Quantum Communications Market Size - By Component, By Network, By Deployment Mode, By End Use, Growth Forecast, 2025 - 2034

Quantum Communications Market Size

The global quantum communications market size was estimated at USD 951.2 million in 2024. The market is expected to grow from USD 1.1 billion in 2025 to USD 10.5 billion in 2034, at a CAGR of 28.3%.
 

• The nations worldwide are actively pursuing the development of communication quantum technologies, including quantum communications. Countries such as China, the US, and the various members of the European Union are initiating state-wide programs and designating considerable funds towards the establishment of quantum network and research infrastructure.
   
• The advanced methods of quantum communication, specifically quantum key distribution, provide a way to send highly classified materials with maximum security. For instance, in June 2025, in India, steps are being taken to enhance quantum-secure networks in the face of relentless cyber security challenges. ISRO and DRDO are leading a three-level strategy in quantum communication designed to protect both civilian and military information.
   
• The quantum communications market is expected to experience growth, fuelled by the surge in cyber-attacks, higher government spending on quantum frameworks, along with advancements in QKD and satellite-based quantum networks. Major sectors such as defence, finance, and telecommunications are implementing these technologies to bolster secure data exchange and future-proof their infrastructures.
   
• During COVID-19 pandemic, the quantum communications market was in its early R&D phase, with very little commercial deployment and mostly government-sponsored projects. The pandemic underscored the importance of having robust long-term cybersecurity solutions. After 2020, the industry has moved from exploratory tests to early commercialization in some areas, especially regarding investment in QKD satellites, international collaboration, and prototype test networks which mark progress toward the implementation and scalability of practical application.
   
• The emerging quantum technologies, including quantum repeaters, photonic integrated circuits, and quantum communication via satellites, are facilitating more dependable and longer-range communication systems. In June 2025, developments in quantum-secured communications technologies have been made recently by researchers at LSU who have created an integrated network of photonic chips that accomplishes the task of quantum digital signatures over distances exceeding 200 kilometres of optical fibre.
   
• North America leads the market, as in May 2025, the national quantum initiative act, 2018 allocated more than 1.2 billion dollars for quantum research which is now planned to be increased with bipartisan reauthorization proposals ranging from 2.5 to 2.7 billion dollars between 2029 to 2034.
   
• Asia-Pacific is the fastest-growing region, owing to government investment, rapid adoption of new technologies, and increasing concern over cybersecurity. Nations such as China, Japan, South Korea and India are aggressively financing their QKD network-based national quantum programs. Particularly, China stands out with the Micius satellite and quantum backbone network project.
   

Quantum Communications Market Trends

• The implementation of quantum communication technologies with a focus on QKD into mobile and fiber networks is rising. For instance, in April 2025, T-Labs of Deutsche Telekom and Qunnect conducted a field test on Berlin's commercial fiber network. They sent polarization-entangled photons 30 km for 17 days at 99% fidelity, and over 82 km alongside classical data traffic at more than 92% fidelity.
   
• An increase in usage of photonic integrated circuits is such as ly in the quantum communication industry with traditionally shrinking systems, increasing efficiency, and lowering production costs have all been points of interest for QKD systems. For example, just in May of 2025, Cisco Systems opened a quantum computing lab in Santa Monica and announced developing a prototype quantum networking chip for the purpose of entangling photons to connect quantum systems.
   
• The QKD adoption started after the launch of China’s Micius satellite in 2016, with QKD deploying to other countries started its test networks. Central adoption peaked sometime after 2021, and just so happened that more countries and companies began pilot programs to secure key communications. Banking, defense, and telecommunication systems have great odds at being the most successful industries in the adoption of QKD, because of the surge of cyber-attacks on the supply chain. There is a strong prediction that by 2030 it will be the primary underlying technology of secure communication infrastructure for all countries.
   
