A New Turning Point in the Quantum Computing Industry: Breakthroughs in 2024 and the Race for Commercialization in 2025
Editor
By the end of 2024, the quantum computing industry reached a historic turning point. In early December, California-based Google unveiled its ‘Willow’ quantum computing chip, achieving groundbreaking results in quantum error correction. Prior to this, New York-based IBM announced its 1121-qubit ‘Condor’ processor, demonstrating the scalability of quantum computing. These technological breakthroughs are transforming research achievements into tangible possibilities for industry-wide commercialization. According to the latest report by global market research firm McKinsey, the quantum computing market is projected to grow at an annual rate of 46%, expanding from $1.9 billion in 2025 to $12.5 billion by 2030. Notably, practical applications in finance, pharmaceuticals, logistics, and cryptography are rapidly increasing, accelerating corporate investments.
The core of quantum computing technology lies in the use of qubits, which can exist in both 0 and 1 states simultaneously, unlike the bits in traditional digital computers. Through phenomena such as ‘superposition’ and ‘entanglement,’ quantum computers can perform complex calculations in minutes that would take traditional computers hundreds of years. Google’s Willow chip, equipped with 105 qubits, has improved quantum error correction rates by 50% compared to previous models, significantly enhancing its practicality. While IBM’s Condor processor holds a significant advantage in the number of qubits, it still faces challenges in error rate management. Industry experts estimate that for commercialization, at least 1000 stable qubits and an error rate below 0.1% are necessary.
The current quantum computing market is divided into three major technological approaches. IBM and Google, adopting the superconducting method, are leading the technological forefront, while Austria-based Alpine Quantum Computing and U.S.-based IonQ, using the ion trap method, along with Canada-based Xanadu, employing the photonic approach, are pursuing differentiated strategies. The superconducting method offers fast processing speeds but requires extremely low temperatures close to absolute zero, leading to high operational costs. In contrast, the ion trap method is relatively stable but has limitations in scalability. According to IDC’s analysis, as of 2024, the superconducting method accounts for 65% of the total market, but by 2028, the market share of ion trap and photonic methods is expected to expand to 25% and 15%, respectively.
Intensifying Competition in Cloud-Based Quantum Computing Services
The most notable area in the commercialization process of quantum computing is cloud-based quantum computing services. Washington-based Amazon launched the ‘Amazon Braket’ service in 2019, providing integrated access to various quantum computers, currently processing an average of 25,000 quantum tasks per month by connecting quantum computers like IonQ, Rigetti, and D-Wave to the cloud. Washington-based Microsoft offers hybrid solutions combining quantum computing with existing cloud services through its ‘Azure Quantum’ platform, recording a 180% increase in usage as of the third quarter of 2024 compared to the previous year. IBM provides quantum computing services to over 200 universities and companies worldwide through its quantum network, processing an average of 100,000 quantum circuits daily.
Price competition in cloud quantum computing services is also intensifying. Amazon Braket charges from $0.3 per task, with fees varying based on the number of qubits and processing time, while IBM offers premium subscription-based services starting at $5,000 per month. Google Cloud officially launched its ‘Google Quantum AI’ service at the end of 2024, offering a 50% discount to early users. According to Gartner’s analysis, the cloud quantum computing service market is expected to grow rapidly from $400 million in 2025 to $3.5 billion by 2030, with hybrid classical-quantum computing solutions accounting for over 60%. The increase in practical applications, such as risk analysis in finance, new drug development in the pharmaceutical industry, and optimization problem-solving in logistics, is accelerating corporate adoption.
Concrete business applications of quantum computing are also emerging. Germany’s Volkswagen, in collaboration with IBM, is conducting a traffic flow optimization project, reducing the average travel time by 15% by optimizing the routes of 10,000 taxis in Beijing in real-time. Switzerland-based Roche, in partnership with Google Quantum AI, is conducting molecular simulation research, reducing the time to explore candidate substances for Alzheimer’s treatment from six months to three weeks. U.S.-based JPMorgan Chase announced the development of a portfolio optimization algorithm using Microsoft Azure Quantum, achieving a 20% improvement in risk-adjusted returns compared to traditional methods. These success stories demonstrate the transition of quantum computing from a theoretical concept to a practical tool.
Investment Status in Quantum Computing in Korea and the Asian Market
Investment in quantum computing is rapidly increasing in the Asian region as well. The Korean government announced a $2 trillion investment over the next five years through the ‘Basic Plan for Fostering Quantum Science and Technology’ in 2024, with $1.2 trillion focused on the quantum computing sector. Seoul-based Samsung Electronics established a quantum computing research center in Chicago, USA, in September 2024, investing $300 billion annually in developing superconducting quantum processors. LG Electronics has also partnered with a Canadian quantum computing startup to develop quantum sensor technology. The Korea Advanced Institute of Science and Technology (KAIST) and POSTECH have developed prototype quantum computers with 20 qubits and 12 qubits, respectively, and plan to expand to 50 qubits by the end of 2025.
