The quantum revolution

Quantum computing is the use of quantum mechanics to store and process information millions of times faster than a classical computer. This technology has the potential to revolutionize various industries in the form of collaborations and investments. Large enterprises and major governments have also shown interest in exploring use cases across industries and understanding national security implications.

On a technical note, quantum computing leverages quantum bits (qubits) that exploit the principles of superposition, entanglement, and quantum interference. The tech may be complicated to break down but the outcome is simple—these principles enable quantum computers to perform vast parallel computations, addressing problems that would take classical computers millennia to solve. To learn more about the tech, visit SPEEDA Edge’s Quantum Computing industry hub.

In 2025, quantum technology has evolved well beyond just a scientific curiosity. According to McKinsey, it is projected to generate up to USD 97 billion in revenue by 2035, with computing itself poised to account for USD 72 billion of that, growing from USD 4 billion last year.​

McKinsey also estimated that the total quantum communication market size would rise from USD 1.2 billion in 2024 to USD 10.5 billion–14.9 billion by 2035. This is mostly as a result of the several major industries focusing on getting in on the ground floor of the tech, with serious quantum computing investment and acquisitions building momentum.

The signs have been there. In fact, SPEEDA Edge ranked quantum computing as one of the top five technologies to disrupt 2025 in its State of Innovation 2024 report.

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The quantum industry today

2024-2025 marked the arrival of quantum technology into the mainstream, with quantum computing investments topping USD 2 billion in 2024—50% more than the previous year. This momentum continued into 2025 with record-breaking funding rounds and investor focus shifting from theoretical R&D to scalable commercial solutions.​

The rise of quantum computing tech is expected to be driven by advances in hardware, specialized algorithms, and practical deployments in multiple sectors.​ Meanwhile, more than 76 major players now drive the ecosystem, ranging from deep-tech startups to industry giants like IBM, Google, Microsoft, Honeywell, and Amazon.​

Mission-critical sectors, like finance, chemicals, life sciences, logistics, and energy, are now piloting quantum solutions for optimization, simulation, cryptography, and AI, laying the groundwork for future commercial scale.​

In 2024, private and public investors channeled nearly USD 2 billion into quantum computing startups worldwide. Of this, about USD 1.3 billion came from the private sector, mainly venture capital and private equity, while public funding surged to USD 680 million, reflecting an urgent push from governments to gain quantum leadership.​

The funding war between quantum rivals intensified in 2025, with major players committing serious funds to further their quantum agendas. Major corporate and government investments included

• Quantinuum’s USD 600 million in funding in September from new investors, including Quanta Computer and NVentures, as well as existing investors such as JPMorgan Chase and Honeywell
• IonQ raising USD 2 billion in an equity offering led by Heights Capital Management, which followed a USD 36.7 million investment from Amazon
• PsiQuantum’s USD 1 billion Series E funding round led by BlackRock
• Norway’s five-year USD 100 million investment in quantum technology
• California Governor Gavin Newsom’s announcement of USD 4 million in new state funding for quantum research and innovation as part of the state's 2025-26 budget

The landscape now features late-stage quantum computing startups like PsiQuantum and Quantinuum, which collectively attracted half of all quantum investments in 2024. At the same time, early-stage funding is tilting toward startups focused on components, equipment, and application-layer software.​

2025 was also a watershed year for quantum M&A activity. IonQ, a public quantum computing company, has been busy in this regard, making several high-profile acquisitions including ​Lightsynq, Capella Space, ID Quantique, and Vector Atomic. It also acquired Oxford Ionics in the sector’s largest deal, worth over USD 1 billion.

In other significant recent deals, Google Quantum AI acquired Atlantic Quantum, an MIT-founded startup developing superconducting quantum hardware, for an undisclosed sum, while neutral-atom quantum computing company Pasqal acquired Canadian firm AEPONYX to strenghten its quantum computing platform.

Meanwhile, Horizon Quantum Computing, a Singapore-based quantum software developer, entered into a definitive business combination agreement with dMY Squared Technology Group, which valued Horizon at approximately USD 503 million.

This trend reflects both industry consolidation and the strategic integration of complementary hardware, software, and communication/cryptography capabilities. Investors are now starting to see their first real exit opportunities in the sector, while leading tech funds are increasing their exposure to these deals.​

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Key quantum computing trends in 2025

A renewed focus on quantum hardware has emerged as one of the most significant trends in the industry this year, propelled by high-profile breakthroughs in quantum error correction and scalable chip architectures. While software remains crucial, hardware investments accounted for most of the funding rounds in the first half of 2025, given that robust, scalable quantum processors are essential for achieving fault-tolerant, commercially viable quantum computing.​ Leading technology firms like NVIDIA, Intel, Microsoft, and Amazon are making substantial direct investments, as are new pure-play public companies.​

Quantum startups are also increasingly being birthed in what are known as innovation “clusters” or “quantum valleys.” These hubs, set up in collaboration with regional and national authorities, bring accelerators, academic and research institutions, and investors together. They have become hotbeds for talent recruitment and industry-academia collaborations, with some of the more prominent clusters emerging in Abu Dhabi, Tel Aviv, and the US (Illinois, Maryland).

The approaches to qubit design and implementation has also diversified in the current quantum ecosystem, with no single architecture becoming the most dominant. These approaches include

• Superconducting qubits: Favored by IBM and US startups like Qolab​
• Photonics: Used by Boson Quantum Technology (backed by BOE Technology) to scale quantum processors​
• Trapped ions and neutral atoms: Employed by IonQ, Oxford Ionics, QuEra (with support from Google and SoftBank), and OQT of South Korea​

Meanwhile, quantum software, although currently less capitalized than hardware, is also experiencing growth. The key areas of this development include​

• Quantum algorithm optimization
• Custom programming languages and toolchains
• Quantum-enhanced AI and machine learning applications
• Quantum-computing-as-a-service (QCaaS), which makes quantum resources widely accessible via the cloud

Breakthroughs in quantum networking and secure communication have also driven new investments, especially as the first acquisitions that combine quantum computing and communication come to market. Innovations such as quantum sensors are also gaining ground in sectors like healthcare and defense thanks to their speed and precision in measuring electromagnetic fields, gravity, and time.​

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What lies ahead?

Despite hype about a “quantum leap,” the road to fault-tolerant, large-scale quantum computers is still marked by technical challenges in error correction, qubit stability, hardware scaling, and algorithmic innovation. Over half the projected market value for quantum is still tied to quantum machine learning, much of which is still theoretical. However, the speed of advancement, ecosystem expansion, and capital infusion has propelled quantum from theory to inevitability, with milestone commercial deployments already underway in several crucial sectors.​

Quantum investors and adopters are likely to focus on partnerships between hardware and software companies to accelerate practical applications and engage in continued M&A and consolidation as the sector matures.

Government policies and national investments, including new export controls, funding programs, and research initiatives, will also be crucial, setting the pace for global competition in the quantum era.

Given the complexity of the technology and the sector, having access to more in-depth intelligence, comprehensive market reports, and technology analysis can be pivotal. By tracking investment trends, technology segments, and the pioneering companies shaping the future, organizations can strategically position themselves to benefit from the next wave of quantum-driven transformation.

Be sure to check out the SPEEDA Edge resources page to discover actionable intelligence that will shape your quantum strategy for 2025 and beyond. You can also request a personalized demo to preview the latest insights, industry trends, and leading quantum computing companies in our coverage to stay ahead in this rapidly shifting sector.