Quantum Networking Market Size, Share, Growth, Report 2025 To 2034

Quantum Networking Market Size and Growth 2025 to 2034

The global quantum networking market size was valued at USD 871.84 million in 2024 and is projected to be worth around USD 21,106 million by 2034, expanding at a CAGR of 36.86% from 2025 to 2034. The demand for quantum networking is rising across the globe due to the growing emphasis on national security. Governments and security bodies across nations are investing heavily in quantum networking to facilitate secure communication. It allows unbreakable encryption, which makes it ideal for transmitting sensitive information in various sectors, such as government, BFSI, and defense. Moreover, advancements in quantum devices led to faster data transfer and processing, encouraging industries to shift their focus toward quantum communication solutions.

Quantum Networking Market Overview

Quantum networking is an emerging field, which refers to standard networks that are utilized in everyday life to share and transmit digital information. However, this concept differs from classical network technology. Quantum networks utilize principles of quantum mechanics to facilitate secure communication. They encode information in the form of quantum bits or qubits. This technology facilitates secure communication and information transfer between quantum devices. Quantum networking is applied to the banking, healthcare, cybersecurity, and manufacturing sectors to optimize uptime, reliability, scalability, efficiency, and error detection.

Quantum Networking Market Report Highlights

• The U.S. quantum networking market size was valued at USD 268.53 million in 2024 and is expected to reach around USD 6,192.65 million by 2034.
• North America has generated highest revenue share of around 44% in 2024.
• Europe has captured revenue share of 29% in 2024.
• By offering, the hardware segment has garnered revenue share of 52% in 2024.
• By end user, the government & defense segment accounted for revenue share of 31% in 2024.
• By application, the secure communication segment has held revenue share of 34% in 2024.

Major Benefits of Quantum Networking Across Industries

Quantum Networking Market Trends

• Increased Investment in Research and Development: Major tech companies and governments are investing heavily in quantum computing to accelerate advancements. This leads to breakthroughs in quantum networking applications.
• Growth in Quantum-as-a-Service (QaaS): Providers are increasingly offering cloud-based quantum computing services, making quantum technology more accessible to businesses of all sizes. This democratizes access and foster innovation across industries.
• Integration with AI and Machine Learning: Quantum computing is anticipated to enhance AI and machine learning algorithms by processing complex datasets more efficiently. This integration will lead to more accurate predictions and smarter systems.

Report Scope

Quantum Networking Market Dynamics

Drivers

Rising Demand for Advanced Computational Power to Support the Market

• The quantum networking market is driven by the rising demand for superior computational capabilities in industries such as pharmaceuticals, finance, and logistics to solve complex problems. However, quantum networking has the ability to handle huge datasets, making it suitable for these industries. Additionally, the upcoming advancements in hardware such as qubit stability and error correction are seen to boost the performance along with the reliability of quantum computers. Which in return, it is also observed to contribute to the rising adoption of quantum networking.

Rising Number of Start-ups: Quantum Networking to Receive Supplement

• The requirement for secure and efficient communication platforms in defense sector is predicted to grow with increasing national security. Quantum networking solutions offer unbreakable encryption, to make it suitable for defense communications and national security. Alongside, a visible growth in start-ups that are related with the offerings of quantum computing, are seen to promote the market's expansion. Government support for start-ups in developing countries, rising investments by large-scale private entities and increasing popularity of quantum solutions will altogether offer a significant factor for the industry to grow.

Restraint

High Costs and Lack of Standardization: Market’s Barriers

• Deploying a quantum networking infrastructure requires hardware, such as quantum devices and single-photon detectors. This hardware is usually cost-intensive, which may deter small-scale businesses to invest in quantum networking solutions. Moreover, the lack of standard protocols for quantum networking makes it difficult and complex to interoperate quantum technology into existing communication systems.

Opportunity

Cybersecurity Advancements to Promote the Market’s Expansion

• As cybersecurity solutions need to be advanced in terms of superposition and entanglement, the requirement of quantum networking is poised to grow. This creates a significant opportunity for the quantum networking market. Rising threat of cyberattacks with data breaches and ransomware demand innovation to counter threats while savings millions of costings for organizations. Quantum networking solutions, offer resistance solutions.
• The European Union has been investing heavily in creating a secure quantum communication network to protect sophisticated communication network to secure critical infrastructure. This project aligned in 2023, is poised to create a robust framework for secure communications in multiple European countries. Along with this, the United States and China have also taken multiple quantum initiatives that are focused on investing in development of critical quantum networks.

