Quantum Computing Industry Trends 2025 A Year Of Breakthrough

Bonisiwe Shabane

-Jan 2, 2026, 4:05 PM

quantum computing industry trends 2025 a year of breakthrough

When it comes to quantum technology (QT), investment is surging and breakthroughs are multiplying. The United Nations has designated 2025 the International Year of Quantum Science and Technology, celebrating 100 years since the initial development of quantum mechanics. Our research confirms that QT is gaining widespread traction worldwide. McKinsey’s fourth annual Quantum Technology Monitor covers last year’s breakthroughs, investment trends, and emerging opportunities in this fast-evolving landscape. In 2024, the QT industry saw a shift from growing quantum bits (qubits) to stabilizing qubits—and that marks a turning point. It signals to mission-critical industries that QT could soon become a safe and reliable component of their technology infrastructure.

To that end, this year’s report provides a special deep dive into the fast-growing market of quantum communication, which could unlock the security needed for widespread QT uptake. Quantum technology encompasses three subfields: Our new research shows that the three core pillars of QT—quantum computing, quantum communication, and quantum sensing—could together generate up to $97 billion in revenue worldwide by 2035. Quantum computing will capture the bulk of that revenue, growing from $4 billion in revenue in 2024 to as much as $72 billion in 2035 (see sidebar “What is quantum technology?”). While QT will affect many industries, the chemicals, life sciences, finance, and mobility industries will see the most growth. McKinsey initiated its annual quantum technology report in 2021 to track the rapidly evolving quantum technology landscape.

We analyze three principal areas of the field: quantum computing, quantum communication, and quantum sensing. The analysis is based on input from various sources, including publicly available data, expert interviews, and proprietary McKinsey analyses. The conclusions and estimations have been cross-checked across market databases and validated through investor reports, press releases, and expert input. Because not all deal values are publicly disclosed and databases are updated continuously, our research does not provide a definitive or exhaustive list of start-ups, funding activities, investment splits, or patents and publications. 2025.10.31 · Blog Quantum Industry Trends 2025 The quantum computing industry has reached an inflection point in 2025, transitioning from theoretical promise to tangible commercial reality.

What was once confined to research laboratories and expert discussions has evolved into a sector attracting billions in investment, government support, and corporate partnerships. This transformation reflects fundamental breakthroughs in hardware, software, error correction, and most importantly, the emergence of practical applications that demonstrate real-world quantum advantage. The financial landscape for quantum computing in 2025 reflects unprecedented investor confidence. The global quantum computing market reached USD 1.8 billion to USD 3.5 billion in 2025, with projections indicating growth to USD 5.3 billion by 2029 at a compound annual growth rate of 32.7 percent. More aggressive forecasts suggest the market could reach USD 20.2 billion by 2030, representing a 41.8 percent CAGR, positioning quantum computing as one of the fastest-growing technology sectors of the decade. Venture capital funding has surged dramatically, with over USD 2 billion invested in quantum startups during 2024, representing a 50 percent increase from 2023.

The first three quarters of 2025 alone witnessed USD 1.25 billion in quantum computing investments, more than doubling previous year figures. Major institutional players have signaled their commitment to the sector: JPMorgan Chase announced a USD 10 billion investment initiative specifically naming quantum computing as a strategic technology, while governments worldwide have invested USD 3.1... Perhaps the most significant development in 2025 has been the dramatic progress in quantum error correction, addressing what many considered the fundamental barrier to practical quantum computing. Google's Willow quantum chip, featuring 105 superconducting qubits, achieved a critical milestone by demonstrating exponential error reduction as qubit counts increased—a phenomenon known as going "below threshold." The Willow chip completed a benchmark calculation... Credit: Bartlomiej K. Wroblewski / Shutterstock

The “Quantum Index Report” is a comprehensive assessment of the technology and the global landscape, from patents to the quantum workforce. Quantum computing is evolving into a tangible technology that holds significant business and commercial promise, although the exact timing of when it will impact those areas remains unclear, according to a new report led... The “Quantum Index Report 2025” charts the technology’s momentum, with a comprehensive, data-driven assessment of the state of quantum technologies. The inaugural report aims to make quantum computing and networking technologies more accessible to entrepreneurs, investors, teachers, and business decision makers — all of whom will play a critical role in how quantum computing... Quantum computing is no longer a distant promise—it’s making tangible waves across industries in 2025. As the technology matures, companies, governments, and research institutions are shifting from theory to action, deploying quantum solutions that tackle some of the world’s most complex challenges.

Here’s how the quantum surge is reshaping sectors, with real-world examples and sources to back it up. The integration of quantum processors with classical high-performance computing (HPC) is unlocking new frontiers in optimization, simulation, and machine learning. This hybrid approach is now a commercial reality, not just a research aspiration. Oak Ridge National Laboratory (ORNL) and Quantum Brilliance partnered in 2024 to advance hybrid quantum-classical computing, leveraging diamond-based quantum accelerators alongside traditional supercomputers. This collaboration aims to boost performance for scientific simulations and industrial optimization, marking a pivotal shift from lab prototypes to operational deployments (The Quantum Insider). Error correction remains the linchpin for scaling quantum computers.

In 2025, more organizations are experimenting with logical qubits and advanced error correction schemes, moving quantum systems closer to fault tolerance. IBM’s 1,121-qubit “Condor” processor, launched in late 2024, incorporates advanced error correction protocols, enabling longer and more complex computations. This breakthrough is already being used by research partners in chemistry and materials science to simulate molecular interactions previously out of reach (Moody’s). Quantum technology in 2025 transitioned from research to practical industry applications, driving measurable business value. Hybrid quantum-classical solutions, quantum sensing, and quantum-safe cryptography are enabling domain-specific, real-world optimizations. Investment and enterprise adoption surged, signaling 2025 as a turning point for commercial quantum technology.

