OCTOBER 2024

Quantum
Technology
INVESTING AT THE INFLECTION POINT

This report is intended for professional investors only; see the back of the report for important disclosures. GP Bullhound
Corporate Finance Ltd and GP Bullhound Asset Management Limited are authorised and regulated by the Financial Conduct
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Contents
04 INTRODUCTION

05 KEY INSIGHTS

06 CHAPTER 1
Quantum will change the world

13 CHAPTER 2
The leaders are emerging

19 CHAPTER 3
Seizing the opportunity

23 SOURCES

25 DISCLAIMER
4 THE VIEW FROM
GP BULLHOUND

Introduction
Quantum technology has recently transitioned from the realm of science fiction to a
field on the verge of transforming the world. In this report, we dissect this emerging
technology and show why now is the time to take it seriously. From an investor's
perspective, we also discuss how to navigate the quantum market, providing insights
that can help one understand which companies are poised to lead this technological
wave, and the challenges they may face on that journey.

AUTHORS

DR. CALLUM
STEWART
[email protected]

As investors start to recognise the groundbreaking

potential of quantum technologies and are beginning
to allocate accordingly, there is no one-sized-fits-
all approach to investing. As with every developing
technology, each part of the value chain differs in its
return, time horizon and risk profiles. For investors
looking to allocate a small pocket of capital to capture
the broad expansion of the market, we suggest looking
at hardware agnostic investments like infrastructure
software or supporting systems that are driving value
creation today. Those with longer timeframes and
more aggressive deployment plans should consider
the underlying hardware or end application software
for investment.
 THE VIEW FROM 5
GP BULLHOUND

Key insights_

Quantum technology is now a tangible reality - Quantum

sensors are undergoing field tests, quantum computers are
achieving practical utility and large enterprises are
expanding their quantum spending

The quantum market is massively expanding — Projected

to grow from $1 billion today to $20 billion by 2030,
and over $100 billion by 2040.

Investors increasingly recognize the lucrative potential

of quantum technology — With a growing share of global
startup funding directed towards this sector every year
over the past five years.

The industry's future leaders are emerging — Fewer new

startups are being founded, while established companies
attract more capital, secure scarce talent, and form
strategic partnerships.

Investors need to weigh opportunities against risks

across the quantum value chain — With companies balancing
technical, competitive, and time-to-market challenges.
6 CHAPTER 1

Quantum will change

the world

01 Making the impossible possible

02 Reinventing computing, sensing,

and communication

03 Ushering in a new era of computing

04 Sensing the imperceptible

 QUANTUM WILL CHANGE THE WORLD CHAPTER 1 7

Although in its early stages of commercialisation, quantum technology is already a billion-

dollar market (1)(2). It is set to expand massively, reaching $20 billion by 2030 (3) and potentially
surpassing $100 billion by 2040 (4). Considering the impact across industries and use cases,
the total economic impact of quantum could reach as high as $2 trillion by 2035 (4).

Adding over $40 billion in public funding commitments for quantum technology (4)(5)—almost
double the amount in 2021(6)—and a growing push by large enterprises to develop their
quantum readiness, the market's development is accelerating.

$40 $20 $2.0

billion billion trillion
public funding market size total economic
commitments today in 2030 impact by 2035

But what exactly is quantum technology, and what gives it the potential to change the world?

01 Making the impossible possible

Quantum technologies harness the non-intuitive behaviors of particles at the atomic scale
and smaller. At this level, phenomena such as quantum entanglement, superposition, and
tunneling emerge, offering new capabilities that are impossible for the classical technologies
the world is built on today.

Quantum entanglement: This

phenomenon is akin to particles
QUANTUM ENTANGLEMENT
being invisibly connected, regardless
of the distance between them.
When the state of one particle is
measured, the state of the other
is instantly known. This allows for
the development of unbreakable
encrypted communication Measure the Instantly know
technologies and is essential state of one the other
for running some of the unique
algorithms of quantum computers.