Quantum Networking Market Segmental Analysis

The quantum networking market is segmented into offering, end user, application and region. Based on offering, the market is classified into software, hardware and services. Based on application, the market is classified into distributed quantum computing, quantum clock synchronization, quantum sensing and metrology, secure communication, secure financial transactions and secure voting. Based on end-user, the market is classified into government & defense, BFSI, IT & telecom and others.

Offering Analysis

Emphasis Over Security: QRNG Segment to Sustain the Position

The quantum random number generator (QRNG) segment dominated the market with the largest share in 2024. The QRNG segment holds the capacity to generate random numbers that are crucial for boosting the security in several quantum communication systems. On the other hand, QRNDs enhance quantum mechanics while ensuring predictability. A few of major reasons for the segment’s dominance are offered integration and scalability and rising demand for secure communication.

As cyber threats and breaches are rising, the requirement for secure communication has surged. Considering a recent breakthrough for this, ID Quantique, a major lease in quantum security has created strides in QRNG technology which are being integrated into cars and other IoT devices to offer secure communications.

QKD Segment to Grow at a Rapid Pace

The quantum key distribution (QKD) system segment is anticipated to grow rapidly over the studied period. QKD holds the ability to offer unparalleled security in the era of growing adoption of secure communication solutions by finance and government sectors. For example, China has always been at the forefront that has supported the development of QKD since 2016. Countries like the United States, EU and Japan are seen heavily investing QKD-based technologies. 

As the requirement for 5G and 6G technology rises, the amount of date being transmitted will also rise. This creates a long-term and sustainable potential for QKD solutions to expand in the market. The commercialization of QKD systems is also seen to act as a major breakthrough for the industry. Toshiba, in 2023, started working on the commercialization of QKD systems while announcing the deployment of large-scale QKD technology in Tokyo and London.

End-user Analysis

Government & Defense Sectors are the Major Contributor to Market Expansion

The government & defense segment captured the largest share of the quantum networking market in 2024. Government across the globe are focused on making significant investments in quantum technologies as part of their national security plannings. For instance, the European Union has launched the Quantum Internet Alliance that aims to deploy a quantum internet across Europe to focus over collaboration with defense sectors. Governments and defense sector bodies are focused on collaborating with private companies for networking solutions. Notable partnerships and alliances will help the segment to grow in the upcoming years.

IT & Telecom Sectors to Support the Market

The IT & telecom segment is expected to expand at the highest CAGR in the coming years. For the IT and telecom sector, integration of quantum computing offers exponential data growth and secure communication. IT and telecom companies require prevention from unauthorized access and security for data transmission. Recently, the IT and telecom sectors have started engaging in collaborations with technology companies to work on advancement of their quantum research. These sort of business activities are seen to boost commercialization of quantum networking technologies.

Major players such as BT and Verizon have announced investments in quantum communication systems that can enhance network security.

• In 2023, the British Telecom invested in the testing of quantum communication systems, while emphasizing over the development of secure network. British Telecom partnered with Toshiba for the same which has led to the development of quantum networks in the United Kingdom for service reliability and security.

Quantum Networking Market Regional Analysis

Quantum Networking: Boosting Connectivity in North America

North America held the largest share of the quantum networking market in 2024. The dominance is observed to be sustained with the expansion of IT and finance-based businesses. Along with this, government entities in the region, have precisely recognize the importance of secure communication, thus resulted in investments for research and development of products and services that are associated with quantum computing.

It is anticipated that upcoming quantum innovations are observed to underpin major advancements and breakthroughs in multiple fields in North America. Canada has also taken a major step in quantum science while making an investment of C$1 billion till 2022. Toronto-based Xanadu launched PennyLane, a software for quantum computers with Machine Learning dedicated systems.
The U.S. government has recently started taking proactive measures in order to promote technology measures through research and fundings. To consider the same, the National Quantum Initiative Act aimed at accelerating quantum development which includes networking technologies.

