Quantum Computing - Part VI: Business, Investment, and Economic Impact

Author

Anna Eisenberg
March 15, 2025

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The Global Quantum Race & National Strategies

Governments worldwide are investing heavily in quantum computing, aiming to secure leadership in technology, security, and industry. China leads with over $15 billion in funding, far exceeding the $1.275 billion allocated by the U.S. under the National Quantum Initiative. 

The European Union, the UK, and India are also advancing their national quantum strategies, focusing on research, commercialization, and industry adoption.

China has made major breakthroughs in quantum communication, operating a 1,200-mile quantum key distribution network and developing the Zuchongzhi-3 processor, which is reported to be one quadrillion times faster than leading supercomputers. 

The U.S. leads in qubit quality and quantum patents, with Google’s Sycamore processor and IBM’s roadmap for a 100,000-qubit system keeping it at the forefront of the field.

Europe is taking a coordinated approach, with the EU investing €1 billion in quantum technologies and the UK committing £1 billion to research and commercial applications. Germany is fostering a strong quantum startup ecosystem, while Saudi Arabia, under its Vision 2030 plan, aims to deploy its first quantum computer by 2024. 

India is rapidly expanding its quantum efforts, integrating quantum technology into research, education, and industry. Brazil has launched a five-year initiative focusing on applications in agriculture, healthcare, and communications, while Australia expects quantum technologies to generate $6.1 billion annually by 2045.

The U.S. and its allies have placed restrictions on quantum technology exports to China to maintain their lead, while China is aggressively developing domestic innovation to reduce reliance on foreign technology. 

Over 50 countries have now adopted national quantum strategies, recognizing the long-term impact quantum computing will have on defense, cybersecurity, and economic growth. 

Industry Leaders and Startups

IBM is at the forefront of quantum computing, with its 1,121-qubit Condor processor currently the world’s largest. The company plans to scale up to 100,000 qubits by 2033 and is expanding access to quantum computing through its cloud-based Quantum System Two. 

Google is aggressively pushing quantum supremacy, with its Sycamore processor having performed a computation in 200 seconds that would take classical supercomputers 10,000 years. The company is focused on improving quantum error correction and scaling qubits, aiming to build a practical quantum computer by 2029.

IonQ is taking a different approach by specializing in trapped-ion quantum computers, which offer longer coherence times and lower error rates compared to superconducting qubits. Its cloud-based quantum systems are available on Amazon Braket, Microsoft Azure, and Google Cloud, with a goal of achieving 1,000 logical qubits by 2028.

Rigetti Computing is focused on hybrid quantum-classical computing and is developing an 84-qubit system while improving quantum error correction, with partnerships spanning government and aerospace industries. 

D-Wave Systems is pursuing a distinct strategy by specializing in quantum annealing, which is well-suited for optimization problems. Its Advantage2 system features over 7,000 qubits and is being used by companies like Volkswagen and Lockheed Martin to improve logistics and AI models.

Startups are also shaping the industry. Quantinuum, formed from the merger of Honeywell Quantum Solutions and Cambridge Quantum, is developing quantum software and algorithms. 

PsiQuantum is working on a million-qubit photonic quantum computer, while Planqc, a Munich-based startup, recently raised €50 million to advance atomic qubit technology. Governments and venture capital firms continue to back these companies, with initiatives like the Netherlands’ Infinity program and Hitachi’s $400 million quantum technology fund supporting quantum startups.

While private investment in quantum startups dipped by 27% in 2023, public sector funding remains strong. As quantum computing advances, competition between established industry leaders and emerging startups will shape the future of quantum commercialization.

Quantum computing investments are accelerating, with global funding reaching $49 billion in 2024 and projected to exceed $200 billion by 2030. The quantum computing market, valued at $1.02 billion in 2024, is expected to grow to $6.95 billion by 2032, with a compound annual growth rate of 27.04%. 

The Defiance Quantum ETF (NASDAQ: QTUM) saw a 48.26% gain by early 2025, reflecting strong investor interest. Quantum startups collectively raised $1.7 billion in 2023, with investors focusing on scalable qubit architectures, quantum error correction, and software development. 

Companies are investing in quantum-safe cybersecurity, with 67% of quantum hardware firms now prioritizing quantum error correction technologies, a key factor for commercial viability.

Economic forecasts suggest that quantum computing could generate between $450 billion and $850 billion in economic value by 2040. Industries such as finance, pharmaceuticals, and cybersecurity are expected to drive the largest gains. 

The quantum communication market, valued at $0.74 billion in 2024, is projected to grow to $5.54 billion by 2030, with a CAGR of 39.6%. The quantum drug discovery market, currently worth $400 million, is expected to triple to $1.2 billion by 2032.

The U.S. Department of Energy has launched a $65 million initiative to advance quantum algorithms and software. Canada has invested CA$74 million ($52 million) in quantum projects spanning agriculture, cybersecurity, and healthcare. 

China continues to lead in quantum communication and quantum networks, while the U.S. maintains leadership in qubit quality and computational efficiency.

The quantum workforce is also expanding. Jobs in quantum technology are projected to grow from 5,100 in 2023 to 126,100 by 2045, as companies and research institutions train new specialists.

Australia expects its quantum industry to generate $6.1 billion annually by 2045, creating 35,000 new jobs. However, a shortage of skilled talent remains a major challenge, prompting universities and governments to increase funding for quantum education programs.

Table of Contents

(Click on any section to start reading it)

  • What is Quantum Computing?

  • Why Quantum? The Promise and the Hype

  • Setting the Stage

  • Quantum Basics: Qubits, Superposition & Entanglement

  • The Mathematics Behind Quantum States

  • Decoherence, Noise, and Quantum Error Correction

  • Early Theories & Foundational Experiments

  • Breakthrough Algorithms: Shor, Grover & Beyond

  • Milestones and the Quest for Quantum Supremacy

  • Superconducting Qubits

  • Trapped Ion Systems

  • Photonic, Neutral Atom, and Emerging Qubit Technologies

  • Engineering Challenges: Scalability, Stability, and Environment

  • Landmark Quantum Algorithms and Their Impacts

  • Hybrid Quantum-Classical Computing Models

  • Programming Frameworks & Software Tools (Qiskit, Cirq, etc.)

  • The Global Quantum Race & National Strategies

  • Industry Leaders and Startups: IBM, Google, IonQ, Rigetti, etc.

  • Market Trends, Investment Outlook, and Economic Forecasts

  • Quantum Cryptography and the Future of Data Security

  • Societal Implications: Healthcare, Environment & Beyond

  • Regulatory Frameworks and International Collaboration

  • Ethical Debates: Access, Governance, and Disruption

  • Quantum Simulation in Chemistry and Materials Science

  • Optimization in Logistics, Finance, and AI

  • Quantum Communication Networks and Cybersecurity

  • Government and Public Sector Initiatives

  • Roadmaps Toward Scalable, Fault-Tolerant Quantum Computers

  • New Algorithms and Quantum-Enhanced AI

  • Integration with Classical Infrastructure and Cloud Services

  • Research Gaps and Open Challenges

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Baked with love,

Anna Eisenberg ❤️