Source: (1) HPC Wire; (2) IDTechEx; (3) BCG; (4) McKinsey; (5) Qureca; (6) Qureca.
8 CHAPTER 1 QUANTUM WILL CHANGE THE WORLD

Quantum superposition: This principle

allows particles, like atoms or photons, to be
QUANTUM SUPERPOSITION
colloquially described as existing in multiple
states simultaneously. Instead of simply
being 1 or 0, they can be thought of as being
1 1
in a state similar to a flipping coin in midair,
having a probability of being both heads and
tails at that moment. This is the cornerstone

0 0 of quantum computing, unlocking new types

of computation that can solve certain complex
tasks at a performance level impossible for
Quantum classical computers.
Classical Quantum
Classical

Quantum tunneling: This phenomenon enables particles to pass through barriers they
classically should not be able to cross. This effect is utilized in various technologies, enabling
the development of advanced electronic components that can be faster and smaller than
classical options.

QUANTUM TUNNELING

Classical

Quantum

In essence, these quantum properties open the door to technologies that are faster, more
secure, and more efficient than anything possible with classical physics alone. They represent
a significant leap in our ability to process information, secure communications, and build new
technologies with the potential to change the world as we know it.
 QUANTUM WILL CHANGE THE WORLD CHAPTER 1 9

02 Reinventing computing, sensing, and communication

While quantum computing is perhaps the most well-known technology within the quantum
industry, it is just one of three main categories, alongside sensing and communication. These
technologies are in various stages of development, each facing unique challenges before
they can achieve mass-market adoption. However, with significant progress in recent years,
the prospect of quantum sensors as alternatives to GPS without satellites, and quantum
computers solving complex AI and optimization problems, is becoming increasingly tangible.

Quantum technologies

Quantum computing: Unlike classical computers that represent information

as binary 1s and 0s, quantum computers use qubits ('quantum' bits) that
can exist in a superposition of both states. Quantum processing units
(QPUs) leverage this property, along with entanglement, to perform many
calculations at once, solving complex and often probabilistic problems such
as decryption and molecule structure simulation that are infeasible for
classical computers. Among the three categories of quantum technologies,
computing is regarded as having the potential for the most significant impact
on the world.

Quantum sensing: Quantum sensors exploit the extreme sensitivities of

quantum states to detect otherwise imperceptible variations in magnetic
fields, temperature, pressure, gravity, and more with unparalleled precision.
Utilizing technologies such as atomic clocks, magnetometers, and
interferometers, these sensors provide a level of accuracy and sensitivity far
beyond classical sensors. Being the most developed category of quantum
technology, quantum sensors are already used in medical devices like MRI
machines and are being tested for practical applications such as GPS-like
navigation without the need for satellites.

Quantum communication: By leveraging the property of quantum

entanglement, where particles and their states are correlated regardless
of the distance, quantum communication enables new types of fully secure
communication and information transfer. Beyond its obvious use cases
in military communications and financial transactions, it also acts as a
safeguard against the future decryption capabilities of quantum computers.
10 CHAPTER 1 QUANTUM WILL CHANGE THE WORLD

03 Ushering in a new era of computing

By leveraging the unique properties of quantum mechanics, quantum computers hold the
promise to solve certain problems in minutes that would take even the best supercomputer
in the world the age of the universe to complete.

Time to solve algorithm with increasing complexity

Classical 1 15 1,000 10,000 Age of the

computer second seconds seconds seconds universe

Quantum 2 15 60 90 1,000
computer seconds seconds seconds seconds seconds

Illustrative. Modelled based on Shor’s algorithm with increasingly large integer given as input.

These capabilities arise from the fundamentally different architecture of quantum

computers compared to classical computers. Using the principle of superposition, where
qubits can represent multiple states simultaneously, quantum computers can perform many
calculations in parallel that classical computers must run sequentially, potentially offering
massive improvements in performance for certain tasks. Through quantum entanglement,
relationships can be preserved across operations, allowing parallelism to be maintained.

To complete a calculation, qubits are measured, collapsing into a definite state that represents
the most probable answer based on the initial quantum superpositions. As these are typically
probabilistic problems and statistical simulations of real-world scenarios—problems which
have no definite answer but an optimal one depending on the given constraints—the process
can yield varying results and confidence levels. However, even if computations need to be
re-run to improve the confidence level, quantum computers will still outpace classical
computers in finding solutions at scale.

