By the End of 2025, the Quantum Computing Commercialization Race Intensifies – The Technological Power Struggle Among IBM, Google, and Amazon
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As of December 2025, the quantum computing industry is at a historic turning point. Quantum computing technology, which for the past decade was considered only a theoretical possibility, has finally entered the stage of practical applications, sparking intense technological supremacy competition among global tech companies. Particularly in the latter half of 2025, IBM, headquartered in New York, unveiled its 1,121-qubit processor ‘Flamingo’, while Google’s Alphabet in Mountain View, California, announced its next-generation quantum error correction chip ‘Willow’, drawing significant industry attention. According to market research firm IDC, the global quantum computing market size is projected to grow from $1.3 billion in 2024 to $8.5 billion by 2030, with an average annual growth rate of 36.4%, surpassing the initial growth rate of cloud computing.
The core of quantum computing lies in its ability to process multiple states simultaneously using quantum superposition and entanglement, unlike traditional computers that process information in binary form of 0s and 1s. Theoretically, a 300-qubit quantum computer can process 2^300 states simultaneously, more than the number of atoms in the universe, allowing it to perform calculations millions of times faster than conventional supercomputers for certain problems. However, due to the extremely sensitive nature of quantum states, they are vulnerable to external interference, and most current quantum computers operate only in ultra-low temperature environments near absolute zero at 0.01K (-273.14°C). Despite these technical challenges, the achievements announced by various companies in 2025 have significantly increased the potential for commercialization.
Intense Competition Among Leading Tech Companies
The current leaders in the quantum computing market are American tech companies such as IBM, Google, and Amazon. Since claiming ‘quantum supremacy’ with a 53-qubit quantum computer in 2019, IBM has consistently increased its qubit count, surpassing 1,000 qubits in 2024 and offering a 1,121-qubit system as a commercial service by the end of 2025. IBM’s quantum network now includes over 200 institutions worldwide, with financial giants like JPMorgan Chase and Goldman Sachs utilizing IBM quantum computers for portfolio optimization and risk modeling. IBM’s quantum computing business revenue increased by 50%, from $320 million in 2024 to $480 million in 2025.
Google has taken a different approach. Focusing on quantum error correction rather than expanding the number of qubits, Google announced in December 2025 that it had successfully implemented logical qubits with its Willow chip. While existing physical qubits had an error rate of 0.1-1% due to external interference, Google’s logical qubits reduced the error rate to below 0.01%, surpassing the threshold necessary for executing practical quantum algorithms. Hartmut Neven, head of Google’s Quantum AI division, stated that “the Willow chip completed a calculation in 5 minutes that would take 10^25 years on a conventional supercomputer.” Alphabet’s investment in quantum computing is estimated at $1.5 billion annually as of 2025.
Amazon, headquartered in Seattle, is enhancing quantum computing accessibility through its cloud service AWS. Through AWS Braket, it provides quantum computers from various companies like IBM, Rigetti, and IonQ via the cloud, with over 5,000 companies and research institutions worldwide using this service as of 2025. Amazon has also established its own quantum computing center in Pasadena, California, venturing into hardware development. Although Amazon’s quantum computing-related revenue is still less than 1% of its total AWS revenue (estimated at $105 billion annually in 2025), it is growing at an annual rate of over 80%.
Microsoft, based in Redmond, Washington, is developing unique ‘topological qubit’ technology. Unlike existing superconducting or ion trap methods, topological qubits aim to create physically protected quantum states to fundamentally reduce error rates. While more time is needed to implement practical systems, it is considered a potential game-changer if successful. Microsoft also provides quantum software development tools and simulators through its Azure Quantum cloud service.
Practical Applications and Market Opportunities
The fields where quantum computing commercialization is most anticipated include finance, pharmaceuticals, chemistry, and logistics. In the financial sector, there are active efforts to apply quantum algorithms to portfolio optimization, fraud detection, and risk modeling. Deutsche Bank in Frankfurt, Germany, has been experimenting with IBM quantum computers for trading portfolio optimization since early 2025, achieving a 30% improvement in returns compared to conventional methods. UBS in Zurich, Switzerland, increased the accuracy of derivative pricing by 15% through quantum Monte Carlo simulations.
