Post Quantum Cryptography (PQC) Market Assessment By Solution Type (PQC Hardware, PQC Software Solutions), By Service Type (Quantum Risk Assessment, Design, Implementation, and Consulting, Migration Services), By Post-Quantum Method (Lattice-Based Cryptography, Hash-Based Cryptography, Code-Based Cryptography, Isogeny-Based Cryptography), By Deployment Mode, By Organization Size, By End-User Vertical, By Region and By Country: Industry Size, Share, Growth, Trends Outlook and Forecasts, 2025 – 2035

Report Summary

Post Quantum Cryptography (PQC) Market Size Statistics

• Global Post Quantum Cryptography (PQC) Market was valued at USD 300 million in 2024.
• According to Vertex, Post Quantum Cryptography (PQC) Market is projected to surpass USD 15 billion by 2035.
• Global Post Quantum Cryptography (PQC) Market is projected to grow at 39% CAGR from 2025 to 2035.

The rapid growth of quantum computing threatens traditional encryption methods, and hence boosting the demand for post-quantum cryptographic technology. With the advancement of quantum technology, traditional encryption algorithms such as RSA, ECDSA, and DH are increasingly vulnerable to quantum-based attacks. In a bid to avoid these vulnerabilities, governments, banks, and institutions are accelerating investments in post-quantum security systems to protect confidential data from future quantum threats.

Acknowledging the time sensitivity of quantum security, the National Institute of Standards and Technology (NIST) has recently established a 2030 deadline to phase out legacy encryption algorithms, including RSA, ECDSA, EdDSA, DH, and ECDH. The algorithms will be entirely banned by 2035. This is a recognition of the heightened risk of quantum decryption, with some in the industry predicting that nation-state players will be capable of deploying quantum decryption technology as early as 2028.

Post Quantum Cryptography (PQC) Market Overview 

Post-Quantum Cryptography (PQC) or quantum-resistant cryptography is a next-generation security framework to protect data security against the exceptional computing power of quantum computers. As quantum technology evolves, existing public-key encryption algorithms are facing a serious threat as future quantum computers will be capable of compromising widely cryptographic systems at immense speeds.

Although large-scale quantum computers are not yet developed, cybersecurity professionals have already taken steps to design PQC algorithms that can combat prospective quantum-based threats. The National Institute of Standards and Technology (NIST) has already standardized these novel algorithms to ensure that they offer effective protection against the impending quantum threats. Quantum computers employing Shor's algorithm will easily break challenging mathematical problems such as factorization and discrete logarithms, rendering traditional encryption methods obsolete. These developments will enable quantum systems to rebuild cryptographic key pairs much faster than traditional computers, directly threatening data security.

PQC utilizes cutting-edge mathematical challenges that are virtually impossible for classical and quantum computers to solve. The aim is not only to future-proofed encryption but also to have compatibility with existing security measures and network infrastructure. 

The PQC methodology employs a sequential process i.e., cryptographic key generation based on quantum-resistant methods, encryption for protection of confidential information, and controlled decryption such that only permissible parties are allowed to read encrypted information. The systematic process guarantees safe, quantum-proof communication over computer networks.

The post-quantum cryptography market is a dynamic ecosystem of PQC technology vendors, hardware firms, software firms, and service providers. End-user verticals such as BFSI, government, defense, healthcare, IT, and telecom are actively investing in PQC to protect their data infrastructure from potential quantum attacks.

Post Quantum Cryptography (PQC) Market Drivers & Trends

• Increasing Risk of Quantum Computing Attacks on Conventional Encryption Methods.

• Government-Led Standardization Efforts for Quantum-Resistant Cryptography.

• Growing Adoption of PQC in Banking & Financial Services (BFSI).

• Surging Demand for Post-Quantum Secure Communications in Defense & Government.

• Increasing Implementation of Hybrid PQC Solutions.

• Rising Awareness of Cybersecurity & Data Privacy Risks.

• PQC Integration Across IT, Telecommunications, Cloud Computing, and Healthcare.

• Increased Investments in Quantum Technology & Cryptographic Research.

• In 2025, Worldwide Funding for Quantum Science and Technology reached $45 billion and is expected to surpass $100 billion by 2035.