However, not all problems suit the properties and capabilities of quantum computers. For
many problems and software, especially those relying on regular arithmetic operations like
addition and multiplication, classical computers will remain the best choice. Yet, for certain
complex problems, quantum computers will unlock use cases that are beyond the reach of
classical computers, including:

▪ Artificial intelligence (AI): Quantum computers can perform key calculations and
operations used in training machine learning and AI models much faster than classical
computers. As AI technologies like ChatGPT, transformers, and deep learning grow in
importance, so too will the impact of quantum computing.

▪ Molecular simulation: Quantum computers excel at simulating quantum systems, a

task nearly impossible for classical computers due to the expanding number of variables
and interactions. Quantum computers can model complex molecular structures for drug
discovery, design new chemicals, and explore materials science.
 QUANTUM WILL CHANGE THE WORLD CHAPTER 1 11

▪ Optimization problems: Quantum computers can identify the best solution among
vast possibilities, making them ideal for solving complex optimization problems. They
have the potential to be highly effective in optimizing supply chains, logistics, financial
portfolio management, and energy infrastructure development and grid management.
Quantum-inspired algorithms already outperform standard techniques, bridging the gap
until quantum hardware becomes more powerful and stable.

▪ Cryptography: Quantum computers could potentially break certain types of encryption

systems that rely on the difficulty of factoring large numbers, a task at which quantum
computers excel. Consequently, governments, defense agencies, and cybersecurity
companies are investing in developing quantum-resistant encryption methods.

In many cases, the problem to be solved may consist of several tasks and sub-problems,
some suited for quantum computers and some not. In such situations, a hybrid approach can
be used, leveraging the strengths and capabilities of both quantum and classical computers.

04 Sensing the imperceptible

Positional inaccuracies at sea when using backup sensors instead of GPS

After 1 hour 1 day 1 week 1 month

Classical 80 1,900 13,000 56,000

sensor meters meters meters meters

Quantum 2 45 300 1,300

sensor meters meters meters meters

Illustrative. Based on industry benchmarks.

The properties that enable the unique capabilities of quantum computers also make
these systems incredibly sensitive to environmental factors like temperature fluctuations,
electromagnetic interference, and cosmic rays. These factors are the main sources of errors
that must be overcome to advance the technology. This extreme sensitivity, however, can be
exploited for other use cases, namely in building quantum sensors. These devices can detect
and measure variations in magnetic fields, temperature, pressure, gravity, time, and more with
unparalleled precision, unlocking a wide range of use cases and performance levels impossible
for classical sensors. For example:

▪ Gravity sensing and mapping: Quantum gravimeters measure the smallest gravitational
variations. By triangulating with a “gravity map” of the world, this enables precise GPS-like
navigation without satellites, avoiding risks of signal jamming or interception. Even without
such a map, as long as the starting position is known, quantum sensors can trace steps
taken and distance traveled with extreme fidelity. For example, without GPS for 24 hours
at sea, a classical inertial navigation system could drift almost two kilometers from the
actual position, whereas a quantum sensor system’s error could be less than 50 meters,
according to recent trials.
12 CHAPTER 1 QUANTUM WILL CHANGE THE WORLD

▪ Timekeeping and navigation: Quantum clocks measure time with extreme accuracy,
crucial for improving GPS systems and high-precision synchronization in fields like
astronomy and satellite communications.

▪ Imaging and photonics: Quantum imaging techniques, such as quantum-enhanced

MRI and quantum ghost imaging, achieve higher resolution and require less light
than classical methods. These advancements, as well as quantum dots and single
photon devices, are useful in medical imaging, biotechnology, materials science,
pharmaceuticals, defense, and surveillance.

▪ Magnetic field sensing: Quantum magnetometers, such as those based on nitrogen-

vacancy centers in diamonds, can be used in geology for mineral exploration, in
neuroscience for brain activity mapping, in archaeology for locating ancient artifacts,
and more.

▪ Temperature sensing: Quantum sensors detect even the smallest temperature changes,
applicable in medical diagnostics, environmental monitoring, materials science,
chemical production, pharmaceuticals, and more.

