Embracing the Quantum Economy 2024

Figure 4 illustrates the dynamic growth in quantum technology funding, alongside the challenges of scaling companies and commercializing emerging technologies. –Despite the challenges of scaling the headcount, investment growth in quantum technology has been rapid, particularly after 2020. Most of the funding is directed towards quantum computing, with other areas like software, sensing and communications also receiving increased funding. This trend highlights the growing interest in quantum technologies, signalling opportunities for businesses to leverage these advancements for competitive advantage and for quantum providers to continue innovating to meet market demands. –Size distribution in the quantum sector reveals that a large proportion of companies are small- sized. Specifically, 470 companies have 1-10 employees and 425 companies have 11-50 employees. This suggests that most of the quantum industry is composed of start-ups and small firms, which are still in the early stages of development. For businesses, this indicates opportunities for partnerships and investments, while for quantum providers, it highlights the importance of agility and the need for support in scaling operations. –Investment data highlights the concentration of funding in quantum computing, which attracts the largest share. This could be due to its wide range of potential applications and significant transformative impact on industries like finance, logistics and healthcare. However, the smaller number of companies in the mid- to large-sized range (51-plus employees) implies that even with increased investment, few firms have scaled up significantly. This may indicate challenges in commercializing quantum computing solutions or a need for further technological maturity before larger companies invest more heavily. –Although investment in areas like quantum communications and sensing is smaller, the steady increase suggests potential growth in these fields. Applications in cybersecurity, environmental monitoring and defence may see expanded investment in the coming years as these technologies mature. Supporting the growth of mid-sized firms in these areas could help diversify the quantum ecosystem and foster broader adoption. –The predominance of smaller companies indicates barriers to scaling companies in the quantum business, such as the need for specialized talent, high R&D costs and technological (e.g. infrastructure) barriers. The relatively small number of companies in larger employment ranges (500-plus employees) suggests that even with substantial investments, companies face obstacles in transitioning from research to commercialization. These implications underscore the quantum industry’s rapid development, driven by significant investments in various sectors but constrained by scalability and supply-chain challenges. To increase adoption and facilitate growth, strategic actions are needed to overcome these barriers and accelerate commercialization. 2.1.1 Economic implications of quantum computing Quantum computing represents a paradigm shift from computing in the past century by leveraging principles of quantum mechanics to potentially perform certain calculations at speeds and efficiencies previously not possible. The increase in investment (Figure 4) indicates that industries expect quantum computing to significantly impact various sectors (see Section 3.2). Today, innovative enterprises are investing heavily in institutionalizing quantum computing expertise, both pioneering new applications and maximizing their competitive advantage. Financial firms such as HSBC and JPMorganChase are investing, partnering with hardware vendors and contributing research publications back to the quantum ecosystem. “Financial services has been identified as one of the first industries that will benefit from quantum technologies. As such, we have been investing in quantum research and our team of experts – led by Marco Pistoia – have made groundbreaking discoveries, partnering with quantum computing leaders like Quantinuum. We look forward to continuing to work together to positively impact our businesses, customers and the industry at large,” said Lori Beer, Global Chief Information Officer, JPMorganChase Embracing the Quantum Economy: A Pathway for Business Leaders 19