• Government actions commenced around 2018–2019 with key initiatives such as the US national quantum initiative and its counterparts in the EU and Asia. In July 2025, the European Commission unveiled an extensive quantum strategy, unlocking more than euro 11 billion in public funding allocated over the past five years, along with a novel euro 50 million initiative focused on chips designed to propel quantum infrastructure, industrialization, and testbeds through 2030.
   

Quantum Communications Market Analysis

Based on component, the quantum communications market is segmented into hardware, software and services. The hardware segment dominated the quantum communications market accounting for around 54% share and is expected to grow at a CAGR of over 26% through 2034.
 

• The focus on QKD has intensified with regards to its specific components such as the photon sources and detectors which now serve to secure data transfer. These components are important for institutions involved with espionage, intelligence, and financial transactions since the information is highly sensitive. The need for QKD is growing in the market due to its efficiency in eavesdrop detection and maximum-security provision.
   
• The PICs are addressing the challenges of quantum hardware by substituting large systems with smaller, more efficient, and integrated units. For instance, in March 2025, Lux Quanta introduced its second-generation NOVA LQ continuous-variable QKD system at the mobile world congress. Its 2U form factor enables it to work over existing optical fibres in conjunction with classical traffic.
   
• The services segment grows at 29% CAGR, as businesses and governments need specialized assistance in establishing QKD networks, hybrid integration with classical systems, and maintaining secure environments for communication. This trend started emerging around 2022, peaked during 2024–2025, and continues rising as organizations move from pilot projects to full-scale adoptions by 2030.
   
• The creation of new tools for quantum key management, secure protocol integration, and network orchestration is driving increased activity in the segment for software. This trend began in 2021 with the motivation originating from the need for more scalable and cross-compatible systems that operate with classic systems.
   
• For instance, in April 2025, California is now home to Cisco’s quantum data centre, and the company’s new dedicated Quantum lab. The also presented quantum network fabrics as well as software-controlled orchestration tools, Cisco quantum orchestrator. This represents significant advancement in the field of quantum network management as well as in software for control of entanglement for large scale applications.

Based on network, the quantum communications market is segmented into point-to-point networks, point-to-multipoint networks, mesh networks, satellite-based networks and hybrid networks. The point-to-point networks segment accounted for 51% of market share, and the segment is expected to grow at a CAGR of over 27% from 2025 to 2034.
 

• The point-to-point design of quantum communication maintains a high level of fidelity within a 100-kilometer range, making it suitable for intra-city transport as well as inter-facility shuttle communications. Work is currently being done on QKD systems with lower loss fibres so that key generation can be accelerated, and error rates can be minimized and thus, reliability and confidence in trust and security for routine operational tasks is sustained. 
   
• For example, in February 2025, in Istanbul, connecting both European and Asian sections of the city, Turkcell and ID Quantique launched the first intercontinental point-to-point QKD link. The demonstration made use of existing metropolitan fibre, providing a simple to implement model for commercial use.
   
• The hybrid networks segment grows at 33% CAGR, classical counterparts can easily integrate into hybrid quantum communication networks; therefore, the networks are more cost-effective, easier to scale, and provide an economical alternative to secure communications. This is ideal for large corporations and governments in need of quantum technology, allowing for a facilitated transition.
   
• Quantum communication networks that utilize a mesh topology allow many interconnected nodes to communicate in a distributed manner, and it improves redundancy and reliability. A mesh topology provides improved resilience, because it provides the ability to alter the route that data takes dynamically, greatly increasing the robustness of the network to failures or attacks.
   

Based on deployment mode, the quantum communications market is segmented into on-premises, cloud-based and hybrid. The on-premises segment is expected to dominate the quantum communications market due to its enhanced data control, security, and suitability for government and defence applications requiring strict regulatory compliance.
 

• The high sensitivity concerning data and infrastructure requirements, government and defense agencies are focusing on on-premises quantum communication systems. Such systems enable the secure transfer of sensitive data within systems that are shielded from any external servers or networks. On-premises deployment ensures maximum confidentiality that is critical for national security, intelligence, and military operations.
   