Regulatory Challenges in Post-Quantum Cryptography (PQC) Adoption

The implementation of post-quantum cryptography (PQC) is confronted with big regulatory hurdles, mostly because of certification constraints and changing encryption requirements. Presently, the certifications like Common Criteria (CC) and Commercial Solutions for Classified (CSfC) do not facilitate PQC encryption schemes. The NSA's Commercial National Security Algorithm Suite (CNSA) 1.0, the certified encryption standard for National Security Systems (NSS), is also not PQC-compatible. Subsequently, products with capabilities to abide by the new CNSA 2.0 standard that enhances PQC can not yet be supplied to the U.S. government until their certification processes are finished, with a timeline due for completion later in 2025.

This gap in regulation has been causing market uncertainty, as vendors and customers are willing to deploy quantum-safe solutions but are being held back by uncertain timelines for certification. To overcome this hurdle, vendors can retain both CNSA 1.0 and CNSA 2.0 capabilities within their products. This approach enables them to satisfy the existing certification standards while being ready to move to quantum-safe encryption when CNSA 2.0 is formally adopted. But in the case of hardware-based implementations, e.g., secure boot mechanisms, dual compatibility might not be an option. Having a product with dual CNSA 1.0 and CNSA 2.0 image verification algorithm support could create weaknesses since malicious elements would be able to exploit a breached CNSA 1.0 key.

Firms considering market entry would have to decide whether they wish to take current sales first through CNSA 1.0-compatible products or go for the long-term secure route with CNSA 2.0 despite having to postpone market entry while certification upgrades become complete.

Post Quantum Cryptography (PQC) Market – Key Insights

• Based on solution type, hardware segment leads the post quantum cryptography (PQC) market in terms of revenue, while software solutions are expected to grow at high CAGR during the forecast period. 

• Based on service type, design, implementation, and consulting segment is expected to dominate the global post quantum cryptography (PQC) market during the forecast period till 2035. 

• Based on post-quantum method, lattice-based cryptography segment is projected to lead the global post quantum cryptography (PQC) market with a projected CAGR of 42% throughout the forecast period.

• Based on deployment mode, cloud based PQC segment is projected to lead the global post quantum cryptography (PQC) market with a projected CAGR of 45% throughout the forecast period.

• Based on organization size, large enterprises segment is expected to dominate the global post quantum cryptography (PQC) market during the forecast period till 2035.

• Based on end-user, BFSI and government & defense segments held the leading market share in revenue terms of the post quantum cryptography (PQC) market. 

• Based on Region, Asia Pacific region is projected to lead the global post quantum cryptography (PQC) market during the forecast period with very high CAGR. North America region dominated global post quantum cryptography (PQC) market in 2024.

What are Post Quantum Cryptography (PQC) Market Segmentations and Market Shares?

Post Quantum Cryptography (PQC) Market Segments based on Solution Type

• PQC Hardware
  • PQC Chips
  • Quantum-Resistant Processors
  • Cryptographic Accelerator
  • Quantum-Resistant HSMs
  • Embedded Systems with PQC
  • Others
• PQC Software Solutions
  • PQC Encryption Libraries
  • PQC Key Management Systems
  • Quantum Resistant VPNs
  • PQC-Integrated Security Software
  • PQC for Cloud Security

In terms of solution type, the Post Quantum Cryptography (PQC) market is segmented into PQC Hardware and PQC Software Solutions. In 2024, the hardware segment had the largest revenue share in the market due to the growing requirement for secure cryptographic acceleration and hard key storage processes. The hardware segment is sub-segmented into PQC Chips, Quantum-Resistant Processors, Cryptographic Accelerators, Quantum-Resistant Hardware Security Modules (HSMs), and Embedded Systems with PQC. The hardware solutions in the PQC industry refer to vendors' offerings to accelerate the cryptographic processes, and to provide hardware secure storage of cryptographic keys.

The software solutions product category consists of PQC Encryption Libraries, PQC Key Management Systems, Quantum-Resistant VPNs, PQC-Integrated Security Software, and PQC for Cloud Security. It is a representative category of range of offerings based on various needs for security. As quantum-resistant encryption models and cloud security patterns gain traction with increasing adoption, PQC encryption libraries and PQC-integrated cloud solutions are growing exponentially with companies placing maximum emphasis on newer cryptographic resistance in the face of emerging quantum threats.

Post Quantum Cryptography (PQC) Market Segments based on Service Type

• Quantum Risk Assessment
• Design, Implementation, and Consulting 
• Migration Services

By service type, the Design, Implementation, and Consulting segment dominated the PQC market in 2024, generating around 50% of overall revenue, and is expected to lead the market during the forecast period until 2035. The segment includes an extensive set of services provided by PQC providers to help organizations overcome the challenges of shifting to quantum-resistant cryptographic environments.

Quantum Risk Assessment and Migration Services segments are expected to experience a high CAGR during the forecast period. Quantum Risk Assessment services assist organizations in assessing their security standing, determining vulnerabilities to quantum threats, and recommending the most appropriate PQC solutions and implementation timelines. Migration Services are essential in the smooth integration of PQC solutions within already existing infrastructures to enable a secure and efficient migration to quantum-safe encryption. With an increased emphasis on mitigating quantum security threats from commercial organizations and government agencies, demand is expected to increase exponentially for these services.

Post Quantum Cryptography (PQC) Market Segments based on Post-Quantum Method

• Lattice-Based Cryptography
• Hash-Based Cryptography
• Code-Based Cryptography
• Isogeny-Based Cryptography
• Others

In terms of PQC method, the market is segmented into Lattice-Based Cryptography, Hash-Based Cryptography, Code-Based Cryptography, Isogeny-Based Cryptography, and Others. The Lattice-Based Cryptography segment dominated the market in 2024 and is projected to lead the global post quantum cryptography (PQC) market with a projected CAGR of 42% throughout the forecast period.

The Lattice-Based Cryptography segment refers to algorithms based on the mathematical hardness of lattice problems. These algorithms have gained prominence due to their strong security properties and the support they received from NIST's standardization process as 2 out of 3 PQC standards were based on lattice-based cryptography.

• In August 2024, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) finalized three post-quantum cryptography (PQC) standards including FIPS 203 (ML-KEM) based on CRYSTALS-Kyber for Key Encapsulation, FIPS 204 (ML-DSA) based on CRYSTALS-Dilithium for digital signatures, and FIPS 205 (SLH-DSA) based on SPHINCS+ for stateless hash-based signatures. FIPS 203 (ML-KEM) standard specifies a Module-Lattice-Based Key-Encapsulation Mechanism, derived from the CRYSTALS-Kyber algorithm. FIPS 204 (ML-DSA standard specifies a Module-Lattice-Based Digital Signature Algorithm, derived from the CRYSTALS-Dilithium algorithm. FIPS 205 (SLH-DSA) standard specifies a Stateless Hash-Based Digital Signature Standard, derived from the SPHINCS+ algorithm. While not a finalized standard yet, NIST is also developing a fourth FIPS that specifies a digital signature algorithm derived from FALCON as an additional alternative to these standards. This algorithm will be dubbed FN-DSA, short for FFT (fast-Fourier transform) over NTRU-Lattice-Based Digital Signature Algorithm.

Lattice-based methods offer a variety of cryptographic functionalities, including encryption, key exchange, and digital signatures. The high growth rate is attributed to the robustness and versatility of lattice-based algorithms, making them suitable for a wide range of applications.

Hash-based cryptography depends on the cryptographic hash function's security. These functions are designed to be one-way, meaning it's computationally infeasible to reverse them. Hash-based signature schemes can be stateful or stateless. Stateful schemes require keeping track of previously used keys, while stateless schemes do not. Hash-based cryptography is primarily used for digital signatures, which are essential for verifying the authenticity and integrity of digital data. NIST has selected hash-based stateless signature scheme i.e. FIPS 205 (SLH-DSA), in its PQC standardization process, indicating their importance in a post-quantum computing world. Also, two previously standardised, stateful hash-based signature algorithms also offer protection against a quantum computer, but can only be used in a subset of use cases. They are Leighton-Micali Signatures (LMS) and extended Merkle Signature Scheme (XMSS) under NIST SP 800-208 specifications.

Post Quantum Cryptography (PQC) Market Segments

Post Quantum Cryptography (PQC) Market Segments based on Deployment Mode

• Cloud PQC
• Local PQC (On-premises)

By deployment mode, the cloud-based PQC segment is expected to dominate the Post-Quantum Cryptography (PQC) market with a forecast CAGR of around 45% through the forecast period. The growth is propelled by the cost savings, flexibility, and scalability of cloud-based solutions, allowing organizations to embrace PQC technology without having to make significant on-premises infrastructure investments. The Local PQC (On-Premises) market is expected to maintain a high market share, especially in industries with stringent security and compliance standards, including BFSI, government, and defense.

