December 2024

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A glimpse at the rapidly unfolding future of computation and communication

Quantum technologies

451 Research Special Report

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Introduction 4 Figure 1: Largest quantum processor (by physical qubit count) over time 4

The Take 5 Methodology 5

Key findings 6

The quantum computing landscape 7 Superconducting, ion trap and everyone else 7

Figure 2: Key quantum computing hardware methodologies 7

The scaling situation 8

Quantum advantage looms 8 Figure 3: Anticipated impact of quantum computing on businesses in the next three years 9

Challenges and opportunities 9

Quantum tech market complexity 10 Cloud, QCaaS, on-premises and hybrid 10

Quantum and AI 11

A lack of expertise 11

Quantum algorithms and matching pace 12

Industry collaboration and regulatory impact 12

Geographic differences 13 Figure 4: The quantum tech landscape varies across geographies 13

North America 13

Europe 14

Asia-Pacific 14

Table of contents

Quantum technologies: A glimpse at the rapidly unfolding future of computation and communication | 3

Table of contents

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Quantum computing use cases 14 Figure 5: Potential timeline for quantum advantage by industry 15

Quantum for simulating nature 15

Quantum for optimization 16

Quantum-safe, networks and the security lens 16 The role of quantum networks 17

Implications: Ongoing acceleration and a communication opportunity 18

About the authors 19

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Introduction The term “quantum technologies” encompasses a huge branch of technology, referring to any instance in which quantum mechanical properties are applied to advance other branches of technology including computation, communication and even sensing. While quantum technology has been developing for decades, the commercial market has remained elusive, with quantum historically viewed as a science-fictional, futuristic technology rather than one built for the actionable present.

However, the quantum sector has shifted dramatically in the past few years. Advancements in the physics and engineering expertise underpinning quantum systems have led to unprecedented breakthroughs in the useability of quantum tech, ushering in a new era coined by the industry as “the age of quantum utility.” Quantum processors have grown in size (see Figure 1), as well as in power, opening the doors of computational possibility.

Figure 1: Largest quantum processor (by physical qubit count) over time

Source: S&P Global Market Intelligence 451 Research, 2024.

Both public and private investment have increased over the last decade, spurring innovation, while utilities, governments and experts around the world have collaborated on quantum- enabled networks. This rapid advancement has also shed light on the potential security concerns of a quantum-enabled future, with industry advocates highlighting the need for change and new NIST standards introduced in September 2024 to address the need for quantum-safe operations.

2 5 50 72 127 433

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1995 2000 2005 2010 2015 2020 2025

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This tumultuous environment puts quantum technology providers in a unique position as they transition from pure research to commercialization. The path will be paved with partnerships, collaboration and a careful evaluation of the true business value of quantum technology. The journey will be different for every business, but speed will be a common theme: The next few years are poised to deliver markedly higher levels of quantum capability, accompanied by new understanding and application of the potential currently locked in the fields of computation and communication.

The Take While consumer interest in quantum technologies has risen along with recent announcements of progress from networking, compute and security providers, some potential quantum adopters remain unsure how to integrate quantum potential into their workflows. Holdouts often say they are waiting for an interchangeable, “black box” solution that they can plug into existing processes in their organization, but today’s quantum tech requires extensive training on new systems rather than operating as a “plug- and-play” solution. A simpler user experience would go a long way toward encouraging adoption and fit more neatly into existing business practices.

As quantum technology pushes into widespread commercialization, providers will need to shift their focus to the end consumer of the technology, identifying barriers to successful uptake and working to remove them. At the same time, end users will need to shift their perspective. Quantum computing and networking are not simply more powerful versions of the classical technologies we use today; they are fundamentally different in construction, capability and scope. Adopting them opens previously unexplored avenues of power and possibility, but doing so will require additional upskilling and a willingness to learn. Clear, consistent communication between quantum providers and adopters will be necessary, with both parties learning from one another to craft useful products out of technologies with enormous potential.

Methodology The viewpoints in this report were formulated after a series of in-depth interviews with quantum hardware, software and security providers; industry consortiums; and end users in specific industries, including energy and high-performance computing.

We then coupled the information gleaned from these interviews with our own analysis of market developments in the quantum technology space.

