A recent Yole Group report revealed that quantum technologies are expected to grow by 9% CAGR between 2024 and 2026, followed by a 23% growth rate between 2026 and 2029. It is now projected that the quantum computing industry could reach the annual $100B market value mark by 2050.
Quantum technology is a quickly emerging field with quantum computing bringing in the most investments and research efforts. Quantum computers are able to perform complex calculations at large speeds, so they could be used in genetic engineering, development of new materials and drugs, and even weather forecasts. These computers could also impact the finance sector by detecting fraud and could benefit AI by introducing innovative techniques of processing data in large volumes.
As quantum computing is developing, only a few have the ability to conduct multifaceted research on qubits due to them requiring specialized environments to function in and high costs. Experts say that collaborations on research and development inbetween industries like the laser sector are ensuring further growth of quantum computing.
“The quantum technology industry is a promising field, yielding a lot of potential for us, as lasers play an essential role in controlling various types of qubits,” said Antanas Laurutis, CEO of Altechna, an international laser optics manufacturer based in Lithuania. “There’s still a long way to go – a lot more research and development must be done until an advanced quantum computer becomes available, but with growing investments and more businesses getting involved, including the laser sector, this future is being brought closer to reality.”
Many architectures of quantum computers, such as the ones based on trapped ions, cold atoms, and photons rely on laser technology. Lasers cool, capture, and generate atoms or ions, making laser companies beneficial in quantum technology.
Long-lasting advanced laser systems with total frequency control and high reliability are expected to play a pivotal role as quantum computing hardware evolves. The laser sector holds a lot of influence on quantum technologies and their development, making more research possible and largely contributing to the production of qubits. As the involvement and impact of different sectors grows and new players enter the quantum technology industry, an increase in investments is also evident.
According to the report, investments into quantum computing surpassed $30B of public and around $4B of private investments to date. A vast majority of these investments go to developing quantum computing hardware which presently demands the most capital funds, while the rest is dedicated to systems and application software.
“Nobody wants to miss out on one of the most promising industries of the future. Years ago, it was exceptional to work in quantum technology, as even researchers at the time weren’t sure where the field was going or what would be the use cases. They were working to unravel it,” added Laurutis. “Now we can already see the power quantum technologies hold. Everyone will want to implement them and investors shouldn’t overlook that, as quantum tech will be able to optimize manufacturing, logistics, finance, and many other fields.”
With the industry developing and gaining more impact, a shift from private financing to initial public offerings (IPOs) has also been seen, the report said. Despite the fact that IPOs were not entirely successful in this market previously, one of the players in the industry, Quantinuum, has set to enter the IPO market with a $10 billion offering.
“If successful, the IPO could largely contribute to the growth of quantum technologies, rather than giving mixed results. It has the potential to increase both competition and funding, fueling novel research and development approaches. However, quantum computing remains a long-term bet and the path to a real useful quantum computer may be challenging. But it will be rewarding – without a doubt,” Laurutis said.
Around 75% of investments now go to quantum hardware, and the latest trend is shifting from private financing to IPOs and mergers or acquisitions. Further investments driving research and development, alongside a clear long-term vision should be crucial for the sector.
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