Quantum Photonics Market Size, By Component (Systems, Services), By Application (Quantum Communication, Quantum Computing, Quantum Sensing & Metrology), By End-use Industry & Forecast 2024 - 2032

Quantum photonics Market Size

Quantum Photonics Market was valued at over USD 420 million in 2023 and is estimated to register over USD 5.5 billion in 2032, growing at a CAGR of over 33.5% between 2024 and 2032. Quantum photonics is a field at the intersection of quantum mechanics and photonics, focusing on the manipulation and control of individual photons for quantum information processing and communication. It involves harnessing quantum properties of light to encode, transmit, and process information, with potential applications in quantum computing, secure communication, and high-precision sensing.
 

The growing demand for secure communication technologies is driving the quantum photonics market. Quantum photonics provides unparalleled security through quantum key distribution (QKD) and quantum encryption, which address vulnerabilities in traditional encryption methods. With growing concerns about data privacy and cybersecurity threats, industries such as finance, healthcare, and government are turning to quantum photonics for reliable, future-proof secure communication solutions. For instance, in March 2023, CryptoNext Security (France) and Quandela (France) partnered to develop an integrated solution for securing post-quantum communication protocols. The solution leverages their expertise in quantum computing and post-quantum cryptography remediation. They aim to offer a fully integrated quantum-safe solution to secure sensitive data transfer in various industries, including defense, finance, manufacturing, energy, automotive, and digital services.
 

Advances in quantum cryptography, such as quantum key distribution (QKD), are driving the quantum photonics industry by improving data security and encryption. As the demand for secure communication grows in various sectors such as finance, healthcare, and government, so does the adoption of photonics-based quantum cryptography technologies. This trend is driving market growth as businesses look for reliable solutions to protect sensitive data from evolving cybersecurity threats.
 

Regulatory and ethical considerations may hamper the market growth by increasing compliance requirements and raising privacy and security concerns. Stringent regulations may stifle innovation and raise costs for businesses operating in this sector. Furthermore, ethical concerns about data privacy, encryption standards, and the potential misuse of quantum technologies may discourage adoption and investment. To address these challenges, stakeholders must navigate legal frameworks carefully and communicate openly.
 

Quantum photonics Market Trends

Quantum photonics industry developments include increased R&D investments, which will lead to advances in quantum computing, communications, and sensing applications. As governments and private entities recognize the transformative power of quantum technologies, funding for quantum photonics research is steadily increasing. Furthermore, there is a growing demand for secure communication solutions as quantum-resistant encryption methods become more widely used. The market is also seeing the rise of quantum-enhanced imaging technologies for medical diagnostics and industrial inspection. For instance, in July 2023, Quantum Computing Inc. announced the release of its first-in-a-series Quantum Photonic Vibrometer (QPV), a proprietary instrument for remote vibration detection, sensing, and inspection. The device offers significant advancements in sensitivity, speed, and resolution, capable of discerning highly obscured and non-line-of-sight objects. Military and commercial applications are numerous in the areas of material recognition, enhanced surveillance, infrastructure integrity and preventive industrial maintenance. 
 

Furthermore, collaborations between industry and government are becoming more common, fostering innovation and accelerating the commercialization of quantum photonics technologies. Furthermore, there is a shift toward developing scalable quantum photonics systems to meet the needs of various industries, resulting in increased efforts to overcome technical challenges and improve manufacturability.
 

Quantum Photonics Market Analysis

Based on the end-use industry, the market is segmented into space research, government & defense, telecommunication, healthcare & pharmaceutical, transportation & logistics, environment, and others. The government & defense segment accounted for a market share of over 30% in 2023.
 

• The market is expanding significantly in the government and defense sector because of its potential to transform communication, encryption, and sensing technologies. Through quantum key distribution, quantum photonics provides ultra-secure communication, which is a crucial feature for applications related to national security. Quantum sensors improve defense capabilities by providing unmatched sensitivity for detecting signals from things like submarines or stealth aircraft.
   
