Quantum technology report by IDTechEx says 2025 will see start of new services and products

The first wave of quantum technology is starting to make inroads into business services, with post quantum cryptography set to disrupt the communications market in 2025, says a new report by market intelligence company IDTechEx.

Titled Quantum Communication Market 2024-2034: Technology, Trends, Players, Forecasts, the study is peppered with next-generation cryptographic security features such as quantum random number generators, quantum key distribution, terrestrial optical networks and space-based satellite quantum networks.

Quantum communication saw some big announcements in 2024, with smartphone markets and data centres turning to the technology for secure and robust data security.

IDTechEx, based in Hills Road, Cambridge, has forecast the quantum communication hardware market to reach $1.2billion by 2034 with research being vital in making cryptographic key exchanges more secure.

A mathematical approach to increasing security will require mass software system upgrades, but not necessarily dedicated hardware. Pressure is growing to raise awareness to all businesses about the need for crypto-agility, and the market for dedicated quantum ready platforms for network managers is growing.

However, mathematical approaches are constantly under pressure to evolve against new threats – and a software-only solution is already insufficient for the most highly sensitive data transfers. Hardware solutions such as quantum key distribution (QKD) are thought to be among the few which can probably remain robust to any eavesdropping. This specialised optical technology has been developed for installation within optical fibre networks, leveraging the phenomena of entanglement and no-cloning in a revolutionary new approach to telecommunications.

IDTechEx’s report contextualises QKD within the larger cryptography industry shifts, and identifies the key technology approaches and leading companies within the quantum communication market. This includes a specific focus on QKD integration into quantum networks, with global case studies and updates from China, Europe, the US, UK and Japan.

A key component of QKD is a better random number generator for more secure key generation. Yet these quantum random number generations (QRNGs), have applications beyond quantum networks. QRNGs have been incorporated into some smartphones as an extra level of protection – including Samsung’s Galaxy Quantum 5 – and have been adopted by the gambling and gaming industry.

BT Group, Equinix, and Toshiba have announced that they will provide quantum secure connectivity at prime colocation Equinix data centres in London’s Canary Wharf and Slough.

Satellite quantum technology will operate from space too: the Hub Space Mission has turned to satellite QKD to distribute optical information internationally rather than on smaller scales such as across cities.

The IDTechEx report describes quantum communications “as a national priority, and the help of government funding and commercial partnerships could address these major security risks from rapidly evolving quantum technology”.

View the report here.