Quantum Communication Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Hardware, Service), By Application (National Defense, Aerospace, Finance, Others), By Region, By Competition, By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.13 Billion
CAGR (2026-2031)	39.81%
Fastest Growing Segment	Service
Largest Market	Asia Pacific
Market Size (2031)	USD 8.44 Billion

Market Overview

The Global Quantum Communication Market will grow from USD 1.13 Billion in 2025 to USD 8.44 Billion by 2031 at a 39.81% CAGR. Quantum communication involves the transmission of information using the principles of quantum mechanics, such as entanglement and superposition, to guarantee data security. The primary driver for this market is the critical need to protect sensitive information from escalating cyber threats and the future decryption capabilities of quantum computers. Furthermore, substantial government investment in sovereign infrastructure and the integration of Quantum Key Distribution in financial and defense networks significantly support the sector's growth.

A major challenge impeding widespread market expansion is the technical difficulty of transmitting quantum signals over long distances due to signal attenuation, which currently necessitates the development of complex quantum repeaters. According to the Quantum Economic Development Consortium, in 2024, approximately 15% of quantum-related organizations focused their resources specifically on quantum communications and security. This statistic reflects the concentrated industrial effort to address these hardware limitations and establish a robust framework for secure global data exchange.

Key Market Drivers

The Surge in Government Funding and Strategic National Quantum Initiatives stands as a primary catalyst propelling the global market, as nations vie for technological sovereignty and defense superiority in the quantum era. Governments worldwide are aggressively capitalizing on quantum technologies to fortify national security and economic competitiveness, directly translating into substantial capital injections for research and infrastructure development. This trend is exemplified by recent budgetary allocations intended to accelerate the transition from theoretical research to commercial deployment. According to UK Research and Innovation, in December 2025, the organization allocated over £1 billion for quantum technologies to support the entire pipeline from fundamental research to market readiness. Such robust public financing is critical for de-risking early-stage ventures and establishing the industrial base necessary for scalable quantum communication solutions.

Simultaneously, the Rapid Expansion of Satellite-Based Quantum Communication Networks is revolutionizing the sector by addressing the inherent signal attenuation limits of terrestrial fiber-optic systems. Satellite integration enables the distribution of entangled photons over intercontinental distances, effectively creating the backbone for a future quantum internet that transcends geographical boundaries. A significant milestone in this domain was reached when, according to Innovation News Network, in March 2025, researchers established a quantum-secured satellite connection spanning a record-breaking 12,900 kilometers between China and South Africa. This technological progress is supported by parallel regional infrastructure efforts; for instance, according to the European Commission, in February 2025, the Connecting Europe Facility concluded a funding call providing €90 million specifically for the deployment of cross-border quantum communication infrastructures. These developments collectively signal a shift from experimental testbeds to viable, global-scale secure data exchange networks.

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Key Market Challenges

Signal attenuation represents the most significant technical hurdle currently restricting the scalability of the Global Quantum Communication Market. Unlike classical data, which can be easily amplified, quantum signals degrade over distance and cannot be copied or boosted without destroying their quantum state, necessitating the development of complex quantum repeaters. This limitation largely confines current commercially viable networks to metropolitan distances, effectively preventing the deployment of the long-haul infrastructure essential for a global quantum internet and stalling broader revenue generation beyond limited government and financial testbeds.

The industrial effort to engineer these sophisticated repeaters is further hampered by a critical shortage of specialized technical talent capable of navigating the convergence of quantum physics and telecommunications engineering. This workforce gap delays the transition from experimental prototypes to reliable, field-ready hardware. According to the Quantum Economic Development Consortium (QED-C), in 2025, the global quantum industry faced approximately 7,400 unfilled job openings, highlighting a severe deficit in the skilled human capital required to address these hardware limitations. Without the necessary engineering resources to solve signal loss efficiently, the market remains unable to support the long-distance data exchange required for widespread commercial adoption.

Key Market Trends

The Miniaturization of Quantum Components via Photonic Integrated Circuits is emerging as a critical trend to overcome the scalability limitations of bulky optical setups. By transitioning to chip-scale architectures, manufacturers can significantly reduce production costs and power consumption, enabling the embedding of quantum security features into standard network equipment and consumer electronics. This drive towards scalable manufacturing is exemplified by significant capital inflows into photonic research aimed at industrial applications. According to Eindhoven University of Technology, December 2025, a consortium of researchers was awarded part of a €16 million funding package from NWO and PhotonDelta specifically to accelerate the development of next-generation photonic chips for quantum information processing.