• The financial institutions also require safeguarding of critical transactions and customer information, thus adopting on-premises quantum communication systems. For instance, in April 2025, KETS is prototyping a silicon-photonic QKD system encased in a chassis of a telecom server which is currently being tested by BT.
   
• The cloud-based segment grows at 30% CAGR, and an implementation model allows us to enable quantum encryption and key distribution without a heavy distribution of complex systems on-site. In addition to more explicit demand for quantum communications, IBM, AWS, and Google are ushering in a rapid expansion of QaaS markets.
   
• The instance of a hybrid quantum communication system is BT and Toshiba’s United Kingdom quantum network which integrates quantum key distribution into existing classical fiber network frameworks. This architecture enables protected transfer of information between data centers without the need for extensive network overhauls.
   

Based on end use, the quantum communications market is segmented into government and defense, banking, financial services & insurance (BFSI), healthcare and life sciences, telecommunications, energy and utilities, research and academia and enterprise and commercial. The government and defence segment are expected to grow significantly in the quantum communications market, driven by rising demand for ultra-secure communication networks and increasing investment in national quantum infrastructure projects.
 

• National quantum communication networks are being developed by governments world-wide to improve cybersecurity and secure critical infrastructure. Initiatives such as the quantum backbone in China, India's National Quantum Mission, and the EU’s EuroQCI shows a strategic shift towards quantum key distribution (QKD), to be used in military, intelligence, and government applications that require elevated levels of encryption and cyber protection.
   
• Defense organizations are also increasingly looking at satellite-based QKD to secure long-range communications between bases, command centers, and deployed resources. For instance, Countries such as China, US, and NATO allies, are working to develop space-based quantum communication to overcome the limitations of fiber, along with providing military-grade encrypted quantum communication links for defense and national security applications. Investments in quantum-safe satellite constellations and global-scale secure communications architecture will require nations to move quickly over the coming years.
   
• Banking, Financial Services & Insurance (BFSI) will grow in the future at a 30% CAGR as demand for quantum-safe encryption, secure channels for transactions, and protection from emerging threats from quantum computing escalate. Financial institutions will need to be prepared for the post-quantum era and will be actively investing in QKD and suppliers of quantum security technology to maintain the security of sensitive customer data and high-value transactions.
   
• The telecommunications industry is quickly bringing quantum communication technologies to bear on the purpose of securing networks and ensuring the advancement of the quantum internet. Major telecom providers, such us BT, China Telecom, SK Telecom, and AT&T are investigating the provision of quantum key distribution (QKD) over fiber and satellite networks to mitigate any risk from data that is in transit.
   
• Major providers, such as Nokia, are already offering quantum-safe network solutions developed specifically for energy companies (i.e., utilities, oil & gas, and mining) that not only guard against existing threats from the cybersecurity perspective but also future quantum risks, through layered symmetric encryption and intrusion detection systems because it has been established that there is a high level of industry interest in developing strong communication channels that are quantum-compatible or quantum-hardened.

US dominated the quantum communications market in North America with around 82% share and generated USD 284.2 million in revenue in 2024.
 

• Since the beginning of the national quantum initiative and associated programs, funding and scope of quantum research and development have increased throughout the US. The secure quantum communication infrastructure is heavily funded by the DOE, NSF and DoD. This large pot of federal spending has stimulated the accelerated advancement of quantum technologies and commercialization of the quantum communication sector across the public and private sectors in the US.
   
• The largest quantum technology companies such as IBM, Honeywell Quantum Solutions, Quantum Xchange and Qrypt are all based in the US For example, in May 2025, my bipartisan explorations led to the formal reauthorization of the national quantum initiative by recommending USD 2.7 billion for the NIST, NSF and NASA over five years, and shifting the emphasis from pure research to practical uses of quantum technologies in communications and satellite links.
   
• Canada has a 23.6% CAGR in the quantum communications market due to a robust digital infrastructure, government-backed initiatives and a large growth of telehealth networks that demand ultra-secure data transmission.
   