Overall, the project aims to determine the current state of the quantum technology market, understand how key stakeholders view the evolution of quantum tech and identify pain points for the industry moving forward.

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Key findings – Hybrid computation, combining classical and quantum computing processes, is gaining traction as the anticipated model for most quantum interaction over the next 10-20 years. To that end, research is ramping up regarding effective integration of classical and quantum systems, and announcements from players such as IonQ and Nvidia have begun to showcase the potential of hybrid systems.

– Interviewees believe financial services will see some of the first, big-ticket gains from quantum computing, though other industries continue to invest and prepare for more powerful hardware and software to emerge. Additional early-adopting industries include life sciences, energy and logistics.

– Post-quantum cryptography and quantum key distribution remain top of mind when discussing quantum and its potential evolution, while quantum networks have emerged as a potential method to manage security concerns.

– Interviewees note that, given the rapid advancement of quantum technology, preparation today is key. Widespread quantum adoption may come sooner than previously expected, and preparing now for quantum’s flashpoint moment will ensure that enterprises are well- positioned to use this transformative technology.

– Quantum computing is poised for transformative growth, with recent breakthroughs sparking widespread optimism and encouraging heightened competition among providers. Each advancement lifts the entire quantum technology landscape, fueling industrywide momentum and encouraging increased development in the years ahead.

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The quantum computing landscape The broad field of quantum technology encompasses everything from quantum computation to quantum communication, networking and even sensing technologies. Quantum computing is a cornerstone of this broader ecosystem, predicated on the premise that quantum mechanics can be used to create hardware and software that is more powerful than today’s classical computers. However, not all quantum computers are built equal: Various methods exist to construct the quantum bits, or “qubits,” that form the basis of a quantum computer. A key question in the last several years has been which type of quantum computing modality will show the most promise the earliest, and when the resulting collection of atomically constructed pieces will act with enough cohesion to serve as a useful computer.

“The goal right now for the entire industry is to build a system that actually provides some form of what we call ‘quantum advantage.’ Sometimes you’ll hear terms like ‘narrow quantum advantage’ or ‘quantum utility.’ The idea here is that these systems are intended to outperform, on one level or another, a classical computing system.”

David Rivas CTO, Rigetti

Superconducting, ion trap and everyone else There are several quantum modalities, each with a unique approach to qubit development, and each with various inherent pros and cons. Key modalities include superconducting, ion trap, neutral atom and photonic qubits (see Figure 2). Additional modalities, in earlier stages of experimentation, include silicon dot, topological qubits, cat qubits and diamond qubits.

Figure 2: Key quantum computing hardware methodologies

Source: S&P Global Market Intelligence 451 Research, 2024.

Superconducting qubits are circuit loops with an electrical current traveling around them.

Pros: Good scalability, fast operation times Cons: Fast decoherence times, ultra-cold temperatures, requires problem calibration

Approx. 36% of cloud-available hardware types

Trapped ion qubits are charged particles held in place by electromagnetic fields.

Pros: Long coherence times, high-fidelity operations Cons: Susceptible to quantum noise, requires complex control systems

Approx. 36% of cloud-available hardware types

Photonic qubits use individual particles of light (photons) to encode information.

Pros: Long coherence times, ideal for quantum networks Cons: Require error correction, parts need cryogenic temperatures

Currently unavailable via cloud

Neutral atom systems consist of atomic arrays manipulated by lasers.

Pros: Long coherence times, error-resilient Cons: Scaling challenges, slow readout times

Approx. 18% of cloud-available hardware types

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Superconducting qubits and ion trap qubits have seen the most recent surge in progress. Superconducting systems lead the pack in terms of system size (measured, rather roughly, by the raw qubit count of the system), while ion trap qubits offer a more stable computing system with longer coherence times enabling more complex calculations. Both superconducting and ion trap systems are readily available for experimentation via cloud-based access, and quantum providers (and buyers) anticipate that these two modalities will likely see the first large-scale market potential for quantum computing, given the ease with which they can be scaled. With that said, many providers are working under the assumption that a broader range of modalities will be in use over the coming decades, with different modalities perhaps better suited to solve different types of problems.

