Post-quantum IoT crypto market seen reaching $7.17 billion by 2030

By AI, Created 1:00 PM UTC, May 19, 2026, /AGP/ – The Business Research Company says the market for post-quantum cryptography in Internet of Things devices is growing fast as connected devices multiply and quantum-era security risks loom. The report projects the market will rise from $1.6 billion in 2025 to $2.16 billion in 2026, then expand to $7.17 billion by 2030.

Why it matters: - IoT devices are becoming a larger target as quantum computing threatens older encryption methods. - Post-quantum cryptography is positioned as a long-term security layer for connected devices that handle sensitive data across homes, factories and cities. - The market’s growth reflects rising demand for quantum-resistant security in systems that cannot afford easy firmware, authentication or data-exchange failures.

What happened: - The Business Research Company published an analysis of the post-quantum cryptography market for Internet of Things devices. - The market is projected to grow from $1.6 billion in 2025 to $2.16 billion in 2026. - The report forecasts the market will reach $7.17 billion by 2030. - North America held the largest market share in 2025. - Asia-Pacific is expected to be the fastest-growing region during the forecast period. - A free sample of the report is available here. - The full report is available here.

The details: - The report says the market will grow at a 34.8% compound annual growth rate from 2025 to 2026. - It projects a 35.0% CAGR through 2030. - Growth drivers include expanding IoT deployments, rising cybersecurity threats, continued use of traditional encryption, regulatory focus on data protection and growth in smart home and industrial IoT applications. - The report also points to adoption of post-quantum cryptographic technologies, demand for quantum-resistant security, AI-assisted protection, smart city projects and industrial IoT networks. - Edge computing and secure firmware update mechanisms are described as important enablers. - The report highlights lightweight cryptographic algorithms for resource-limited devices, quantum-resistant key management, edge-based encryption, integration with device management platforms and stronger authentication and firmware update processes. - Post-quantum cryptography for IoT is described as cryptographic methods built to protect connected devices from quantum computing threats. - The approach is meant to preserve confidentiality, data integrity and authentication across large IoT ecosystems.

Between the lines: - The report frames IoT security as a race against the future risk of quantum attacks, not just today’s breach landscape. - The emphasis on lightweight algorithms suggests the biggest challenge is not only security strength, but also fitting stronger encryption into devices with limited power and processing capacity. - The Scania example shows how fast connected-device counts can scale in one sector: the company reported about 638,000 connected vehicles by the end of 2024, with that number still rising in February 2025. - Regional leadership in North America and faster growth in Asia-Pacific point to a market split between current cybersecurity adoption and future infrastructure buildout.

What’s next: - The report expects adoption to accelerate as IoT networks expand and organizations look for quantum-safe security architectures. - Continued growth in smart city and industrial IoT deployments is likely to increase demand for secure device management, encryption and update systems. - The market’s next phase will likely depend on how quickly vendors can make post-quantum tools practical for low-power devices at scale.

The bottom line: - Post-quantum security for IoT is moving from a niche concept to a fast-growing market, with the strongest demand coming from organizations trying to protect connected devices before quantum threats become a practical reality.