Delray Beach, Florida, October 27, 2026 / PRNewswire / -- MarketsandMarkets indicates that the post-quantum cryptography ( Post - Quantum Cryptography, PQC ) market is expected to grow from $600 million in 2026 to $3.8 billion in 2031, with a compound annual growth rate of 44.5% during the forecast period.

Post-quantum cryptography market size and forecast:

• Available market size for the years: 2022 to 2031
• Market size in 2025: $420 million
• Market size in 2026: $600 million
• Estimated market size in 2031: $3.8 billion
• Compound annual growth rate from 2026 to 2031: 44.5%

Post-quantum cryptography market trends and insights:

• The increasing attention from regulatory authorities to cybersecurity, the rising investment in quantum security technologies, and the need to protect long-term data from future decryption threats are all accelerating the transition towards post-quantum cryptography.
• Divided by the form of product delivery, the Solutions segment is expected to dominate the PQC market in 2026, accounting for 77.0% of the market share.
• By service segment, the design, implementation, and consulting sectors are expected to dominate the market in 2026, accounting for 62.0% of the market share.
• Divided by solution, the quantum secure hardware segment is expected to dominate the market in 2026, accounting for 35.1% of the market share.
• Divided by organizational 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 indicates that a key driving factor is the continuously rising demand for "password agility." Password agility enables organizations to replace or update encryption algorithms as security requirements evolve. Password functionality is embedded in 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 password architectures to support algorithm migrations without the need for large-scale redesigns of existing systems. This is driving the demand for adaptable password software, centralized key management, discovery tools, and quantum-safe infrastructure that can accommodate constantly changing security requirements.

Divided by solution, the quantum secure hardware segment is expected to occupy the largest market share.

Quantum-safe hardware supports the integration of cryptographic capabilities into devices, infrastructure, and security devices. Hardware security modules, security components, and embedded security components can protect encryption keys and support secure operations in environments with stringent security requirements. As organizations advance in modernizing their infrastructure, hardware vendors are incorporating the capability to resist quantum algorithms into their products alongside existing cryptographic mechanisms. These advancements are of great significance for data centers, enterprise security infrastructure, telecommunications equipment, and connected devices. Hardware-based implementations also must address processing demands, memory limitations, and compatibility issues with existing systems. As organizations upgrade their security components and incorporate quantum-resistant capabilities into new infrastructure deployments, the demand for quantum-safe hardware is expected to remain significant.

Divided by vertical industries, the IT and ITeS sectors are expected to experience the fastest growth during the forecast period.

IT Service providers, cloud platforms, software vendors, and technical infrastructure operators are responsible for managing cryptographic functions in applications, digital identities, data exchanges, and communication protocols. Migrating these environments requires updating password databases, authentication mechanisms, certificates, and secure communication systems. The scale and interconnectivity of technical platforms have driven the need for automated discovery of cryptographic assets, compatibility testing, and centralized migration management. Technical providers must also assess how to integrate quantum-resistant algorithms without interfering with customer service or application performance. IT Service providers have the capability to support PQC consulting, implementation, and migration projects across multiple industries. MarketsandMarkets indicates that these demands are expected to accelerate the adoption of PQC in the IT and ITeS sectors during the forecast period.

By region, North America is expected to occupy the largest market share.

According to MarketsandMarkets, North America's leading position is attributed to strong investments in cybersecurity, a mature technology ecosystem, and the presence of major cloud service providers, semiconductor companies, and cryptography security vendors. Organizations in fields 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 the adoption of PQC through standards finalized by the National Institute of Standards and Technology (NIST) and federal migration guidelines, encouraging institutions and their suppliers to identify vulnerable cryptographic systems and plan for migrations. As organizations incorporate quantum-resistant capabilities into their security architectures, demand for quantum-safe hardware, cryptographic software, secure communications, key management, and migration services is expected to continue to grow.

Major companies in the post-quantum cryptography market:

The main companies in the post-quantum cryptography market listed by MarketsandMarkets include: NXP Sem token issuance, nductors (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 (UK), PQShield (UK), 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 (UK), Crypto Quantique (UK), 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 indicates that the PQC market is moving from cryptography research towards commercial deployment in enterprise security, digital infrastructure, and interconnected systems. Suppliers are expanding their product portfolios to cover areas such as cryptographic asset discovery, quantum secure hardware, secure communication, identity protection, and migration management. In September 2026, IonQ and Congruity360 announced a collaboration to integrate quantum secure network protection into enterprise data management environments, combining PQC with quantum key distribution capabilities. The organization stated that these developments show an increasing emphasis in the market on integrating quantum secure technologies into existing enterprise security architectures, providing deployable solutions for organizations preparing for cryptographic migrations.

Income Transfer Background

The institution stated that the PQC market is shifting towards integrated products and services, helping organizations to move from password readiness assessments to actual implementation. Suppliers are developing tools for password asset discovery, vulnerability identification, algorithm migration, certificate management, and quantum-safe key protection. The migration initiatives in NIST emphasize that password visibility, risk management, interoperability, and benchmarking are important components of the transformation process. These requirements are creating business opportunities in areas such as software licensing, hardware security products, implementation services, and managed cryptographic infrastructure. As organizations upgrade their existing systems, suppliers are increasingly positioning PQC capabilities within a broader framework of enterprise security and digital trust platforms.

Mergers and Acquisitions

MarketsandMarkets indicates that mergers and strategic collaborations are helping suppliers to expand their portfolio of quantum security technologies and strengthen their position in adjacent security markets. In October 2026, IonQ announced the completion of an agreement to acquire Elisity, combining 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 organization stated that these developments reflect the market's strategic interest in integrating quantum secure cryptography with enterprise security, digital asset protection, and broader network security platforms.

Explanation of Company Revenue Share

MarketsandMarkets indicates that the PQC market includes mature technology companies, cybersecurity providers, semiconductor manufacturers, and specialized suppliers that develop quantum-safe cryptographic products. Companies such as IBM, Thales, NXP Sem token issuance, nductors, and Utimaco offer a broader range of technology and security product portfolios, while specialized suppliers like pQCee, PQShield, QNu Labs, and Quantropi focus on specific quantum-safe technologies. Competitive products cover cryptographic hardware, software libraries, cryptographic asset discovery, migration management, identity security, key management, and secure communication. 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 revenue data, which limits the reliability of quantitative market share estimates based solely on a company's overall revenue.

Relevant market reports:

• Quantum cryptography market, categorized by solutions (quantum key distribution QKD, quantum random number generators QRNG, quantum secure cryptography), and by services (deployment and integration, cryptographic consulting) – global forecast up to 2031
• Quantum key distribution market, categorized by delivery form (solutions and services), by type (reusable QKD systems and long-distance QKD systems), and by application (network security, data encryption, secure communication) – Global forecast until 2030

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