Unlocking the Future: The Rise of Quantum Networking in Asia Pacific

Asia Pacific is expected to grow at a rapid pace in the quantum networking market during the forecast period. Rapid expansion of technological infrastructure is the key factor contributing to the regional market growth. The rising number of tech companies in countries such as India and China are investing in quantum technologies. Moreover, governments have recognized the importance of quantum networking in national security. Thus, governments of various nations are investing in quantum technology to enhance national security protocols, thus boosting the market.

India and China Quantum Networking Trends

On July 25, 2024, the Chinese government announced the creation of a new national quantum research center, "China Quantum Institute," which will receive a $1.2 billion investment over the next decade. The center aims to consolidate China’s quantum research efforts and accelerate the development of quantum computing technologies. It will focus on both theoretical and applied research, with an emphasis on achieving quantum supremacy. The institute will also collaborate with international partners to enhance global cooperation and share advancements in quantum technology.

On June 10, 2024, the Indian government launched a national quantum mission, "Quantum India," with an initial funding of ₹2,000 crore (approximately $250 million). The mission aims to develop indigenous quantum computing technologies and establish a network of quantum research centers across the country. This initiative seeks to position India as a key player in the global quantum computing landscape and drive technological innovation. The mission also includes plans for talent development and public-private partnerships to advance quantum research and applications.

Quantum Networking Market Revenue Share, By Region, 2024 (%)

Recent Developments

• On September 5, 2024, IBM announced a significant breakthrough in quantum error correction, showcasing its new "Quantum Error-Correcting Code" that improves the stability of quantum computations. This development is expected to enhance the reliability of quantum systems and pave the way for practical quantum applications. The new code reduces error rates by 30%, which could accelerate the timeline for quantum advantage in various industries.
• On August 22, 2024, Google unveiled its latest quantum processor, "Sycamore 2," which reportedly demonstrates over 100 qubits with improved coherence times. This advancement is anticipated to increase the processor's computational power and speed up research in quantum algorithms and applications. The upgraded processor is designed to tackle more complex quantum simulations, potentially advancing fields such as cryptography and materials science.
• On July 30, 2024, Rigetti Computing introduced a new cloud-based quantum computing service called "Rigetti Quantum Cloud 2.0," offering enhanced access to their quantum processors and tools. This service aims to facilitate more widespread experimentation and development in quantum technologies by providing improved user interfaces and integration capabilities. It also includes support for hybrid quantum-classical algorithms, allowing users to run more sophisticated experiments.
• On June 15, 2024, D-Wave Systems announced a successful demonstration of its "Advantage Quantum Annealer" solving complex optimization problems faster than classical computers. This achievement highlights the growing potential of quantum annealing for solving real-world problems in logistics, finance, and machine learning. The annealer’s performance in these tasks shows promise for applications such as route optimization and financial forecasting.
• On May 10, 2024, Microsoft revealed a major update to its Quantum Development Kit, including new libraries and tools for developing quantum algorithms. The update is designed to simplify the process of creating and testing quantum applications, making it more accessible for developers and researchers. Additionally, it introduces enhanced debugging features and better integration with existing software development environments.

Quantum Networking Market Top Companies

• Aegiq Ltd
• Aliro Technologies, Inc.
• Arqit
• Cisco Systems, Inc.
• Crypta Labs Limited
• HEQA Security
• IBM
• ID Quantique
• MagiQ Technologies
• Miraex
• TOSHIBA CORPORATION
• Terra Quantum
• QuantumCTek Co., Ltd.
• Quantum Xchange
• Qubitekk, Inc.
• Qunnect Inc.
• QuBalt GmbH

Market Segmentation

By Offering

• Software
• Hardware
  • Quantum Random Number Generators (QRNG)
  • Quantum Key Distribution (QKD) Systems
  • Quantum Memory
  • Quantum Repeaters
  • Others
• Services

By Application

• Distributed Quantum Computing
• Quantum Clock Synchronization
• Quantum Sensing and Metrology
• Secure Communication
• Secure Financial Transactions
• Secure Voting

By End-user

• Government & Defense
• BFSI
• IT & Telecom
• Others

By Region

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