Quantum Computing Growth in Datacenter

The market for quantum computing, communications, and sensing technology was valued at US$954 million in 2024 and is projected to grow by approximately 15 percent to reach around US$1.1 billion in 2025, as reported by Yole. While quantum sensing systems and hardware currently dominate the market, the analyst predicts that quantum computing and software services will experience faster growth rates, eventually taking the lead in the market.

Over the period from 2024 to 2035, the quantum market is expected to expand at a compound annual growth rate of 32 percent, with quantum hardware accounting for only about 11 percent of the market by 2035. Yole highlights the potential of quantum computing in addressing complex problems in various sectors such as industry, healthcare, and cryptography.

By 2030, the quantum hardware market is forecasted to reach US$740 million within an overall market valued at approximately US$4.49 billion, representing around 16.5 percent of the total market, according to Yole. Leading semiconductor companies like GlobalFoundries, TSMC, Intel, and X-Fab, as well as photonics firms including Ligentec and equipment manufacturers like Keysight and Oxford Instruments, are actively involved in laying the groundwork for quantum chip production and testing.

Challenges and Opportunities

Despite the progress, several challenges persist in the quantum technology landscape, such as qubit noise, coherence times, and error correction, which impact scalability and hinder the establishment of a standardized hardware-software interface. Yole anticipates that beyond 2028, quantum computing will emerge as the dominant force in the market, with a majority of services transitioning to quantum computers in the cloud.

It is estimated that global investments in quantum technologies have surpassed US$30 billion in public funding and over US$5 billion in private financing. The majority of this investment, approximately 75 percent, has been directed towards quantum computing hardware, with the remaining funds allocated to the development of quantum systems and software. This substantial investment underscores the growing importance and potential of quantum technologies in shaping the future of computing and communication.