The scaling situation As quantum computers move into commercialization, the key number driving the news over the past several years has been increasing qubit count. This fixation on scaling makes sense: Experts have long said that quantum computers will need to reach a certain size to surpass the computational ability of classical systems. One factor that is missing from the scaling conversation, however, is the concept of qubit quality: Not all qubits are the same, and the raw number of qubits alone does not adequately convey the true computational power of a quantum computer. Different qubit types have different operation times, as well as “coherence” times that indicate the memory length of the qubit. One quantum computer may have thousands of raw qubits, but they may not cohere long enough to perform complex calculations. Another quantum computer may consist of only a handful of qubits, but they may remain stable enough to perform more intense calculations. In recognition of this nuance, quantum hardware providers have recently shifted their focus away from a pure race to scale, and toward improving the quality of their qubits. Providers now showcase not only the qubit count of their quantum chips, but also their coherence times and fidelities.

Quantum advantage looms The primary goal underpinning industry efforts to scale up and improve quantum computers has been the quest for quantum advantage — the moment when quantum computers can consistently solve problems that are impossible to solve using classical computation methods, or when quantum computers can solve classical problems faster, cheaper or more efficiently. In the past year, quantum computers have grown both in size and quality, and at such a rapid pace that many industry participants believe quantum advantage will be reached in the next two to three years for certain use cases. In 451 Research’s Voice of the Enterprise: Digital Pulse, Emerging Technologies 2024 survey, nearly three-quarters of respondents (72%) said they expect quantum computing will have a moderate or high impact on their business in the next three years (see Figure 3).

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Figure 3: Anticipated impact of quantum computing on businesses in the next three years

Q. For the following emerging technologies, please indicate the degree of impact you expect each technology to have on your business in the next three years, with 0 indicating “no impact” and 10 indicating “major impact.” - Quantum computing. Base: All respondents (n=1,098). Source: 451 Research’s Voice of the Enterprise: Digital Pulse, Emerging Technologies 2024.

Challenges and opportunities As the quantum computing industry approaches the threshold of quantum advantage, it faces key challenges — most notably, the engineering challenges involved in completing the necessary computational hardware on the published timelines. While there is no longer the “physics question” of whether quantum computers can achieve their full potential, it is not an easy task to engineer a powerful, working quantum system. New methods for quantum error correction have been outlined, but they must be applied to customer-level quantum processes. Moreover, different qubit methodologies come with unique engineering challenges, and improving the quality of qubits is an ongoing priority. For the quantum business use case to take hold, customers need powerful and truly useful quantum computers, not just ones with large qubit counts. As quantum computers continue to mature, new challenges including latency and API alignment will emerge and need to be tackled. The industry has come a long way in the past few years, but it remains relatively early in its long-term journey.

“For [quantum] to be valuable to an organization right now, it requires a willingness to engage in some of the science and research … In the sort of three- to six-year time frame, we will start to see results [for] folks that are not as interested in the development, but in the actual application and use.”

David Rivas CTO, Rigetti

Even with the challenges facing quantum computing vendors, however, the next few years are poised to provide a slew of opportunities. Not only will quantum computers continue to grow in power, but access to them is expected to increase dramatically. Quantum machines are already being made available not only via hyperscale clouds, but also in collocated datacenters and even on-premises for certain organizations. Collaboration with other technology sectors, including high-performance computing and AI and machine learning (ML) will introduce exciting new opportunities, with the potential for substantial growth in general computing in a very short time. And the continued development of useful quantum algorithms will help expand the reach of quantum computing’s potential into a variety of additional industries. Achievements in 2023 and 2024 have injected the quantum field with an optimistic energy. There is an expectation that each new year will be game- changing, and while competition among vendors is starting to ramp up along with commercialization efforts, every advancement in the quantum computing space is met with widespread excitement that the industry as a whole is progressing.

28%

35%

37%

Low/no impact (0-4)

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High impact (8-10)

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Quantum tech market complexity While much of the focus in the quantum technology space has been on quantum computing, and on quantum hardware more specifically, the quantum tech market is much larger and more complex. It encompasses everything from quantum hardware and software providers to consultancy players, network providers, quantum computing-as-a-service (QCaaS) integrators, quantum cryptography and security solutions, algorithmic design, infrastructure services, governments, consortiums, utility players and much more.