What was once a niche scientific curiosity is now delivering measurable value. In 2025, quantum technology made a leap from lab benches to industry boardrooms and production lines. Companies report quantum-inspired gains in telecom networks, logistics optimization, AI-hybrid systems, and sensing technologies. With major players aligning hardware roadmaps, enterprise pilots scaling up, and investment flooding the ecosystem, this year has undoubtedly earned the label of the ‘real-world quantum’ inflection point. Welcome to our look back at some of the most impactful quantum technology stories of 2025. This year marked a period of significant advancement, moving beyond theoretical breakthroughs toward demonstrable progress in building practical quantum systems.

From record-breaking qubit fidelity and expanding qubit counts to innovative approaches in error correction and the burgeoning integration of quantum and classical computing, the landscape of quantum technology continued to rapidly evolve. 2025 will be remembered as a pivotal year where the foundational elements of quantum computing began to coalesce, hinting at the transformative potential that lies ahead. These stories represent not just scientific achievements, but concrete steps towards a future where quantum technology reshapes industries and unlocks solutions to previously intractable problems. Researchers at IonQ, led by Dr. Chris Monroe and Nobel Laureate Dr. David Wineland, demonstrated the first experimental quantum logic gate using trapped ions in 1995 at NIST, transitioning quantum computing from theory to tangible hardware.

This foundational experiment, with the physics still relevant today, enabled IonQ to prioritize engineering, scaling, and ultimately become the first public pure-play quantum computing company. In the quest for error correction, entagledfuture.com on conjunction wuth Quantum Zeitgeist have launched a logical qubit tracker. Expect regular updates on the milestones being hit in the quest for fault tolerant quantum computing. Researchers at IBM Quantum have demonstrated the first successful learning experiment of a Lindblad model—a crucial step for understanding and mitigating errors—on a 156-qubit superconducting quantum processor. Their new method analyzes time-series data to map errors and enable more accurate control, utilizing a robust curve-fitting procedure and a specialized solver to ensure a physically valid and scalable model. 2025 has been a milestone year for quantum computing, marked by record-breaking experiments and technological firsts.

Researchers unveiled the first topological quantum processor – an 8-qubit device using exotic Majorana particles for inherently stable qubits Sciencedaily Sciencedaily. In another leap, D-Wave’s annealing computer solved a complex magnetic simulation in minutes – a task so complex it would take a classical supercomputer essentially millions of years Dwavequantum. “Our achievement shows we can solve problems beyond the reach of the world’s most powerful supercomputers,” said D-Wave CEO Alan Baratz of this result Dwavequantum. Late 2024 set the stage for these advances: Google debuted its 105-qubit “Willow” superconducting chip with unprecedented error-correction performance Mckinsey, and IBM crossed the 1,000-qubit milestone with its Condor processor Notebookcheck. Such achievements reflect what one report calls a shift “from development to deployment”, as quantum hardware becomes more powerful and reliable Mckinsey. Multiple quantum technologies are progressing in parallel.

The leading approach, superconducting qubits (IBM, Google, etc.), has already scaled into the hundreds of qubits on a single chip. Trapped-ion qubits (IonQ, Quantinuum) offer the highest gate fidelities – IonQ recently surpassed 99.9% two-qubit fidelity on a prototype system Quantumcomputingreport – though operations are slower. Quantum annealing (pioneered by D-Wave) uses thousands of qubits for optimization problems; D-Wave’s Advantage machine with 5,000+ qubits has shown a clear speedup for certain tasks Dwavequantum. Photonic quantum computers (PsiQuantum, Xanadu) encode qubits in photons traveling through optical circuits; a 2025 breakthrough achieved ultra-low-loss photonic chips, a key step for scaling up optical qubits Phys. Other approaches, like neutral atoms (Pasqal, QuEra) and topological qubits(Microsoft’s focus), are also making progress. This “quantum zoo” of technologies Phys indicates a healthy, multi-pronged drive toward the same goal: more qubits with less error.

Quantum computing is beginning to show real use cases across industries: Governments worldwide consider quantum technology a strategic priority and have escalated investments: Significant challenges remain on the path to large-scale quantum computing. The foremost issue is error correction: today’s qubits are highly error-prone and lose coherence quickly. Reaching fault-tolerance will require implementing quantum error-correcting codes that use many physical qubits to create one reliable logical qubit. This demands qubit counts in the thousands (or more) and error rates far below current levels.

Steady progress is being made – for instance, researchers have shown that bigger quantum error-correcting codes can suppress error rates Thequantuminsider – but truly error-corrected, long computations are not yet possible. Quantum computing hogged the headlines in 2025 and it was ok to say it was the year of quantum--or maybe qubits--after just a few months. The quantum computing developments were flying, but it's worth noting that we're years away from big commercial adoption. Nevertheless, CxOs need to get ready. After all, the boardroom is getting tired of AI. The AI trade lost steam.

Boardrooms are going to start asking about your quantum computing plans in 3, 2, 1. Why was 2025 the year of quantum? For starters, there was a new development almost weekly. Pure play quantum stocks were hot. Hyperscale cloud players were deadly serious about quantum, with AWS, Microsoft Azure and Google Cloud all running credible efforts. Quantinuum threaded the needle between AI and quantum computing.

IBM scaled aggressively. And real use cases emerged as companies like IonQ cited projects with DARPA, AstraZeneca, and others. One thing worth noting here is that 2025 became the year of quantum readiness and development rather than deployment. That said, CxOs need to start thinking about quantum. Constellation Research analyst Holger Mueller broke down how you should be thinking about the year of quantum.

Quantum Computing Industry Trends 2025 A Year Of Breakthrough

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