Quantum Secure Cryptographic Ics Market - Forecasts From 2025 To 2030

The quantum secure cryptographic ICs market is anticipated to expand at a high CAGR over the forecast period

The quantum secure cryptographic ICs market is seeing new momentum as organisations prepare for a post-quantum world in which traditional encryption could be threatened. These ICs are designed to be leveraged against attacks by quantum computers using post-quantum cryptographic algorithms. Governments and various sectors of industry have invested in secure hardware to protect government infrastructure protect personal data, and financial systems. The increasing adoption of connected devices, autonomous systems and cloud locales, in many cases, expands and elevates demand for quantum-secure hardware. Countries, like the U.S, Germany, China, and Japan, have actively engaged in funding for developing quantum cryptography and pilot deployments. The ongoing shift towards zero trust models and emerging regulations on data, government and protection are drivers of adoption in banking, defence and healthcare.

Quantum Secure Cryptographic ICs Market Overview & Scope

The quantum secure cryptographic ICs market is segmented by:

• By Type: The market is segmented into hardware security modules (HSMs), smart cards and secure microcontrollers. Hardware security modules (HSMs) are computing devices that are physically secure and manage digital keys and use encryption and decryption functions in a secure enclave. The threat of quantum attacks, these HSMs are in upgrade mode to support post-quantum cryptographic algorithms to secure financial transactions, government records and sensitive enterprise data. Tamper-resistant and high-assurance management of cryptographic keys in HSMs is critical for securing operational information in sectors that have substantial critical infrastructure and sectors of industry with regulations.
• By Deployment: The market is segmented into On-premise and Cloud-based. Cloud deployment allows the integration of cryptographic ICs and security modules into the cloud infrastructure and therefore scales encryption and secure key storage with regard to the cloud environment and supports multi-cloud styled strategies for encryption in a secure cloud storage locale. Cloud deployment allowed for greater simplicity of access to the hardware security modules and has recently seen more pure-computing models of remote presence in cloud providers because post-quantum is about embracing and integrating into virtualised spaces.
• By Application: The market is segmented into secure communications and data storage, authentication & identity management, financial transactions security, IOT device security, automotive cybersecurity, cloud & data centre protection, and others. IoT Device Security depends on cryptographic ICs to ensure devices and data remain secure from unauthorised access and manipulation. With the proliferation of IoT into critical areas of life, such as healthcare and the smart grid, it is critical to use quantum-safe chips to ensure the continued trust and security of devices and data.
• By End-User Industry: The market is segmented into banking financial services & insurance (BFSI), government & defence, telecommunications, healthcare, consumer electronics, and others. Government & Defence organisations require quantum-secure cryptographic ICs to protect the national security data they hold, military communications, and critical infrastructures. These types of institutions are often considered to be the early-type adoptions of quantum-safe protocols at both the hardware and communication layers.
• Region: Geographically, the market for quantum secure cryptographic ICs is expanding at varying rates depending on the location. North America is growing into a large area of opportunity for quantum-secure cryptographic ICs. A key driver of growth is strong government funding and impending compliance with post-quantum standards and protocols. The public and private sectors are working collaboratively to define marketplace opportunities together. Regulatory agencies like NIST and the NSA have mandated the move to quantum-resistant algorithms for the critical infrastructures and federal organisations they oversee.

Top Trends Shaping the Quantum Secure Cryptographic ICs Market

1. Transition to Post-Quantum Cryptography (PQC) Standards

• Global standardisation movements are in full force. NIST has at last published the finalists for post-quantum cryptographic algorithms. This transition period will shape the new hardware design and implementation considerations for IC manufacturers of cryptographic hardware. Manufacturers will have to integrate the new post-quantum algorithms into the secure hardware ahead of massive quantum systems or machines being on the marketplace.

2. Integration of Quantum-Safe ICs in IoT and Edge Devices

• Manufacturers are introducing light-weight quantum-safe cryptographic ICs into IoT and edge systems as billions of devices become connected. IC manufacturers are making quantum-safe chips for all kinds of devices that are durable, low power, and in small form factor sizes. This is especially true for small, smart sensors, wearables and various industrial IoT devices.

Quantum Secure Cryptographic ICs Market Growth Drivers vs. Challenges

Drivers:

• Rising Government Initiatives for Quantum-Resistant Security Governments around the globe, mainly in the U.S., Europe and Asia, are increasingly investing in quantum-safe infrastructure to hedge against the future of quantum vulnerabilities to national security systems and sensitive communications. The U.S. White House recently issued a national security memorandum requiring federal agencies to start adopting quantum-resistant cryptography. As government policies emphasise quantum security, both public entities and private contractors bridge the gap to quantum-secure cryptographic solutions via hardware-based implementations, like ICs and HSMs, growing the overall market.
• Increasing Vulnerability of Classical Encryption to Quantum Attacks As quantum computing is highly disruptive to classical encryption algorithms like RSA and ECC, which could collapse, there is an increase for post-quantum cryptographic ICs to defend critical systems across BFSI, healthcare and telecom usage industries. Hardware-based encryption seems to be the most agreeable, as it increases tamper-resistant facilities which offer longevity, as well as the capacity to embed new quantum-resistant algorithms directly into silicon.

