Electronics Weekly
The quantum market will grow at 32% CAGR from $954 million in 2024 to $17.4 billion in 2035, says Yole Group.
Beyond 2028, Yole Group expects that quantum computing will dominate, and the quantum computing market segment will total $3.74 billion in 2035, including both hardware and service applications.
QaaS will have the major share, with most services running on quantum computers in the cloud.
QaaS will grow much faster than QC (quantum hardware computers).
Quantum communication, QKD, is mainly restricted to point-to-point links (a few 100 km ranges, maximum) today. With the development of quantum repeaters at increasing distances, a quantum network would be possible.
“Quantum computing holds promise for industry and healthcare, while quantum cryptography could revolutionise encryption, influencing state sovereignty by securing sensitive communications,” says Yole’s Eric Mounier, “in sensing, quantum technology is a real but niche market.”
The quantum supply chain includes government-funded fundamental research and substantial investments from IBM, Google, and Microsoft.
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A growing startup ecosystem, mainly in North America and Europe, also fosters different approaches for qubits.
The quantum ecosystem is maturing through research collaborations, patent filings, startup creation, and the entry of semiconductor vendors and equipment manufacturers.
Semiconductor companies such as GlobalFoundries, TSMC, Intel, and X-Fab, along with photonics firms like Ligentec and equipment makers such as Keysight and Oxford Instruments, are building a technological foundation for quantum chip production and testing.
“Investment strategies are adapting, with funding coming from private venture capital, corporate sources, and government grants to support a variety of qubit technologies, including superconducting qubits, trapped ions, photonic qubits, and neutral atoms,” says Mounier, “at the same time, the industry is shifting towards a full-stack approach that encompasses quantum hardware, software, and services—an evolution that demands substantial R&D resources and investment.”
Global investment in quantum technologies is estimated at $30 billion in public funding and more than $5 billion in private financing.
Roughly 75% of investments go to quantum computing hardware, with the remainder allocated to quantum systems and software development.
Success remains uncertain due to the long commercialisation timelines.