Cloud, QCaaS, on-premises and hybrid A growing corner of the quantum landscape has focused on quantum access methods. When the hardware was in its earliest stages, quantum computers were experimental devices most often found in research labs, with limited access meant mostly for conducting experiments and improving the base-level technology. Today’s quantum computers come in a variety of shapes and sizes, along with a variety of methods for accessing them. For most early quantum users, cloud access is a popular option. Users can rent time on cutting-edge quantum systems around the world, using standard cloud providers such as Microsoft Azure, Amazon Web Services (AWS) and Google Cloud. This option of QCaaS, while helpful for improving access to quantum computers, can also entail long wait times and limited ability to configure quantum systems to best address a particular problem.

For those seeking more customization and ready access to quantum technology, on-premises is another access option. Quantum hardware vendors have reported a notable uptick in on- premises sales over the past six months, with some enterprises choosing to forgo the wait times associated with cloud access in favor of small-scale quantum devices they can configure themselves. Some quantum vendors have even built and marketed quantum processors specifically for this use case, offering (relatively) inexpensive systems to companies wanting to familiarize themselves with quantum technology before quantum advantage hits.

In addition, quantum computers have been placed in classical computing datacenters around the world, including Oxford Quantum Circuits’ quantum computer installed in 2023 at an Equinix datacenter in Tokyo. More recently, IBM opened a quantum-focused datacenter in Germany. Quantum processors in datacenters offer a unique value proposition: the promise of “hybrid” computation methods that combine quantum and classical computing methods to get the best of both worlds.

“So, the one thing we are pretty confident in is that … the use cases for a pure stand-alone quantum machine are probably farthest away and that what we see next is the hybrid.”

Bijan Nowroozi CTO, Open Compute Project Foundation

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Industry experts agree that, especially in the near term, hybrid computation will allow for a valuable head start on quantum advantage, enabling even small quantum processors to pair with classical processing units to help advance calculation potential or take some of the pressure off energy-intensive classical systems. In the long term, high-performance computing centers may operate entirely on a hybrid computation model, with quantum processing units (QPUs), graphics processing units (GPUs) and CPUs working together to solve massive problems more efficiently and effectively than any single processor type alone. Indeed, parallels can be drawn between QPUs and early GPUs: The current stage of development of quantum processors is arguably similar to the period of rampant evolution and generalization of GPUs in the mid-2000s.

Quantum and AI Quantum computing also interacts with advancements in other fields of technology, including AI. Anecdotally, quantum has had a bit of a tumultuous intersection with AI — some in the quantum industry have said that if generative AI didn’t have its breakout moment in 2023, it would have been the year of quantum. However, despite AI arguably hogging a bit of quantum’s press, the two technologies are well-suited to help one another progress both in the short and long term. Quantum software providers have already begun integrating AI into their development processes, allowing users to work with generative AI to produce novel algorithms to run on quantum computers. In late 2024, Microsoft announced its plan to collaborate with Atom Computing to merge advanced quantum computing hardware with Azure’s AI-enabled, quantum platform Azure Quantum Elements. Azure’s platform has been used to demonstrate the first end-to-end chemistry simulation combining quantum computation, cloud high- performance computing and AI. Key AI players are also operating in quantum computing, including NVIDIA, which offers a quantum computing solution that integrates quantum and classical computing with AI. In the longer term, as AI outgrows the potential of classical high- performance computing, quantum computers can step in as a platform to run more complex AI algorithms than are feasible on today’s systems.

A lack of expertise In our interviews, we identified a common challenge plaguing the quantum industry: a skills shortage and lack of expertise that threatens to become a major pain point as quantum looks to scale up to commercialization. Quantum computers are inherently different than classical ones. The logic, physics and math underpinning each are unique; one cannot simply replace the other. Similarly, classical computer engineers cannot work on a quantum computer using only their existing expertise and training. The development of quantum computers and other quantum technologies has required highly trained computer science experts with extensive knowledge of top-level math and physics. Simply put, there are few such experts. As quantum technologies develop and mature, there may be less of a pronounced need for deep-quantum experts, but there will be an increasing need for workers who can comfortably interact with quantum technology and are trained in its use.