In the pharmaceutical industry, there is a notable trend to utilize quantum computing for molecular simulations in drug development processes. While it has been challenging to accurately model complex molecular interactions with conventional computers, quantum computers can directly simulate the quantum mechanical properties of molecules. Roche in Basel, Switzerland, has partnered with IBM to introduce quantum simulations in Alzheimer’s drug development, successfully identifying candidate substances 40% faster than traditional methods in initial experiments. Merck in New Jersey, USA, is investing $50 million annually in research on protein folding predictions using quantum computing.
The potential of quantum computing is also being recognized in logistics optimization. Deutsche Post DHL in Bonn, Germany, announced that it had implemented a delivery route optimization system using quantum algorithms in the latter half of 2025, reducing fuel costs by 12%. This was achieved by effectively solving optimization problems involving millions of delivery points and thousands of vehicles with quantum computers. UPS in Atlanta, USA, is considering a similar system, aiming to reduce 10-15% of its $2 billion annual fuel costs.
In the automotive industry, there is an increasing attempt to apply quantum computing to battery material development and autonomous driving route optimization. Daimler-Benz in Stuttgart, Germany, announced that it had reduced the development time for next-generation lithium-sulfur batteries by 30% through quantum simulations. Ford in Detroit, USA, is investing in the development of quantum algorithms for traffic flow prediction and real-time route optimization, targeting commercialization by 2026.
In the field of cybersecurity, quantum computing presents both opportunities and threats. Concerns have been raised that quantum computers could render existing RSA encryption ineffective, leading to active development of post-quantum cryptography. The U.S. National Institute of Standards and Technology (NIST) announced post-quantum cryptography standards in 2024, with major companies transitioning their systems. Simultaneously, the development of ‘unhackable’ communication systems through quantum key distribution (QKD) technology is underway. China’s quantum communication satellite ‘Mozi’ has already succeeded in establishing a 2,000 km quantum communication network between Beijing and Shanghai, and the European Union aims to establish a quantum internet across Europe by 2030.
However, significant technical and economic barriers to quantum computing commercialization still exist. The most significant issue is the complexity of quantum error correction. Implementing logical qubits, which require millions of physical qubits for practical quantum algorithm execution, is challenging with current technology due to the difficulty in sufficiently lowering error rates. Additionally, the operational costs of quantum computers are substantial. Operating IBM’s 1,000-qubit system costs over $5 million annually, with 70% of that being the cost of maintaining the ultra-low temperature cooling system. Google’s Willow chip also cannot operate without a dilution refrigerator, with initial investment costs reaching millions of dollars.
The shortage of skilled personnel is also a serious issue. It is estimated that there are fewer than 5,000 quantum computing specialists worldwide, with half of them concentrated in the United States. Major companies are competing to secure talent by offering quantum physicists and software engineers salaries ranging from $300,000 to $500,000. IBM has 1,500 quantum-related personnel as of 2025, while Google and Amazon each operate teams of 800 and 600, respectively. Universities are expanding quantum education programs, but it will take time to train experts with practical experience.
In terms of investment trends, global venture investment in the quantum computing sector reached $3.2 billion in 2025, a 45% increase from the previous year. Of this, 60% was invested in hardware development startups, 30% in software and algorithm development, and 10% in application services. Notable investment cases include IonQ’s $120 million Series C round and Toronto-based Xanadu’s $100 million funding. Government investments are also active, with the U.S. allocating $2 billion annually through the National Quantum Initiative, China constructing a $15 billion national quantum research institute, and the European Union pursuing a €1 billion quantum flagship program.
In the Asian market, the competition in quantum computing is also intense. Japan’s Fujitsu and NTT are focusing on developing optical quantum computers, having succeeded in building a 100-qubit system by the end of 2025. China is making rapid progress through large-scale national investments, with research institutes under the Chinese Academy of Sciences in Beijing achieving world-class results in superconducting and optical quantum computers. South Korea, through its ‘K-Quantum 2030 Strategy’ announced in December 2025, aims to invest 1 trillion won over the next five years to develop a 50-qubit quantum computer.
As of the end of 2025, the outlook for the quantum computing market is dominated by cautious optimism. While technological breakthroughs are emerging, large-scale commercialization is still expected to take 5-10 years. However, limited applications in specific fields are already becoming a reality, which is anticipated to serve as a foundation for further market expansion. Investors and companies are closely monitoring the long-term potential of quantum computing, and the competition for technological leadership is expected to intensify. In particular, the completion of quantum error correction technology is analyzed to be a key factor in determining future market dominance.
*This article is for informational purposes only and does not constitute investment advice or recommendations. Investment decisions should be made based on individual judgment and responsibility.*
