Global Market Size, Forecast and Trend Highlights Over 2025-2037
Quantum Warfare Market size was valued at USD 1.6 billion in 2024 and is expected to secure a valuation of USD 40.4 billion in 2037, expanding at a CAGR of 28.2% during the forecast period, i.e. 2025-2037. In 2025, the industry size of quantum warfare is assessed at USD 2 billion.
Growing adoptions of quantum warfare in the defense sector is a key factor expected to drive the global quantum warfare market. Defense systems perform rapid complex calculations beyond traditional computing capabilities as these systems integrate quantum computing. The advanced computing power of quantum technology enables militaries to decrypt traditional data while simultaneously modeling future security situations and developing moment-by-moment operational logistics improvements. The pursuit of quantum computational dominance in defense operations drives both government institutions and military organizations to make financial commitments toward strategic advantage through quantum initiatives.
Companies and institutions have been teaming up and partnering to expand their quantum computing operations. For instance, in January 2023, the U.S. Naval Research Laboratory (NRL) signed an agreement to exchange quantum computing expertise with the Air Force Research Laboratory. Through this collaboration, the institutions aim to explore Navy capabilities, using IBM’s Quantum Network enhanced with quantum computing including quantum machine learning, operations research, and quantum simulation, among others.
Quantum Warfare Market: Growth Drivers and Challenges
Growth Drivers
- Quantum cryptography is paving the way: Quantum cryptography has been witnessing a surge in demand due to the continually expanding security requirements during rising cybersecurity threats. With the help of quantum cryptography, the encrypted messages become practically unbreakable to interception attempts before any detection occurs. The fundamental technology deployed in this field is the Quantum Key Distribution, which enables the users to share encrypted keys securely through insecure channels.
Governments across the globe are coming up with several policies and initiatives to enhance the quantum cryptography landscape. For instance, under the EU’s Quantum Technologies Flagship (launched in 2019), the EU is expected to invest nearly USD 1.09 billion, over ten years to support the work of quantum researchers. In January 2023, the initiative supported EuroQCI as a pan-European quantum communication infrastructure that aimed to improve security in defense and governmental communications.
- Threat of quantum-based cyberattacks: The global insecurity about quantum-based cyberattacks has created an essential need to create quantum-resistant cryptographic systems. Quantum computers possess advanced computational capabilities that threaten to collapse encryption algorithms such as RSA and ECC, which are used in global cybersecurity networks. Implementation efforts for post-quantum cryptography technologies and standards receive major investment support from governments and enterprises along with research institutions because of the quantum threat. The cryptographic algorithms under PQC utilize encoded formats that keep essential information safe from quantum supercomputing. In August 2024, the U.S. Department of Commerce’s National Institute of Standards and Technology announced a finalization of its principal set of encryption algorithms, developed for withstanding cyberattacks from a quantum computer.
Challenges
- Security concerns: Quantum technology raises dual-use dangers that combine its innovation capacities with destructive uses in malicious activities. The adversaries maintain an opportunity to disassemble global cryptographic protection by breaching encryption protocols that secure sensitive information. Tight export controls and regulatory measures have become necessary because governments aim to prevent technology from spreading. The necessary security regulations impede global cooperation while delaying quantum warfare development rates, creating challenges in achieving extensive use of secure quantum systems.
- Lack of standardized frameworks: Counterintuitive collaborations among quantum technology entities become challenging because of insufficient industry-wide standards for quantum systems. Diverse sectors working on their quantum systems produce separate information silos that create technical obstacles for their systems to combine easily. The divergent nature of quantum systems obstructs productive worldwide communication about quantum warfare against adaptive challenges. Standardization deficiencies delay universal guideline implementation, that challenges quantum technology integration within defense systems while hampering industry expansions.
Quantum Warfare Market: Key Insights
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Base Year |
2024 |
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Regional Scope |
2025-2037 |
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CAGR |
28.2% |
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Base Year Market Size (2024) |
USD 1.6 billion |
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Forecast Year Market Size (2037) |
USD 40.4 billion |
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Regional Scope |
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Quantum Warfare Segmentation
Application (Land, Naval, Airborne, Space-Based)
Space-based segment is estimated to capture quantum warfare market share of over 56.1% by 2037. Rapid advancement of space-based applications in markets stems from growing requirements for defense operations to establish secure data and communication systems. Quantum key distribution technology receives strong funding from countries to protect space-based satellite communications used for worldwide network security. The defense of military information gains enhanced security through space-based quantum communication systems which are essential for national defense protocols.
Moreover, organizations have been working on developing quantum communication-based satellites. In December 2024, India announced to develop a satellite-based communication, under the National Quantum Mission. The Department of Space in the country has been planning to launch a quantum satellite in the coming years for enabling quantum communications, in order to create a secure network resistant to breaches by quantum computers.
Quantum Computing and Simulations (Digital Quantum Computer, Analog Quantum Computer, Quantum Simulator)
The digital quantum computer segment in quantum warfare market is expected to register rapid revenue growth during the assessment period, as these systems successfully address complicated defense and encryption challenges. Quantum systems employing quantum bits (qubits) enable powerful calculations that are essential for cryptographic method creation and sophisticated military strategy simulation. In November 2024, IBM announced the quantum hardware and software advancements, to implement complex and sophisticated algorithms on IBM quantum computers with record levels of speed, accuracy, and scale. Qiskit can extend length as well as complexity of certain circuits to 5,000 two-qubit software.