“We just need more people to have these skills, specifically in quantum at the grad level … And if not that, they need other skills to come in with, and they can learn that stuff on the job, but then it just takes that much longer.”

Denis Mandich CTO, Qrypt

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As things stand now, even if quantum computers powerful enough to achieve advantage were widely available, only a few companies with the right in-house expertise would be able to use them. To address this skills gap, many quantum and QCaaS providers have set up consultancy arms or aligned with external consultancy or integrator partners. These partnerships can help strategic clients develop IP-protected quantum algorithms specifically designed for the company. While these consulting options exist, companies waiting to jump on the quantum train may still risk missing their chance, or experience long wait times to access experts trained in quantum capability, especially once quantum hits its flashpoint moment.

Quantum algorithms and matching pace A skills shortage is not the only barrier facing the quantum technology industry. Interviewees also identified a gap in the production of quantum algorithms — the step-by-step processes through which calculations are performed on quantum computers. Perhaps the most famous quantum algorithm, Shor’s Algorithm, is designed to factor complex numbers extremely quickly, raising security concerns as it can undermine current security protocols. Classical computers run on algorithms as well, but quantum algorithms are distinct in that they rely heavily on quantum mechanical principles and associated equations. There are only a few dozen published quantum algorithms, although a slew of quantum software companies are working with quantum hardware and external industry partners to facilitate algorithm development. While the field is growing, more emphasis has historically been placed on building quantum hardware than on writing new algorithms. However, a powerful quantum computer is only as useful as the problem it solves, and without more focus on crafting quantum algorithms, the industry may experience a slowdown in innovation as algorithm development works to catch up.

Industry collaboration and regulatory impact While the quantum technology industry is quite collaborative, shifting regulations — and, in some cases, a lack of standards or regulation — may hamper collaboration and future growth. Interviewees stated several regulatory concerns:

– Governments are trying to figure out how best to keep collaboration flowing without risking exploitation by foreign actors.

– Emerging regulations on the export of quantum technology may restrict international collaborations and access to vital resources, impacting global partnerships.

– As quantum computing evolves, organizations are increasingly concerned about data privacy laws and how they intersect with quantum capabilities.

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Geographic differences Collaboration between entities in the quantum space has in large part helped push quantum tech to its current position. Even with such widespread collaboration, however, quantum hubs have emerged around the world, each representing its own nexus of talent, funding, demand and growth. Hubs such as Seoul, Japan, Singapore, France, the UK, Australia, Canada and the United States have emerged through customer-driven investment, government funding, or both, and the balance and interplay of these drivers has led to variations in local market adoption, fueling a quantum arms race as different geographies strive to produce the latest and greatest in computation and communication (see Figure 4).

Figure 4: The quantum tech landscape varies across geographies

Source: S&P Global Market Intelligence 451 Research, 2024.

North America The United States has attracted a high level of funding for quantum technologies, helped in part by regional quantum hubs in locations such as Silicon Valley and Boulder, Colorado, that have emerged from research institutions. Startups in the US include Atom Computing, Rigetti, Infleqtion (formerly ColdQuanta) and PsiQuantum. The US base of large industry players (AWS, Google, Microsoft, IBM) has also maintained momentum on quantum projects and enabled partnerships between existing giants and promising startups. Canada has also shown strong support for quantum development, with quantum startup Xanadu supported via investments from the Canadian government. Canada also boasts a strong quantum presence in academia, along with multiple quantum institutes and initiatives.

Asia-Pacific • High funding • Nationally fragmented • Robust talent pipeline

North America • High funding • Established players • Momentum • Academic expertise

Europe • Moderate funding • Disparate players • Notable potential

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Europe While Europe has everything in place to take quantum to the next level, it has received a bit less funding for quantum initiatives. Interviewees cited the need for more ambitious roadmaps to roll out quantum across the continent, and more support for small-scale players investigating alternate quantum modalities. Still, key initiatives remain in place, with the UK, Germany and France all notable enablers of quantum in the region.