Post Quantum Cryptography (PQC) Market Segments based on Organization Size

• Large Enterprises
• Small & Medium-Sized Enterprises

By organization size, the large enterprises segment is expected to dominate the global Post-Quantum Cryptography (PQC) market until 2035, with over 80% of overall PQC expenditure. This is due to the high-security requirements of large organizations, which handle enormous volumes of sensitive information and critical infrastructure, and are therefore top targets for quantum attacks. Big businesses are among the first to adopt PQC because they can invest in the latest cryptographic technology to protect themselves against future risks posed by quantum computing. Banking, defense, healthcare, IT, and telecommunications sectors lead in using PQC, focusing on secure frameworks for compliance as well as future protection against quantum-driven cyberattacks.

Post Quantum Cryptography (PQC) Market Segments based on End-User Vertical

• Banking, Financial Services, and Insurance (BFSI)
• Government & Defense 
• Healthcare 
• IT & ITES
• Telecommunication
• Utilities
• Retail & E-Commerce 
• Others

Based on end-user, BFSI and government & defense segments held the leading market shares in revenue terms of the post quantum cryptography (PQC) market. With a strong focus on protecting sensitive data, financial institutions are the most proactive, but balancing innovation with regulatory demands remains a key challenge.

• In April 2024, The Emerging Payments Association Asia (EPAA) has released a new working group with IBM, HSBC, AP+, and PayPal to look into on quantum-safe cryptography (WG-QSC) to spur the take-up of quantum-safe cryptography across banking. This team is expected to stimulate awareness, activity, and technical solutions to quantum-safe cryptography.

The Government & Defense segment is government agencies and military entities that process highly classified information. They are leaders in adopting PQC because their data is of utmost importance and the quantum attack could pose a threat to national security. The pace is hampered by the difficulty of incorporating PQC into large-scale, mission-critical systems. Yet, they have a robust awareness of quantum threats. According to predictions by industry analysts, some governments and state actors can possess quantum decryption from as early as 2028. IT & ITES organizations, especially in the fields of cloud computing and cybersecurity, are flexible enough to embrace PQC promptly. They struggle with scaling up these solutions to cater to varied customer needs.

Post Quantum Cryptography (PQC) Market Report Scope & Snapshot

What are Regional & Country Trends in Global Post Quantum Cryptography (PQC) Market?

Global Post Quantum Cryptography (PQC) Market - Regional Insights

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

North America is currently leading the market share of Post-Quantum Cryptography (PQC) globally, with a share of about 50% of total revenue in 2024. The region's leadership is attributed to strong government initiatives, heavy R&D investments, and a matured cybersecurity environment. The U.S. is the key growth driver, with significant amounts of funding towards PQC research and standardization initiatives. The presence of top technology companies, government organizations, and research organizations further enhances North America's hold in the market. The region's market leadership is driven by early adoption of PQC, especially in the BFSI industry, as well as government regulations in an attempt to curb quantum security risks.

• In U.S., National Institute of Standards and Technology (NIST) is leading PQC standardization. NIST is completing post-quantum cryptographic algorithms such as CRYSTALS-KYBER, CRYSTALS-Dilithium, FALCON, and SPHINCS+, which will be the basis for future cryptographic infrastructure in government and private sectors.

Europe accounts for a considerable portion of the world's PQC market, fueled by regulatory requirements, data sovereignty issues, and cybersecurity regulations. The EU's NIS2 Directive for enhancing cybersecurity efforts is driving PQC uptake across various sectors. Regional leaders like Germany, the UK, and France are taking significant steps in the development and adoption of PQC, with the support of government-sponsored programs promoting the move towards quantum-resistant cryptographic systems. The European Union is leading a harmonised process of adopting PQC through agencies such as the European Telecommunications Standards Institute (ETSI) and the European Union Agency for Cybersecurity (ENISA).

• In Germany, the Federal Office for Information Security (BSI) has come out with recommendations for migrating national infrastructure to post-quantum cryptographic systems in order to defend against national cyber threats.

• The National Cybersecurity Agency (ANSSI) is working on establishing PQC-based solutions for public and commercial applications in France.

• In UK, the National Cyber Security Centre (NCSC) is partnering with industry partners to ensure a seamless adoption of PQC through technical advice.

• In Spain, the Centro Criptológico Nacional (CCN.ES) is actively working towards adopting PQC in algorithms like NIST-approved standards and FrodoKEM.