China is making the most aggressive investments in the quantum computing field. The Chinese Academy of Sciences established a $10 billion National Quantum Information Science Research Institute in Beijing, and Alibaba Cloud developed an 11-qubit quantum computer ‘Taichang,’ offering it as a cloud service. Baidu announced that its quantum machine learning platform ‘Quantum Leaf’ processes 500,000 quantum simulations annually. Japan’s Tokyo-based Fujitsu, in collaboration with RIKEN, developed a 64-qubit quantum computer, and Sony is investing 50 billion yen annually in developing medical diagnostic equipment using quantum sensor technology. According to Boston Consulting Group’s analysis, the investment scale in quantum computing in the Asian region is expected to increase from $4.5 billion in 2024 to $12 billion in 2027, with China accounting for 60%, Japan 20%, and Korea 15%.
The competition to secure talent in the quantum computing field is also fierce. IBM, as of the end of 2024, has 2,500 quantum computing researchers worldwide, investing $500 million annually in talent acquisition and education. Google announced plans to expand its Quantum AI campus in Santa Barbara, California, to hire an additional 1,000 researchers. Microsoft has partnered with major universities worldwide to operate quantum computing talent development programs, providing quantum programming education to 10,000 developers annually. Industry experts estimate that by 2030, 100,000 quantum computing professionals will be needed globally.
With the growth of the quantum computing industry, related security issues are also coming to the forefront. The currently used RSA encryption method is potentially vulnerable to decryption by sufficiently large quantum computers, prompting governments and companies to develop post-quantum cryptography technologies. The U.S. National Institute of Standards and Technology (NIST) officially announced post-quantum cryptography standards in August 2024, mandating the transition for all government agencies by 2030. The Korea Internet & Security Agency (KISA) also announced a roadmap for the adoption of post-quantum cryptography, planning a phased transition for the financial sector and public institutions starting in 2026. This demand for security transition is creating new market opportunities, with the quantum security solutions market expected to grow from $800 million in 2025 to $4.5 billion by 2030.
The future outlook of the quantum computing industry depends on technological advancements and the pace of commercialization. Industry experts predict that by around 2027, the commercialization of stable quantum computers with 10,000 qubits will initiate revolutionary changes in finance, pharmaceuticals, logistics, and energy sectors. In particular, in the field of new drug development, the improvement in molecular simulation accuracy could reduce the development period from the current 10-15 years to 5-7 years. In the financial sector, real-time risk analysis and portfolio optimization are expected to significantly improve investment returns. In logistics, global supply chain optimization is anticipated to reduce transportation costs by 20-30%.
However, there are still many challenges that the quantum computing industry must address. The most significant challenge is improving the completeness of quantum error correction technology. The current error rate of quantum computers is between 0.1-1%, and for commercialization, it needs to be reduced to below 0.001%. Additionally, the cost of cryogenic cooling systems and electromagnetic shielding facilities required for operating quantum computers is substantial. IBM’s latest quantum computer system costs $15 million for installation alone, with annual operating costs of $3 million. This high-cost structure further highlights the importance of cloud-based services. The industry anticipates that by around 2030, the cost of quantum computer systems will drop to one-tenth of the current level, making the technology accessible to small and medium-sized enterprises.
Quantum computing has the potential to fundamentally expand humanity’s problem-solving capabilities beyond mere technological innovation. The year 2025 will mark the beginning of the transition from theory to practice.
From an investor’s perspective, the quantum computing industry is a field with long-term growth potential accompanied by high volatility. Currently, there are limited publicly listed pure quantum computing companies, but the value of quantum computing divisions within big tech companies like IBM, Google, Microsoft, and Amazon is continuously rising. Venture capital investments are also active, with the global investment in quantum computing startups reaching $1.5 billion in 2024, an 80% increase from the previous year. However, due to technological uncertainties, long development cycles, and capital-intensive characteristics, investment risks are significant. Experts advise that when investing in quantum computing, one should comprehensively evaluate technological capabilities, patent portfolios, partnerships, and funding capabilities. Over the next 5-10 years, the quantum computing industry is likely to establish itself as a key industry leading the next-generation computing paradigm, depending on technological breakthroughs and commercialization success.
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*This analysis is based on publicly available market information and expert opinions, and additional due diligence is required for investment decisions.*
