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Quantum Computing Aerospace Defense Market

ID: MRFR/AD/6318-HCR
133 Pages
Swapnil Palwe
October 2025

Quantum Computing in Aerospace & Defense Market Research Report: Information By Component (Hardware, Software, and Services), By Application (Quantum Key Distribution [QKD], Quantum Cryptanalysis, and Quantum Sensing), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2035

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Quantum Computing Aerospace Defense Market Infographic
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Quantum Computing Aerospace Defense Market Summary

As per MRFR analysis, the The Quantum Computing in Aerospace & Defense Market was estimated at 2.73 USD Billion in 2024. was estimated at 2.73 USD Billion in 2024. The market is projected to grow from 3.127 USD Billion in 2025 to 12.16 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 14.54 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Quantum Computing in Aerospace and Defense Market is poised for substantial growth driven by technological advancements and strategic initiatives.

  • North America remains the largest market for quantum computing in aerospace and defense, reflecting its robust investment in advanced technologies.
  • Asia-Pacific is emerging as the fastest-growing region, fueled by increasing government support and private sector innovation.
  • The hardware segment dominates the market, while the software segment is experiencing rapid growth due to evolving applications.
  • Key market drivers include the rising demand for advanced computing solutions and breakthroughs in quantum algorithms, which are shaping the future of defense systems.

Market Size & Forecast

2024 Market Size 2.73 (USD Billion)
2035 Market Size 12.16 (USD Billion)
CAGR (2025 - 2035) 14.54%

Major Players

IBM (US), Google (US), Microsoft (US), D-Wave Systems (CA), Rigetti Computing (US), IonQ (US), Honeywell (US), Alibaba (CN), QCI (US)

Quantum Computing Aerospace Defense Market Trends

The Quantum Computing in Aerospace & Defense Market is currently experiencing a transformative phase, driven by advancements in computational capabilities and the increasing complexity of defense systems. Organizations within this sector are exploring quantum technologies to enhance data processing, improve simulation accuracy, and optimize logistics. The potential for quantum computing to solve problems that are currently intractable with classical computing is particularly appealing, as it may lead to breakthroughs in areas such as cryptography, materials science, and artificial intelligence. As a result, investments in research and development are on the rise, with both public and private entities recognizing the strategic importance of quantum solutions in maintaining competitive advantages. Moreover, collaborations between government agencies and private enterprises are becoming more prevalent, fostering an ecosystem that encourages innovation and knowledge sharing. This synergy is likely to accelerate the deployment of quantum technologies in real-world applications, particularly in mission-critical operations. The emphasis on national security and defense readiness further propels the demand for quantum computing solutions, as stakeholders seek to leverage these advanced technologies to address emerging threats and enhance operational efficiency. Overall, the Quantum Computing in Aerospace & Defense Market appears poised for substantial growth, with a focus on harnessing the unique capabilities of quantum systems to redefine the future of aerospace and defense operations.

Enhanced Data Processing Capabilities

The integration of quantum computing is expected to significantly improve data processing capabilities within the aerospace and defense sectors. This advancement may allow for faster analysis of vast datasets, leading to more informed decision-making and strategic planning.

Improved Simulation and Modeling

Quantum technologies are likely to enhance simulation and modeling processes, enabling more accurate predictions and assessments of complex systems. This improvement could facilitate better design and testing of aerospace components and defense strategies.

Strengthened Cybersecurity Measures

As quantum computing evolves, it may provide innovative solutions for strengthening cybersecurity measures. The ability to develop quantum-resistant encryption methods could protect sensitive information and ensure secure communications in defense operations.

Quantum Computing Aerospace Defense Market Drivers

Breakthroughs in Quantum Algorithms

Recent advancements in quantum algorithms are catalyzing the evolution of the Aerospace & Defense Market. Quantum Computing in Aerospace & Defense Market is benefiting from these breakthroughs, which enable faster and more efficient problem-solving capabilities. For example, algorithms designed for optimization and machine learning can significantly enhance predictive maintenance and logistics management. The potential to reduce computational time from years to mere seconds could transform how defense contractors approach complex simulations and analyses. As research institutions and private enterprises continue to collaborate on algorithm development, the market is likely to see a proliferation of innovative applications that leverage quantum computing.

