2023 is already seeming to be a favorable year for quantum technologies. French quantum computing start-up PASQAL raised €100 million in a series B funding round last week. A couple of days ago, the Canadian government announced a new federal investment of 40 million CAD to build and commercialize a photonics-based quantum computer. On January 30th, the Indian Minister of State for Electronics & Information Technology and Skill Development & Entrepreneurship, Mr. Chandrasekhar, proclaimed that Quantum Computing would be at the core of India’s growth. This statement, made at CDAC’s Symposium on the Quantum Computing Ecosystem, is in step with the National Mission on Quantum Technologies and Applications (NM-QTA) worth INR 8,000 Crore, which was launched by the Government of India in 2020. Worldwide, tens of billions of dollars are being invested into quantum technologies, a market that is predicted to cross 42.4 billion USD by 2027. Quantum technology, which is based in the fundamental laws of quantum mechanics, has begun to make its way from scientific laboratories to corporate boardrooms. Indeed, the obstacles on the way to realizing commercial quantum advantage are no longer simply theoretical; the challenge has now evolved into an engineering and business problem.
While it is yet to be seen what quantum’s biggest commercial applications will be, the leadership at several companies across the world acknowledge the extensive impact this emerging technology will bring about. According to the survey conducted by Classiq in 2021, 98.6% of respondents believed that “quantum computing is a necessity or is important to advance technology performance”, and 89% agreed that their companies should create a specific quantum computing budget. Despite this consensus, only 61.9% of the respondents reported that their companies had financial schemes in place for quantum preparedness. This gap is commonly ascribed to the present nascency of quantum technologies—we are still a long way from scalable and fault-tolerant quantum solutions. However, an equally critical factor in the adoption of any emergent technology is the state of the industry ecosystem.
The global quantum ecosystem is recent, sparse, and non-uniform in nature. Although numerous countries have announced national initiatives and missions on quantum technologies, it is still private investments that lead the charge to accelerating development. A recent report notes that for a country to formulate a national initiative, the existence of one or two quantum start-ups is usually the catalyst. In extension, with the increase in the number of quantum start-ups globally, it is possible to anticipate national initiatives in around 20 countries in the coming years. There is a trend of diversification via mergers (Honeywell Quantum Solutions and Cambridge Quantum, PASQAL and Qu&Co), acquisitions (SK Telecom’s, of ID Quantique), and SPACs (IonQ, Rigetti) in quantum companies, which has increased interest and investment in the area.
Quantum companies and start-ups are typically categorized as working on one of Quantum Computing, Quantum Communications, and Quantum Sensing. However, two additional categories that have seen a rise in the number of start-ups, and that are often overlooked, are “Enabling companies” and “Supporting companies”. Countries that are seeing an increase in the number of enabling technology start-ups—companies that focus on cryogenic systems, control electronics, vapor cells, and similar products—are observed to own a greater share in the global quantum ecosystem.
“Supporting companies”, integral to ecosystem building, focus mainly on consultancy, education, and skill development. It cannot be denied that quantum technology is unique in its challenge of skill and expertise requirement; not only is the domain incredibly interdisciplinary, but furthermore, theoretical physics, which lies at its core, is widely perceived to be difficult and inaccessible. Academia-industry partnerships play a significant role in bridging knowledge gaps. It is such partnerships, along with the work of supporting quantum companies, that will lead the way to a richer, more robust global quantum ecosystem, and eventually to commercial quantum advantage.
References:
https://tech.eu/2023/01/24/temasek-leads-eur100-million-round-in-atomic-level-quantum-processor-builder-pasqal/
https://pib.gov.in/PressReleasePage.aspx?PRID=1894794
Seskir, Z.C., Korkmaz, R. & Aydinoglu, A.U. The landscape of the quantum start-up ecosystem. EPJ Quantum Technol. 9, 27 (2022). https://doi.org/10.1140
Classiq Technologies Ltd. Quantum Computing: A View From the Trenches. 10 (2021). https://www.classiq.io/docs/quantum-computing-view-from-the-trenches-part-
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https://steveblank.com/2022/03/22/the-quantum-technology-ecosystem-explained/
https://techcrunch.com/2023/01/23/pasqal-raises-100m-to-build-a-neutral-atom-based-quantum-computer/
https://pm.gc.ca/en/news/news-releases/2023/01/23/supporting-canadas-leadership-quantum-computing-grow-economy-and
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By Padmapriya Mohan