• Canada initiated its national quantum strategy in 2023, allocating funds amounting to CAD 360 million with specific focus on the construction of secure quantum networks and related infrastructure. Companies such as  Xanadu, Canadian Space Agency and University of Waterloo’s IQC are developing QKD systems and satellite-based quantum communication.
   

The quantum communications market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• Europe has the second-largest share of the global quantum communications market with a compound annual growth rate of 28.6% in 2024, influenced by the growth in demand for secure communication in defense, financial services and data transmissions across borders. Initiatives such as EuroQCI, and national digital sovereignty initiatives in EU member states are facilitating adoption across member states, and particularly, across government, telecommunications and industrial infrastructure sectors seeking quantum-safe technologies.
   
• Germany is also a primary partner for establishing a pan-European quantum secure network connecting key institutions, data centres and border controls. For example, in January 2024, Germany, led by Deutsche Telekom, is leading the "Nostradamus" EU consortium which aims to build QKD testing infrastructures to support the pan-European EuroQCI network.
   
• The UK's national quantum technologies program which has invested over euro 1 billion, places the UK in a powerful position in quantum communications. With the UK Quantum Network formed by BT and Toshiba, which can develop advanced secure communication with QKD, the UK government values quantum-secure frameworks to protect sectors that are of national importance.
   
• For instance, in June 2025, in Paris, Orange Business and Toshiba Europe designed and executed the first commercial quantum-safe network using post quantum cryptography and quantum key distribution to protect enterprises against potential future quantum cyber-attacks.
   
• The quantum communications market is growing strongly in Western and Northern Europe due to early adoption of QKD technology, strong digital infrastructure and active participation in euro funded activities with the EuroQCI project. Countries such as Germany, France, Sweden and Finland are blazing trails on deployment in telecommunications, defense, and government with a strong focus on digital sovereignty and secure consideration of design and application.
   

The quantum communications market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• Asia Pacific accounts for more than 20% of the global Quantum Communications market in 2024 and will grow the fastest, reaching a CAGR of almost 31%. Growth will be due to further government investment in quantum technology, increased telecom infrastructure, and a sense of national security. Countries such as China, India, Japan, and South Korea are rapidly growing in quantum network deployment to secure data transmission and fortify critical communications systems in both the public and private sectors.
   
• The development of quantum communication systems in China is seen as a critical element in the larger context of the country’s long-term national security strategy and technological vision. National programs to promote quantum development are primarily funded by the government such as the quantum science and technology plan under the national programs.
   
• For instance, in March 2025 Micius, with the help of Jinan-1 satellite led China successfully completed a quantum-secure link from Beijing to Stellenbosch 12,900 kilometers away. This was the first successful hemispheric secure QKD and cements China as a leader in satellite quantum systems.
   
• India is emerging as a leader in the quadrant of quantum communications in the Asia-Pacific region aided by programs such as the National Quantum Mission and ongoing led R&D investments, particularly by ISRO and DRDO. There is an increasing level of researchers, university collaborations, startups, and industrial partnerships assisting India, working on in-country QKD systems and regional deployment of quantum links from satellites.
   
• Vietnam is focused on education and research on quantum communications, albeit at the very early stage of development; the Philippines is looking for foreign collaboration, which may allow for quicker growth of quantum technologies- putting it into a position of potential leadership in advanced digital security.
   

The quantum communications market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
 

• Latin America is progressing in the quantum communications market with 26.2% CAGR that is showing steady acceptance driven by greater interest in data security, public sector digitization, and early pilot projects as seen in Brazil and Chile. Although there is some momentum, regional scaling is inhibited by infrastructure gaps, limited local expertise, and funding barriers that are currently preventing larger quantum networks from being deployed across broader parts of the region.
   
• The government institutions of Brazil, including the MCTI, have displayed a continuous interest toward nurturing the country’s abilities in advanced technologies such as  quantum communications. Through these policies, Brazil is sponsoring research projects as well as planning for the implementation of quantum technologies into the national security infrastructure.
   
