The global Quantum Key Distribution Market Growth Accelerated by Government Funding
Quantum key distribution (QKD) is a cryptographic technique that uses principles of quantum mechanics for cryptographic purposes. It enables secure communication if an eavesdropper measures quantum signals being exchanged between two authorized users. QKD technology provides information-theoretic security as it can detect any attempts of eavesdropping or interference on the quantum channel. Due to heightened security needs, governments worldwide have substantially increased funding for the research and development of QKD technology in recent years.
The global Quantum Key Distribution Market is estimated to be valued at US$ 2.07 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Government funding has been a key driving factor accelerating growth of the quantum key distribution market over the past few years. Major governments such as the U.S., China, UK, Germany, Canada, and Japan are actively funding quantum technology research programs including QKD. For instance, in 2020, the UK government announced funding of ₤80 million to support companies and academia working on quantum technologies such as quantum encryption and communication. Similarly, in 2021, the U.S. government unveiled its $1 billion National Quantum Initiative Act to fund quantum information science projects across various government agencies over a 5 year period. Growing government support for QKD technology development is expected to boost the market significantly during the forecast period.
Segment Analysis
The Global Quantum Key Distribution Market is segmented by systems, components, applications, and end-users. The components segment is expected to dominate with a share of over 50% during the forecast period. This is primarily attributed to the higher costs associated with QKD systems deployment compared to individual components. Components such as lasers, modulators, detectors, etc. have wider application scope beyond QKD and enjoy more demand.
Key Takeaways
The global quantum key distribution market is expected to witness high growth, registering a CAGR of 21% during the forecast period of 2023 to 2030. The regional analysis shows that Asia Pacific region is expected to dominate with over 35% share during the forecast period. This can be attributed to growing investments in quantum technologies from major countries such as China, India, and Japan. Key players operating in the quantum key distribution market are ID Quantique, QuintessenceLabs, Toshiba Corporation, NEC Corporation, Qubitekk, MagiQ Technologies, QuantumCTek, Quantum Xchange, Quantum Communication Technologies AG, Post-Quantum, PQ Solutions Limited, Qasky, Quantum Machines, Quantum-Secure Communications, Cambridge Quantum Computing.
Regional analysis
The Asia Pacific region is expected to witness the fastest growth in the global quantum key distribution market during the forecast period. This can be attributed to significant government funding for quantum research in major countries like China, India, and Japan. For instance, China's National Quantum Infrastructure program announced a 10-year $10 billion funding to be a leader in quantum technologies. Rapid digitization and need for high-level encryption is also driving the adoption of QKD in the region.
Key players
Key players operating in the quantum key distribution market are ID Quantique, QuintessenceLabs, Toshiba Corporation, NEC Corporation, Qubitekk, MagiQ Technologies, QuantumCTek, Quantum Xchange, Quantum Communication Technologies AG, Post-Quantum, PQ Solutions Limited, Qasky, Quantum Machines, Quantum-Secure Communications, Cambridge Quantum Computing. ID Quantique and QuintessenceLabs command over 30% market share currently through their innovative QKD solutions and global clientele across industries.
For more insights, Read- https://perfectinsights.blogspot.com/2023/12/quantum-key-distribution-is-estimated.html
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