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Quantum computing will change enterprise cybersecurity by making today’s most common encryption methods easy to break, and it will also give defenders new tools to protect data. Boston Consulting Group (BCG) says quantum computers have a better than 50% chance of breaking widely used algorithms such as RSA 2048 by around 2035. That date sounds far away, yet large companies usually need ten years or more to replace core encryption. Leaders who plan now can control cost and risk, while those who wait may face a rushed and expensive upgrade.
Why Quantum Machines Threaten Current Encryption
Most online security depends on asymmetric encryption such as RSA and elliptic curve cryptography. These methods rely on math problems that ordinary computers cannot solve in a practical amount of time. Quantum computers use qubits, which can hold several states at once, and this makes them better at the exact problems that protect RSA and elliptic curve systems. Many daily tools, including HTTPS, combine asymmetric and symmetric methods, so breaking the asymmetric part weakens the whole setup. Symmetric encryption such as AES is less exposed, and longer keys can keep it strong.
Harvest Now and Decrypt Later
The danger does not start in 2035. Attackers can steal encrypted data today and store it until a powerful quantum computer is ready to open it, a practice experts call harvest now, decrypt later. Data with a long life faces the highest risk, including medical records, financial files, government documents, trade secrets, and legal contracts. BCG also points out that digital signatures created today could face questions about their authenticity in the future. A company does not need a working quantum machine to suffer harm, since the theft may already be taking place.
New Standards and Rising Pressure From Regulators
In 2016, the US National Institute of Standards and Technology (NIST) started a global search for encryption that can resist quantum attacks. In 2022, it selected four algorithms, including CRYSTALS Kyber for key exchange and CRYSTALS Dilithium, FALCON, and SPHINCS+ for digital signatures. NIST released its first final standards based on these designs in August 2024. European rules such as DORA and NIS2 already set strict expectations for encryption in finance, energy, and health care. BCG notes that adoption is only about 9% across most websites, and companies that ignore new rules could face fines and legal liability.
What the Transition Will Cost
BCG estimates that moving to quantum-resistant encryption will cost between 2.5 and 5% of a company’s yearly IT budget. Early planning lowers this figure, while delay raises it sharply. Connected devices add another large expense, since at least 20 billion IoT devices are online and the number grows by 10 to 15% each year.
| Situation | Estimated Cost |
| Company with a USD 1 billion IT budget that starts early | About USD 25 million |
| Same company that delays until 2035 | About USD 50 million |
| Global automotive company updating vehicle systems | USD 400 million to USD 750 million |
| Manufacturing, utilities, and transport firms updating devices | USD 10 million to USD 20 million |
Where Enterprises Are Most Exposed
Some parts of a business carry more risk than others, and security teams should look at each of them closely.
- Financial services. BCG lists banks and payment systems among the most exposed sectors, since they depend on trusted signatures and secure transactions.
- Connected devices. Many IoT products stay in service for ten years or more and cannot easily run newer algorithms.
- Legacy systems. Older software often hides outdated encryption that nobody has reviewed for years.
- Vendor platforms. Cloud and software partners control part of the security chain, so their plans matter as much as internal ones.
- Government and health care. Records in these areas must stay private for decades.
Practical Steps for Security Leaders
A clear plan helps teams move without wasting money or effort.
- Create a full inventory of every place where encryption is used, including applications, devices, and partner connections.
- Rank systems by value and lifespan. BCG finds that only about 10 percent of applications are truly critical and need the earliest upgrades.
- Build crypto agility so that algorithms can be swapped through modular and automated design. The Heartbleed flaw in 2014 left more than 300,000 servers exposed two months after disclosure, which shows the cost of slow change.
- Question vendors about their quantum readiness and delivery dates.
- Train staff and assign clear ownership for the program.
How Quantum Can Also Help Defenders
Quantum technology is not only a threat. Quantum random number generators can produce stronger keys, and quantum key distribution uses the laws of physics to reveal any attempt to listen in on a channel. Quantum methods may also speed up the analysis of very large and complex data sets, which could improve threat detection and fraud checks over time. These tools are early, costly, and limited in scale. Most enterprises will rely first on new software standards for protection, while specialized quantum security products mature in the background.
Final Thoughts
Quantum computing will reshape enterprise cybersecurity over the next decade, and the safest path is to prepare before the pressure becomes urgent. History shows that major encryption changes take ten years or more, and BCG warns that starting as late as 2030 would already be too late. Companies that inventory their encryption, protect the most valuable data first, and build flexible systems will spend less and face fewer surprises. The goal is not to fear the technology but to treat it as a planned upgrade that protects customer trust and business continuity.