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Quantum Security Spending Will Pass 5% of Security Budgets in 2026

Quantum security spending will exceed 5% of IT security budgets in 2026. Why harvest-now-decrypt-later risk means migration starts now.

Quantum security spending will exceed 5% of the overall IT security budget in 2026, according to Forrester. The timeline to Q-Day is narrowing, and cryptographic migration takes years. Quantum computers that can break current encryption do not exist yet. Still, the “harvest now, decrypt later” threat is already active, because attackers can store encrypted data today and decrypt it later. NIST also plans to deprecate RSA and ECC by 2030 and disallow them by 2035, which leaves only a few years to migrate. This guide explains why quantum security is now a planning priority, what the migration path looks like, and how CISOs should spend their quantum security budgets.

5%+
of IT Security Budgets Going to Quantum Security
2030
NIST Planned Date to Deprecate RSA and ECC
3
NIST Post-Quantum Standards Finalized in 2024

Why Quantum Security Spending Is Surging in 2026

Quantum security has moved from a distant concern to a budget item because three developments arrived close together.

First, NIST finalized three post-quantum cryptography standards in August 2024. That removed the biggest technical barrier, because organizations now have vetted algorithms they can deploy. So waiting for standards is no longer a reason to delay.

Second, hardware progress from major quantum computing vendors suggests the physics barriers to fault-tolerant machines can be overcome. The Cloud Security Alliance’s migration roadmap treats Q-Day as feasible by 2030. As a result, the timeline that once stretched comfortably toward 2035 now looks shorter.

Third, budgets are following. According to Forrester, more than 90% of Asia-Pacific firms are expected to invest in post-quantum technologies. So quantum security is turning from a research topic into a buying category.

What Is Post-Quantum Cryptography?

Post-quantum cryptography (PQC) means cryptographic algorithms built to resist attacks from both classical and quantum computers. NIST finalized three PQC standards in August 2024, after an eight-year global competition that evaluated 82 algorithms from 25 countries. The main standards are ML-KEM (formerly CRYSTALS-Kyber) for key exchange and ML-DSA (formerly CRYSTALS-Dilithium) for digital signatures. They are meant to replace the RSA and ECC systems that quantum computers are expected to break.

The “Harvest Now, Decrypt Later” Threat

The most immediate quantum security threat comes from data being collected now. Adversaries can copy encrypted data today and decrypt it once quantum computers become available. This “harvest now, decrypt later” (HNDL) approach makes the threat real even though a cryptographically relevant quantum computer does not exist yet.

Encrypted communications, trade secrets, patent filings, healthcare records and intelligence data are all attractive targets. If data keeps its value for five, ten or fifteen years, as much financial and intellectual property data does, it is already exposed to a future quantum attacker. Data that has been stolen also cannot be recovered. So the real question is how old the data will be when someone decrypts it.

Spending on encryption is rising too. According to Gartner forecast data, the encryption subsegment will grow from $1.04 billion in 2023 to $2.04 billion by 2029, an 11.95% CAGR and a 2x increase. That is fast growth for an area that has usually grown slowly. HNDL is therefore turning quantum security into a compliance and business continuity issue.

Where Quantum Security Spending Is Being Allocated

Forrester names four main areas where organizations will increase quantum security spending in 2026. Knowing them helps CISOs build budgets that match the migration work ahead.

Spending Category Purpose Priority Level
Consulting Services Plan quantum security migrations and build roadmaps ✓ Immediate: most organizations lack internal PQC expertise
Cryptographic Discovery and Inventory Map all encrypted data, keys, and cryptographic dependencies ✓ Critical: you cannot migrate what you cannot find
Cryptographic Agility Solutions Enable rapid algorithm swaps without wholesale system replacement ✓ Strategic: reduces future migration cost and risk
Library and Component Replacement Replace outdated cryptographic libraries in applications ◐ Ongoing: coordinated with development teams

For most organizations, the first step is an inventory of every cryptographic asset, before any new algorithm goes in. Security teams need a “crypto bill of materials” that maps every encrypted data store, cryptographic library, certificate and key. Without it, nobody can decide which systems to migrate first.

The Quantum Security Migration Roadmap

Moving from current cryptography to quantum-resistant architecture is a structured migration. Most organizations should plan for it between 2026 and 2031.

Phase 1: Discovery and Inventory (2026)
Build a full cryptographic inventory that maps encrypted data, keys, certificates and dependencies. Then identify the systems that protect long-lived sensitive data, which would still have value if a future quantum computer decrypted it. Those systems come first.
Phase 2: Risk Assessment and Prioritization (2026-2027)
Assess each cryptographic dependency against the HNDL threat. Put first the systems whose data must stay secret longer than the expected time to a working quantum computer. Also track vendor and partner migration plans, so your supply chain moves with you.
Phase 3: Hybrid Deployment (2027-2029)
Deploy hybrid cryptography that combines classical and post-quantum algorithms. Major cloud providers already use hybrid TLS on some key services. So enterprises can start with cloud-native PQC before they update on-premises systems.
Phase 4: Full Migration (2029-2031)
Finish the move to NIST-standardized post-quantum algorithms across all systems before the 2030 deprecation date. Organizations that start in 2026 will pay far less than those forced into emergency fixes later.
The Cost of Waiting

Planned migration costs much less than an emergency one, and that is the comparison executives should see. An emergency migration after Q-Day would cost far more, and it still would not protect data that was already harvested. Organizations that wait therefore face both the highest migration costs and the most exposure from data stolen earlier.