• The most important universities and research institutions in Brazil, including USP, UFRJ and LNCC, are engaged in quantum research. For instance, in December 2024, FAPESP created the QuTIa program to foster the development of quantum technology in São Paulo and in Brazil.
   
• The government of Mexico has implemented a national quantum strategy with the objectives of promoting R&D, collaboration between private and public sectors, as well as the adapting of regulatory frameworks for quantum technologies. Private citizens such as Claudia Zendejas-Morales, alongside INAOE and UNAM, are greatly advancing quantum education and research in the country.
   
• Argentina heads the region’s quantum initiative through domestic firms such as Q99 which is developing quantum communication technologies. At the same time, Chile funds quantum encryption startups and subsidizes other related initiatives. Peru is promoting community participation with events such as Quantum Latino and with academic work in QKD and post-quantum security.
   

The quantum communications market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.
 

• MEA represents 6% of the global quantum communications market share in 2024, which shows a steady rise owing to growing funding in cybersecurity, modernization of national defense, and digital transformation initiatives in the Gulf countries of Saudi Arabia and the UAE. That said, many African countries have limited economic base and lower R&D capacity, which will be barriers to widespread quantum technology adoption across the Africa region.
   
• Quantum Technologies are Saudi Arabia's scientific agenda for the development area of 2030 vision. The nation is now planning for a quantum secured backbone through the governance frameworks and budgetary means necessary to adopt the highly developed communications technologies.
   
• The Kingdom of Saudi Arabia is expanding its curricular offerings to include quantum information and communications while establishing quantum laboratories at KAUST and King Saud University. For instance, in April 2024 the Saudi Centre for the Fourth Industrial Revolution (C4IR) in association with the world economic forum introduced the quantum for society challenge, an international prize for innovations in quantum communications, quantum energy, and quantum health.
   
• The collaboration of government and academic institutions in South Africa has propelled the country's standing in quantum communication technologies. For instance, in March 2025, Stellenbosch University, in conjunction with some researchers from China, set an astonishing record of 12,900 km for a satellite QKD link which securely transmits quantum information.
   
• Israel is quickly emerging as a key player in the Middle East quantum communications market due to its large cybersecurity ecosystem, deep research ecosystem, and increased government investment in quantum technologies. The country is quickly developing quantum encryption solutions for both defense and critical infrastructure, making it position in the region as a place for innovation.
   

Quantum Communications Market Share

The top 7 companies of the quantum communications industry are Toshiba, Thales, QuantumCTek Co., ID Quantique, MagiQ Technologies, Qubitekk and KETS Quantum Security contributing around 34% of the market in 2024.
 

• Toshiba's Cambridge Research Lab is one of the few companies in the world to pioneer quantum key distribution. They are currently undertaking significant experiments in quantum secure communication over fiber networks with BT and other partners. Their goal is to secure data against potential future quantum attacks.
   
• While Thales is the biggest player in the aerospace and defense markets, they have also turned their attention to quantum communication and cryptography. They are well-known for sponsoring euro projects such as EuroQCI and also manufacture Advanced QKD devices for secure communications for government and military customers. 
   
• QuantumCTek is a company specializing in quantum secure communication and QKD systems in China. Its role in Beijing–Shanghai quantum backbone is pivotal, and its role to Micius quantum satellite is critical in the large-scale deployment of space based QKD systems.
   
• ID Quantique is a pioneer in quantum-safe cybersecurity technologies based on quantum key distribution as well as quantum random number generators. They are active in safeguarding critical national infrastructure with telecoms and government agencies, and they are one of the first advocates of post-quantum cryptography.
   
• MagiQ Technologies leads in quantum cryptography and building defense-grade secure optical networks. As one of the first to implement QKD solutions commercially, they continued advancing quantum-safe communications for sensitive operations. 
   
• Qubitekk collaborates with the department of energy on the projects for distribution of quantum entanglement and secure quantum network construction. Recently, they partnered with EPB to launch the first commercial quantum network in the USA. This network is aimed at smart grid technology and other innovations for critical infrastructure. 
   