Similar to quantum computers, quantum sensors may not always be fully independent but
can work alongside other quantum sensing technologies and traditional sensors to achieve
the desired output. A benefit of quantum sensing over quantum computing is that many of
the major engineering challenges have already been overcome, advancing the technology to
a level where devices are already being tested for practical applications. Therefore, the day
when we will see quantum sensors complement or replace their classical counterparts is
likely sooner than the day when quantum computers will achieve the same, even though
that day is also getting closer and closer.
EXPERT VIEW
CHAPTER 2 13

The leaders are emerging

01 At the inflection point

02 Leading the new industry

14 CHAPTER 2 THE LEADERS ARE EMERGING

Quantum technology has been a topic of discussion for years, often described as perpetually
a decade away from practical application. However, today, we believe this statement is no
longer true and the future it offers is nearer than one might think. In fact, recent developments
in the field show that more power and influence are amassing among the currently established
players. This suggests that the industry may already be at the stage where its future leaders
have been established and are now only growing stronger.

01 At the inflection point

Over the past year, we've witnessed numerous breakthroughs that seemed like moonshots
just a few years ago. IBM released the "utility paper" demonstrating how quantum computers,
today, are pushing the boundaries of classical problem solving (7). Atom computing and IBM
unveiled the first quantum computers with over 1,000 qubits (8) (9), marking a significant leap
in scale. With these advancements, BCG expects enterprise-grade quantum computing to
start generating business value by 2025 (10). This prediction is supported by a recent study
indicating that 57% of companies investing in quantum computers plan to increase their
spending, 40% plan to maintain it, and only 3% plan to decrease it (10), indicating growing
confidence in the technology's potential.

Quibits in IBM's largest quantum computer by year

1,200
1,121

1,000

800

600

433
400

127
200
50 53 65
5 20
0
2016 2017 2018 2019 2020 2021 2022 2023

Source: (7) Nature (8) Atom Computing; (9) IBM; (10) BCG.
 THE LEADERS ARE EMERGING CHAPTER 2 15

While these points highlight the promising developments in quantum computing, the
potential of quantum sensing is already starting to materialize with sensors being deployed
and tested for practical use today. For instance, routine procedures such as MRI scans are
based on the well-understood quantum property of nuclear magnetic resonance, where
strong magnetic pulses manipulate and measure the spins of atoms within different tissues
to generate an image. However, the advancements in quantum sensing we're referring
to here involve the behavior of single atoms, particles, or quantum systems, rather than
grouped phenomena like MRI.

Some major applications are still under development or refinement for widespread
deployment, but that day is approaching rapidly. Quantum dots and single photon sources,
for example, have shown significant potential for early disease diagnosis (11). Vector Atomic
has developed a ship-based atomic clock that recently passed a three-week trial sailing
on the open ocean, demonstrating its potential for high precision timekeeping in maritime
navigation (12). The British Navy and Imperial College London have tested a new quantum-
based navigation system (13). Additionally, Q-CTRL partnered with with the US Geological
Survey to advance geophysics for resource exploration using quantum sensing and
computing (14). These developments have led the US Department of Defense to solicit the
industry for quantum sensor technologies (15). With such developments becoming more
frequent, it won't be long until quantum sensors are a commonly deployed technology for
numerous applications in our world.

02 Leading the new industry

Beyond the market being at an inflection point and various quantum technologies already
being used or tested in practice, the most crucial factor for investors like us is that the future
leaders of the quantum industry may, in fact, already be here. Now is the time to act.

One data point supporting this is the fact that the formation of new startups in the quantum
space has slowed to less than a fourth of its peak in 2018 (4). This decline is not merely due
to the challenging economic environment following the boom years before the COVID-19
pandemic, as it has been consistent every year since the peak, except for a slight rebound
in 2021.

Source: (11) Frontiers; (12) Physics World; (13) Royal Navy; (14) The New York Times; (15) Defense Innovation Unit; (4) McKinsey.
16 CHAPTER 2 THE LEADERS ARE EMERGING

Quantum startups founded by year

60

50

40

30

20

10

0
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
One reason for this slowdown is the industry’s talent shortage. The World Economic Forum
explains, “… More than half of quantum companies are currently hiring. These companies
struggle to find people with the right skills for new positions in the emerging quantum job
market.” Additionally, “…most current jobs are highly technical, especially with academic
specializations and PhDs.” (16).