Talk to an ExpertNot sure where your cryptography sits? Start your PQC inventory with us.

How Cloud Providers Are Rolling Out Post-Quantum Cryptography

Major cloud providers are leading quantum security work, which gives enterprises a practical place to start.

Cloud Provider PQC Progress
AWS deployed ML-KEM across major service endpoints by late 2025, with full HTTPS coverage planned for 2026
Microsoft integrated ML-KEM and ML-DSA into SymCrypt, its primary cryptographic library for Azure and Windows
Google Cloud launched quantum-safe key mechanisms in preview using hybrid X-Wing KEM
All three providers offer hybrid classical-plus-PQC protection on some key services
What Enterprises Must Still Do
Cloud-native PQC protects data in transit but not data encrypted with enterprise-managed keys
On-premises applications require manual library replacement and testing
Custom cryptographic implementations need audit and migration planning
Third-party vendor migration plans must be tracked and validated

Five Priorities for Quantum Security in 2026

Based on Forrester’s predictions and NIST’s timeline, here are five priorities for CISOs and risk officers:

  1. Create your cryptographic inventory now: You cannot migrate what you cannot find, so build a “crypto bill of materials” that maps encrypted data, libraries, certificates and keys. Start with systems that protect long-lived sensitive data.
  2. Assess the HNDL threat to your own data: Adversaries are already harvesting encrypted data, so work out which assets keep their value beyond the expected quantum timeline. Data that must stay secret for decades should migrate early.
  3. Use cloud-native PQC: AWS, Microsoft and Google already offer hybrid post-quantum protection, so switch it on for data in transit now. As a result, you gain protection without building it yourself.
  4. Build cryptographic agility into your architecture: Instead of swapping one fixed set of algorithms for another, design systems that can change algorithms quickly. Then, when standards change again, you adapt without a full replacement.
  5. Track vendor and partner migration plans: Your quantum security is only as strong as the weakest supplier, so ask vendors for their PQC migration timelines. Also add quantum readiness to your buying criteria.

Key Takeaway Quantum security spending will exceed 5% of IT security budgets in 2026, because NIST’s 2030 deprecation date and harvest-now-decrypt-later threats push organizations to migrate. NIST finalized post-quantum standards in 2024, major cloud providers already offer hybrid PQC, and the encryption market is set to double to $2.04 billion by 2029. Organizations that start their cryptographic inventory and migration planning now will pay far less than those forced into emergency fixes.

Quantum security five-point checklist: crypto inventory, long-lived data, cloud-native PQC, cryptographic agility, vendor timelines; 5% of budgets, NIST 2030 date
A five-point quantum security checklist, with the Forrester and NIST figures behind it.

Looking Ahead: Quantum Security Beyond 2026

The quantum security picture will keep changing as hardware improves and deadlines approach. NIST’s plan to deprecate RSA and ECC by 2030 sets a date that every organization using public-key cryptography has to plan for.

Organizations that start an orderly migration in 2026 can finish before that date, at manageable cost and with little disruption. Those that wait until 2029 or 2030, however, will face rushed and expensive fixes, while data harvested earlier stays exposed. So the cost of starting goes up every quarter.

For CISOs and security architects, quantum security is a test of planning. The threat is not here yet, but the preparation has to start now. Organizations that build cryptographic agility, keep full inventories and use cloud-native PQC will run the transition as a managed program instead of an emergency.

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Frequently Asked Questions

Frequently Asked Questions
How much should organizations spend on quantum security?
Forrester predicts quantum security spending will exceed 5% of overall IT security budgets in 2026. For a single organization, the right figure depends on how much cryptography it runs and how long its data must stay secret.
When will quantum computers break current encryption?
No one knows the exact date. The Cloud Security Alliance’s roadmap treats Q-Day as feasible by 2030, and NIST plans to deprecate RSA and ECC by 2030 and disallow them by 2035. So plan as if the deadline is close.
What is the harvest now decrypt later threat?
Harvest now, decrypt later (HNDL) is when adversaries steal encrypted data today and keep it until quantum computers can decrypt it. So the threat is active now, even without a working quantum computer, because any data that stays sensitive for years is already at risk.
What are the NIST post-quantum cryptography standards?
NIST finalized three PQC standards in August 2024, after an eight-year competition that evaluated 82 algorithms. The main standards are ML-KEM for quantum-resistant key exchange (replacing RSA and ECDH) and ML-DSA for digital signatures. Together, they are the base for enterprise migration.
Where should organizations start with quantum security?
Start with a cryptographic inventory that maps encrypted data, libraries, certificates and keys. Then find the systems that protect long-lived sensitive data at risk from HNDL attacks. Next, switch on cloud-native PQC for data in transit, and build cryptographic agility so you can swap algorithms as standards change.

References

  1. 5% of IT Security Budget, RSA/ECC Deprecated 2030, Four Spending Areas, 90% APAC Investment: Forrester — 2026 Technology and Security Predictions
  2. Q-Day Feasible by 2030, 1399 Logical Qubits, NIST Standards August 2024, Migration Roadmap: Cloud Security Alliance — Enterprise Post-Quantum Migration Roadmap
  3. Encryption Market $1.04B to $2.04B, 11.95% CAGR, Gartner 4Q25 Security Forecast Data: Software Strategies Blog — Top 6 Cybersecurity Trends from Gartner’s 2026 Security Forecast
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