Concurrently, the Integration of Quantum Key Distribution into 5G and 6G Telecommunications is transforming the market from experimental testbeds into commercial service offerings. Telecommunications operators are increasingly adopting hybrid security frameworks that layer QKD with post-quantum cryptography to offer resilient, long-term data protection for enterprise and government clients. This commercial maturation is evident in recent regional deployments that leverage existing fiber footprints. According to Singtel, October 2025, the company officially launched Southeast Asia's first Hybrid Quantum-Safe Network, a service designed to secure sensitive business communications against quantum threats by integrating QKD technology directly into its existing fiber infrastructure.

Segmental Insights

The Services segment is positioned as the fastest-growing category in the global quantum communication market, driven by the increasing complexity of integrating quantum security into existing network infrastructures. As public and private entities adopt quantum key distribution, they rely heavily on external expertise for deployment, maintenance, and technical consulting. This reliance is intensified by the necessity to adhere to developing interoperability standards from organizations like the European Telecommunications Standards Institute. Consequently, the shift toward managed operational models and advisory support fuels the accelerated demand for services.

Regional Insights

Asia Pacific leads the global quantum communication market due to substantial government investment in secure network infrastructure and national defense. China drives this regional dominance through significant projects such as the Beijing-Shanghai quantum trunk line. The Chinese Academy of Sciences supports these initiatives by advancing satellite-based transmission technologies, fostering adoption across banking and public administration sectors. Furthermore, increased funding in Japan and South Korea accelerates the development of commercial quantum key distribution systems. This coordinated approach to infrastructure development firmly establishes the region as the primary market for secure communication solutions.

Recent Developments

• In December 2024, Nokia and Turkcell successfully demonstrated the implementation of quantum-safe IPsec network cryptography for mobile subscribers. This world-first trial involved the integration of advanced quantum-resistant cryptographic algorithms into the operator's mobile transport network using a specialized security gateway. The demonstration validated a defense-in-depth approach, ensuring that mobile communications remain secure against the evolving threat landscape of the quantum era. By proactively adopting these standards, the companies aimed to protect sensitive user data from potential "harvest now, decrypt later" attacks, setting a new benchmark for mobile network security.
• In September 2024, BT Group announced a strategic collaboration with Equinix and Toshiba to provide quantum-secure connectivity between data centers in the United Kingdom. This initiative enabled customers at specific Equinix facilities in London to connect through a high-bandwidth quantum-secured metro network. The service utilized quantum key distribution technology to protect sensitive data traffic against potential future attacks from powerful quantum computers. This deployment marked a critical step in the commercialization of quantum-safe communications, offering organizations a practical method to safeguard their digital infrastructure and ensure long-term data integrity.
• In August 2024, Singtel officially launched Southeast Asia's first nationwide quantum-safe network, designated as the National Quantum-Safe Network Plus (NQSN+). This new infrastructure was designed to protect enterprises from emerging cyber threats posed by advanced quantum computing. The network integrates modern security technologies, including quantum key distribution and post-quantum cryptography, to secure critical data transmissions. By partnering with global technology providers, the telecommunications group aimed to fortify Singapore's digital economy, offering businesses a robust platform to test and deploy quantum-resilient solutions for identity, mobility, and authentication services.
• In April 2024, Qunnect, a networking technology company, achieved a significant milestone by demonstrating record-breaking performance on its GothamQ network in New York City. The company successfully distributed polarization-based quantum entanglement over existing commercial fiber optic cables, surpassing previous stability and transmission metrics. This breakthrough validated the viability of the company's hardware for real-world quantum networking, maintaining high-fidelity entanglement distribution across a 34-kilometer loop. The achievement highlighted the potential for scalable quantum networks to operate within standard telecommunications infrastructure, paving the way for future distributed quantum sensing and computing applications.

Key Market Players

• IBM Corporation
• Microsoft Corporation
• Honeywell International Inc.
• Toshiba Corporation
• Hewlett Packard Enterprise Company
• Google LLC
• Quantum Technologies, Inc.
• SK Telecom Co., Ltd.
• Quantum Xchange, Inc.
• ID Quantique SA

By Product Type	By Application	By Region
Hardware Service	National Defense Aerospace Finance Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Quantum Communication Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Quantum Communication Market, By Product Type:

• Hardware
• Service

• Quantum Communication Market, By Application:

• National Defense
• Aerospace
• Finance
• Others

• Quantum Communication Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE