Quantum technologies: global industry profile

In recent years, a new wave of excitement has emerged around quantum technologies – a broad class of advanced technologies which exploit the principles of quantum mechanics (the physics of matter and energy at atomic and subatomic scales).

Various innovations in the field have shown substantial promise, with potentially transformative applications across sectors including healthcare, financial services, energy and defence. A global community of scientists and engineers is working to build on progress made so far, whilst a growing mix of start-ups and larger established firms seeks to develop, scale and commercialise these technologies.

For now the global quantum market remains relatively small, but it is growing. According to QED-C, the global quantum industry was worth around $1.45bn in 2024, of which quantum computing accounted for around $1.07bn. Looking ahead, however, McKinsey estimate that the total market could reach as much as $97bn by 2035.

Investment in quantum companies, research and related initiatives has risen significantly over the past decade, although funding levels have fluctuated from year to year. QED-C note that investment momentum improved in 2024 after a weaker period in 2022 and 2023, with public funding commitments rising by more than $3.1bn over the year and private venture capital investment reaching a record $2.6bn. Significant investments continued in 2025 — notably, the US start-up PsiQuantum raised $1bn in a single funding round.

That said, as is stressed in a recent OECD/EPO report, quantum is not yet a mature commercial industry, and remains largely science-led. Many quantum technologies are still under development, with commercial adoption at an early stage – or yet to begin at all. In many areas, there is still considerable uncertainty around likely timescales and viable use cases.

Whilst opportunities in the sector are plentiful, industry actors are likely to face a range of challenges as they navigate the path towards large-scale commercialisation. Some of the most significant of these are discussed below.

At a high-level, the global quantum technologies industry may be divided up into three primary segments. These are outlined below.

It should be noted, however, that some firms and technologies span domains (for example, neutral-atom platforms can support both computing and sensing).

Quantum computing is a form of computing which uses quantum bits, or qubits, rather than classical bits. Unlike a classical bit, which can be in a state of either 0 or 1, a qubit can exist in a superposition of both states. Qubits may also be linked to other qubits through "entanglement".

This means that quantum computers may solve some problems in fundamentally different and potentially far more powerful ways than classical computers. Potential applications include simulation, optimisation, forecasting and image analysis.

Computing is currently the most dynamic quantum segment, accounting for the sharpest increases in both firm creation and patenting. However, it remains at an early commercial stage, with relatively modest revenues, continued reliance on external funding, and multiple competing hardware approaches.

Notably, there are major technical hurdles to be overcome: building useful systems at scale will require advances in quantum error correction (see below), as well as far more physical qubits than exist in most current machines.

Quantum communication is a method of transmitting information using quantum mechanics, rather than classical signals like electrical or optical pulses alone. At its core, it relies on quantum states — typically of particles like photons — to encode information.

The most prominent application is quantum key distribution (QKD), which leverages quantum physics to create encryption keys that reveal any eavesdropping, thus enhancing security. Here, measurement sensitivity is crucial: observing a quantum state disturbs it, and so any eavesdropping attempt changes the quantum states and is therefore immediately detectable.

Early QKD initiatives in places including the UK, South Korea and the EU point to potential uses in secure telecoms, finance and government communications. However, significant technical barriers remain, including the need for quantum repeaters for long-distance transmission.

Related to QKD is post-quantum cryptography (PQC) – classical cryptography designed to resist quantum attacks, replacing vulnerable schemes that could be broken by quantum algorithms. However, PQC itself is not a quantum technology, given that it runs on today’s standard hardware and networks.

This segment — perhaps the most mature part of the quantum sector — is focused on the use of quantum states to measure and image physical quantities, spatial information and time with far greater precision than classical technologies.

Its applications could transform sectors such as healthcare, infrastructure, energy, defence, and transportation by enabling more accurate detection, navigation without GPS, and ultra-precise timing systems.

Early deployments, such as wearable brain scanners, quantum lidar for underwater imaging and gravity sensors for geological mapping, show growing commercial promise.

However, real-world applications are still emerging and challenges remain around cost, scalability, integration, business models, and skills and ecosystem development.

Given the industry's relatively early stage of development, regional segmentation is currently best understood in terms of ecosystem formation, innovation output and investment intensity, rather than through conventional mature-industry measures such as stable market share.

On most broad measures, the US remains the leading player in the global quantum landscape. However, as is noted in a recent OECD/EPO report, it is far from the only important centre of activity. Canada and the UK, for example, have both built strong ecosystems, with high revealed technological advantage and dense clusters of specialist firms. China, Germany, Japan and Korea also play major roles, supported by large industrial bases and significant patent activity, with Korea standing out particularly in quantum communication.

QED-C’s figures on pure-play quantum companies point to a notable concentration of activity in the US, which leads by some distance, with 148 such companies. It is followed by the UK with 64, Canada with 56, Germany with 48 and France with 25.

On innovation, the picture is more nuanced. MIT note that China accounted for around 60% of quantum patents as of 2024, ahead of the US and Japan. That said, in terms of international patent families (IPFs), which are often a better indicator of internationally significant inventions, the US remains the largest contributor — although its share fell from 41% in 2015–2019 to 31% in 2020–2024. Japan ranks as the second-largest national contributor to IPFs, followed by China and Korea. Meanwhile, Europe’s share has grown, driven mainly by Germany, the UK and France.

Funding patterns are more concentrated than patent activity. Roughly 60% of total recorded quantum funding has gone to US-based firms, despite the US accounting for only around 30% of quantum start-ups and IPFs. IQM note that, in the quantum computing segment, North America attracts most venture capital, while Europe has many companies but smaller deal sizes and less access to growth-stage funding.

The mix of public and private investment varies sharply by country. In China, for example, quantum development is heavily backed by the state (QED-C estimate Chinese public funding of quantum research and innovation at $15bn — 78% of total funding in East Asia and the Pacific). In the US, private-sector investment plays a much larger role, including major commitments from large technology companies.

Although the UK trails the US in overall funding, it is home to one of the world’s most prominent and strategically ambitious quantum ecosystems — though some have raised concerns about the ability of UK firms to scale up their operations.

According to the Department for Science, Innovation and Technology, the UK ranks second globally by number of quantum companies, and has attracted more private investment than any other European market. OECD/EPO data, meanwhile, places the UK second only to the US for new entrants into the "core" quantum field during 2015–2024. 

Beneath these headline numbers lie a range of national advantages, including a strong talent pipeline (supported by sustained PhD and fellowship funding) and advanced infrastructural assets such as the National Quantum Computing Centre. System-level innovation, in particular, appears to be a key relative strength: around 15% of UK quantum companies are systems developers, compared with roughly 7%–10% in many comparator countries.

Government backing has been central to the industry's progress to date. Around £1bn of public funds were invested in quantum research and commercialisation between 2014 and 2023, much of it through the National Quantum Technologies Programme. The 2023 National Quantum Strategy pledged a further £2.5bn over 2024–33, and in 2024 five new hubs were launched with total backing of £160m.

However, the UK quantum ecosystem lags behind some of its rivals in certain key respects — particularly in terms of supply chain depth and downstream adoption. Notably, it has a smaller component base and a lower end-user share than many of its competitors. As the Tony Blair Institute has emphasised, this limits firms' opportunities for scaling and expansion, with there being a clear need for deeper supply chains, stronger commercial demand, and more growth capital.

For its part, the government has recently launched a new set of initiatives which aim to address these issues. For example, the 2025 Digital and Technologies Sector Plan commits the government to progressing five National Quantum Missions, and pledges £670m for quantum computing development and adoption. In March 2026, the government announced a further package worth up to £2bn. Crucially, this includes a new procurement programme for commercial-scale quantum computers — a sign that the present phase of UK policy is focused not just on scientific excellence, but on building domestic markets and helping firms scale in Britain.

Commercialisation in quantum technologies is beginning to gather momentum. For example, quantum computing is seeing growing cloud-based adoption in sectors including pharmaceuticals, chemicals, finance, logistics and materials, mainly through proof-of-concept work in optimisation, simulation and machine learning. Amazon Braket is one of several cloud platforms now providing access to quantum computing hardware and software tools.

However, many observers expect a gradual rather than rapid commercial take-off. In a March 2025 report on the UK quantum sector, for instance, the Royal United Services Institute forecast incremental progress: over five years, further development of noisy intermediate-scale systems, wider quantum-as-a-service access, and expanded pilots of quantum communications links; over 10 years, more capable quantum computers and the early emergence of specialised or urban quantum networks. Only over a 20-year horizon do they predict the bringing to market of large-scale fault-tolerant quantum computers and the widespread embedding of quantum sensors in everyday systems, for example. Bain & Company similarly expect early gains in narrow domains within five to 10 years, with broader adoption taking longer.

There are several reasons for this. Technical barriers – such as the need for improved error correction in quantum computing (see below) – are perhaps the most obvious, but there are other factors at play. For one, there are demand-side constraints, including high integration costs, limited understanding of the technologies among non-specialists, and the need for new business models. Many firms are still at an early stage of preparedness, and face significant initial outlays and a steep learning curve.

In addition, quantum companies themselves face significant bottlenecks as they seek to scale. Skills are one major challenge: as the UK government has noted, workforce needs are widening beyond a small group of physicists to include engineers, technicians and commercially minded professionals with quantum literacy. National strategies in countries including the UK, US, Canada and Australia increasingly emphasise workforce development for this reason, but progress here will take time.

Infrastructure and supply chains are another constraint. Quantum technologies depend on specialised components and capabilities, from cryogenics and photonics to vacuum systems, precision timing and advanced control electronics. Access to these is uneven and varies from place-to-place. Recent analysis has warned that supply chains for critical inputs are becoming concentrated, creating strategic vulnerabilities. As a result, governments are placing growing emphasis on domestic capability, resilient supply chains and enabling infrastructure.

Error handling is one of the main commercial gating factors in quantum computing. If the technology is to realise its full commercial potential, errors must be suppressed, mitigated, or corrected enough for systems to perform long, useful computations consistently.

