12 Oct 2022

Understanding the quantum security market

Experts warn that most of the protocols used to protect data and privacy could vulnerable to future quantum computers. From the Quantum Insider. Click here to find out more.

The power of quantum computers derives from superposition and entanglement. The ability to hold quantum bits of information – or qubits – in a combination, or superposition, of various states at once, compared to classical computers with bits that can either represent a 1 or a 0. 

Quantum entanglement – the quantum mechanical phenomena in which physically separated particles can still share quantum states – allows a quantum computer that can hold this delicate state of entanglement to exponentially boost its computational power for each entangled qubit.  

While the technology’s ability to deliver solutions to some of the most pressing scientific and societal challenges is driving billions of dollars in investment and global scientific collaborations, experts also warn that it could leave most of the protocols used to protect data and privacy vulnerable to future quantum computers.

At the heart of the concern about data privacy and security in the post-quantum era is Shor’s Algorithm. Developed by mathematician Peter Shor in 1994, the algorithm can find integers of prime numbers when run on a quantum computer of sufficient power. The complexity of prime number factorization is precisely the method that current public key (asymmetric) encryption schemes, such as RSA and elliptic curve cryptography (ECC), are built on to secure data.

Organizations such as NIST in the USA are now actively working on processes to solicit, evaluate, and standardize one or more quantum-resistant public-key cryptographic algorithms. In July 2022 NIST announced the first group of encryption tools that are designed to withstand the assault of a future quantum computer. The four selected encryption algorithms will become part of NIST’s post-quantum cryptographic standard, expected to be finalized in about two years.

There are now hundreds of organizations involved in the broader quantum security market. The Quantum Insider's data platform counts 78 private companies working on the technology. This comprises hardware providers, Quantum Key Distribution and Post Quantum Cryptography players.

In our report on the Quantum Security market The Quantum Insider covers an introduction to the ecosystem, the key players (both PQC and QE), the current state of the art, the market size and drivers and market dynamics for consideration. The report estimates that the total quantum security market is estimated to grow to circa $10 billion by 2030, growing at a circa 30% CAGR from today.

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