Asia-Pacific will see the highest CAGR, over 40% by 2035, as a result of high-tech growth, increased cyber threats, and huge government spending on quantum computing. China, Japan, and South Korea are becoming prominent in adopting PQC, with large investments in quantum research and standalone cryptographic standardization initiatives.

• In China, there is a government-led heavy investment in quantum computing and an autonomous PQC standardization effort underway, separate from NIST.

• In South Korea, the Ministry of Science and ICT (MSIT) is spearheading PQC research and has begun a multi-stage PQC transition plan. The KpqC roadmap defines PQC implementation, with a pilot transition planned between 2025 and 2028. In January 2025, South Korea chose two KpqC signature algorithms (AIMer and HAETAE) and two KpqC KEM/PKE algorithms (SMAUG-T and NTRU+) for further development.

How is the Competition Dynamics in Post Quantum Cryptography (PQC) Market?

The Post Quantum Cryptography (PQC) industry is highly competitive with both established technology giants and a few emerging players. algorithm performance and security are the key differentiators. Organizations are spending big bucks on research and development to make their PQC algorithms efficient and secure. Efficiency in implementation and ease of integration are vital. Vendors are working towards creating easy-to-use PQC solutions that can be seamlessly integrated into existing systems. The market acceptability depends heavily on compliance with NIST standards. Firms are focusing on creating PQC solutions that follow standardized algorithms. Diverse product and service portfolio is a key factor for competitiveness. Suppliers are providing wide range PQC solutions, ranging from software, hardware, to consulting services. Finally, strategic collaborations and partnerships are necessary to fast track PQC development and implementation. Firms are building partnerships with research institutions, governments, and other technology suppliers. Vendors such as Cisco are partnering with industry organizations, standards groups, and governments to learn which standards they can use, even if the requirements for certification have not yet materialized. IBM, Google, and Microsoft have all launched PQC libraries, as well as cloud based PQC solutions. In 2024, quantum computing startups raised approximately $1.5 billion in venture capital in over 50 deals.

Some of the key companies operating in Post Quantum Cryptography (PQC) Market include (but not limited to):

• IBM
• AWS
• Digicert
• Entrust
• Google
• ID Quantique
• IDEMIA
• Intel Corporation
• ISARA
• Kloch
• Microsoft
• NXP Semiconductors
• Palo Alto
• Post-Quantum Ltd.
• PQShield
• Quantum Xchange
• Thales 
• Others

Post Quantum Cryptography (PQC) Industry Developments

• In January 2025, Infineon Technologies, in collaboration with the German Federal Office for Information Security (BSI), reached a significant milestone in advancing quantum-resistant security. Infineon became the first company to receive the Common Criteria EAL6 certification for implementing a post-quantum cryptography (PQC) algorithm in a security controller. This achievement strengthens security for eSIMs, 5G SIMs, and smart card applications, including personal IDs, payment cards, and eHealth cards, protecting them against future quantum computing threats.
• In August 2024, the National Institute of Standards and Technology (NIST) standardized IBM’s post-quantum cryptography algorithms, marking the world’s first PQC standards. Two of these algorithms were developed by cryptography experts at IBM Research in Zurich, while the third was co-developed by an IBM Research scientist. IBM Quantum is taking a long-term approach to integrating quantum-safe security across its hardware, software, and services. Its IBM Quantum Platform offers cloud-based access to its fleet of utility-scale quantum computers through the Qiskit software development kit.
• During the first quarter of 2024, reports indicated that nearly 2% of all TLS 1.3 connections established with Cloudflare were secured using post-quantum cryptography, highlighting the early adoption of quantum-resistant security.
• In February 2024, Linux Foundation launched the Post-Quantum Cryptography Alliance (PQCA). This initiative brings together industry leaders, researchers, and developers to advance open-source software for PQC implementation.
• In February 2024, Apple introduced PQ3 post-quantum encryption for iMessage. Unlike conventional encryption, PQ3 secures both the initial key exchange and all subsequent messaging, achieving the highly secure Level 3 status.
• In October 2023, the Signal team announced an upgrade to its X3DH specification, introducing PQXDH as a first step toward quantum-resistant encryption. Signal selected CRYSTALS-Kyber as its key encapsulation mechanism but opted for a hybrid approach, combining traditional elliptic curve cryptography with PQC to ensure robust security. By requiring attackers to compromise both cryptographic systems to breach communications, Signal aims to provide a future-proof security framework.