• About 80% of companies in the sector do not have quantum as their main activity

• Europe stands out for its vibrant community of startups in the field, yet lags in securing funding and scaling up

• One of the world’s densest clusters of core quantum firms is in Europe, with the United Kingdom, the Netherlands and France in the lead

MUNICH - Quantum technologies have the potential to transform how we compute, communicate and measure the world around us, with applications from defense to healthcare. The global quantum market is projected to reach about €93 billion by 20351. According to a new study published by the European Patent Office (EPO) and the Organization for Economic Cooperation and Development (OECD), the quantum technology landscape is expanding rapidly with rising firm entry, increasing investment and strong growth in innovation, but it now faces challenges relating to scale-up and commercialization of technology, according to the official website of EPO.

Part of the EPO Observatory on Patents and Technology’s biennial work plan, the report provides a comprehensive analysis of the quantum ecosystem, spanning patenting activity, investment, skills, supply chains and policies. The publication coincides with the United Nations’ International Year of Quantum Science and Technology (IYQ).

“Quantum technologies hold huge potential but are still in the early stages of development,” said EPO President António Campinos. “As this study and the Draghi report highlight, the EU has room to grow its quantum investment, especially when compared to leading countries like the United States. Private-sector funding is now needed to commercialize basic research, and governments should make this a priority.”

According to the study, the number of international patent families (IPFs) – a set of patent applications filed in several countries for the same invention – in quantum increased five-fold in just the last decade. The report identifies three main subsectors: quantum communication, quantum computing (including simulation), and quantum sensing. Quantum communication accounted for the largest number of IPFs until 2022. However, quantum computing has seen the biggest growth in IPFs during the period, expanding nearly 60-fold since 2005, and is set to become the largest field in the quantum ecosystem.

In total, innovators worldwide have generated around 9 740 quantum-related IPFs between 2005 and 2024. The United States led, followed by Europe, Japan, China and Republic of Korea. Within Europe, the top three countries for quantum patenting were Germany, the United Kingdom and France. The region is also seeing dynamic startups emerge, such as French firms C12 and PASQAL, which are included as case studies in the report, though many face challenges in funding and scaling up.

The quantum ecosystem today comprises more than 4 500 firms, with fewer than 1 000 core companies (just under 20%) focused on quantum technologies. Core quantum companies are typically startups and rely heavily on early-stage investment and public funding. Non-core firms (80%) account for most quantum-related patents and job creation, and they are best positioned for commercialization.

Europe hosts one of the densest clusters of core quantum firms worldwide, with percentages of core firms close to 40% in countries like the United Kingdom, the Netherlands, and France. This contrasts sharply with the US (20%), where the share of core quantum is lower and there is a larger presence of tech giants.

The top five applicants overall in quantum IPFs in 2005-2024 were IBM, LG, Toshiba, Intel and Microsoft. European companies such as IQM Quantum Computers and Robert Bosch are also among the top applicants in the areas of computing and sensing, respectively. Four of the top five universities by number of quantum-related cited IPFs were from the US, led by MIT and Harvard. CNRS stands out as the only European public institution to appear among the top 20 applicants.

According to the study, collaboration between public research organizations, startups, and large companies is becoming increasingly important in quantum innovation. The field also faces challenges including growing concentration and dependencies in global supply chains for critical components. Quantum firms also need to ensure the supply of both highly complex, technical skills, as well as favor the integration of softer skills needed to support commercialization efforts.