1 Top 3 Market Share of Post-Quantum Cryptography Companies
The top 3 players in the post-quantum cryptography market are IBM Research, Microsoft Research, and SandboxAQ, which together hold a portion of 32.14% of the market. Among them, IBM Research leads with the highest revenue share at 13.76% in 2022, followed by Microsoft Research at 9.59%. As another significant player, SandboxAQ held a market share of 8.79% in 2022.
Figure Top 3 Market Share of Post-Quantum Cryptography Companies
2 IBM Research
2.1 Company Business Overview
IBM Research, established in 1945, is a globally distributed research division of IBM that has been at the forefront of inventing what’s next in computing. With an unwavering curiosity about how computing can change the world, IBM Research is deeply involved in advancing the state of the art in AI, hybrid cloud, and quantum computing. The team at IBM Research is dedicated to discovering new materials for the next generation of computer chips, building bias-free AI to alleviate business decisions, designing a hybrid-cloud platform that operates as the world’s computer, and moving quantum computing from a theoretical concept to machines that will redefine industries. They maintain a strong presence worldwide and are committed to innovation, expertise, commitment, and confidentiality in their pursuit of technological advancements.
2.2 Post-Quantum Cryptography Service Introduction
IBM Quantum Safe technology is a comprehensive set of tools, capabilities, and approaches for securing your enterprise for the quantum future. Use IBM Quantum Safe technology to replace at-risk cryptography and maintain ongoing visibility and control over your entire cybersecurity posture.
Table Service Introduction
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IBM Quantum Safe technology |
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IBM Quantum Safe Explorer Scan applications to locate cryptographic artifacts and vulnerabilities. Create various cryptographic inventory reports, including a Cryptography Bill of Materials (CBOM). IBM Quantum Safe Advisor Perform dynamic cryptography analysis to assess cryptographic posture and compliance. Prioritize vulnerabilities for quantum-safe transformation. IBM Quantum Safe Remediator Learn and apply best practices for quantum-safe remediation patterns. Prepare to deploy quantum-safe solutions to your stack. |
2.3 Business Performance
IBM Research demonstrated robust financial performance in the post-quantum cryptography market in 2023, generating a revenue of $61.22 million and a gross of $46.35 million, resulting in an impressive gross margin of 75.72%. This underscores IBM Research’s strong market position and financial health within the burgeoning field of post-quantum cryptography, reflecting its ability to convert a substantial portion of its revenue into profit while maintaining a competitive edge in a technology-intensive industry.
Table Business Performance (2022-2023)
|
IBM Research |
2022 |
2023 |
|
Revenue (M USD) |
45.87 |
61.22 |
|
Gross (M USD) |
34.80 |
46.35 |
|
Gross Margin |
75.87% |
75.72% |
3 Microsoft Research
3.1 Company Business Overview
Microsoft Research is a division of Microsoft that has been at the forefront of driving breakthroughs in technology through its research initiatives. Established in 1991 and operating on a global scale, Microsoft Research plays a pivotal role in influencing virtually every Microsoft product released over the past three decades, including significant contributions to technologies like Cortana, Azure ML, Office, Xbox, HoloLens, Skype, and Windows. The researchers, scientists, and engineers at Microsoft Research are not only shaping the future of Microsoft’s product line but also contributing to foundational and applied research across various fields, from healthcare to economics.
Microsoft Research is committed to sharing its groundbreaking research with the global community, which is evident through the release of products and services such as Project Oxford and CNTK, as well as through partnerships with leading universities and research organizations. This collaborative approach has positioned Microsoft Research as a thought leader in areas like machine learning, artificial intelligence, and cloud computing.
In terms of post-quantum cryptography, Microsoft Research is actively involved in preparing for the transition to quantum-resistant cryptographic algorithms. They are focusing on driving industry contributions to standards bodies, moving the ecosystem beyond theory into practice through testing post-quantum cryptography algorithms, ensuring that Microsoft is ready for post-quantum cryptography, and assisting customers in managing the transition to post-quantum cryptography.
3.2 Post-Quantum Cryptography Service Introduction
Microsoft Research offers a range of services and initiatives in the field of post-quantum cryptography, aimed at addressing the impending challenges posed by quantum computing to current cryptographic systems.
