVESTMENT AND FUNDING SCENARIO 66
5.8 TECHNOLOGY ANALYSIS 66
5.8.1 KEY TECHNOLOGIES 66
5.8.1.1 Quantum sensing 66
5.8.1.2 Quantum computing 67
5.8.2 COMPLEMENTARY TECHNOLOGIES 68
5.8.2.1 Post-quantum cryptography 68
5.8.2.2 Integrated quantum circuits 68
5.8.3 ADJACENT TECHNOLOGIES 69
5.8.3.1 Photonics and optoelectronics 69
5.9 PATENT ANALYSIS 70
5.10 TRADE ANALYSIS 80
5.10.1 IMPORT SCENARIO (HS CODE 847180) 80
5.10.2 EXPORT SCENARIO (HS CODE 847180) 81
5.11 KEY CONFERENCES AND EVENTS, 2024–2025 82
5.12 CASE STUDY ANALYSIS 84
5.12.1 GLOBAL TECH SOLUTIONS ADOPTS QRNG-INTEGRATED EZQUANT SECURITY KEY TO ENABLE SECURE PASSWORDLESS AUTHENTICATION 84
5.12.2 HITACHI ENERGY AND ID QUANTIQUE PARTNER TO SECURE MISSION-CRITICAL NETWORKS WITH QUANTUM ENCRYPTION 84
5.12.3 EPB, QUBITEKK, AND ALIRO UNITE TO ENABLE SECURE AND SCALABLE COMMUNICATION WITH EPB QUANTUM NETWORK 85
5.12.4 QUANTUM COMMUNICATIONS HUB DEPLOYS QKD ACROSS UKQN AND UKQNTEL NETWORKS TO ESTABLISH SECURE QUANTUM COMMUNICATION 85
5.12.5 THALES TRUSTED CYBER TECHNOLOGIES ADOPTS LUNA T-SERIES HSMS WITH ID QUANTIQUE’S QRNG CHIP TO ADDRESS CYBER THREATS 86
5.13 REGULATORY LANDSCAPE 87
5.13.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 87
5.13.2 STANDARDS 90
5.14 PORTER’S FIVE FORCES ANALYSIS 91
5.14.1 THREAT OF NEW ENTRANTS 92
5.14.2 THREAT OF SUBSTITUTES 92
5.14.3 BARGAINING POWER OF SUPPLIERS 92
5.14.4 BARGAINING POWER OF BUYERS 92
5.14.5 INTENSITY OF COMPETITIVE RIVALRY 92
5.15 KEY STAKEHOLDERS AND BUYING CRITERIA 93
5.15.1 KEY STAKEHOLDERS IN BUYING PROCESS 93
5.15.2 BUYING CRITERIA 94
5.16 IMPACT OF AI ON QUANTUM NETWORKING MARKET 95
5.16.1 INTRODUCTION 95
5.16.2 CASE STUDY: APPLICATION OF AI IN MARL-BASED APPROACH FOR DECENTRALIZED RESOURCE ALLOCATION IN QUANTUM COMPUTING NETWORKS 96
6 QUANTUM NETWORKING APPLICATIONS 97
6.1 INTRODUCTION 97
6.2 SECURE COMMUNICATION 97
6.3 DISTRIBUTED QUANTUM COMPUTING 98
6.4 QUANTUM SENSING & METROLOGY 99
6.5 QUANTUM CLOCK SYNCHRONIZATION 99
6.6 SECURE VOTING 100
6.7 SECURE FINANCIAL TRANSACTION 100
7 QUANTUM NETWORKING MARKET, BY OFFERING 102
7.1 INTRODUCTION 103
7.2 HARDWARE 104
7.2.1 QUANTUM KEY DISTRIBUTION SYSTEMS 108
7.2.1.1 Increasing need for promising technology for long-term data security to expedite segmental growth 108
7.2.2 QUANTUM RANDOM NUMBER GENERATORS 110
7.2.2.1 Rising emphasis on secure financial transactions and communications to drive market 110
7.2.3 QUANTUM MEMORY DEVICES 111
7.2.3.1 Growing focus on efficient storage and management of quantum information for computation tasks to boost segmental growth 111
7.2.4 QUANTUM REPEATERS 112
7.2.4.1 Increasing integration with telecom infrastructure to transform communications to fuel segmental growth 112
7.2.5 OTHER HARDWARE TYPES 113
7.3 SOFTWARE 114
7.3.1 GROWING CONCERN ABOUT CYBER THREATS AND DATA BREACHES TO CONTRIBUTE TO SEGMENTAL GROWTH 114
8 QUANTUM NETWORKING MARKET, BY END-USE INDUSTRY 118
8.1 INTRODUCTION 119
8.2 BANKING & FINANCE 120
8.2.1 INCREASING FREQUENCY OF CYBER-ATTACKS TO BOOST SEGMENTAL GROWTH 120
8.3 GOVERNMENT & DEFENSE 125
8.3.1 GROWING DEMAND FOR ROBUST ENCRYPTION SOLUTIONS TO SAFEGUARD CRITICAL INFRASTRUCTURE TO FOSTER SEGMENTAL GROWTH 125
8.4 HEALTHCARE & LIFE SCIENCES 128
