Quantum Technology Monitor 2025: The Year of Quantum Transition

Overview of Quantum Technology Growth

Publication Date: June 23, 2025
Authors: Henning Soller, Martina Gschwendtner, Sara Shabani, Waldemar Svejstrup

The latest installment of McKinsey’s annual Quantum Technology Monitor reveals that as investments surge and innovations accelerate, the quantum technology market is poised for explosive growth, potentially reaching $100 billion by 2035. The year 2025 has been recognized by the United Nations as the International Year of Quantum Science and Technology, marking a century since the inception of quantum mechanics. This year’s report underscores the significant advancements in quantum technology (QT) over the past year and forecasts a robust trajectory for the sector.

Investment Trends and Market Projections

McKinsey’s extensive research indicates that the quantum technology industry is witnessing a pivotal moment as it transitions from theoretical concepts to practical applications. Key findings from the report suggest that the three main areas of quantum technology—quantum computing, quantum communication, and quantum sensing—are expected to generate revenues of up to $97 billion globally by 2035. – Quantum Computing is projected to dominate this revenue, potentially increasing from $4 billion in 2024 to as much as $72 billion by 2035.

• Quantum Communication, which facilitates secure transmission of quantum information, is estimated to generate revenues between $11 billion and $15 billion.
• Quantum Sensing, representing a new class of highly sensitive sensors, is expected to contribute $7 billion to $10 billion.

Looking further ahead, the total market for quantum technology could swell to $198 billion by 2040, reflecting rapid advancements in technology and increasing adoption across various industries, especially in chemicals, life sciences, finance, and mobility.

Rising Investments in Quantum Startups

Investment in quantum startups has grown significantly, with nearly $2 billion injected into the sector in 2024, marking a 50% increase from the previous year. Notably, public funding surged, accounting for 34% of total investments, indicating increased governmental interest in the potential of quantum technologies. Major initiatives included a $620 million financial commitment from the Australian government to PsiQuantum for developing a fault-tolerant quantum computer, alongside Illinois’ $500 million investment in a quantum park.

Investment landscapes are shifting, with late-stage startups like PsiQuantum and Quantinuum attracting substantial funding, suggesting a growing investor confidence in mature enterprises within the quantum sector.

Moreover, new startups focused on hardware, software, and components are emerging in “innovation clusters” where collaboration between startups, academic institutions, and research centers is common. Noteworthy global hubs include regions in Asia, such as Abu Dhabi, Tel Aviv, and Tokyo, as well as emergent clusters in the United States.

Breakthrough Innovations

The report highlights a shift in the quantum technology narrative from development to deployment, with industry players focusing on creating safer and more efficient quantum systems. Major technology firms including Amazon, Google, IBM, and Microsoft continue to set the pace in quantum innovation, yielding significant advancements primarily in error corrections and qubit performance.

One remarkable breakthrough comes from Google’s Willow chip, which features 105 physical qubits and demonstrates considerable reductions in error rates, allowing complex calculations to be completed exponentially faster than traditional supercomputers.

Startups are also innovating in quantum control solutions, addressing the debugging and operation challenges faced in quantum computing. This includes collaborations, such as the partnership between Q-CTRL and Nvidia, aimed at resolving computational bottlenecks associated with error suppression.

Conclusion

As the quantum technology landscape evolves, investments are surging and innovations are multiplying, paving the way for what McKinsey describes as a new era in technology. The fourth annual report showcases the immense potential of quantum technology to reshape various industries and underscores the commitment of both private and public sectors to drive this revolutionary technology forward. As we approach the official recognition of 2025 as the International Year of Quantum Science and Technology, the groundwork laid today sets the stage for unprecedented advancements and opportunities in the coming years.