Quantum Dawn
Are you prepared to turn quantum disruption into competitive advantage?
Quantum computing is rewriting the rules of security and organizations must act now to protect data before today's encryption becomes obsolete.
Imagine a world where every digital lock, from bank accounts to government secrets and corporate data, is suddenly picked open overnight. This isn’t science fiction; it’s the looming reality of quantum computing’s impact on cryptography. Quantum computers, with their unparalleled processing power, are poised to shatter the asymmetric cryptographic systems which underpin global digital security.
The time for organizations to begin their post-quantum cryptography (PQC) migration is not tomorrow, it’s now. Across industries, from finance to healthcare to manufacturing, the urgency to transition to quantum-resistant algorithms is driven by imminent threats, regulatory timelines, and the sheer scale of the migration challenge. Delaying action risks catastrophic breaches and potential obsolescence in a quantum-powered future.
As detailed in the KPMG 2025 Futures Report, in only five years we will see quantum-powered AI, superconducting materials, and ultra-precise sensors, but only for those organizations that are prepared.
KPMG 2025 Futures Report
Unlock the insights you need to lead in a rapidly evolving landscape. The 2025 Futures Report delves into seven pivotal areas of innovation: Artificial Superintelligence, Computing Infrastructure, Quantum Computing, Space Economy, Digital Assets, Environmental Resilience, and Advanced Manufacturing.
The quantum threat: A universal risk
The quantum threat arises from the potential of sufficiently advanced quantum computers to break widely used cryptographic systems, such as RSA and ECC, by efficiently solving problems like integer factorization and discrete logarithms. This capability could enable adversaries to decrypt data collected today in the future, harvest now – decrypt later, posing a significant risk to organizations across sectors. While the timeline for such quantum advancements remains uncertain, the possibility underscores the need for proactive measures to safeguard sensitive data in industries like healthcare, finance, and logistics.
The interconnected nature of digital infrastructure amplifies this risk, as a quantum-enabled breach in one organization could propagate across networks, disrupting operations or exposing confidential information. For example, a compromised financial institution might destabilize markets, while a healthcare provider breach could jeopardize patient privacy or interrupt critical services. Organizations must treat quantum vulnerability as a pressing, enterprise-wide concern and prioritize transitioning to quantum-resistant cryptographic standards to mitigate future threats.
Why now?
It is abundantly clear that organizations would be wise to begin their post-quantum cryptography (PQC) migrations now. PQC is much more robust than the existing standardized cryptography and can protect today’s classical systems, data, and algorithms from future quantum computer risks. Starting now ensures organizations can phase in changes methodically, minimizing costs and risks, while ensuring they secure scarce talent with cryptographic expertise.
The scale of this effort demands long lead times. Early adopters are already piloting PQC solutions, gaining a competitive edge. Delaying the effort puts organizations at risk of rushed, error-prone migration as deadlines loom, or worse, being caught unprepared when quantum computers arrive. Industry estimates suggest a 5–10-year window for full migration, which aligns with the 2035 target put forward by NIST.
Further, workforce readiness could be a bottleneck. Cryptographic expertise is scarce, and training staff or hiring specialists takes time. Organizations that act early can secure talent and build internal capabilities, while laggards will compete for limited resources in a crowded market.
NIST timelines: The regulatory push
The National Institute of Standards and Technology (NIST) is leading the global effort to transition to post-quantum cryptography (PQC), developing standardized quantum-resistant algorithms to replace vulnerable cryptographic systems. In 2022, NIST finalized its initial PQC standards, selecting CRYSTALS-Kyber for key encapsulation and CRYSTALS-Dilithium for digital signatures, among others, to ensure robust protection against future quantum threats.
Compliance with these standards will become mandatory, and organizations must begin strategic planning immediately. NIST has established a structured timeline for phasing out vulnerable asymmetric cryptography, with federal agencies and contractors expected to fully adopt PQC by 2035. Critical systems must comply by 2030. Private sector entities will face increasing pressure to align with these requirements as governments, partners, and regulatory bodies enforce adherence. Failure to comply may result in exclusion from contracts, loss of certifications, or legal and financial liabilities. Industries managing sensitive data, such as finance and defense, may also undergo audits to verify PQC implementation, underscoring the urgency of proactive adoption.
NIST’s timelines should serve as a wake-up call: organizations must begin planning now to meet these deadlines since migration is not a simple process. It will require years of assessment, testing, vendor alignment and deployment.
Preparing for post-quantum cryptography: A strategic roadmap for secure transition
Transitioning to PQC is a monumental task regardless of industry. Organizations would be wise to take a phased approach:
Establish a cryptographic baseline as vulnerable assets could number in the thousands. Organizations must account for every system, application, and protocol relying on vulnerable algorithms, across legacy systems, third-party software, and IoT devices.
Prioritize critical systems and data for migration efforts and establish a timeline for addressing them.
Remember that the process is not one-size-fits-all. The migration of some assets may be complicated by interoperability issues and the need for extensive testing. While the new algorithms are believed to be quantum resistant, the move towards cryptographic agility, the ability to shift cryptographic algorithms on the fly, will be key for organizations to remain secure.
PQC algorithms will require extensive testing to avoid disruption, as they differ in key sizes, performance, and compatibility
Ignoring PQC migration is not an option. Beyond the risk of data breaches, organizations face reputational damage, financial losses, and regulatory penalties. A single quantum-enabled attack could erode customer trust, as seen in high-profile breaches like Equifax or SolarWinds. The cost of migration, while significant, pales compared to the fallout from a quantum breach: proactive investment now is a hedge against future risk.
Five reasons to start your PQC migration now
| Advanced quantum computers could potentially decrypt data protected by current cryptographic systems in minutes, posing a significant threat to data security. |
| Even organizations with cutting-edge technological infrastructure may be susceptible to quantum-enabled decryption attacks, highlighting the universal nature of this risk. |
| A quantum-driven breach in one sector could propagate across interconnected industries, amplifying its impact on global digital ecosystems. |
| The National Institute of Standards and Technology (NIST) guidelines for post-quantum cryptography (PQC) are expected to transition into mandatory regulations, requiring compliance across sectors. |
| Organizations that proactively adopt quantum-resistant cryptographic standards will be better positioned to navigate the evolving quantum landscape, while those that delay risk falling behind and facing significant vulnerabilities. |
How KPMG can help
- KPMG Quantum Preparedness and Readiness Evaluation Program (Q-PREP): Our framework helps your organization map your cryptographic landscape, identifying vulnerable cryptographic processes and prioritizing upgrades.
- PQC Implementation Services: From pilot testing to full deployment, our experts integrate NIST-standardized algorithms tailored to your infrastructure.
- Training and Support: We empower your team with PQC expertise through workshops and ongoing consultation, building long-term resilience.
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