Rapid Growth of the Quantum Computing Market and South Korea’s Strategic Response – An Analysis of the Global Competitive Landscape in 2025

As of November 2025, the quantum computing industry is at a historic turning point at the boundary of technological breakthroughs and commercial practicality. According to the latest report by global market research firm McKinsey, the quantum computing market size is expected to grow from $1.3 billion in 2024 to $85 billion by 2030, at an average annual growth rate of 32.1%. Notably, with significant advancements in quantum error correction technology this year and meaningful achievements in the implementation of logical qubits by various companies, industry experts are evaluating 2025 as the “inaugural year of quantum advantage.” These technological advancements are moving beyond mere research stages to realize commercialization potential in real industrial sectors such as finance, pharmaceuticals, logistics, and cybersecurity, intensifying the investment competition among governments and companies worldwide.

The current competitive landscape of the quantum computing market shows a pattern where European and Asian companies are accelerating their pursuit despite the overwhelming dominance of American companies. IBM, headquartered in Armonk, New York, maintains its technological lead with its ‘Condor’ processor, which boasts 1,121 qubits, and its ‘Heron’ processor, announced in the first half of 2025, achieved a 90% reduction in error rates compared to previous models. Alphabet, Google’s parent company based in Mountain View, California, announced that its ‘Willow’ chip has surpassed a critical point in quantum error correction, with plans to launch commercial quantum computing services in the latter half of 2025. Meanwhile, Amazon, headquartered in Seattle, is focusing on expanding accessibility by achieving a monthly average growth rate of 45% in cloud-based quantum computing services through its AWS Braket platform.

In the Asian market, aggressive investments from China and Japan are prominent, and South Korea is also engaging in strategic responses at the government level. In China, Baidu, headquartered in Beijing, has started commercial services with its self-developed ‘Quryon’ quantum computer, and Alibaba Cloud is offering an 11-qubit quantum processor as a cloud service. In Japan, Fujitsu, headquartered in Tokyo, is expanding quantum-inspired computing services specialized in solving optimization problems based on digital annealer technology. With the Japanese government’s announcement of a 10-year, 5 trillion yen quantum technology investment plan in 2025, activation of the entire industrial ecosystem is expected. In this global competitive environment, South Korea, despite its relatively late start, is seeking a differentiated approach by leveraging its existing strengths in semiconductor and communication technologies.

South Korea’s K-Quantum Initiative and Industrial Ecosystem Development

The South Korean government has set a goal to enter the global top 5 in the quantum technology field by 2035 through the ‘K-Quantum Initiative,’ which has been actively promoted since the second half of 2024. According to the 4th Basic Plan for Quantum Information and Communication announced by the Ministry of Science and ICT, a total of 2.4 trillion won will be invested from 2025 to 2029 to achieve technological independence in three core areas: quantum computers, quantum communication, and quantum sensors. Notably, South Korea is moving away from its traditional catch-up strategy to pursue a differentiated strategy to secure a leading position in the fields of quantum internet and quantum secure communication. The quantum cryptography communication technology announced by the Electronics and Telecommunications Research Institute (ETRI) in the first half of 2025 achieved a threefold expansion in transmission distance compared to existing technologies, gaining international attention.

South Korean conglomerates are also intensifying their investments in quantum technology. Samsung Electronics, headquartered in Suwon, announced the establishment of a dedicated quantum computing semiconductor development team in 2025, with plans to invest 1 trillion won over the next three years to develop special semiconductors for quantum processors and cryogenic control systems. Samsung’s strategy is to leverage its existing semiconductor manufacturing capabilities to mass-produce qubit chips and control circuits, the core components of quantum computers, which is interpreted as a strategy to secure price competitiveness in the quantum hardware market, currently hindered by high-cost structures. Additionally, Naver, headquartered in Seongnam, is conducting research to optimize search engines and recommendation systems using its self-developed quantum algorithms, with plans to start beta services in the latter half of 2025.

In South Korea’s quantum technology ecosystem, the quantum secure communication field is particularly noteworthy. KT, headquartered in Seoul, started commercial quantum cryptography communication services on the Seoul-Daejeon route in September 2025, expanding its corporate customer base with a monthly growth rate of 15%. This service is internationally recognized for providing theoretically unhackable secure communication through quantum key distribution (QKD) technology while utilizing existing internet infrastructure. SK Telecom has also begun supplying security solutions using its self-developed quantum random number generator to the financial sector, achieving contracts with five major domestic banks as of the third quarter of 2025. The commercialization of quantum security technologies by South Korean companies is gaining recognition for its competitiveness in the global market, especially as market demand rapidly increases amid rising cybersecurity threats.

