Market and Technology Trends

Quantum Technologies 2025

Mar 2025

As quantum applications edge closer to reality, the race for dominance is accelerating, QaaS will claim the lion’s share

YINTR25476

Key Features

2020-2025-2035 forecast for quantum computing, QaaS, software, communication and sensing in US$M and units.
Overview of qubits technologies with roadmaps
Analysis of photonics in quantum computers
Quantum computer architecture
Quantum business plans analysis
Quantum players and supply chain
Quantum investments

What's new in this edition?

Updated market forecast value based on bottom-up analysis
New business models analysis: Q HW, QaaS, Q SaaS, Q cybersecurity, Q IaaS, Q sensing
Q HW, QaaS, Q SaaS, Q cybersecurity, Q IaaS, Q sensing US$, computers, devices forecast
Updated roadmap for qubits both physical and logical/players
Insights on Quantum and AI and Quantum and 6G
Players, supply chain, technologies and fundings update
China insights

Report objectives

Provide market data on quantum technologies: computing, communication, and sensing/timing:
- Revenue, up to 2035 – for quantum technologies
- Expected market developments
- Market shares
Describe quantum technologies and challenges:
- Technology choices
- Roadmaps
- What are the major drivers? What will the market look like in the future?
Analyze major technological trends:
- Developments in existing and future technologies
- Pros and cons
Enable a thorough understanding of the value chain, infrastructure, and players for quantum technologies and the quantum computing market:
- Extensive lists of players, and their technology portfolios
- Industry supply chain information
- Business model discussion
- Investment analysis

Quantum-driven markets are set to soar, with computing dominating in the future.

Quantum technologies cover computing, communication, and sensing, with computing leading in simulation, optimization, and machine learning.
Quantum computing promises breakthroughs in industry, finance, healthcare and many other applications, while quantum cryptography could reshape encryption, securing sensitive communications and impacting state sovereignty.
Though sensing remains niche, it offers precise measurement potential.
Overall, the quantum market will grom from US$954M in 2024 to US$17.4B in 2035 with a 32% CAGR $286M in 2030 (15% CAGR). Beyond 2028+, it is expected that quantum computing will dominate. In fact, the quantum computing market will total US$3.74b in 2035 (both hardware and service).
The Investment remains focused on quantum computing hardware, but quantum networking and ultra-sensitive quantum sensors are gaining attention. As quantum computers advance, they threaten current encryption, pushing the development of quantum cryptography and post-quantum security.
Quantum as a Service (QaaS) will dominate, growing faster than hardware, with most quantum services running in the cloud. Quantum communication is currently limited to short-range QKD, but future quantum networks will emerge with repeaters. Though niche, quantum sensing holds promise for applications in timekeeping, gravity mapping, and secure navigation.

The quantum computing supply chain is rapidly evolving, with governments, tech giants, startups, and semiconductor leaders driving innovation.

Quantum computing advances with major players like IBM, IonQ, and Quantinuum, yet no system is commercially viable. China invests heavily, excelling in quantum communication and developing domestic quantum hardware.
The quantum supply chain involves major IT firms, startups, and semiconductor companies like TSMC and Intel, supporting diverse qubit technologies.
A shift toward full-stack approaches integrates quantum hardware, chips, and software, requiring significant R&D.
Funding reaches $30B in public and $5B in private investments, mostly for hardware. Private investment surged to $2B in 2021 but declined to $1B in 2024, reflecting commercialization challenges.
Despite investor caution, confidence in quantum computing’s long-term potential remains strong.

Despite numerous technological and engineering hurdles, quantum computing advancements are steadily advancing ahead, turning developments into technical achievements step by step.

Challenges in quantum technologies persist, especially in computing, due to qubit noise, error correction, scalability, and maintaining fidelity. Gate fidelity above 99.9% is essential for scalable error correction.
Different qubit technologies offer unique benefits: cold atoms for scalability in simulations, trapped ions for highest fidelity, NV centers for ambient operation, superconducting qubits leading in the field, spin quantum dots for CMOS integration, and topological qubits for resilience. As of today, no single qubit platform dominates yet.
And quantum power depends on logical qubit entanglement, not just qubit count. In a 1M-qubit machine, only hundreds to thousands may be actively entangled.
NISQ computing is the focus, while FTQC remains a decade away.
In quantum communication, PQC and QKD help counter CRQC threats. Quantum sensing is advancing in industries like gravitational monitoring, telecoms, manufacturing, and defense applications such as radar, imaging, and secure navigation.

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Quantum Technologies 2025

As quantum applications edge closer to reality, the race for dominance is accelerating, QaaS will claim the lion’s share

Quantum-driven markets are set to soar, with computing dominating in the future.

The quantum computing supply chain is rapidly evolving, with governments, tech giants, startups, and semiconductor leaders driving innovation.

Despite numerous technological and engineering hurdles, quantum computing advancements are steadily advancing ahead, turning developments into technical achievements step by step.