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Quantum Security Spending Will Exceed 5% of IT Security Budgets in 2026

Quantum security spending will exceed 5% of IT security budgets in 2026 as NIST mandates RSA/ECC deprecation by 2030 and harvest-now-decrypt-later threats make the quantum risk active today. NIST finalized three PQC standards in August 2024. The encryption market doubles to $2.04B by 2029. AWS, Microsoft, and Google already deploy hybrid PQC protection. The post-quantum cryptography market is projected to reach $17.69B by 2034.

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Quantum security spending will exceed 5% of the overall IT security budget in 2026, according to Forrester — a dramatic acceleration driven by the narrowing timeline to Q-Day and the urgent need to begin cryptographic migration. While quantum computers capable of breaking current encryption do not yet exist, the “harvest now, decrypt later” threat is already active, with nation-state adversaries stockpiling encrypted data for future decryption. Meanwhile, NIST has mandated that RSA and ECC support be deprecated by 2030 and fully disallowed by 2035, compressing the migration window to just a few years. In this guide, we break down why quantum security has become an immediate planning priority, what the migration path looks like, and how CISOs should allocate their quantum security budgets.

5%+
of IT Security Budgets Going to Quantum Security
2030
NIST Deadline to Deprecate RSA and ECC
$17.7B
Post-Quantum Cryptography Market by 2034

Why Quantum Security Spending Is Surging in 2026

Quantum security has moved from a distant planning concern to an immediate budget priority because three developments converged simultaneously in late 2025 and early 2026.

First, NIST finalized three post-quantum cryptography standards in August 2024, removing the most significant technical barrier to enterprise adoption. Organizations now have standardized, vetted algorithms available for immediate deployment rather than waiting for specifications to stabilize. Consequently, the “we will wait for standards” justification for inaction has evaporated.

Second, hardware milestones from major quantum computing vendors have demonstrated that key physics barriers to scalable fault-tolerant quantum computing appear tractable. Forrester’s “State of Quantum Computing, 2026” report assessed practical quantum utility as feasible within five years and explicitly characterized Q-Day as a plausible risk by 2030. Furthermore, Google’s research in March 2026 showed that future quantum computers could break elliptic curve cryptography in approximately nine minutes using far fewer resources than previously estimated. Therefore, the timeline that once stretched comfortably toward 2035 is compressing rapidly.

Third, regulatory and compliance pressure is creating urgency. More than 90% of Asia-Pacific firms are expected to invest in post-quantum technologies, and the Pentagon’s cyber budget has surged to $15.1 billion for 2026 with quantum-resilient systems as a top priority. As a result, quantum security is no longer a research topic — it is a procurement category.

What Is Post-Quantum Cryptography?

Post-quantum cryptography (PQC) refers to cryptographic algorithms designed to resist attacks from both classical computers and quantum computers. NIST finalized three PQC standards in August 2024 after an eight-year global competition evaluating 82 algorithms from 25 countries. The primary standards include ML-KEM (formerly CRYSTALS-Kyber) for key exchange and ML-DSA (formerly CRYSTALS-Dilithium) for digital signatures. These algorithms are designed to replace the RSA and ECC systems that quantum computers will eventually break.

The “Harvest Now, Decrypt Later” Threat to Quantum Security

The most immediate quantum security threat is not a quantum computer breaking encryption in real time — it is adversaries collecting encrypted data today with the intention of decrypting it when quantum computers become available. This “harvest now, decrypt later” (HNDL) strategy makes the quantum threat active right now, even though cryptographically relevant quantum computers do not yet exist.

Specifically, nation-state actors are already stockpiling encrypted communications, trade secrets, patent filings, healthcare records, and intelligence data. If this data retains value for five, ten, or fifteen years — as most classified, financial, and intellectual property data does — then it is already at risk from a quantum adversary. Furthermore, compromised data cannot be un-stolen. The encrypted archives sitting in adversary storage today will eventually be decrypted, and the only variable is whether that decryption reveals last year’s communications or last decade’s.

In addition, the Gartner encryption market is responding to this urgency. The encryption subsegment is growing from $1.04 billion in 2023 to $2.04 billion by 2029 at an 11.95% CAGR — a 2x increase that represents significant acceleration for what has historically been one of the slower-growing areas in cybersecurity. Consequently, the HNDL threat is transforming quantum security from a theoretical concern into an immediate compliance and business continuity imperative.

“Prepare now for the quantum era of cybersecurity. The window for orderly migration is narrowing.”

— Leading Cloud and AI Research Team, February 2026

Where Quantum Security Spending Is Being Allocated

Forrester identifies four primary areas where organizations will ramp up quantum security spending in 2026. Understanding this allocation helps CISOs build budgets that match the migration complexity 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

Notably, the first step for most organizations is not implementing new algorithms — it is creating a comprehensive inventory of all cryptographic assets. Security teams need a “crypto bill of materials” that maps every encrypted data store, every cryptographic library, every certificate, and every key across the enterprise. Without this inventory, migration planning is impossible because organizations cannot prioritize which systems to migrate first.

The Quantum Security Migration Roadmap

The path from current cryptographic systems to quantum-resistant architecture follows a structured migration that most organizations should plan to execute between 2026 and 2031.