To put this into perspective, a study of 750 job vacancies in quantum showed that over 60%
require a PhD. For those with less than three years of experience, that figure reaches 80% (17).
Even though every nation with a quantum strategy has emphasized the need to increase its
talent pipeline at all knowledge levels (18), the talent gap is real and will take time and
investment to rectify. McKinsey found that there is only one qualified candidate for every
three job openings and predicts that less than 50% of the job demand in quantum will be
filled by 2025 (19).

Notably, this talent gap may be lower in Europe than in other regions, with the highest
concentration of quantum talent per capita, followed by India, China, and then the
United States (4).

60% 0.34 50%

of quantum jobs qualified candidates of quantum job
require PhD per job opening demand met by 2025

Source: (16) World Economic Forum; (17) Q-CTRL; (18) World Economic Forum; (19) McKinsey; (4) McKinsey.
 THE LEADERS ARE EMERGING CHAPTER 2 17

Opposing this trend is the surge in funding for quantum startups. Private investments
increased from annual levels in the low hundreds of millions of dollars during the mid-2010s
to levels consistently above a billion dollars over the last three years. Including public funding,
total investments into quantum technology startups reached $1.7 billion in 2023 (4).

Funding to quantum startups by year

($m)

2,500

2,000

1,500

1,000

500

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

While the funding level in 2023 was a decrease from the peak in 2022 of $2.35bn, this 27%
decrease is lower than the 38% decrease in overall startup funding in 2023 (4), signaling
quantum startups are receiving an increasingly larger share of overall startup funding.
Moreover, with public funding commitments into quantum technologies having reached
levels over $40bn (4)(5), a figure almost twice what it was in 2021 (6), the trend towards
increasing quantum funding looks only to continue.

Source: (4) McKinsey; (5) Qureca; (6) Qureca.

18 CHAPTER 2 THE LEADERS ARE EMERGING

Quantum companies’ share of total startup funding by year

0.6

0.60%
0.5
0.51%
0.4

0.34%
0.3

0.23%
0.2
0.15% 0.07%
0.10% 0.08% 0.07%
0.1
0.06%

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

As the quantum industry matures, we are seeing more partnerships, customer relationships,
and government collaborations. For example, Q-CTRL became the first software vendor to
integrate its infrastructure software stack into IBM’s quantum computing offering in 2023 (20),
PsiQuantum received more than $600 million in funding from the Australian government (21),
and the Novo Nordisk Foundation awarded a grant to establish the Copenhagen Center for
Biomedical Quantum Sensing (22). The more established these partnerships and relationships
become, the higher the barrier for new entrants to compete in the space.

Why does this matter?

With fewer startups being founded, more money flowing into the ecosystem, and key
partnerships and relationships being formed, it is increasingly likely that the future quantum
industry leaders are already here. For investors, customers, and other stakeholders, this means
that now may be the best time to engage to avoid being left behind by this emerging wave.

Source: (20) Q-CTRL; (21) PsiQuantum; (22) Novo Nordisk.

CHAPTER 3 19

Seizing the opportunity

01 Deciphering the value chain

02 Navigating the risks and opportunities

20 CHAPTER 3 SEIZING THE OPPORTUNITY

Quantum technology, much like AI or other advanced fields, is not a homogenous landscape
of companies working on identical problems. Instead, it encompasses a diverse range of
companies and providers, each addressing unique challenges and serving different customer
needs. As the technology becomes more complex, this landscape will continue to fragment,
requiring companies to specialize further to solve difficult problems and create value for the
entire ecosystem.

For investors or stakeholders looking to participate in this emerging market, key questions
often revolve around which companies will have the highest impact, when they will begin to
gain substantial commercial traction, and which ones align with a preferred risk profile. The
answers to these questions lie in understanding the various steps of the quantum technology
value chain, the specific roles each provider plays within the ecosystem, and the timeframes
in which they can achieve their ambitions.

