Quantum Resistant Communications

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Part
01

Quantum Resistant Communications

Key Takeaways

Introduction

  • The market sizes and growth for the quantum cryptography market and the secure messaging market have been provided along with drivers, restraints, key technologies, and user groups has been provided. The market sizes are presented in a spreadsheet for comparison purposes along with the competitive landscape.

Quantum Cryptogrpahy Market

Market Size/Growth

  • Nine different market reports were obtained to get an average market size. Nine were collected instead of the original 3 because the numbers varied wildly. The averages may be viewed in this spreadsheet. Actual reported numbers from the market report are in bold, and the rest of the spreadsheet was populated by using a CAGR calculator. While some of the figures exceeded the dates in the forecast, they were included in order to be able to compare the figures between the reports.
  • The average global market size in 2021 is $1,345,213,205. In 2027, the market is predicted to be $6,208,449,369.
  • The average global CAGR for 2019-2027 is 29.4%.
  • The network security segment is expected to experience the largest growth in the market.
  • The American region is expected to be the largest contributor to the market.
  • The market is divided between network security and application security. Network security will grow at the highest rate. "Network security is a process intended to ensure the integrity and usability of network and information. It incorporates both hardware and software technologies."

Drivers/Restraints

  • The chief driver is growing cyber attacks and the high cost of data recovery. COVID-19 only intensified the frequency of these attacks. Countries, including the US, Turkey, China, Brazil, Pakistan, Algeria, India, and Europe are the main targets of cyber-attackers.
  • The increasing number of connected devices and the risks to attacks also drive the market.
  • The high cost of implementation is a key restraint. They are also time-consuming to implement.
  • Another restraint is a lack of awareness of these technologies by the consumer base.

Key Technologies

  • Cloud based solutions are on the rise.
  • "Quantum cryptography is widely being applied for secure data transmission as it allows exchange of an enciphering key over a private channel with complete security of communication between two parties. Quantum key distribution (QKD) is one of the most common applications of quantum cryptography. It is used to secure communication between two parties and a secret random key is used to encrypt and decrypt the data. QKD only produces and distributes the random secret key and is not used for data communication per se. Standard communication channels are used for transmission of the data. The quantum cryptography technology is being increasingly incorporated in satellites, bank ATMs, defense, etc. where it is necessary to transmit data in secure and fast ways."
  • "The quantum cryptographic solutions such as Quantum Key Distribution (QKD) platforms, QKD servers, virtual encryptors, QKD distributors, key and policy managers, SDK to integrate cryptography, quantum cryptography communication device, quantum security gateway, Quantum Random Number Generator (QRNG), hacker box, quantum secure communication network products, and repeaters, used to secure advanced cyber-attacks are in huge demand across the globe".

User Groups

  • The business and financial sector along with governmental agencies are the two largest user groups. It is also used by the healthcare, retail, and automotive sectors.
  • Business and financial sectors will lead in adoption of these technologies followed by the military sector.

Messaging Security Market

Market Size/Growth

  • Nine different market reports were obtained to get an average market size. Nine were collected instead of the original 3 because the numbers were not consistent between reports. The averages may be viewed in this spreadsheet. Actual reported numbers from the market report are in bold, and the rest of the spreadsheet was populated by using a CAGR calculator. While some of the figures exceeded the dates in the forecast, they were included in order to be able to compare the figures between the reports.
  • The average global market size in 2021 is $5,273,732,381. In 2027, the market is predicted to be $14,693,718,450.
  • The average global CAGR for 2019-2027 is 18.87%.
  • The email protection segment dominated this market in 2016 and continues to do so.
  • North America had the largest market share in 2016. They are predicted to have the maintain growth in the market due to their innovation and their strong presence with message security vendors. "According to the statistics released by Kaspersky Lab, about 10.85% of global spam email volume originated from IPs based in the United States in Q3 2020".
  • Asia Pacific is predicted to have a high rate of growth due to multiple emerging markets and continuous threats. The government is also implementing strict regulations for messaging traffic. "Companies in Asia-Pacific have been found to be 80% more likely to be targeted by hackers when compared to other regions, owing to ineffective cyber laws and lack of cyber-security awareness in the region which will drive the messaging security market in the region."
  • Japan and Canada are forecasted to grow at a CAGR of 8.7% and 10.8% respectively.

Drivers/Restraints

  • A chief driver will be the increasing demand for cloud based secure messaging products along with solutions. SaaS and virtual appliance based solutions have led to this demand. With instant messaging being a fast, cheap mode to communicate they are increasingly utilized. Cloud deployement is expected to grow the fastest.
  • The increased use of mobile devices to communicate is also a chief driver. Being able to access enterprise information while on the go has become an important way to communicate.
  • BYOD (bring your own device) is on the rise and along with it security issues driving the need for secure solutions. "According to a study by Cisco Systems, the proliferation of BYOD and smart devices in an organization having 1000-9999 employees is considered a 29% high cybersecurity risk. Also, according to Verizon’s 2020 Mobile Security Index, 39% of organizations admitted suffering a security compromise involving a mobile device. Of those that had suffered a compromise, 66% said the impact was major, and 36% said it had lasting repercussions."
  • COVID-19 accelerated growth as people were working from home and additional security solutions were needed.
  • Research and development costs are a significant restraint in the market, leading to high pricing of security solutions. Smaller enterprises often struggle to fit the cost into their budgets.

Key Technologies

  • Cloud deployment is becoming the preferred method to implement messaging security since it is flexible, convenient, and easy to maintain.
  • There is an increasing need for technology that will protect across multiple messaging platforms.
  • In January 2020, Perception Point launched an internal email security product that gave protection from internal threats.

User Groups

  • The corporate segment will witness the highest application use due to the large amounts of critical data that must be protected. This includes business and finance, media and entertainment, retail and e-commerce, and manufacturing.
  • The banking and financial segment holds the largest market share.
  • Governmental agencies, healthcare, and education are also a large part of the user base.

Messaging Security Companies

  • Globally, there are 458 secure communication companies. To make selections for the competitive landscape, startups were the focus. Tracxn shared their ten most interesting secure communication startups. This list was narrowed down by focusing only on newer companies that offered a full suite of communications offerings. To round out the landscape and ensure a variety of companies, other companies were located individually and verified that they were smaller, newer businesses or startups.
  • The competitive landscape may be viewed in this spreadhsheet.

Other Intersting Secure Communication Companies

There was not time to research these companies fully, but they were located during research and included, as they are possibly of interest.

Research Strategy

  • For this research on secure messaging and quantum resistant communications, we leveraged the most reputable sources of information that were available in the public domain, including Grandview Research, BusinessWire, PR Newswire, and Mordor Intelligence. Some reports that were older than 2 years were used to get a complete picture of the market. Many of the descriptions were copied verbatim due to their technical nature in the competitive landscape.
Sources
Sources