Emerging Applications in Defense Systems

The emergence of novel applications for quantum computing within defense systems is reshaping the Aerospace & Defense Market. Quantum Computing in Aerospace & Defense Market is witnessing a surge in interest for applications such as secure communications, advanced cryptography, and enhanced surveillance systems. The ability of quantum systems to perform complex calculations at unprecedented speeds could lead to breakthroughs in threat detection and response strategies. As defense agencies seek to enhance their operational capabilities, the integration of quantum technologies into existing systems appears to be a priority, potentially leading to a paradigm shift in how defense operations are conducted.

Strategic Partnerships and Collaborations

The formation of strategic partnerships and collaborations among technology firms, defense contractors, and research institutions is a driving force in the Aerospace & Defense Market. Quantum Computing in Aerospace & Defense Market is increasingly characterized by joint ventures aimed at accelerating the development and deployment of quantum technologies. These collaborations often pool resources and expertise, facilitating the rapid advancement of quantum applications. For instance, partnerships between tech giants and defense agencies have led to the establishment of dedicated research centers focused on quantum computing. Such initiatives not only enhance innovation but also ensure that the defense sector remains at the forefront of technological advancements.

Regulatory Support and Funding Initiatives

Regulatory support and funding initiatives from government entities are playing a crucial role in the growth of the Aerospace & Defense Market. Quantum Computing in Aerospace & Defense Market is benefiting from increased governmental focus on quantum technologies, with various countries allocating substantial budgets for research and development. For example, recent funding announcements indicate that several nations are investing billions into quantum research, recognizing its strategic importance. This financial backing is likely to stimulate innovation and attract talent to the sector, thereby fostering a conducive environment for the commercialization of quantum solutions in defense applications.

Increased Demand for Advanced Computing Solutions

The Aerospace & Defense Market is witnessing a pronounced demand for advanced computing solutions, driven by the need for enhanced operational efficiency and decision-making capabilities. Quantum Computing in Aerospace & Defense Market is poised to address complex computational challenges that traditional systems struggle with. For instance, the ability to process vast datasets in real-time can lead to improved mission planning and resource allocation. As defense budgets continue to grow, with projections indicating a rise to over 2 trillion dollars by 2026, investments in quantum technologies are likely to surge. This trend suggests that organizations are increasingly recognizing the potential of quantum computing to revolutionize their operational frameworks.

Market Segment Insights

Quantum Computing in Aerospace & Defense Component Insights

Quantum Computing in Aerospace & Defense Component Insights

Based on type, the Quantum Computing in Aerospace & Defense market segmentation includes Hardware, Software, and Services. The hardware segment dominated the market, accounting for 35% of market revenue. For quantum computing, numerous hardware platforms are being created. The most advanced technology, superconducting circuits and trapped ions form the foundation of any commercially available quantum computer. Other potential platforms include neutral atoms, photonic networks, and spin qubits.

Quantum Computing in Aerospace & Defense Application Insights

Quantum Computing in Aerospace & Defense Application Insights

The Quantum Computing in Aerospace & Defense market segmentation, based on Application, includes quantum key distribution [QKD], quantum cryptanalysis, and quantum sensing. The quantum key distribution [QKD] category generated the most income. Businesses are implementing quantum key distribution techniques for their complex ecosystems, and most are investing in space-based optical communication to build a worldwide quantum network with security applications. Solution providers are encouraged to implement new quantum cryptography technology to provide secure communication and data transmission networks worldwide by the growing demand for cloud-based and real-time encryption software.