01 Deciphering the value chain

Integrated System Impacted

Components Algorithms Solutions
hardware software industries

Quantum Operating Optimization GPS-denied Energy

materials system algorithms navigation infrastructure
Quantum
computing
Simulation AI and ML
Photonics Compiler Pharmaceuticals
algorithms model training

Communication Molecular
Advanced Defense and
Error correction protocols simulation and
nanofabrication security
drug discovery
Quantum
sensing
Signal Supply chain
Cryogenics Cryptography Transportation
processing optimization

Search Early disease Financial

Control systems Qubit control
algorithms diagnosis services
Quantum
communication
Other Other
Other software Other solutions Other industries
components algorithms

Supporting ecosystem
Research, education, financing, standardization, regulation
 SEIZING THE OPPORTUNITY CHAPTER 3 21

Beyond the surrounding ecosystem of stakeholders supporting research, education, financing,

standardization, and regulation of the quantum field, the main steps of the quantum
technology value chain that deliver the products and services enabling the final use cases
across industries include:

▪ Components: The foundational technologies that, once integrated, form the building
blocks of quantum integrated hardware systems.

▪ Integrated hardware: Complete hardware systems built using these foundational

components.

▪ System software: System-level software that controls, stabilizes, and optimizes

the hardware, enabling the development of higher-level applications. Also called
infrastructure software and includes middleware software.

▪ Algorithms: Advanced quantum algorithms that serve as the building blocks for higher-
level applications and solutions.

▪ Solutions: End-user products and services built by utilizing all the above components,
often abstracting the technical details to facilitate early adoption.

In practice, companies often span several of these steps rather than focusing on just
one. Additionally, while each category of quantum technology—computing, sensing, and
communication—has its unique challenges, their respective value chains are largely consistent.
And since quantum technologies fundamentally involve harnessing the unique properties of
quantum mechanics, advancements in one category can contribute to the overall progress of
the field. Consequently, companies in the quantum space may focus on multiple categories
simultaneously, such as leveraging near-term opportunities in quantum sensing while
preparing to capture the vast potential market of quantum computing in the future.

02 Navigating the risks and opportunities

Time-to-market risk

Technical risk Competitive risk

22 CHAPTER 3 SEIZING THE OPPORTUNITY

The initial stages of the value chain, Components and Integrated Hardware, involve developing
foundational technologies that form the building blocks of integrated quantum hardware
systems and constructing the complete systems. In the emerging field of quantum computing,
various competing "modalities" exist, each representing different approaches to constructing
the processing units, known as qubits. These modalities—such as superconducting circuits,
trapped ions, topological qubits, and photonic qubits—each have unique strengths and
drawbacks in the quest to build a scalable quantum computer. Consequently, each modality
and the companies developing them carry technical risks, as their solutions may not ultimately
achieve this goal. However, if a particular technology proves to be the optimal approach, the
potential upside for those companies could be significant. Investors might consider placing
bets across multiple modalities to capture the potential winners. However, the substantial
capital requirements mean this strategy could still face challenges in ensuring a good return
on investment if the bets are spread too broadly and require investors with deep pockets to
fund them effectively.

The central stage of the value chain, System Software, encompasses the development of
system-level software that controls, stabilizes, and optimizes integrated quantum hardware
systems, enabling algorithm and solution providers to create software that runs on these
systems. This layer is crucial in quantum technologies as it not only compiles code but also
mitigates noise and interference in the hardware and qubits. Quantum systems are extremely
sensitive to environmental interference, including temperature fluctuations, electromagnetic
radiation, and vibrations, due to their operation at the atomic and sub-atomic scale. Without
error-correcting software, outputs from these systems would be inaccurate and unusable for
practical applications. Consequently, the demand for system software is widespread across
all quantum technologies, allowing providers to secure customers and revenue today and
grow with the market. Additionally, this software can enhance the performance of existing
integrated hardware systems or reduce hardware requirements while maintaining output
quality. Therefore, system software is poised to play an increasingly important role in the
evolving quantum technology landscape. However, this also means that hardware providers
might prefer to develop this software internally to avoid relying on third parties, potentially
putting dedicated system software providers at risk of competing with their own customers.