Asia-Pacific Additional geographies continue to progress in the quantum space. China remains perhaps the largest competitor to US efforts in quantum computing; the country has invested heavily in the technology and is building out its quantum capabilities, though the exact scope of its efforts is unknown. Japan and Singapore have made waves with their progress toward both quantum compute and quantum networks, with Japanese company Fujitsu a notable quantum computing player. Australia is also a key quantum player, having invested heavily in the technology with the aim of being a global quantum leader by 2030.

Quantum computing use cases “Standout use cases that clearly demonstrate the value of quantum computing for customers are emerging, and we are seeing more and more customers saying, ‘Oh, I really need to do something about my quantum capability more generally.’”

Gerald Mullally CEO, Oxford Quantum Circuits (OQC)

The full scope of applicability for quantum computing and associated technologies is unknown. However, early use cases have been identified that pair certain types of problems with the unique capabilities of quantum computers. Key industries including finance, materials and chemistry have begun using today’s intermediate-scale quantum systems to prepare for the larger, more powerful computers of the quantum advantage era, identifying problems within their scope that quantum will be able to help solve. While timelines vary for the achievement of quantum advantage by industry, we expect to see the earliest gains in finance and general logistics (see Figure 5). Once quantum computers progress beyond today’s noisy intermediate- scale quantum (NISQ) stage and into fault-tolerant, robust machines, an explosion of quantum use cases is expected across a variety of industries. This turning point in quantum capability is currently projected to take place around 2030, although many industries will likely unearth quantum-suited use cases in the intervening years.

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Figure 5: Potential timeline for quantum advantage by industry

Source: S&P Global Market Intelligence 451 Research, 2024.

Quantum for simulating nature Because of the heavily physics-based nature of quantum computers, there is a neat pairing between their capabilities and problems surrounding the simulation of natural systems. Nature, after all, is rarely binary, and having a computer that speaks the language of nature means less mathematical contortion. Industries including energy, materials, manufacturing, chemistry and life sciences all contain problems that fit into this category. End users are developing quantum algorithms to tackle everything from the discovery of novel materials for use in battery construction, to drug development, to improved modeling of the intricacies of global climates. While the full potential of quantum computers to tackle natural simulation problems may be further down the road, the opportunity for change with these types of problems is extraordinary.

Academia

Finance

Logistics

Energy

Pharmaceuticals

Chemicals

Materials

Automotive

Networks

Generic high-performance computing

Aerospace

AI & ML

Broad usage

0-3 years 4-5 years 6-7 years 7+ years

An explosion of quantum use cases is expected once the technology develops beyond today’s noisy intermediate-scale quantum (NISQ) systems. Providers place that development on their timelines around 2030.

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Quantum for optimization Another set of use cases well-suited to quantum computers falls under the category of optimization problems. Because of quantum systems’ high computation potential, it becomes possible to run a full set of scenarios and determine which is the most effective and optimal within a reasonable time frame and with fewer assumptions than are required in classical compute. This has substantial implications for logistics operations and finance, with the latter being one of the earliest adopting industries of quantum technology. Large financial companies have provided glimpses into their quantum algorithm development, with much more taking place underneath their intellectual property umbrellas. Many interviewees believe that the financial sector will provide the first cases of quantum advantage and see early widespread business adoption as a result. Indeed, the finance sector is already flush with early adopters jockeying to acquire top talent and a deep bench of IP in the quantum space.

“The finance sector invests a lot in [quantum technologies] because you can save a lot if you minimize the risk, or you can win a lot if you optimize your investments, for example.”

Quantum end user, Europe

Quantum-safe, networks and the security lens “I think security is always one of the biggest issues that we have. It doesn’t matter if it’s classical computing, if it’s quantum computing … I think it’s always a big challenge, and it’s something where we need to stay ahead. But I’m also not worried because I think that post-quantum cryptography was one of the earliest research areas, and we have really smart people working on it.”

Quantum end user, Europe

Of course, one cannot mention quantum computing and its use cases without considering the implications for security. A major driving force pushing interest in quantum technology and quantum compute is the potential of powerful quantum computers to crack today’s encryptions, opening the possibility for widespread problems. Bad actors are also using “harvest now, decrypt later” techniques, in which they steal encrypted information now with the intention to store it until quantum computers are powerful enough to crack it. This has led to a push in the security landscape toward what is called post-quantum cryptography (PQC), in which researchers are developing new encryption algorithms that are safe even from powerful quantum computers. New PQC standards were released in August 2024 by the US National Institute of Standards and Technology (NIST) to promote the development and use of quantum- proof encryption methods and encourage organizations to swap over critical infrastructure in a timely manner.

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Separate from the concept of post-quantum cryptography is the realm of quantum key distribution (QKD). While PQC focuses on creating new encryption methods that cannot be cracked by a quantum computer, QKD dips into the realm of quantum technology itself, using quantum mechanical principles to help secure information. The nature of quantum information means that if it is observed in transit, it breaks down — a characteristic that has highly beneficial implications for security because it means that no external actor can spy on information while it is being communicated. QKD is considered unbreakable, as it relies on the physical properties of a system and not on a code that may be cracked given enough time or compute power.

“When you add quantum computing to that [the cybersecurity landscape], that becomes an existential threat to national economic security for the United States. And that’s what these really big companies and compliance industries are dealing with. They have to transition. This is not optional. If you’re in the compliance industry, you can’t put this off.”

Denis Mandich CTO, Qrypt

The role of quantum networks The potential for quantum networks is profound. In the near term, quantum networks could use QKD to communicate information securely, essentially eliminating the danger of information being “overheard” in transit. At longer time scales, quantum networks could connect individual quantum computers, forming the basis of a “quantum internet” in which information is processed and exchanged using a full suite of quantum technologies. While quantum networks have historically lagged other types of quantum tech, they have made significant progress in the past year or so. Quantum-enabled networks have been built in several locations around the world, and while they face latency and performance challenges, the technology is in place and on track to scale quickly. Partnerships between network service providers and quantum computing vendors have proliferated in recent years and will likely see continued growth as network service providers launch additional services into this market space. Recent acquisitions by quantum hardware providers, including neutral atom provider IonQ’s announced intention to acquire quantum networking leader Qubitekk, showcase the value of quantum networking, the partnership it will maintain with quantum computing and its role in the broader quantum landscape.

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Implications: Ongoing acceleration and a communication opportunity Quantum technologies have had a remarkable few years. From computation to communication, progress in the quantum realm has surged ahead, building on decades of slow yet steady work. Such progress is expected to continue and even accelerate over the next several years. Quantum tech is accessible to organizations and individuals today, expanding experimentation potential and allowing companies to seriously investigate quantum without paying a premium for their own system. Quantum providers are consistently hitting their projected roadmaps, and continued interest from a variety of industries, corporations and governments around the world is helping develop a competitive, global push toward quantum.

Clear communication between the quantum industry and the outside world will be key to quantum’s commercial transition. Launching new products is never easy, but quantum providers must also help entire industries change their thinking about what problems can be solved, how they can be tackled, and the intricacies involved in such a schema shift. This necessary conversation also offers an opportunity for quantum providers to develop robust communication channels that can help inform product development for decades to come. Experts from a variety of positions and industries can continue to work together to develop the next stage of computation, sharing knowledge in a collaborative feedback loop to create the useful, powerful, game-changing quantum products of the future.

You can find much more about Equinix’s leading role in Quantum and its wider high performance data centre services by searching on www.equinix.com.

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About the authors

Geoff Fitzgerald Senior Consulting Analyst Geoff Fitzgerald is a Senior Consultant with TMT Consulting, a group within S&P Global Market Intelligence. He is responsible for designing, managing and delivering consulting and custom research projects.

Ellie Brown Research Analyst Ellie Brown is a research analyst at S&P Global Market Intelligence working across the 451 Research Cloud Transformation and Applied Infrastructure channels, and the technology, media and telecommunications data team. In addition to managing the 451 Research Cloud Price Index, Ellie’s coverage areas include the developing quantum computing and quantum network sectors, with research spanning quantum-suited verticals, new quantum hardware and software developments, and the intersection of quantum technology, with key themes including AI and sustainability.

About S&P Global Market Intelligence At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world’s foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world’s leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

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