Quantum Technology Market Forecasts to 2032 – Global Analysis By Component Type (Hardware, Software and Services), Investment Type, Technology Type, Application, End User and By Geography

According to Stratistics MRC, the Global Quantum Technology Market is accounted for $1629.0 million in 2025 and is expected to reach $6938.3 million by 2032 growing at a CAGR of 23.0% during the forecast period. Quantum technology is a set of advanced technologies based on the principles of quantum mechanics, the fundamental theory of nature at the smallest scales of energy levels of atoms and subatomic particles. It involves harnessing quantum phenomena like superposition, entanglement, and quantum tunneling to develop groundbreaking applications in fields such as computing, cryptography, sensing, and communications. Quantum technologies aim to solve complex problems beyond the capability of classical technologies, offering enhanced performance in areas like data processing, secure communication, and precise measurement, thus driving innovation across industries.

Market Dynamics:

Driver:

Rising demand for enhanced computational power

The rising demand for enhanced computational power in the market is driven by the need to solve complex problems that classical computers cannot handle. Industries such as pharmaceuticals, materials science, and cybersecurity require faster and more powerful computing capabilities for tasks like drug discovery, optimization, and encryption. As quantum technologies evolve, the demand for high-performance quantum computers capable of processing vast amounts of data is expected to grow significantly.

Restraint:

Qubit instability and error correction

Qubit instability and the need for effective error correction are major challenges in the market. Qubits are highly susceptible to noise, environmental disturbances, and decoherence, leading to errors in quantum computations. Developing robust error-correction techniques is crucial for ensuring reliable performance in quantum computers. As the industry progresses, overcoming these challenges is key to unlocking the full potential of quantum technology for complex, real-world applications.

Opportunity:

Advancements in quantum communication infrastructure

Advancements in quantum communication infrastructure are transforming the market by enabling ultra-secure data transmission. Innovations in quantum key distribution (QKD) and entanglement-based communication protocols are paving the way for secure networks resistant to eavesdropping. These advancements are crucial for industries such as banking, defense, and healthcare, where data security is paramount. As infrastructure improves, the widespread adoption of quantum communication systems is expected to enhance global cybersecurity and privacy.

Threat:

Lack of standardization

The lack of standardization in the market hinders interoperability and slows progress. Without established protocols and uniform guidelines, different quantum systems may struggle to communicate or integrate, limiting collaboration across companies and research institutions. This fragmentation can lead to inefficiencies, increased costs, and slower adoption of quantum technologies. Standardization is essential for ensuring compatibility, accelerating innovation, and enabling broader application across industries.

Covid-19 Impact:

The COVID-19 pandemic disrupted the market by delaying research projects, slowing down supply chains, and diverting resources away from quantum development towards more immediate public health concerns. However, it also highlighted the importance of advanced technologies, including quantum computing and communications, in addressing global challenges. As a result, post-pandemic recovery has seen renewed interest and investment in quantum research, accelerating long-term innovation and applications in the field.

The quantum simulation segment is expected to be the largest during the forecast period

The quantum simulation segment is expected to account for the largest market share during the forecast period. It has applications in fields like material science, chemistry, and drug discovery. By simulating quantum phenomena, these systems can provide insights into molecular interactions and material properties at an unprecedented level of precision. This capability is expected to revolutionize industries by enabling faster, more accurate simulations for advanced research and development.

The aerospace & defense segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the aerospace & defense segment is predicted to witness the highest growth rate. Quantum encryption can provide unbreakable security for sensitive data transmission, while quantum sensors enhance precision in GPS-denied environments. Additionally, quantum computing has the potential to revolutionize simulations for aerospace design and defense strategy. As these technologies mature, they promise to significantly improve operational capabilities, security, and decision-making in aerospace and defense applications.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share. These nations are focusing on advancing quantum computing, communication, and cryptography, with government-backed initiatives and collaborations between academia and industry. The region is emerging as a global hub for quantum research, with applications in telecommunications, cybersecurity, and manufacturing, positioning itself as a key player in the global quantum technology landscape.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR. Collaborations between governments, research organizations, and private companies ensure the development of infrastructure and long-term projects in quantum computing, communication, and sensing. Additionally, the race for global leadership in quantum technologies, particularly with China making significant strides, has prompted governments and companies to ramp up their investments to stay competitive.

Key players in the market

Some of the key players in Quantum Technology Market include IBM, Toshiba Quantum Computing, Google, Photonic Systems Inc, Microsoft, Qutech, Honeywell, Alibaba Group, Intel, Amazon Web Services, Rigetti Computing, Bosch Quantum Sensing, Xanadu, Cambridge Quantum Computing and Zapata Computing.

Key Developments:

In November 2024, IBM announced quantum hardware and software advancements to execute complex algorithms on IBM quantum computers with record levels of scale, speed, and accuracy. IBM Quantum Heron, the company's most performant quantum processor to-date and available in IBM's global quantum data centers, can now leverage Qiskit to accurately run certain classes of quantum circuits with up to 5,000 two-qubit gate operations..

In April 2024, Toshiba Digital Solutions Corporation has announced partnership with KT Corporation (KT), has demonstrated how banks and financial networks can be protected from cyberattacks by quantum computers by bringing hybrid quantum secure communications, comprising quantum key distribution (QKD)*1 and post-quantum cryptography (PQC)*2, to secure communications at Shinhan Bank, one of South Korea’s leading banks.

Component Types Covered:
• Hardware
• Software
• Services

Investment Types Covered:
• Private Investment
• Public Investment
• Collaborative Investments

Technology Types Covered:
• Quantum Computing
• Quantum Communication
• Quantum Sensing & Metrology
• Quantum Simulation
• Other Technology Types

Applications Covered:
• Optimization Problems
• Quantum Key Distribution (QKD)
• Temperature & Pressure Sensing
• Energy Efficiency
• Molecular & Chemical Simulations
• Smart Grid Optimization
• Other Applications

End Users Covered:
• Pharmaceuticals
• Aerospace & Defense
• Telecommunications
• Automotive
• Energy
• Financial Services
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements