Delray Beach, Florida, October 27, 2026 /PRNewswire/ -- According to MarketsandMarkets, the post-quantum cryptography (PQC) market is expected to grow from $600 million in 2026 to $3.8 billion by 2031, at a compound annual growth rate of 44.5% during the forecast period.
Post-Quantum Cryptography Market Size and Forecast:
- Market size years available: 2022 to 2031
- 2025 market size: $420 million
- Market size in 2026: $600 million
- Projected market size in 2031: $3.8 billion
- Compound annual growth rate from 2026 to 2031: 44.5%
Post-Quantum Cryptography Market Trends and Insights:
- Increasing regulatory focus on cybersecurity, rising investment in quantum-safe technologies, and the need to protect long-term data from future decryption threats are accelerating the transition to post-quantum cryptography.
- By product delivery form, the solutions segment is expected to dominate the PQC market in 2026, accounting for 77.0% of the market share.
- By service, the design, implementation, and consulting segment is expected to dominate the market in 2026, accounting for 62.0% of the market share.
- By solution, the quantum-safe hardware segment is expected to dominate the market in 2026, accounting for 35.1% of the market share.
- By organization size, large enterprises are expected to dominate the PQC market in 2026, accounting for 77.0% of the market share.
- In 2026, North America will account for 62.3% of the PQC market.
MarketsandMarkets states that a key driver is the growing demand for "cryptographic agility." Cryptographic agility enables organizations to replace or update cryptographic algorithms as security requirements evolve. Cryptographic functions are embedded within applications, digital certificates, network protocols, hardware, and enterprise infrastructure, making future upgrades often complex and resource-intensive. An increasing number of organizations are prioritizing flexible cryptographic architectures to support algorithm migration without requiring large-scale redesigns of existing systems. This is driving demand for adaptable cryptographic software, centralized key management, discovery tools, and quantum-safe infrastructure capable of accommodating evolving security needs.
By solution, the quantum-safe hardware segment is expected to hold the largest market share.
Quantum-safe hardware integrates cryptographic capabilities into devices, infrastructure, and security systems. Hardware security modules, secure elements, and embedded security components protect cryptographic keys and enable secure operations in environments with stringent security requirements. As organizations modernize their infrastructure, hardware vendors are incorporating support for post-quantum algorithms alongside existing cryptographic mechanisms into their products. These advancements are significant for data centers, enterprise security infrastructure, telecommunications equipment, and connected devices. Hardware-based implementations must also address processing demands, memory constraints, and compatibility with existing systems. As organizations upgrade their security components and integrate post-quantum capabilities into new infrastructure deployments, demand for quantum-safe hardware is expected to remain critical.
By vertical industry, the IT and ITeS segment is expected to grow at the fastest rate during the forecast period.
IT service providers, cloud platforms, software vendors, and technology infrastructure operators are responsible for managing cryptographic functions within applications, digital identities, data exchange, and communication protocols. Migrating these environments requires updating cryptographic libraries, authentication mechanisms, certificates, and secure communication systems. The scale and interconnectedness of technology platforms drive the need for automated cryptographic asset discovery, compatibility testing, and centralized migration management. Technology providers must also assess how to integrate post-quantum cryptographic algorithms without disrupting customer service or application performance. IT service providers are well-positioned to support PQC consulting, implementation, and migration projects across multiple industries. According to MarketsandMarkets, these demands are expected to accelerate PQC adoption within the IT and ITeS sector during the forecast period.
By region, North America is expected to hold the largest market share.
MarketsandMarkets states that North America’s leadership is driven by strong cybersecurity investments, a mature technology ecosystem, and the presence of major cloud providers, semiconductor companies, and cryptographic security vendors. Organizations in sectors such as financial services, government, defense, and technology are assessing quantum-related risks and preparing to upgrade their existing cryptographic infrastructure. The U.S. government is also promoting PQC adoption through finalized standards and federal migration guidance from the National Institute of Standards and Technology (NIST), encouraging agencies and their suppliers to identify vulnerable cryptographic systems and plan for migration. As organizations integrate quantum-resistant capabilities into their security architectures, demand is expected to continue growing in areas such as quantum-safe hardware, cryptographic software, secure communications, key management, and migration services.