Here, timelines remains uncertain, and much work is still required. Large-scale, fault-tolerant machines still appear to be some years away.

Recent progress has been significant, however. Perhaps most notably, Google’s Willow chip has demonstrated notable improvements in both performance and error correction. In addition, Q-CTRL, Nvidia and Oxford Quantum Circuits have together made some progress in overcoming computational bottlenecks in error suppression.

Public investment in quantum technologies is rising as governments treat the field increasingly as a matter of strategic importance, and seek to increase their respective nations' shares of the burgeoning market.

Announced public investment in quantum from more than 30 countries has surpassed $40bn and is expected to keep rising over the coming decade. In 2024 alone, governments announced $1.8bn of new funding across quantum technologies, according to McKinsey. One notable example was Australia’s support package of around $620m for PsiQuantum’s planned fault-tolerant quantum computing project in Brisbane.

Governments are not only funding research and development, but also seeking to strengthen industrial competitiveness, encourage technology adoption and help firms through early experimentation and commercialisation. More than 18 OECD countries now have formal quantum strategies, and the European Commission has also launched a major strategy framework.

There continues to be significant technological diversity and uncertainty in the quantum field.

No single hardware platform has yet emerged as a clear 'winner', and quantum computing, communication and sensing are all developing along multiple technical routes.

In quantum computing, for example, superconducting systems currently lead commercially, but trapped ions, photonics, neutral atoms and electron-spin approaches are also advancing. Each approach has its own set of advantages and limitations. Industry actors such as those interviewed by Omdia in 2025 expect no near-term convergence on a single approach; instead, several qubit modalities are likely to coexist, each suited to different tasks, workloads and operating environments. Diversity also extends beyond hardware into software design, where multiple architectures are developing in parallel.

A similar situation exists in quantum sensing. Photons and neutral atoms are among the most prominent commercial approaches, but suppliers are also pursuing modalities including solid-state spins, superconducting circuits and trapped ions.

Regulation around quantum technologies remains nascent. Because many applications are still at an early stage, policymakers have generally been cautious about imposing heavy formal regulation. The UK's Regulatory Horizons Council stated in 2024 that it was "too early to jump to legally based regulation given the nascency of many quantum technologies".

At the same time, there is growing recognition that early regulatory discussion is essential, both to facilitate long-term business planning, and to ensure that the risks associated with quantum technologies are suitably mitigated as adoption grows.

Governments, regulators and standards bodies around the world are currently considering their next steps in this area. In the UK, for example, the Information Commissioner’s Office has been horizon-scanning, whilst the British Standards Institution is working internationally on standards development.

Going forward, the regulatory landscape may evolve on two parallel fronts: regulation of the technologies themselves, and the tweaking of existing regulations in key application areas (eg, financial trading).

Formal regulations are likely to be supplemented by advisory guidelines on best practice. The UK National Quantum Computing Centre’s Responsible Quantum Industry Forum, for instance, aims to "establish best practices towards responsible quantum".

The size and diversity of the global quantum technologies industry means that any list of notable players will not be fully representative or comprehensive – particularly as it contains both large, well-established companies and a plethora of much smaller start-ups.

That said, some examples of noteworthy players are set out below.

• IBM (US) – leading quantum company with a major role in hardware, software and ecosystem development.
• Google (US) – major quantum computing player focused on advancing the field through high-level research and development.
• Microsoft (US) – significant quantum player building software, cloud and development infrastructure for the sector.
• Amazon Web Services (US) – important industry enabler broadening access to quantum computing through the cloud.
• Infleqtion (US) – neutral-atom quantum company active in computing and sensing.
• IonQ (US) – public trapped-ion hardware company offering quantum systems through major cloud platforms.
• Quantinuum (US/UK) – one of the best-known integrated quantum companies, combining trapped-ion hardware with software capabilities.
• ORCA Computing (UK) – photonic quantum computing company focused on modular systems designed for data centre integration.
• Oxford Quantum Circuits (UK) – quantum computing company developing superconducting hardware and cloud-accessible systems.
• Q-CTRL (Australia) – quantum infrastructure company providing control software for quantum computing and sensing.
• D-Wave (Canada) – annealing and gate-model quantum computing systems specialist with an early commercial focus in optimisation.
• Xanadu (Canada) – photonic quantum computing company combining hardware development with a strong open-source software presence.
• QuantumCTek (China) – quantum technology company best known for quantum communications and security.
• planqc (Germany) – neutral-atom quantum computing company developing atom-based hardware.
• Toshiba (Japan) – significant player in quantum communications and security, focused on quantum key distribution and quantum-secure networks.
• ID Quantique (Switzerland) – quantum-safe security specialist best known for quantum key distribution and related network security products.

ICAEW’s Library & Information Service can provide information on UK and Irish participants in the quantum technologies industry via its wide range of company information services. For more information, please contact our enquiry team on +44 (0)20 7920 8620 or at library@icaew.com to discuss your requirements.

• European Quantum Industry Consortium (QuIC)
• EU Quantum Flagship
• Quantum Economic Development Consortium (QED-C)
• Quantum Industry Canada (QIC)
• techUK
• UKQuantum