Cryptographic functions are embedded across applications, digital certificates, network protocols, hardware, and enterprise infrastructure, making future upgrades complex and resource-intensive. Organisations are increasingly prioritising flexible cryptographic architectures that support algorithm transitions without requiring extensive redesign of existing systems. This, according to Marketsandmarkets, is encouraging demand for adaptable cryptographic software, centralised key management, discovery tools, and quantum-safe infrastructure that can accommodate evolving security requirements.

Quantum-safe hardware solutions hold the largest share

Quantum-safe hardware supports integrating cryptographic capabilities into devices, infrastructure, and security appliances. Hardware security modules, secure elements, and embedded security components can protect cryptographic keys and support secure operations in environments with stringent security requirements. As organisations modernise their infrastructure, hardware vendors are incorporating capabilities designed to support quantum-resistant algorithms alongside existing cryptographic mechanisms. These developments matter for data centres, enterprise security infrastructure, telecommunications equipment, and connected devices. Hardware-based implementations must also address processing requirements, memory constraints, and compatibility with established systems. Demand for quantum-safe hardware is expected to remain significant as organisations upgrade security components and incorporate quantum-resistant capabilities into new infrastructure deployments.

The IT & ITeS vertical could see highest growth

IT service providers, cloud platforms, software vendors, and technology infrastructure operators manage cryptographic functions across applications, digital identities, data exchanges, and communication protocols. Transitioning these environments requires updates to cryptographic libraries, authentication mechanisms, certificates, and secure communication systems. The scale and interconnectedness of technology platforms drive demand for automated cryptographic discovery, compatibility testing, and centralised migration management. Technology providers must also evaluate how quantum-resistant algorithms can be integrated without disrupting customer services or application performance. IT service providers are positioned to support PQC consulting, implementation, and migration projects across multiple industries. These requirements are expected to accelerate adoption across the IT & ITeS segment throughout the forecast period.

North America leads

North America's leading position is supported by strong cybersecurity investment, an established technology ecosystem, and the presence of major cloud providers, semiconductor companies, and cryptographic security vendors. Organisations across financial services, government, defence, and technology are assessing quantum-related risks and preparing to modernise existing cryptographic infrastructure. The US government has also advanced PQC adoption through NIST's finalised standards and federal migration guidance, encouraging agencies and suppliers to identify vulnerable cryptographic systems and plan transitions. Demand is expected across quantum-safe hardware, cryptographic software, secure communications, key management, and migration services as organisations incorporate quantum-resistant capabilities into their security architectures.

Market players

Some of the businesses involved in this market and mentioned within the report include companies such as, NXP Semiconductors, Thales, AWS, Idemia, Palo Alto Networks, Digicert, Patero, Post-Quantum, Entrust, IBM, Keysight Technologies, Quantropi, Crypto Quantique, and Enquantum, amongst others.