8.4.1 RISING EMPHASIS ON SAFEGUARDING SENSITIVE PATIENT INFORMATION TO AUGMENT SEGMENTAL GROWTH 128
8.5 IT & TELECOM 132
8.5.1 INCREASING FOCUS ON PREVENTING SIGNAL LOSS AND INTERFERENCE TO BOLSTER SEGMENTAL GROWTH 132
8.6 ENERGY & UTILITIES 135
8.6.1 RISING FOCUS ON ACCURATE WEATHER FORECASTING AND SAFE DATA EXCHANGE TO BOOST SEGMENTAL GROWTH 135
8.7 MANUFACTURING 139
8.7.1 INCREASING DATA GENERATION AND NEED FOR ADVANCED SECURITY AND COMMUNICATION SOLUTIONS TO FUEL SEGMENTAL GROWTH 139
8.8 OTHER END-USE INDUSTRIES 142
9 QUANTUM NETWORKING MARKET, BY REGION 146
9.1 INTRODUCTION 147
9.2 NORTH AMERICA 148
9.2.1 MACROECONOMIC OUTLOOK FOR NORTH AMERICA 148
9.2.2 US 152
9.2.2.1 Mounting investment in advanced communication technologies to foster market growth 152
9.2.3 CANADA 154
9.2.3.1 Increasing development of algorithms to enhance telecom networks to expedite market growth 154
9.2.4 MEXICO 156
9.2.4.1 Rising allocation of funds to develop advanced information technologies to drive market 156
9.3 EUROPE 158
9.3.1 MACROECONOMIC OUTLOOK FOR EUROPE 158
9.3.2 UK 162
9.3.2.1 Rising emphasis on addressing cybersecurity threats to accelerate market growth 162
9.3.3 GERMANY 164
9.3.3.1 Growing focus on enabling secure and efficient data exchange to augment market growth 164
9.3.4 FRANCE 166
9.3.4.1 Surging demand for advanced technologies for secure communication to contribute to market growth 166
9.3.5 REST OF EUROPE 168
9.4 ASIA PACIFIC 170
9.4.1 MACROECONOMIC OUTLOOK FOR ASIA PACIFIC 171
9.4.2 CHINA 175
9.4.2.1 Rising investment in emerging technologies to accelerate market growth 175
9.4.3 JAPAN 177
9.4.3.1 Increasing focus on advancing high-tech sector to spur demand 177
9.4.4 SOUTH KOREA 178
9.4.4.1 Growing focus on technological innovation to contribute to market growth 178
9.4.5 REST OF ASIA PACIFIC 180
9.5 ROW 182
9.5.1 MACROECONOMIC OUTLOOK FOR ROW 182
9.5.2 MIDDLE EAST 186
9.5.2.1 Increasing need for robust and secure communication systems to boost market growth 186
9.5.2.2 GCC countries 188
9.5.2.3 Rest of Middle East 188
9.5.3 AFRICA 189
9.5.3.1 Growing interest in enhancing technological capabilities and securing communication infrastructure to augment market growth 189
9.5.4 SOUTH AMERICA 191
9.5.4.1 Rising emphasis on technology-driven economic growth to drive market 191
10 COMPETITIVE LANDSCAPE 193
10.1 OVERVIEW 193
10.2 KEY PLAYER STRATEGIES/RIGHT TO WIN, 2020–2024 193
10.3 REVENUE ANALYSIS, 2021–2023 195
10.4 MARKET SHARE ANALYSIS, 2023 196
10.5 COMPANY VALUATION AND FINANCIAL METRICS 199
10.6 BRAND/PRODUCT COMPARISON 200
10.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023 201
10.7.1 STARS 201
10.7.2 EMERGING LEADERS 201
10.7.3 PERVASIVE PLAYERS 201
10.7.4 PARTICIPANTS 201
10.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023 203
10.7.5.1 Company footprint 203
10.7.5.2 Offering footprint 204
10.7.5.3 End-use industry footprint 205
10.7.5.4 Region footprint 206
10.8 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023 206
10.8.1 PROGRESSIVE COMPANIES 206
10.8.2 RESPONSIVE COMPANIES 206
10.8.3 DYNAMIC COMPANIES 206
10.8.4 STARTING BLOCKS 207
10.8.5 COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2023 208
10.8.5.1 Detailed list of key startups/SMEs 208
