Visiongain has published a new report entitled Post-Quantum Cryptography (PQC) Market Report 2025-2035 (Including Impact of U.S. Trade Tariffs): Forecasts by Deployment Mode (On-Premise, Cloud-Based), by Offering (Software, Services, Hardware), by End-user (BFSI, Government and Defence, Healthcare, Other), by Application (Data Encryption, Network Security, Application Security, Identity and Access Management, Other), by Algorithm Type (Lattice-Based Cryptography, Multivariate Cryptography, Hash-Based Cryptography, Code-Based Cryptography, Isogeny-Based Cryptography, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global post-quantum cryptography (PQC) market is estimated at US$480.1 million in 2025 and is projected to grow at a CAGR of 42.4% during the forecast period 2025-2035.

Impact of US Trade Tariffs on the Global Post-Quantum Cryptography (PQC) Market   

The imposition of U.S. tariffs on imported technology components and cybersecurity products has introduced a new layer of complexity to the global post-quantum cryptography (PQC) market. These tariffs, primarily aimed at reducing dependency on foreign technology and bolstering domestic production, have had a ripple effect across international supply chains. For post-quantum cryptography solution providers, particularly those relying on hardware components or cryptographic modules manufactured overseas, the tariffs have led to increased production costs and disrupted procurement processes. 

While these challenges may hinder the short-term scalability of post-quantum cryptography deployment, they have also catalyzed opportunities for domestic innovation and reshoring of manufacturing capabilities. Additionally, the tariffs may incentivize global vendors to establish local production or partnership models within the U.S. to maintain market access, thereby reshaping the competitive landscape. Overall, the impact of U.S. tariffs on the post-quantum cryptography market is twofold: while they pose immediate financial and operational hurdles, they also accelerate the push toward self-reliance and regional diversification in quantum-safe cybersecurity infrastructure.

Government Mandates and Standardization Initiatives

Regulatory momentum and standardization efforts led by national and international bodies are significantly propelling the PQC market forward. The U.S. National Institute of Standards and Technology (NIST) has played a pivotal role by conducting a multi-year competition to evaluate and standardize quantum-resistant algorithms. In 2022, NIST announced its first selection of PQC algorithms for standardization, including CRYSTALS-Kyber for key establishment and CRYSTALS-Dilithium for digital signatures. This move has catalyzed widespread R&D efforts and commercial interest, as organizations align their cybersecurity frameworks with forthcoming regulatory expectations. Moreover, governments in the EU, Japan, and China are launching similar initiatives, underscoring a global regulatory push toward PQC readiness.

How will this Report Benefit you?

Visiongain’s 408-page report provides 120 tables and 162 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the post-quantum cryptography (PQC) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for post-quantum cryptography (PQC). Get financial analysis of the overall market and different segments including deployment mode, offering, end-user, application, and algorithm type, and capture higher market share. We believe that there are strong opportunities in this fast-growing post-quantum cryptography (PQC) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Integration with Critical Infrastructure and IoT Security

As connected devices proliferate across sectors—from energy grids and smart cities to defense systems and industrial automation—the need for PQC integration into critical infrastructure has become paramount. Unlike conventional IT systems, these environments often rely on long-lived hardware with limited ability to update cryptographic protocols, making early PQC integration essential. Companies such as PQShield and ISARA are developing lightweight, hardware-efficient PQC solutions tailored for embedded systems and IoT devices. Their efforts highlight a market need to future-proof digital infrastructure against quantum-enabled attacks, especially in environments where security lapses can result in catastrophic consequences.

Rising Investment in Quantum-Safe Cybersecurity Startups

The influx of venture capital and corporate investment into PQC startups is a clear indicator of the market’s growth trajectory. Firms such as SandboxAQ (a Google spinout), Quantinuum, and Post-Quantum Ltd. have secured significant funding rounds aimed at accelerating PQC adoption. For instance, SandboxAQ raised over $500 million to develop quantum-resistant security and AI solutions, signaling strong investor confidence in the sector’s long-term viability. This financial momentum is enabling startups to scale R&D, build partnerships with OEMs and cloud service providers, and expand their commercial deployments—thereby boosting overall market maturity and competitiveness.

Where are the Market Opportunities?

Migration-as-a-Service and PQC Consulting Solutions

As organizations begin their transition to quantum-safe security, there is a significant opportunity for technology vendors and consulting firms to offer Migration-as-a-Service (MaaS). These services assist enterprises in inventorying their cryptographic assets, assessing vulnerabilities, and deploying post-quantum algorithms tailored to their operational needs. Companies such as Kudelski Security and Deloitte are already positioning themselves in this space by offering cryptographic discovery tools and quantum readiness assessments. The growing complexity of implementation—especially for organizations with limited in-house cryptography expertise—creates strong demand for end-to-end PQC transition support, positioning MaaS as a scalable, recurring revenue stream.

PQC Integration into Cloud, Mobile, and Edge Devices

With the increasing reliance on distributed computing ecosystems—spanning cloud platforms, mobile applications, and edge devices—there is a prime opportunity to embed PQC directly into these environments. Cloud service providers such as Microsoft Azure and AWS are experimenting with hybrid PQC algorithms to secure cloud-based workloads, while companies like Thales and Qualcomm are exploring post-quantum protections for mobile chipsets and embedded systems. As edge computing expands across smart manufacturing, automotive, and healthcare, incorporating PQC into firmware and communication protocols will open up vast new application frontiers for solution providers.

Competitive Landscape

The major players operating in the post-quantum cryptography (PQC) market are Crypta Labs, IBM, ISARA Corporation, MagiQ Technologies, NEC Corporation, Nokia Corporation, NXP Semiconductors, Post-Quantum, Quantum Xchange, Qubitekk, QuintessenceLabs, Thales Group, Veridify Security, These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• 20 May 2025, The report revealed that nearly 70% of organizations identify AI’s fast-moving ecosystem as a top GenAI-related security risk, with 60% concerned about future decryption of today’s data due to quantum computing threats.
• 15 May 2025,    The University of Tokyo will install IBM’s 156-qubit Heron quantum processor in its IBM Quantum System One. The Heron chip, known for its tunable-coupler architecture, will significantly outperform previous models. It will also connect to the Miyabi supercomputer to advance quantum research through the QII Consortium.
• 29 April 2025,   IBM and Box have partnered to integrate IBM watsonx AI models, including IBM Granite and Meta’s Llama, into Box AI. The collaboration aims to unlock content-driven AI automation for enterprises, with both companies also deploying the solution internally for governance and productivity.

Notes for Editors

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