Commercialization Trends and Investment Flows in the Global Quantum Computing Market

The most notable change in the quantum computing market in 2025 is the accelerated transition from research and development to commercial applications. According to the latest analysis by Goldman Sachs, venture investments related to quantum computing in the first half of 2025 increased by 187% year-on-year to $3.4 billion, with 70% concentrated on startups in the commercialization stage. The adoption of quantum computing in the financial services sector is becoming visible, with JPMorgan Chase announcing that its quantum computing team developed portfolio optimization and risk management algorithms that improved calculation speeds by 1,000 times compared to existing methods. Additionally, BMW, headquartered in Munich, Germany, reported a 15% reduction in logistics costs by implementing a supply chain optimization system using quantum computing.

The use of quantum computing in the pharmaceutical industry is also rapidly expanding. Roche, headquartered in Basel, Switzerland, achieved an 80% reduction in molecular simulation time using quantum computing in its drug development process, predicting an annual R&D cost saving of $500 million. Biogen, headquartered in Boston, USA, also announced a 25% improvement in clinical trial success rates by implementing a drug interaction analysis system using quantum machine learning. These success stories demonstrate that quantum computing is beginning to be recognized as a tool that can create real business value beyond mere technological curiosity.

However, there are still challenges to be addressed in the commercialization process of quantum computing. The biggest issues are high operational costs and technical complexity. Currently, commercial quantum computers must maintain an ultra-low temperature environment below absolute zero at 0.01K, with the cost of building dilution refrigerator facilities alone reaching millions of dollars. Additionally, the error rate problem due to the instability of quantum states remains an obstacle to commercialization. According to MIT Technology Review’s 2025 analysis, the current average error rate of quantum computers is between 0.1-1%, and it needs to be reduced to below 0.001% for practical applications. Due to these technical limitations, many companies are opting for a hybrid approach, combining classical computers with quantum computers.

From an investment perspective, the quantum computing market is currently analyzed to be at the “Peak of Inflated Expectations” stage, where there is a gap between technological maturity and market expectations. According to Gartner’s 2025 Hype Cycle analysis, quantum computing is expected to reach the “Plateau of Productivity” within the next 5-10 years, during which some companies with excessive expectations may experience stock price adjustments. Indeed, the Nasdaq Quantum Computing Index fell by 12% in the third quarter of 2025 compared to the previous quarter, reflecting a cautious market approach. However, in the long term, the market is expected to be reorganized around companies that achieve actual commercialization results, with investor interest focusing on companies that secure clear competitive advantages in specific application areas.

A new trend that began to gain attention in the latter half of 2025 is the democratization of quantum computing. The spread of cloud-based quantum computing services is creating an environment where small and medium-sized enterprises and startups can access quantum technology. As of 2025, Amazon AWS’s Braket service surpassed 15,000 monthly active users, with average usage costs significantly reduced to $0.3 per hour. Microsoft’s Azure Quantum is also increasing accessibility for educational institutions and researchers through a free credit program, currently being utilized in quantum computing courses at 500 universities worldwide. This improvement in accessibility is promoting the expansion of the quantum computing ecosystem and the emergence of unexpected innovative application cases.

The future growth driver of the quantum computing market is expected to be found in the convergence with artificial intelligence. Quantum Machine Learning is presenting new possibilities that surpass the limitations of existing AI, showing innovative results, particularly in optimization problems and pattern recognition. Xanadu, headquartered in Toronto, Canada, announced that its self-developed photonic quantum computer achieved a learning speed 10 times faster than existing deep learning models, which is evaluated as a case demonstrating the commercial potential of quantum-AI convergence technology. Additionally, Cambridge Quantum Computing, headquartered in Cambridge, UK, announced the development of a technology that achieves the same performance with 90% less data using quantum algorithms in the field of natural language processing. These developments are expected to accelerate the adoption of quantum computing in fields where data privacy and efficiency are important, such as healthcare, finance, and security.

In conclusion, the quantum computing market in 2025 is at a crucial transition point, finding a balance between technological maturity and commercial practicality. While American companies’ technological dominance remains in the global market, the differentiated approaches of European and Asian companies and strategic investments at the government level are complicating the competitive landscape. In particular, South Korea is securing global competitiveness in the quantum secure communication field by leveraging its existing strengths in semiconductor and communication technologies, laying the foundation to grow into a key infrastructure provider in the future quantum internet era. Market experts predict 2026 to be the “inaugural year of practical application” for quantum computing, with the ability to create real business value, rather than technological superiority, expected to become the key factor determining companies’ competitiveness from this point forward.

*This analysis is based on publicly available information and market data as of November 22, 2025, and additional expert consultation is recommended for investment decisions.*