Figure 1: Quantum Computing in Aerospace & Defense Market, by Application, 2022 & 2032 (USD Billion)

Get more detailed insights about Quantum Computing Aerospace Defense Market

Regional Insights

North America : Innovation Hub for Quantum Tech

North America is the largest market for quantum computing in aerospace and defense, holding approximately 60% of the global market share. The region's growth is driven by significant investments in research and development, a robust technology ecosystem, and increasing demand for advanced computing solutions in defense applications. Regulatory support from government initiatives further catalyzes this growth, fostering innovation and collaboration among key stakeholders. The United States stands out as the leading country, home to major players like IBM, Google, and Microsoft. The competitive landscape is characterized by rapid advancements in quantum technologies, with companies focusing on developing scalable quantum systems. Canada also plays a significant role, with firms like D-Wave Systems contributing to the region's innovation. The presence of these key players positions North America as a formidable force in The Quantum Computing in Aerospace & Defense.

Europe : Emerging Powerhouse in Quantum Tech

Europe is rapidly emerging as a significant player in the quantum computing market, holding around 25% of the global share. The region benefits from strong governmental support and collaborative initiatives aimed at advancing quantum technologies in aerospace and defense. The European Union's Quantum Flagship program is a key regulatory catalyst, promoting research and innovation across member states, which is expected to drive market growth in the coming years. Leading countries in Europe include Germany, France, and the United Kingdom, each investing heavily in quantum research. The competitive landscape features a mix of established tech companies and innovative startups, fostering a dynamic environment for growth. Notable players like IBM and Google are also expanding their presence in Europe, enhancing the region's capabilities in quantum computing applications for defense and aerospace sectors.

Asia-Pacific : Rapid Growth in Quantum Sector

Asia-Pacific is witnessing rapid growth in the quantum computing market, accounting for approximately 10% of the global share. The region's growth is fueled by increasing investments from both government and private sectors, particularly in countries like China and Japan. Regulatory frameworks are evolving to support research and development, with a focus on integrating quantum technologies into defense applications, which is expected to enhance regional capabilities significantly. China is leading the charge in quantum research, with substantial government backing and initiatives aimed at becoming a global leader in quantum technology. Japan and Australia are also making strides, with various collaborations between academia and industry. The competitive landscape is characterized by a mix of established tech giants and emerging startups, positioning Asia-Pacific as a vital player in the global quantum computing arena.

Middle East and Africa : Developing Quantum Initiatives

The Middle East and Africa region is in the nascent stages of developing its quantum computing market, currently holding about 5% of the global share. Growth drivers include increasing interest from governments in adopting advanced technologies for defense and security applications. Regulatory frameworks are beginning to take shape, with several countries exploring partnerships to enhance their technological capabilities in quantum computing. Countries like the United Arab Emirates and South Africa are leading efforts to establish quantum research initiatives. The competitive landscape is still developing, with a focus on building local expertise and fostering collaborations with international players. As investments in technology infrastructure grow, the region is poised to unlock significant potential in the quantum computing sector, particularly in aerospace and defense applications.

Quantum Computing Aerospace Defense Market Regional Image

Key Players and Competitive Insights

Leading market companies are extensively spending R&D on increasing their product lines, which will help the Quantum Computing in Aerospace & Defense market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Quantum Computing in Aerospace & Defense industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Quantum Computing in Aerospace & Defense industry to serve clients and expand the market sector. The Quantum Computing in Aerospace & Defense industry has provided some of the most important benefits recently. Major players in the Quantum Computing in Aerospace & Defense market, including GQuiX Quantum and others, are attempting to increase market demand by investing in research and development operations.

The Netherlands' Enschede is home to the photonic quantum technology startup QuiX Quantum. At the center of the Twente photonics ecosystem, on the University of Twente campus, their company is conveniently placed next to important partners like Lionix International and PHIX. They collaborate extensively with their technology partners, clients, and customers to continuously develop our products because they think of quantum as an ecosystem. In September 2023, The German aerospace center and Quix Quantum agreed to deliver 64 and 8-qubit universal quantum computers. Based on photonics, these systems will combine today's processors, feedforwards, sources, and detectors with those of tomorrow.

The main direct descendant of John D. Rockefeller's Standard Oil is the American multinational oil and gas company Exxon Mobil Corporation, also known as Exxon. Vertically integrated across the whole oil and gas sector, the firm, which adopted its current name in 1999 due to Exxon and Mobil's merger, also includes a chemicals section that makes plastic, synthetic rubber, and other chemical products. Although ExxonMobil was formally formed in New Jersey, its headquarters are in the Houston suburb of Spring, Texas.