Leading companies in the post-quantum cryptography market:
The major companies listed by MarketsandMarkets in the post-quantum cryptography market include: NXP Semiconductors (Netherlands), Thales (France), AWS (United States), IDEMIA (France), Palo Alto Networks (United States), ST Engineering (Singapore), DigiCert (United States), Kloch (United States), Patero (United States), Post-Quantum (United Kingdom), PQShield (United Kingdom), Entrust (United States), IBM (United States), QNu Labs (India), Utimaco (Germany), JISA Softech (India), pQCee (Singapore), Quantum XChange (United States), Keysight Technologies (United States), Quantropi (Canada), Arqit (United Kingdom), Crypto Quantique (United Kingdom), Crypto4A (Canada), CryptoNext Security (France), Qrypt (United States), EnQuantum (Israel), Xiphera (Finland), ixscape (Singapore), Keyfactor (United States), ResQuant (Poland), Rambus (United States), and Archon (British Virgin Islands).
Post-Quantum Cryptography Market — Investment and Financing, Mergers and Acquisitions
Investment and Financing Background
MarketsandMarkets states that the PQC market is transitioning from cryptographic research to commercial deployment in enterprise security, digital infrastructure, and interconnected systems. Vendors are expanding their product portfolios to cover cryptographic asset discovery, quantum-safe hardware, secure communications, identity protection, and migration management. In September 2026, IonQ and Congruity360 announced a partnership to integrate quantum-safe network protection into enterprise data management environments, combining PQC and quantum key distribution capabilities. The agency notes that these advancements indicate growing market emphasis on integrating quantum-safe technologies into existing enterprise security architectures and providing deployable solutions for organizations preparing for cryptographic migration.
Background of income transfer
The organization stated that the PQC market is shifting toward integrated products and services that help organizations move from cryptographic readiness assessments to actual implementation. Vendors are developing tools for cryptographic asset discovery, vulnerability identification, algorithm migration, certificate management, and quantum-safe key protection. NIST’s migration initiative emphasizes that cryptographic visibility, risk management, interoperability, and benchmarking are critical components of the transition process. These requirements are creating commercial opportunities in areas such as software licensing, hardware security products, implementation services, and managed cryptographic infrastructure. As organizations upgrade their existing systems, vendors are increasingly embedding PQC capabilities within broader enterprise security and digital trust platforms.
Merger and acquisition
MarketsandMarkets states that mergers and acquisitions, along with strategic partnerships, are helping vendors expand their quantum-safe technology portfolios and strengthen their positions in adjacent security markets. In October 2026, IonQ announced an agreement to acquire Elisity, integrating its PQC and quantum key distribution capabilities with Elisity’s zero-trust security platform. In September 2026, Project Eleven announced the acquisition of Riva Labs to enhance its post-quantum research and engineering capabilities for digital assets and blockchain infrastructure. The agency notes that these developments reflect strategic market interest in integrating quantum-safe cryptography with enterprise security, digital asset protection, and broader cybersecurity platforms.
Company Revenue Share Explanation
MarketsandMarkets states that the PQC market includes established technology companies, cybersecurity providers, semiconductor manufacturers, and specialized suppliers developing quantum-safe cryptographic products. Companies such as IBM, Thales, NXP Semiconductors, and Utimaco offer a broader portfolio of technology and security products, while specialized suppliers like PQClean, PQShield, QNu Labs, and Quantropi focus exclusively on specific quantum-safe technologies. Competitive products encompass cryptographic hardware, software libraries, cryptographic asset discovery, migration management, identity security, key management, and secure communications. The market also includes suppliers that integrate PQC into broader digital trust and enterprise security platforms. However, many companies do not publicly disclose comparable PQC-specific revenue data, limiting the reliability of numerical market share estimates based solely on overall company revenues.
Relevant market report:
- Quantum Cryptography Market, by Solution (Quantum Key Distribution QKD, Quantum Random Number Generator QRNG, Quantum-Safe Cryptography), by Service (Deployment and Integration, Cryptography Consulting)—Global Forecast to 2031
- Quantum Key Distribution Market, by Offering (Solutions and Services), by Type (Multiplexed QKD Systems and Long-Distance QKD Systems), by Application (Cybersecurity, Data Encryption, Secure Communication)—Global Forecast to 2030
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