 Challenges:

• Lack of Global Consensus on Post-Quantum Standards: Regions and institutions are at different stages of adopting quantum-safe standards, and this is leading to issues with the ability to interoperate, which is a major delay for hardware vendors to start implementing quantum-safe technologies.
• High Infrastructure and Operational Costs: Hardware-level integration of post-quantum algorithms with ICs requires high-level design expertise and a fabrication process, ultimately increasing costs and time to market.

Quantum Secure Cryptographic ICs Market Regional Analysis

• Europe: European countries are taking great strides in adopting quantum-secure technologies, primarily due to established regulatory frameworks, cross-border co-operation, and ongoing investment in secure technology. The European Commission and European Telecommunications Standards Institute (ETSI) view quantum-safe cryptography as a fundamental part of the region's digital sovereignty and data protection strategy. The EU's Quantum Flagship and European Cybersecurity Competence Centre (ECCC) initiatives have funded both research on and real-world implementation of post-quantum secure integrated circuits (ICs) in banking, defence, and key critical infrastructure areas. These efforts anticipate Europe becoming a leading contributor to advancing quantum-resilient hardware standards and adoption around the world.

Quantum Secure Cryptographic ICs Market Competitive Landscape

The Quantum Secure Cryptographic ICs market is competitive, with a mix of established players and specialised innovators driving its growth.

• Company Collaboration: Utimaco & InfoSec Global (March 2024): Utimaco, a global hardware security module provider, announced an exclusive strategic partnership with InfoSec Global to assist organisations in a practical, streamlined, and cost-effective journey towards post-quantum cryptography. InfoSec Global and Utimaco will provide joint support by combining Utimaco's tamper-proof hardware security module devices (HSM), and InfoSec Global AgileSec™ vulnerability scanning tools; creating a robust, joined, unified solution to propel organizations forward in rapidly discovering their organizations cryptographic vulnerabilities in the current systems and embedding quantum-resistant algorithms, directly into their quantum secure hardware infrastructures.
• Government Policy – NIST’s Post?Quantum Standards (August 2024): The U.S. National Institute of Standards and Technology (NIST) announced the approval of three post-quantum cryptography (PQC) algorithms in August 2024. This milestone is significant with the White House-level announcement that specifies these algorithms as the official mandatory standards so that any encryption that will take place in U.S. government and government contractors’ systems going forward must integrate these PQC algorithms. The regulations also put pressure on HSM and IC manufacturers in the private sector to embed these quantum-resilient standards into their chip designs.

 

 Quantum Secure Cryptographic ICs Market Segmentation:

By Type

• Hardware Security Modules (HSMs)
• Smart Cards
• Secure Microcontrollers
  

By Deployment

• On-premise
• Cloud-based
  

By Application

• Secure Communications and Data Storage
• Authentication & Identity Management
• Financial Transactions Security
• IoT Device Security
• Automotive Cybersecurity
• Cloud & Data Centre Protection
• Others

By End-User Industry

• Banking, Financial Services & Insurance (BFSI)
• Government & Defense
• Telecommunications
• Healthcare
• Consumer Electronics
• Others

By Geography

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

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. QUANTUM-SECURE CRYPTOGRAPHIC ICS MARKET BY BY TYPE

5.1. Introduction 

5.2. Hardware Security Modules (HSMs)

5.3. Smart Cards

5.4. Secure Microcontrollers

6. QUANTUM-SECURE CRYPTOGRAPHIC ICS MARKET BY DEPLOYMENT

6.1. Introduction 

6.2. On-premise

6.3. Cloud-based

7. QUANTUM-SECURE CRYPTOGRAPHIC ICS MARKET BY APPLICATION

7.1. Introduction 

7.2. Secure Communications and Data Storage

7.3. Authentication & Identity Management

7.4. Financial Transactions Security

7.5. IoT Device Security

7.6. Automotive Cybersecurity

7.7. Cloud & Data Centre Protection

7.8. Others

8. QUANTUM-SECURE CRYPTOGRAPHIC ICS MARKET BY END-USER INDUSTRY

8.1. Introduction 

8.2. Banking, Financial Services & Insurance (BFSI)

8.3. Government & Defense

8.4. Telecommunications

8.5. Healthcare

8.6. Consumer Electronics

8.7. Others

9. QUANTUM-SECURE CRYPTOGRAPHIC ICS MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Type

9.2.2. By Deployment

9.2.3. By Application

9.2.4. By End-User Industry

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Type

9.3.2. By Deployment

9.3.3. By Application

9.3.4. By End-User Industry

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Type

9.4.2. By Deployment

9.4.3. By Application

9.4.4. By End-User Industry

9.4.5. By Country

9.4.5.1. United Kingdom

9.4.5.2. Germany

9.4.5.3. France

9.4.5.4. Spain

9.4.5.5. Others

9.5. Middle East and Africa

9.5.1. By Type

9.5.2. By Deployment

9.5.3. By Application

9.5.4. By End-User Industry

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Type

9.6.2. By Deployment

9.6.3. By Application

9.6.4. By End-User Industry

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. India

9.6.5.4. South Korea

9.6.5.5. Taiwan

9.6.5.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Utimaco

11.2. Thales

11.3. Infineon Technologies

11.4. IBM

11.5. ID Quantique

11.6. PQShield

11.7. Quantinuum

11.8. ISARA Corporation

11.9. Crypto Quantique

11.10. Rambus

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

Utimaco

Thales

Infineon Technologies

IBM

ID Quantique

PQShield

Quantinuum

ISARA Corporation

Crypto Quantique

Rambus