Phase 1: Discovery and Inventory (2026)
Create a comprehensive cryptographic inventory mapping all encrypted data, keys, certificates, and dependencies. Identify which systems protect long-lived sensitive data that would retain value if decrypted by a future quantum computer. These systems represent the highest migration priority.
Phase 2: Risk Assessment and Prioritization (2026-2027)
Assess each cryptographic dependency against the HNDL threat. Specifically, prioritize systems where data sensitivity exceeds the expected timeline to quantum availability. Furthermore, track vendor and partner quantum migration plans to ensure supply chain alignment.
Phase 3: Hybrid Deployment (2027-2029)
Deploy hybrid cryptographic approaches combining classical and post-quantum algorithms. Major cloud providers have already implemented hybrid TLS protection across key services. Consequently, enterprises can begin migration by leveraging cloud-native PQC capabilities before updating on-premises systems.
Phase 4: Full Migration (2029-2031)
Complete the transition to NIST-standardized post-quantum algorithms across all systems before the 2030 deprecation deadline. Organizations that begin in 2026 will execute transitions at a fraction of the cost that emergency remediation at quantum arrival will carry.
The Cost of Waiting

Planning assumptions of 2 to 5% of annual IT security spend over a four-year migration window represent reasonable budgeting parameters for individual organizations. However, the comparison that matters for executive leadership is the cost of orderly migration versus emergency remediation. Emergency migration at quantum arrival will cost multiples of planned migration — and it will not protect data that was already harvested. Organizations that delay until Q-Day face both the highest migration costs and the highest exposure from previously stolen data.

How Cloud Providers Are Advancing Quantum Security

Major cloud providers are leading quantum security implementation, giving enterprises a practical entry point for their own migration programs.

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 as default for 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 the Forrester predictions and NIST timeline, here are five priorities for CISOs and risk officers addressing quantum security:

  1. Create your cryptographic inventory now: Because you cannot migrate what you cannot find, build a comprehensive “crypto bill of materials” mapping all encrypted data, libraries, certificates, and keys. Specifically, prioritize systems protecting long-lived sensitive data.
  2. Assess the HNDL threat to your specific data: Since adversaries are already harvesting encrypted data, evaluate which assets retain value beyond the expected quantum timeline. Consequently, data with multi-decade sensitivity should be prioritized for early migration.
  3. Leverage cloud-native PQC capabilities: With AWS, Microsoft, and Google already deploying hybrid post-quantum protection, activate these capabilities for data in transit immediately. As a result, you gain protection without custom implementation.
  4. Build cryptographic agility into your architecture: Instead of replacing one set of fixed algorithms with another, invest in architectures that can swap algorithms rapidly. Therefore, your systems adapt without wholesale replacement when standards evolve.
  5. Track vendor and partner migration plans: Because your quantum security posture is only as strong as your weakest supply chain link, require vendors to disclose PQC migration timelines. Furthermore, incorporate quantum readiness into procurement criteria.
Key Takeaway

Quantum security spending will exceed 5% of IT security budgets in 2026 as the NIST 2030 deprecation deadline and harvest-now-decrypt-later threats create urgent migration pressure. NIST finalized post-quantum standards in 2024, major cloud providers are already deploying hybrid PQC protection, and the encryption market is doubling to $2.04 billion by 2029. Organizations that begin cryptographic inventory and migration planning now will execute transitions at a fraction of the cost of emergency remediation when quantum computers arrive.


Looking Ahead: Quantum Security Beyond 2026

The quantum security landscape will evolve rapidly as hardware capabilities advance and regulatory deadlines approach. By 2030, NIST requires RSA and ECC deprecation, creating a hard deadline that every organization using public-key cryptography must meet. Meanwhile, the post-quantum cryptography market is projected to reach $17.69 billion by 2034, reflecting the scale of the global migration effort ahead.

However, the organizations that begin orderly migration in 2026 will complete transitions before the deadline with manageable costs and minimal disruption. In contrast, organizations that delay until 2029 or 2030 will face emergency remediation at premium costs while their previously harvested data remains permanently exposed. As a result, the quantum security investment window is closing — and the cost of entry rises with every quarter of inaction.

For CISOs and security architects, quantum security is ultimately a test of strategic planning. The threat is not immediate, but the preparation must be. The organizations that build cryptographic agility, create comprehensive inventories, and leverage cloud-native PQC capabilities now will navigate the quantum transition as a managed program rather than an emergency response.

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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 individual organizations, planning assumptions of 2 to 5% of annual security spend over a four-year migration window represent reasonable budgeting parameters, though complexity varies dramatically by organization.
When will quantum computers break current encryption?
Forrester estimates commercial quantum computers will break current asymmetric cryptography in less than 10 years. The Global Risk Institute’s 2026 assessment characterizes a cryptographically relevant quantum computer as quite possible within 10 years and likely within 15. NIST has set a 2030 deprecation deadline for RSA and ECC in response.
What is the harvest now decrypt later threat?
Harvest now, decrypt later (HNDL) is a strategy where adversaries steal encrypted data today and store it until quantum computers can decrypt it in the future. This makes the quantum threat active now, even without a working quantum computer, because any data with long-term sensitivity is already at risk of future exposure.
What are the NIST post-quantum cryptography standards?
NIST finalized three PQC standards in August 2024 after an eight-year competition evaluating 82 algorithms. The primary standards are ML-KEM for quantum-resistant key exchange (replacing RSA and ECDH) and ML-DSA for digital signatures. These standards provide the foundation for enterprise migration to quantum-resistant cryptography.
Where should organizations start with quantum security?
Start with a cryptographic inventory that maps all encrypted data, cryptographic libraries, certificates, and keys. Then assess which systems protect long-lived sensitive data vulnerable to HNDL attacks. Activate cloud-native PQC capabilities for data in transit, and invest in cryptographic agility to enable rapid algorithm swaps as standards evolve.

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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