Operators to Spend $6.3 Billion on Quantum Key Distribution by 2030

A new study from Juniper Research has found that telecoms market stakeholders will invest a cumulative spend exceeding $6 billion on developing and implementing quantum key distribution (QKD) between 2025 and 2030. This substantial investment will be driven by the acceleration of quantum computing and its potential use by fraudsters.

With traditional network encryption methods vulnerable to quantum computing, this investment is vital to protect the security of telecom networks, notably for enterprise users. The report found that the scalability of QKD solutions is the most prominent concern for network operators as they deploy nationwide quantum-secure networks. QKD hardware, such as quantum random number generators that create encryption keys, is expected to be the largest QKD cost, as operators must implement quantum-capable hardware over their extensive networks.

The research also anticipated that, as these networks grow, operators must implement tools that enable the real-time management of quantum cryptography. It identified AI-driven network management platforms, which provide optimized traffic routing and resource allocation, and quantum network simulators as two key value-added offerings.

“As network operators increasingly monetize their networks through enterprise services, it is imperative that they provide protection against quantum threats in the future. By investing in QKD now, operators position their networks best to capitalize on the growth of enterprise network users,” said research author Michelle Joynson.