In January 2019, ExxonMobil and IBM entered into a partnership agreement to further the potential Application of quantum computing in creating cutting-edge manufacturing and energy technologies. The development of quantum computing may solve complex computational issues in various applications, such as improving the efficiency of a regional power grid and doing more accurate environmental modeling.

Key Companies in the Quantum Computing Aerospace Defense Market market include

Industry Developments

June 2023: Griffiss Institute, a center of innovation run by the Air Force Research Laboratory Information Directorate, has accepted BosonQ Psi into the HUSTLE Defence Accelerator program. The program offers training for tech businesses developing technologies essential to national security. BosonQ Psi will have access to experts that can advise them on funding and cooperation opportunities with the government. According to CEO Abhishek Chopra, the alliance would support growth acceleration and provide quantum computing solutions to the defense industry, particularly aerospace.

January 2023: Aerospace and defense are still seen as a market for early adoption of quantum computing technologies. D-Wave Quantum is looking to take advantage of whatever early possibilities it can discover as a newly public business. D-Wave can achieve that goal with the aid of a new reseller agreement with Davidson Technologies, Inc., a provider of cutting-edge engineering, technical, and management solutions to the U.S. Department of Defence, aerospace, and commercial clients.

Future Outlook

Quantum Computing Aerospace Defense Market Future Outlook

The Quantum Computing in Aerospace & Defense Market is projected to grow at a 14.54% CAGR from 2024 to 2035, driven by advancements in computational capabilities and increased defense spending.

New opportunities lie in:

  • Development of quantum encryption systems for secure communications
  • Integration of quantum algorithms in flight simulation training
  • Creation of quantum-enhanced materials for aerospace applications

By 2035, the market is expected to be a pivotal component of aerospace and defense strategies.

Market Segmentation

Quantum Computing Aerospace Defense Market Type Outlook

  • Hardware
  • Software
  • Services

Quantum Computing Aerospace Defense Market Application Outlook

  • Quantum Key Distribution [QKD]
  • Quantum Cryptanalysis
  • Quantum Sensing

Report Scope

MARKET SIZE 20242.73(USD Billion)
MARKET SIZE 20253.127(USD Billion)
MARKET SIZE 203512.16(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)14.54% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesAdvancements in quantum algorithms enhance simulation capabilities for aerospace design and defense applications.
Key Market DynamicsRising investments in quantum computing technologies drive innovation and competition in aerospace and defense applications.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Swapnil Palwe
Team Lead - Research

With a technical background as Bachelor's in Mechanical Engineering, with MBA in Operations Management , Swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the Automotive/A&D domain. Swapnil has worked on major projects in verticals such as Aerospace & Defense, Automotive and many other domain projects. He has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.

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FAQs

What is the projected market valuation for Quantum Computing in Aerospace & Defense by 2035?

The projected market valuation for Quantum Computing in Aerospace & Defense is 12.16 USD Billion by 2035.

What was the market valuation for Quantum Computing in Aerospace & Defense in 2024?

The market valuation for Quantum Computing in Aerospace & Defense was 2.73 USD Billion in 2024.

What is the expected CAGR for the Quantum Computing in Aerospace & Defense Market during 2025 - 2035?

The expected CAGR for the Quantum Computing in Aerospace & Defense Market during 2025 - 2035 is 14.54%.

Which companies are considered key players in the Quantum Computing in Aerospace & Defense Market?

Key players in the market include IBM, Google, Microsoft, D-Wave Systems, Rigetti Computing, IonQ, Honeywell, Alibaba, and QCI.

What are the main segments of the Quantum Computing in Aerospace & Defense Market?

The main segments include Hardware, Software, and Services, as well as applications like Quantum Key Distribution, Quantum Cryptanalysis, and Quantum Sensing.

What was the valuation of the Hardware segment in 2024?

The valuation of the Hardware segment in 2024 was 0.82 USD Billion.

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