10.8.5.2 Competitive benchmarking of key startups/SMEs 209
10.9 COMPETITIVE SCENARIO 210
10.9.1 PRODUCT LAUNCHES 210
10.9.2 DEALS 211
11 COMPANY PROFILES 213
11.1 KEY PLAYERS 213
11.1.1 TOSHIBA CORPORATION 213
11.1.1.1 Business overview 213
11.1.1.2 Products/Solutions/Services offered 215
11.1.1.3 Recent developments 215
11.1.1.3.1 Product launches 215
11.1.1.3.2 Deals 216
11.1.1.3.3 Expansions 217
11.1.1.4 MnM view 218
11.1.1.4.1 Key strengths/Right to win 218
11.1.1.4.2 Strategic choices 218
11.1.1.4.3 Weaknesses/Competitive threats 218
11.1.2 ID QUANTIQUE 219
11.1.2.1 Business overview 219
11.1.2.2 Products/Solutions/Services offered 220
 
11.1.2.3 Recent developments 222
11.1.2.3.1 Product launches 222
11.1.2.3.2 Deals 223
11.1.2.4 MnM view 225
11.1.2.4.1 Key strengths/Right to win 225
11.1.2.4.2 Strategic choices 225
11.1.2.4.3 Weaknesses/Competitive threats 225
11.1.3 HEQA SECURITY 226
11.1.3.1 Products/Solutions/Services offered 226
11.1.3.2 Recent developments 227
11.1.3.2.1 Deals 227
11.1.3.3 MnM view 228
11.1.3.3.1 Key strengths/Right to win 228
11.1.3.3.2 Strategic choices 228
11.1.3.3.3 Weaknesses/Competitive threats 228
11.1.4 QUANTUMCTEK CO., LTD. 229
11.1.4.1 Business overview 229
11.1.4.2 Products/Solutions/Services offered 231
11.1.4.3 MnM view 232
11.1.4.3.1 Key strengths/Right to win 232
11.1.4.3.2 Strategic choices 232
11.1.4.3.3 Weaknesses/Competitive threats 232
11.1.5 QUINTESSENCELABS 233
11.1.5.1 Business overview 233
11.1.5.2 Products/Solutions/Services offered 234
11.1.5.3 Recent developments 235
11.1.5.3.1 Product launches 235
11.1.5.3.2 Deals 235
11.1.5.4 MnM view 236
11.1.5.4.1 Key strengths/Right to win 236
11.1.5.4.2 Strategic choices 236
11.1.5.4.3 Weaknesses/Competitive threats 236
11.1.6 TERRA QUANTUM 237
11.1.6.1 Business overview 237
11.1.6.2 Products/Solutions/Services offered 238
11.1.6.3 Recent developments 238
11.1.6.3.1 Product launches 238
11.1.6.3.2 Deals 239
11.1.7 MAGIQ TECHNOLOGIES 240
11.1.7.1 Business overview 240
11.1.7.2 Products/Solutions/Services offered 241
 
11.1.8 CRYPTA LABS LIMITED 242
11.1.8.1 Business overview 242
11.1.8.2 Products/Solutions/Services offered 242
11.1.8.3 Recent developments 243
11.1.8.3.1 Deals 243
11.1.9 QUANTUM XCHANGE 244
11.1.9.1 Business overview 244
11.1.9.2 Products/Solutions/Services offered 245
11.1.9.3 Recent developments 245
11.1.9.3.1 Product launches 245
11.1.9.3.2 Deals 246
11.1.10 QUNNECT INC. 247
11.1.10.1 Business overview 247
11.1.10.2 Products/Solutions/Services offered 248
11.1.10.3 Recent developments 249
11.1.10.3.1 Expansions 249
11.2 OTHER PLAYERS 250
11.2.1 QUBITEKK, INC. 250
11.2.2 ALIRO TECHNOLOGIES, INC. 251
11.2.3 QUNU LABS PRIVATE LIMITED 252
11.2.4 ARQIT 253
11.2.5 MIRAEX 254
11.2.6 SPEQTRAL PTE LTD 255
11.2.7 KETS QUANTUM SECURITY LTD. 256
11.2.8 AEGIQ LTD. 257
11.2.9 QUBALT GMBH 258
11.2.10 SSH 259
11.2.11 QUSECURE, INC. 260
11.2.12 VERIQLOUD 261
11.2.13 QRYPT 262
11.2.14 QUSIDE TECHNOLOGIES 263
11.2.15 LUXQUANTA TECHNOLOGIES S.L. 264
12 APPENDIX 265
12.1 INSIGHTS FROM INDUSTRY EXPERTS 265
12.2 DISCUSSION GUIDE 265
12.3 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 269
12.4 CUSTOMIZATION OPTIONS 271
12.5 RELATED REPORTS 271
12.6 AUTHOR DETAILS 272