Quantum Communication Market size to cross $22.09 Billion by 2035 | QuNu Labs Private Limited, Airbus, Arqit, ColdQuanta, Inc., Excelitas Technologies Corp.

Market Outlook and Forecast

The Quantum Communication Market is expanding at an unprecedented pace as industries shift toward quantum-safe networks and cryptographic frameworks. The market was valued at USD 1.21 billion in 2025 and is projected to reach USD 22.09 billion by 2035, supported by a robust CAGR of 33.7% between 2026 and 2035. This exponential growth underscores rising adoption of quantum key distribution (QKD), satellite-based quantum networks, and secure national defense communication systems.

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Regional Performance Highlights

North America is expected to dominate the sector, accounting for 40% of revenue share by 2035. The region benefits from active government funding, rapid technological commercialization, and strong participation from major defense and cybersecurity agencies. The U.S. is particularly influential due to its quantum research hubs and large-scale pilot projects connecting national laboratories, universities, and federal agencies.

Europe remains a strategic powerhouse, thanks to initiatives such as the EU Quantum Flagship Program and expanding cross-border quantum-secure network deployments. EU nations are also leading regulatory development around quantum-safe communication, attracting substantial private investments.

Asia Pacific is emerging as one of the fastest-advancing regions. China, Japan, South Korea, and Singapore are accelerating satellite-based quantum experiments, metropolitan QKD testbeds, and secure government communication networks. China's quantum satellite projects and nationwide QKD infrastructure continue to set global benchmarks.

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Market Segmentation

Hardware is expected to represent 60% of revenue share by 2035, driven by rapid evolution of quantum repeaters, photon detectors, QKD modules, and satellite systems designed to transmit quantum states securely over long distances. Increased demand for fiber-based and free-space quantum communication hardware is strengthening this segment.

The national defense sector is projected to capture 30% revenue share by 2035, reflecting the rising need for tamper-proof communications in intelligence transfer, battlefield coordination, and cross-border command networks. Defense agencies worldwide view quantum communication as a strategic tool for next-generation cyber defense architectures.

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Top Market Trends

1. Integration of Quantum Communication Into National Cybersecurity Frameworks

Governments worldwide are accelerating quantum-security initiatives as cyber threats grow more sophisticated. Several nations have announced national quantum communication networks that integrate QKD and post-quantum algorithms to future-proof sensitive data transfers. For instance, major intelligence alliances are testing hybrid encryption models combining classical and quantum techniques to ensure long-term data protection.

2. Rapid Deployment of Satellite-Based Quantum Networks

Satellite-enabled quantum communication is gaining momentum, driven by the need for long-distance quantum-secure data transfer. Recent breakthroughs in photon transmission from low-earth-orbit satellites have positioned this technology as a key enabler of global quantum internet ambitions. Countries in Asia and Europe have launched new satellite missions to validate entanglement distribution, long-range QKD, and cross-continental secure communication.

3. Rising Commercialization by Telecom Operators

Telecom companies are actively incorporating quantum layers into their existing network architecture. Several operators have launched quantum-secure metro networks, while others are partnering with quantum hardware providers to build commercial QKD services for enterprises. This shift marks a transition from research-centric deployment to practical commercial adoption.

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Recent Company Developments (Past 12 Months)

Numerous emerging and established players are making notable advancements, contributing to accelerated market maturity. Key developments include:

1. Toshiba Corporation

Toshiba expanded its QKD business across Europe and Asia with new pilot deployments and commercial partnerships with telecom operators. The company is also refining long-distance fiber QKD, enabling higher transmission efficiency.

2. ID Quantique (IDQ)

IDQ introduced upgraded QKD hardware modules tailored for enterprise-grade security. The company also collaborated with multiple national telecom providers to deploy metropolitan quantum-proof networks.

3. Huawei Technologies

Huawei continued to strengthen its QKD research capabilities and expanded its participation in Asia's largest quantum communication infrastructures. The company launched new optical network equipment integrated with quantum security features.

4. Quantum Xchange

The U.S.-based startup secured additional funding to scale its quantum-safe key distribution platform. It expanded partnerships with critical infrastructure operators and financial institutions.

5. NEC Corporation

NEC announced new R&D collaborations focusing on quantum repeater technology to extend QKD over longer distances. The company is participating in joint pilot programs with telecom players in Japan and Europe.

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