The final stages of the value chain, Algorithms and Solutions, involve developing advanced
quantum algorithms that run on quantum systems and form the foundation for software and
solutions built upon them. It also includes solution providers that create end-user products
and services powered by quantum technologies and algorithms. Recent advancements,
such as the first quantum computers with over 1,000 qubits, IBM’s utility paper, and the
deployment of quantum sensors on ships, indicate that the market is at an inflection point.
However, much of quantum technology is still not ready for mass-market adoption. Although
Components and Integrated Hardware providers have roadmaps outlining their plans for
system improvements—with companies like IBM successfully meeting these milestones
in recent years—there remains a time-to-market risk for when these advancements will
materialize and when Algorithm and Solution providers can deliver customer-ready
products. Quantum-inspired classical solutions can only push the market so far. This
timeline varies depending on the specific quantum technology; for instance, quantum
sensors are more advanced and already undergoing practical testing, while quantum
computing algorithms and applications are further from mass adoption.
 SOURCES 23

Sources
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1-5b-in-2026/

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the-next-10-years/30162

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4. McKinsey: Quantum Technology Monitor, April 2024.

https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/steady-progress-in-
approaching-the-quantum-advantage

5. QURECA: Overview of Quantum Initiatives Worldwide 2023.

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6. QURECA: Overview on quantum initiatives worldwide 2021.

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7. Nature: Evidence for the utility of quantum computing before fault tolerance.
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8. Atom Computing: Quantum startup Atom Computing first to exceed 1,000 qubits.
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qubits/

9. IBM: The hardware and software for the era of quantum utility is here.
https://www.ibm.com/quantum/blog/quantum-roadmap-2033

10. Boston Consulting Group (BCG): Quantum Computing Is Becoming Business Ready.
https://www.bcg.com/publications/2023/enterprise-grade-quantum-computing-almost-ready

11. Frontiers: Quantum Dots: An Emerging Approach for Cancer Therapy.

https://www.frontiersin.org/articles/10.3389/fmats.2021.798440/full

12. Physics World: Ship-based atomic clock passes precision milestone.

https://physicsworld.com/a/ship-based-atomic-clock-passes-precision-milestone/
24 SOURCES

13. Royal Navy: Royal Navy and Imperial College London team up to work on cutting-edge
navigation system.
https://www.royalnavy.mod.uk/news-and-latest-activity/news/2023/may/26/20230526-
royal-navy-and-imperial-college-london-team-up-to-work-on-cutting-edge-navigation-system

14. The New York Times: Quantum Tech Will Transform National Security. It’s Testing U.S.
Alliances Now.
https://www.nytimes.com/2023/07/28/world/australia/quantum-technology-aukus.html

15. Defense Innovation Unit: Transition of Quantum Sensors (TQS) Program.

https://www.diu.mil/work-with-us/submit-solution/PROJ00538

16. World Economic Forum: State of Quantum Computing: Building a Quantum Economy.
https://www.weforum.org/publications/state-of-quantum-computing-building-a-quantum-
economy/

17. Optical Engineering: Defining the quantum workforce landscape: a review of global
quantum education initiatives.
https://www.spiedigitallibrary.org/journals/optical-engineering/volume-61/issue-08/081806/
Defining-the-quantum-workforce-landscape--a-review-of-global/10.1117/1.OE.61.8.081806.
full

18. World Economic Forum: Quantum Economy Blueprint.

https://www.weforum.org/publications/quantum-economy-blueprint/

19. McKinsey: What is quantum computing?

https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-quantum-
computing

20. Q-CTRL: Q-CTRL Integrates Its Error Suppression Technology into IBM Quantum services.
https://q-ctrl.com/blog/q-ctrl-integrates-its-error-suppression-technology-into-ibm-quantum-
services

21. PsiQuantum: PsiQuantum to Build World’s First Utility-Scale, Fault-Tolerant Quantum

Computer in Australia.
https://www.businesswire.com/news/home/20240429080449/en/PsiQuantum-to-Build-
World’s-First-Utility-Scale-Fault-Tolerant-Quantum-Computer-in-Australia

22. Novo Nordisk Foundation: Researchers aim to advance quantum sensing to transform
disease diagnosis and prevention.
https://novonordiskfonden.dk/en/news/researchers-aim-to-advance-quantum-sensing-to-
transform-disease-diagnosis-and-prevention/
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