Our in-depth analysis of the global quantum warfare market includes the following segments:
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Application |
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Quantum Computing and Simulations |
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Quantum Communication |
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Quantum PNT |
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Quantum Component |
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Customize this ReportQuantum warfare Industry - Regional Scope
North America Market
North America in quantum warfare market is poised to account for around 50% revenue share by 2037. This growth can be attributed to dedicated government in the country that has been making significant investments to strengthen the quantum technology for enhancing the military capabilities. For instance, in January 2025, the U.S. Department of Energy announced an investment of USD 625 million to support National Quantum Information Science Research Centers. The initiative is aimed at addressing innovations in quantum information, under the framework of the National Quantum Initiative Act.
Companies in North America have been developing improved cybersecurity systems through AI integration with quantum computing. Through their partnerships, the companies use quantum algorithms to combat instant cyber threats which strengthen military infrastructure protection against quantum computer assaults. These collaborative efforts also function as a decisive force in quantum warfare operations.
The U.S. quantum warfare market is expanding, owing to the advanced technology infrastructure combined with major quantum research funding from the government. Quantum defense applications take priority in the U.S. Department of Defense (DoD) through initiatives, including the Quantum Science Center (QSC) and private-public partnerships to develop quantum cryptography and sensing systems as well as computer technology.
Secure communication networks and battlefield intelligence capabilities receive priority development as the main objective of modern defense initiatives. Massive collaboration initiatives between IBM, Google, and Microsoft and defense agencies also drive quantum computing development for improved real-time data operations and cybersecurity applications. IBM announced its Condor quantum processor in December 2023, which enables defense applications to scale quantum solutions through its capabilities.
The quantum warfare market in Canada is growing due to the collaborative efforts between Canadian institutions together with global technology companies. In May 2022, D-Wave Systems which leads quantum computing research in Canada, teamed up with Lockheed Martin to develop quantum solutions for military logistical decision-making and process optimization. Quantum warfare innovation positions Canada as a rising force, due to its dual strategy of international collaboration and financial support for research advanced quantum technology security development. The country's initiatives accelerate Canada as an innovator in advanced military defense technologies for the next generation.
Asia Pacific Market Analysis
The Asia Pacific quantum warfare market is expected to account for a significant revenue share between 2025 and 2037, owing to the rising government investments in quantum research and scientific advances in this domain. Countries including China, Japan, India have been focusing on quantum technology development to boost their national defense capacity. These countries implement quantum communication together with quantum cryptography and quantum computing to defend their military data while improving their defense planning. The establishment of quantum research hubs including India’s MeitY Quantum Computing Applications Lab in collaboration with AWS, demonstrates the region's dedication for innovation development. Due to intensive government commitment along with increasing business interest, the region is expected to propel in quantum warfare innovations.
The growth of the quantum warfare market in China is influenced mainly by the country’s strong dedication to developing quantum communication and quantum computing systems. The core development of China's Quantum Experiments at Space Scale (QUESS) project, backed by government funding remains a global news center particularly because it enables secure quantum satellite communications. Due to its innovative nature, China has improved its military communication systems while simultaneously fortifying their cyberspace security. With continued investments in infrastructure alongside research activities is expected to solidify China's dominance within quantum warfare operations. The quantum technology advancements generate benefits for defense while simultaneously speeding up international quantum technology races.
The quantum warfare market in India is expanding, owing to the governmental support for quantum technology research and rising financial investments in this area. The National Mission on Quantum Technologies and Applications (NM-QTA) launched by the government in 2020 committed USD 1 billion to build quantum computing and communication along with cryptography solutions over five years. The national defense mission is driving India's defense forces to merge quantum technologies within military approaches by building secure communication networks and radar systems. The planned expansion of India's quantum technology innovation sector combined with priority support for domestic development makes India stand out as an essential force in quantum warfare surveillance. The ongoing quantum innovation initiatives both enhance Indian defense infrastructure while creating opportunities for international partnerships that protect national security against modern threats.
Companies Dominating the Quantum Warfare Market
- Xanadu
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Airbus
- D-Wave Quantum Inc,
- Quantinuum Ltd.
- Infleqtion
- IonQ Inc.
- Quantum Computing Inc.
- Rigetti & Co, LLCA
- Zapata Computing
- IBM
The competitive landscape of the quantum warfare market is rapidly evolving, attributed to the integration of advanced technologies in energy management systems by key players. They are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global quantum warfare market:
In the News
- In December 2024, Google launched its Willow chip that functions as a quantum processor which completes complicated computations in significantly shorter time than supercomputers need to finish the mission using the age of the universe as standard.
- In March 2023, the AUKUS trilateral security joined forces between the U.S. and U.K. created the AUKUS Quantum arrangement (AQuA). The initiative groups efforts to build position navigation and timing systems which are resilient for military applications through quantum technology coordination.
Author Credits: Abhishek Verma
- Report ID: 7115
- Published Date: Feb 06, 2025
- Report Format: PDF, PPT
