PUBLISHER: The Business Research Company | PRODUCT CODE: 1873030
PUBLISHER: The Business Research Company | PRODUCT CODE: 1873030
A post-quantum transport layer security (TLS) hardware accelerator is a specialized device designed to execute cryptographic operations that protect communications against quantum computing attacks. It optimizes the computation of post-quantum algorithms, enabling faster and more efficient encryption, decryption, and key exchange. By offloading these complex operations from general-purpose processors, it enhances overall system performance while ensuring quantum-resistant security.
The primary product types of post-quantum transport layer security (TLS) hardware accelerator include field-programmable gate array (FPGA)-based accelerators, application-specific integrated circuit (ASIC)-based accelerators, system-on-chip (SoC)-based accelerators, and other types. FPGA-based accelerators are reconfigurable modules that offload tasks to increase throughput and reduce latency, supporting post-quantum handshake and signature processes at wire speed. These accelerators employ algorithms such as lattice-based, code-based, multivariate, hash-based, and others, and are used by end-users across sectors including banking, financial services and insurance (BFSI), information technology and telecommunications, healthcare, government, manufacturing, and other industries.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The post-quantum transport layer security (TLS) hardware accelerator market research report is one of a series of new reports from The Business Research Company that provides post-quantum transport layer security (TLS) hardware accelerator market statistics, including post-quantum transport layer security (TLS) hardware accelerator industry global market size, regional shares, competitors with the post-quantum transport layer security (TLS) hardware accelerator market share, post-quantum transport layer security (TLS) hardware accelerator market segments, market trends, and opportunities, and any further data you may need to thrive in the post-quantum transport layer security (TLS) hardware accelerator industry. This post-quantum transport layer security (TLS) hardware accelerator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The post-quantum transport layer security (TLS) hardware accelerator market size has grown exponentially in recent years. It will grow from $0.93 billion in 2024 to $1.20 billion in 2025 at a compound annual growth rate (CAGR) of 28.6%. The growth during the historic period is driven by increasing cyber threats, rising demand for secure communication, growth in data breaches, adoption of strong encryption standards, and regulatory compliance requirements.
The post-quantum transport layer security (TLS) hardware accelerator market size is expected to see exponential growth in the next few years. It will grow to $3.25 billion in 2029 at a compound annual growth rate (CAGR) of 28.3%. The growth projected for the forecast period is supported by rapid federal-level compliance mandates, routine refresh cycles of hardware security modules, integration of post-quantum cryptography (PQC) in cloud-native environments, standard-driven vendor consolidation, and expansion of 5G and edge computing. Key trends in the forecast period include integration of PQ accelerators into cloud server hardware, development of hybrid classical-quantum cryptographic solutions, miniaturization of accelerator chips for Internet of Things (IoT) devices, convergence of artificial intelligence (AI) with post-quantum security, and market consolidation through mergers and acquisitions.
The rising frequency of cyberattacks is expected to drive growth in the post-quantum transport layer security (TLS) hardware accelerator market. Cyberattacks are deliberate attempts by malicious actors to breach, damage, or gain unauthorized access to computer systems, networks, or data. The frequency of these attacks has increased due to digitalization, as widespread adoption of online systems, cloud services, and connected devices has expanded vulnerable targets, while reliance on digital platforms for communication, banking, and business operations has made cybercrime more profitable and impactful. Post-quantum TLS hardware accelerators enhance cybersecurity by accelerating quantum-resistant encryption, strengthening the protection of sensitive data in transit, reducing the risk of interception or tampering, and making it more difficult for attackers, including those using advanced quantum computing techniques, to exploit communication channels. For example, in March 2024, the Federal Bureau of Investigation reported that internet crime complaints rose from 800,944 in 2022 to 880,418 in 2023, with associated losses increasing from $10.3 billion to $12.5 billion, reflecting a 22 percent increase in financial damages. The increasing frequency of cyberattacks is therefore supporting growth in the post-quantum TLS hardware accelerator market.
Companies in the post-quantum transport layer security (TLS) hardware accelerator market are developing high-throughput key exchange solutions to enable secure, low-latency communications resistant to quantum attacks. High-throughput key exchange rapidly generates and shares cryptographic keys between parties, enabling large-scale secure connections, reducing latency, and supporting quantum-resistant TLS under heavy traffic. For example, in December 2024, NVIDIA Corporation launched cuPQC, a GPU-accelerated software development kit designed to facilitate the transition to post-quantum cryptography (PQC) protocols. cuPQC leverages NVIDIA GPUs to accelerate cryptographic operations, including key generation, encapsulation, and decapsulation, by up to 143 times compared to state-of-the-art CPUs. This acceleration is crucial for enabling secure, large-scale connections under heavy traffic, allowing organizations to implement NIST-approved PQC algorithms, such as ML-KEM and ML-DSA, and prepare systems for the quantum era. The solution supports industries including telecommunications, finance, and cloud infrastructure in maintaining secure communications.
In January 2025, the Post-Quantum Cryptography Alliance (PQCA), part of the Linux Foundation, partnered with NVIDIA to integrate the cuPQC GPU-accelerated library into the open quantum safe (LibOQS) project. The partnership aims to accelerate the adoption of post-quantum cryptography by delivering scalable, quantum-resistant cryptographic operations for high-throughput applications, such as TLS offloading, key management, and large-scale data center security, while ensuring agility for emerging cryptographic standards. NVIDIA Corporation is a US-based technology company specializing in post-quantum TLS hardware accelerators.
Major players in the post-quantum transport layer security (TLS) hardware accelerator market are IBM Corporation, Intel Corporation, Broadcom Inc., Hewlett Packard Enterprise Company, NVIDIA Corporation, Thales S.A., Infineon Technologies AG, NXP Semiconductors N.V., Microchip Technology Inc., IDEMIA Secure Transactions, Lattice Semiconductor Corporation, Napatech A/S, Silicom Ltd., Futurex Inc., Axiado Corporation, Securosys SA, Eideticom Inc., fragmentiX AG, Xiphera Oy, and PQShield Limited.
North America was the largest region in the post-quantum transport layer security (TLS) hardware accelerator market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in post-quantum transport layer security (TLS) hardware accelerator report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the post-quantum transport layer security (TLS) hardware accelerator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The post-quantum transport layer security (TLS) hardware accelerator market consists of revenues earned by entities by providing services such as performance optimization and testing, managed security services, firmware and software updates, quantum-resistant protocol implementation, cloud security services, and cryptographic research and development. The market value includes the value of related goods sold by the service provider or included within the service offering. The post-quantum transport layer security (TLS) hardware accelerator market also includes sales of hardware security modules (HSMs), network security accelerators, cryptographic co-processors, encryption or decryption cards, secure key management modules, and packet processing accelerators. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Post-Quantum Transport Layer Security (TLS) Hardware Accelerator Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on post-quantum transport layer security (tls) hardware accelerator market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for post-quantum transport layer security (tls) hardware accelerator ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The post-quantum transport layer security (tls) hardware accelerator market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.