• Government spending on quantum computing across the globe is also propelling research and development in quantum photonics, which is resulting in breakthroughs in fields like simulation and cryptography and supporting the industry expansion. This has led to increased adoption of quantum photonics technologies in the government & defense sector to maintain technological leadership and fortify strategic advantages.
   

Based on component, the market is segmented into system and services. The services segment is estimated to register a CAGR of over 34.5% during the forecast period.
 

• The quantum photonics market is expanding rapidly, causing a sizable boom in the services sector. The demand for specialized services serving quantum photonics applications is growing because of the rapid development of quantum technologies. To assist businesses in successfully integrating quantum photonics into their operations, service providers are providing customization, training, and consulting services. This includes helping to develop quantum algorithms for a range of industries, including cybersecurity, healthcare, and finance, as well as designing and optimizing quantum photonic systems and quantum-safe encryption solutions.
   
• In addition, with the growing commercialization of quantum photonics, maintenance, troubleshooting, and upgrade services are being added to the list of services provided to guarantee the smooth operation of quantum devices. The expansion of services is necessary to enable quantum photonics technologies to be widely adopted in a variety of industries.
   

North America held a significant share of over 33% in the global quantum photonics market in 2023. The regional industry is expanding rapidly due to rising R&D expenditures, strong partnerships between academic institutions and business leaders, and growing government programs aimed at advancing quantum technology. Quantum photonics is being used by businesses in the area for sensing, quantum computing, and secure communication applications. The region's highly developed workforce, sophisticated infrastructure, and strong concentration of important market players are all contributing to the North American market growth.
 

Quantum Photonics Market Share

Toshiba and Xanadu held a significant share of over 9.5% in the quantum photonics industry in 2023. Toshiba is a prominent player in the quantum photonics landscape, pioneering innovations in quantum encryption, quantum communication, and quantum computing. With a strong focus on research and development, Toshiba has established itself as a leader in the development of quantum technologies. Its diverse portfolio and strategic partnerships position it at the forefront of advancing quantum photonics solutions for various industries and applications.
 

Major players, such as Toshiba, Xanadu, Quandela, ID Quantique employ strategic measures, such as geographical expansion, acquisitions, mergers, collaborations, partnerships, and product or service launches, to gain market share.
 

Quantum Photonics Market Companies

Major players operating in the market are:

• ID Quantique
• Menlo Systems
• Microchip Technology
• NEC
• Nordic Quantum Computing Group
• NTT Technologies
• ORCA Computing
• PsiQuantum
• Quandela
• QuantumXchange
• QuintessenceLabs
• Quix Quantum
• QUSIDE
• Single Quantum
• Thorlabs
• Toshiba
• TundraSystems
• Xanadu
   

Quantum photonics Industry News

• In March 2023, CryptoNext Security (France), and Quandela (France) partnered to develop an integrated solution for securing post-quantum communication protocols. The solution leverages their expertise in quantum computing and post-quantum cryptography remediation. They aim to offer a fully integrated quantum-safe solution to secure sensitive data transfer in various industries, including defense, finance, manufacturing, energy, automotive, and digital services.
   
• In June 2022, Xanadu launched Borealis, a photonic-based quantum computer. According to Xanadu, it is the world's largest photonic quantum computer with 216 squeezed-state qubits. Xanadu claims to achieve the quantum advantage due to Borealis' capability of performing a task in 36 microseconds, which would take more than 9,000 years for a supercomputer.
   

The quantum photonics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component

• Systems
• Services
  • Managed Services
  • Professional Services

Market, By Application

• Quantum Communication
• Quantum Computing
• Quantum Sensing & Metrology
  • Atomic Clocks
  • Quantum Dot Photodetector
  • Quantum LiDar
  • PAR (Photosynthetically Active Radiation) Quantum Sensors

Market, By End-use Industry

• Space Research
• Government & Defense
• Telecommunication
• Healthcare & Pharmaceutical
• Transportation & Logistics
• Environment
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA