New IQT Research States Quantum Encryption Market To Reach $2.5 Billion Revenues By 2022: Mobile Systems Will Ultimately Dominate
Charlottesville, Virginia: IQT Research has just issued a new report that projects the market for quantum key distribution (QKD) systems is expected to reach $2.5 billion by 2022. Details of the report titled, “Quantum Encryption Systems Markets: A Technology and Business Opportunity Forecast – 2017 to 2026” can be found at
About the report:
QKD systems have been deployed by governments, the military and a few financial institutions for about 15 years. IQT Research now sees prospects for their much wider use and we note that a select group of venture capitalists are stepping up to the plate to fund new firms in this area. This report identifies the business opportunities that are emerging in this new market environment for QKD. The report includes:
Ten-year forecasts of QKD systems installed and shipped, as well as the revenues generated from these shipments. The report provides breakouts for these projections in terms of end users (military, civil government, telecom carriers, utilities/infrastructure, data centers and mobile applications); transport technology (fiber optic, satellite and free space), major components (lasers and subsystems) and geographical location of end users. We believe that these forecasts are the most detailed ever presented in the QKD business.
Strategic profiles of all the leading firms supplying QKD and related systems. In these profiles we discuss how each firm regards the current state of the QKD market and how they expect it to develop. We also examine their sources of finance and how they plan to develop their products over the next few years. Among the firms for which profiles are provided are Fujitsu Electric, HP Enterprises, IBM, ID Quantique (IDQ), MagiQ, Mistubishi, NEC, Nokia, NTT, Nucrypt, Oki, Qubitekk, Qinetik, Quintessance Labs, Raytheon, SeQureNet, Toshiba, Universal Quantum Devices and ZTE.
An assessment of the latest QKD-related R&D and how this will impact the commercial quantum encryption market. The report focuses especially on technology innovations that will bring QKD to the data center and to mobile telephony networks. In addition, the report analyzes how the development of new “post-quantum” encryption software and quantum repeaters will impact the market for QKD products.
This report will be essential reading for product, marketing and strategy executive throughout the entire encryption sector, including QKD systems makers and providers of encryption software of all kinds. It will also be of considerable interest to investors in the burgeoning quantum computing space.
From the report:
QKD will continue to sell well in government and military markets. However, the hacking threat will drive both telephone companies and cloud data centers to deploy QKD systems to protect critical customer information. By 2022, revenues generated by QKD sales to telephone companies and data centers will reach $340 million by 2022. We are already seeing suppliers such as ZTE, Nokia and IDQ pursue these markets
The biggest opportunity in the QKD space is in the mobile telephony and payment systems that could reach $1.6 billion by 2022. For this to be achieved, miniaturized QKD systems (QKD-on-a-chip) will need to be commercialized and Nokia and several prominent research groups are working hard to commercialize such technology
For fixed QKD systems, the market will continue to be divided between fiber optic and satellite transmission with revenues from selling QKD systems for fiber deployment reaching $565 million. In addition, we expect more long-haul deployments of QKD, which will be enabled by faster, and more secure quantum repeaters. The quantum repeater market itself will reach $107 million by 2022.
China is already leading the QKD market worldwide and is build major QKD infrastructure including a fiber optic “quantum network” linking Beijing and Shanghai as well launching a QKD satellite. In addition, the Chinese government has made QKD and related technologies a major focus of its industrial policy. Expenditure on QKD products in China may exceed $850 million in 2022.
About IQT Research:
Inside Quantum Technology (IQT Research) publishes hype-free industry analysis on quantum technology markets. Our reports contain the most authoritative market forecast and technology assessment available and are based on research and forecasting practices developed over nearly 30 years at our sister companies.
Visit www.quantumcom.wpengine.com.com for a full listing of IQT ‘s Reports and other services.