• KETS is engaged in the development of photonic quantum encryption chips based on miniaturized QKD systems which improve the scalability and efficiency of hardware QKD. They are projected to provide sophisticated quantum security systems for telecom and defense, as well as space industries.
   

Quantum Communications Market Companies

Major players operating in the quantum communications industry are:

• Aliro Quantum
• Arqit Quantum
• ID Quantique
• KETS Quantum Security
• MagiQ Technologies
• QuantumCTek
• Qubitekk
• Quintessence Labs
• Thales
• Toshiba
   
• Cisco’s investment in Aliro Quantum facilitated scaling of their quantum networking solutions, while expanding US Air Force collaborations. Arqit Quantum also partnered with Intel to deliver quantum-safe IPsec systems, securing a significant contract with the US department of defense. Quintessence Labs is maintaining her silence on quantum resistant encryption but is believed to unveil new products in the near future.
   
• Alongside her other initiatives, ID Quantique launched advanced QKD systems and partnered with SK Telecom to boost quantum secure networks in Korea. KETS quantum security is working to deploy their integrated photonic QKD chips into compact devices. MagiQ Technologies is still active in the US providing secure optical QKD systems for defense and crucial infrastructure even after shift from mid-2020 focus.
   
• QuantumCTek was instrumental in satellite-based quantum communication. Qubitekk played a pivotal role in launching the first commercial quantum network in Chattanooga, Tennessee, and is collaborating with the department of energy. Toshiba continues to push BT towards incoherent fiber-based quantum encryption after achieving long distance quantum key distribution transmissions.
   
• Thales is involved in the European quantum communication infrastructure projects and is working on QKD solutions with defense applications. Aliro Quantum drives quantum network control in practical implementations such as the EPB network. In partnership with several utility companies, Qubitekk is developing quantum-secure smart grid technologies in the United States.
   

Quantum Communications Industry News

• In June 2025, in India, steps are being taken to enhance quantum-secure networks in the face of relentless cyber security challenges. ISRO and DRDO are leading a three-level strategy in quantum communication designed to protect both civilian and military information. Such actions demonstrate the lengths to which nations are going to try and control the aftermath of potential threats that could arise from quantum computing technologies which would undermine existing encryption systems.
   
• In June 2025, IonQ’s shares went up approximately nine percent on the announcement of Texas having approved the Texas quantum initiative legislation meant to establish the state as a central point for quantum computing, networking and sensing technologies. This allows IonQ to partner with Texas institutions for the further development of quantum applications including secure communication systems.
   
• In April 2025, Toshiba Europe broke new ground by sending quantum-encrypted messages over 254 kilometers using standard telecom fiber without requiring cryogenic cooling. This demonstration validates the feasibility of incorporating quantum-secure communications within pre-existing frameworks.
   
• In March 2025, Lux Quanta introduced its second-generation NOVA LQ continuous-variable QKD system at the mobile world congress. Its 2U form factor enables it to work over existing optical fibres in conjunction with classical traffic. The system offers a 100 km range, multi-receiver configurations, and full plug-and-play capability—streamlining installation and maintenance costs as well as simplifying deployment for telecom operators and enterprises.
   

The quantum communications market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) and shipments (units) from 2021 to 2034, for the following segments.

Market, By Component

• Hardware
  • Quantum key distribution (QKD) devices
  • Quantum repeaters
  • Single photon detectors
  • Quantum memory devices
• Software
  • Quantum network management
  • Cryptographic key management
  • Security protocol software
• Services
  • Consulting & integration
  • Support & maintenance
  • Training & education

Market, By Network

• Point-to-point networks
• Point-to-multipoint networks
• Mesh networks
• Satellite-based networks
• Hybrid networks

Market, By Deployment Mode

• On-premises
• Cloud-based
• Hybrid

Market, By End Use

• Government and defense
• Banking, financial services & insurance (BFSI)
• Healthcare and life sciences
• Telecommunications
• Energy and utilities
• Research and academia
• Enterprise and commercial

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Israel