The total quantum market will grow from US$954 million in 2024 to US$17.4 billion in 2035, with a 32% CAGR during the period. Beyond 2028, Yole Group expects that quantum computing will dominate. Indeed, the quantum computing market segment will total US$3.74 billion in 2035, including both hardware and service applications. QaaS (1) will have the major share, with most services running on quantum computers in the cloud. QaaS will grow much faster than QC (2) hardware (computers). For quantum communication, QKD (3) 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.
Eric MounierChief Analyst, Photonics & Sensing at Yole Group
Quantum computing holds promise for industry and healthcare, while quantum cryptography could revolutionize encryption, influencing state sovereignty by securing sensitive communications. In sensing, quantum technology is a real but niche market.
The quantum supply chain includes government-funded fundamental research and substantial investments from major IT firms such as IBM, Google, and Microsoft. 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.
This year again, the market research and strategy consulting company Yole Group is releasing its annual report, Quantum Technologies 2025. In addition to updated market forecast values based on bottom-up analysis, Yole Group’s experts provide an analysis of new business models, including Q HW (4), QaaS, Q SaaS (5), Q cybersecurity, Q IaaS (6), and Q sensing, with dedicated forecasts. Analysts also detail the roadmap for qubits, both physical and logical, by player in this 2025 edition. A specific section has also been developed to reveal insights on quantum and AI and quantum and 6G. This 2025 edition describes the quantum technology landscape with an accurate analysis of the supply chain, the technologies, and fundings. The Chinese ecosystem is also part of this 2025 report.
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.
Eric Mounierfrom Yole Group
Consequently, 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. 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. As companies shift from private financing to IPOs, their success remains uncertain due to the long commercialization timelines.