Table Service Introduction
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Post-Quantum TLS |
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Post-Quantum Cryptography TLS Given the importance of TLS, preparing for the transition to post-quantum cryptography needs to start now. Asymmetric cryptography in TLS is vulnerable in two places: Key exchange: the server and client exchange cryptographic messages use asymmetric key exchange algorithms (such as RSA and ECDH) to derive a symmetric key. The symmetric key then encrypts the rest of the session. (As above, the symmetric key algorithms used in key exchange (e.g., AES) aren’t as vulnerable to quantum computers so we simply need to increase their key length to secure against a quantum adversary.) Authentication: during this step, the server (and optionally the client) proves its identity using its certificate’s public key, involving signature algorithms such as RSA or ECDSA. In the future, quantum-safe algorithms will replace the use of RSA, ECDH, and ECDSA. We recommend using these schemes in hybrid mode until the cryptographic community gains full confidence in the new post-quantum cryptography. In hybrid mode, both key exchanges and signatures are performed in parallel, generating both a classical exchange/signature and a post-quantum one. The resulting messages/signatures are combined, offering the security against both current and future attacks. A PQ Crypto fork of OpenSSL OpenSSL is an open-source implementation of the Transport Layer Security (TLS) protocol. We are collaborating with the Open Quantum Safe project to integrate post-quantum cryptography into TLS 1.2 and 1.3. The Open Quantum Safe OpenSSL repository contains a fork of OpenSSL 1.1.1 that adds quantum-resistant key exchange and signature algorithms using liboqs for prototyping purposes. The library supports both hybrid and post-quantum key exchange and authentication. The post-quantum key exchange algorithms FrodoKEM and SIKE, and the signature algorithms Picnic and qTESLA, co-developed by Microsoft, are integrated into this project. These libraries are for prototyping, experimentation, and for evaluating quantum-resistant cryptography. Post-quantum cryptography is an active area of research, and the security of proposed quantum-resistant algorithms may rapidly change as research advances. Any specific PQ algorithm including those used here may prove be insecure. |
3.3 Business Performance
In 2023, Microsoft Research anticipates a significant financial uptick with a projected revenue of $45.86 million, indicating substantial growth in its post-quantum cryptography sector. This increase is reflected in their gross maintaining a great gross margin of 69.84%. These financial indicators not only demonstrate Microsoft Research’s strong market position but also suggest their strategic investment in R&D to sustain competitiveness amidst the evolving landscape of quantum computing threats.
Table Business Performance (2022-2023)
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Microsoft Research |
2022 |
2023 |
|
Revenue (M USD) |
31.96 |
45.86 |
|
Gross (M USD) |
22.44 |
32.03 |
|
Gross Margin |
70.20% |
69.84% |
4 SandboxAQ
4.1 Company Business Overview
SandboxAQ, established in 2021 and operating worldwide, is a company harnessing the power of AI + Quantum (AQ) technology. Originating from Alphabet Inc., SandboxAQ has become an independent entity focused on developing commercial products for various industries, including financial services and telecommunications. SandboxAQ is a young but potentially disruptive player in the market with a diverse range of applications for its technology.
4.2 Post-Quantum Cryptography Service Introduction
SandboxAQ Security Suite is an end-to-end cryptographic-agility platform that offers full visibility and control over an organization’s cryptography.
Table Service Introduction
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SandboxAQ Security Suite |
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Cryptography is the foundation of data protection. However, it is often opaque and hard-coded in systems, making it hard to eliminate vulnerabilities, difficult to show compliance and complex to implement upgrades. The SandboxAQ Security Suite is an end-to-end, cryptographic-agility platform that provides a full inventory of existing cryptography use, including vulnerability and compliance analysis, as well as a path to centrally-managed, robust and agile cryptography. The result is protection from today’s attacks, as well as security against the future threat of a large-scale quantum computer. The SandboxAQ Security Suite will provide your organization with a full range of cryptographic management capabilities, including: Full visibility, monitoring and control of your cryptography Automatic analysis and reporting on your cryptographic security posture Cryptographic policy management and enforcement Seamless upgrades to new cryptographic protocols Compliance with changing cyber threats and requirements |
4.3 Business Performance
In 2022, SandboxAQ generated a revenue of $29.31 million, which shows a substantial increase to an anticipated $38.85 million in 2023. This growth indicates a strong upward trend in the company’s financial performance, reflecting the effectiveness of its business strategies and the market’s demand for post-quantum cryptography solutions. Meanwhile, the slight increase in the gross margin from 68.86% to 69.60% in 2023 indicates that the company is becoming even more efficient in its operations, which is a positive sign for future sustainability and growth.
Table Business Performance (2022-2023)
|
SandboxAQ |
2022 |
2023 |
|
Revenue (M USD) |
29.31 |
38.85 |
|
Gross (M USD) |
20.18 |
27.04 |
|
Gross Margin |
68.86% |
69.60% |
