The quantum photonics market is on a high-growth trajectory, fueled by groundbreaking advances in quantum computing, rising investments in quantum technologies, and a growing need for ultra-secure communication systems. Valued at US$ 520.0 million in 2023, the market is projected to grow at a staggering CAGR of 18.9% from 2024 to 2034, reaching a value of US$ 3.5 billion by 2034. Quantum photonics, once a niche research field, is now rapidly becoming the backbone of next-generation technologies across sectors such as computing, defense, healthcare, and finance.

Market Overview: Understanding Quantum Photonics

Quantum photonics refers to the application of quantum optics—the study of light and its quantum properties—for the development of advanced technologies. Unlike classical light systems, quantum photonics leverages photons (light particles) to perform complex tasks such as ultra-secure data transmission, enhanced measurement precision, and quantum-level simulations.

Key application areas include:

• Quantum Communication (e.g., quantum key distribution)
• Quantum Computing
• Quantum Sensing & Metrology
• Quantum Simulation

These technologies are disrupting traditional systems by offering higher security, faster processing speeds, and improved accuracy across multiple industries.

Key Drivers of Market Growth

1. R&D in Quantum Circuits

Quantum circuits are central to building functional quantum computers and systems. In 2024, researchers from the University of Ottawa’s Nexus for Quantum Technologies Institute developed a new technique for evaluating quantum circuit performance, accelerating research and practical implementation.

Companies like Fujitsu are also pushing boundaries by unveiling quantum circuit computation technologies that are 200x faster, facilitating faster real-time processing. These innovations are critical for applications in drug discovery, financial modeling, and logistics optimization.

2. Surge in Investment in Quantum Computing

Governments and private corporations globally are investing heavily in quantum computing R&D. Photonics-based architectures form the underlying infrastructure for these systems, enabling efficient routing and manipulation of quantum information.

In 2023, MIT researchers reported a new quantum computing architecture that enables high-fidelity communication between superconducting processors—yet another milestone in the push toward scalable quantum computing. Similarly, C12, a French quantum computing company, raised €18 million in 2024 to speed up the development of quantum processors.

Regional Insights: Global Market Dynamics

North America: The Leading Market

North America, led by the U.S., dominated the global quantum photonics market in 2023. Strategic public funding initiatives such as the Quantum Information Science (QIS) R&D program—whose funding nearly doubled from US$ 449 Mn in 2019 to US$ 918 Mn in 2022—have been instrumental in driving innovation.

Europe: Strength in On-chip Photonics

Europe is gaining momentum with advances in on-chip photonics. In June 2024, Wave Photonics, a U.K.-based startup, received £4.5 million to develop photonic chips for quantum technologies and data center applications, signifying Europe’s growing influence in this field.

Asia Pacific: Massive Government Investments

Asia Pacific is poised to witness the fastest growth. China alone has committed US$ 15.3 billion in public funds for quantum computing—more than the EU (US$ 7.2 Bn) and U.S. (US$ 1.9 Bn) combined, according to McKinsey & Company. This investment scale reflects the region’s strategic focus on dominating the global quantum landscape.

Market Segmentation and Applications

By Offering:

• Systems
• Services

By Application:

• Quantum Communication
• Quantum Computing
• Quantum Sensing & Metrology

By Industry Vertical:

• Aerospace & Defense
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Transportation & Logistics
• Agriculture
• Others (Environmental Monitoring, etc.)

Quantum computing and quantum communication hold the lion’s share of the application segment, driven by the need for secure data transmission, simulation of quantum systems, and faster processing in complex problem-solving scenarios.

Competitive Landscape: Key Players & Recent Developments

The global quantum photonics industry is highly competitive, with a mix of tech giants, quantum startups, and academic spin-offs.

Key players include:

• Amazon Web Services, Inc.
• AOSense, Inc.
• Crypta Labs Limited
• ID Quantique
• M Squared Lasers Limited
• Menlo Systems
• Microchip Technology Inc.
• NEC Corporation
• Nordic Quantum Computing Group AS
• Nippon Telegraph and Telephone Corporation
• Nu Quantum
• ORCA Computing
• Psi Quantum
• Quandela
• Thorlabs, Inc.

These companies are investing in integrated photonics, which enhances performance while reducing energy consumption, crucial for scaling quantum systems.

Notable Developments:

• May 2024: ID Quantique, in collaboration with LuxQuanta, Quantum Optics Jena, and others, launched a quantum-safe communication ecosystem to enable secure quantum networks.
• April 2024: M Squared and University of Strathclyde co-published a study demonstrating a computational advance that strengthens M Squared’s Maxwell Quantum Computing Platform for commercial use.

Market Outlook: The Road to 2034

With a projected market value of US$ 3.5 billion by 2034, quantum photonics is set to become a cornerstone of the future technology landscape. As quantum computing transitions from theory to practical deployment, quantum photonics will play an essential role in enabling high-performance quantum systems.

The next decade will see:

• Expansion of quantum-safe communications
• Wider adoption in BFSI, healthcare, and defense
• Deeper integration of photonic chips in quantum hardware

Conclusion

The quantum photonics market is at the nexus of a technological revolution. Accelerated by innovation in quantum circuits, substantial public and private investments, and a race to harness quantum computing, the industry is rapidly evolving. As quantum technologies shift from labs to commercial applications, photonics will remain the core enabler of speed, precision, and security, cementing its role in shaping the next era of digital transformation.