Quantum revolution: Germany is investing billions in future technology!

Quantum revolution: Germany is investing billions in future technology!

A lot is happening in the world of quantum technologies. The industry is experiencing a huge investment boom that not only makes researchers' hearts beat faster, but also explores the economic potential worth billions. According to a recent report by the FAZ A dizzying increase in global spending on research and development is expected in 2023, increasing fivefold. Forecasts suggest that investment in quantum technologies could hit $10 billion (approximately €8.7 billion) by 2025, representing a clear turning point for the industry.

In comparison, spending last year was just $2 billion, while in 2021 it was just $1 billion. With a market that could grow to nearly $100 billion by 2035, it is clear that quantum technologies – including quantum computing, quantum sensing and quantum communications – are well on their way to becoming the next big thing. Not only are tech giants like Microsoft, Google and Amazon at work here, but China is also relying on companies like Tencent and Alibaba in order not to fall behind in the globalization race.

Investments and innovations

Around 70 percent of the investments flow into hundreds of start-ups that pursue innovative approaches to quantum research. The public sector remains an important donor: Germany has taken the lead in public investments with over 4 billion euros in funding commitments and is planning to build a new universal quantum computer in the country. Eleqtron, which is on the World Economic Forum's (WEF) list of one hundred tech pioneers, stands out among the German start-ups.

A look at the numbers shows that the development of quantum technologies is making progress. According to that McKinsey Quantum Technology Monitor 2024 The potential value of these technologies could reach several trillion dollars by 2035. Four sectors benefit particularly strongly: chemistry, life sciences, finance and mobility.

Advances in quantum computing include, among other things, improvements in error reduction and correction. We are also working on quantum key distribution to further optimize quantum communication. Quantum sensing is also making progress, with new techniques being developed that increase sensor sensitivity. However, the valoración of the market is not without challenges: limited access to hardware and a subsistent awareness of the potential of quantum technology is slowing down development.

The role of education

In order to maintain technological leadership in Germany and Europe, rapid progress and a competitive talent pool are essential. A positive trend is that 367,000 graduates with quantum-related degrees were recorded, and the number of universities offering master's programs increased to 50 from 29 in 2021. While Europe already holds 44 percent of the world's granted patents in this area, Germany plays an important role with $1.7 billion in public investments and an ambitious quantum technologies action plan that includes $3.3 billion for a universal quantum computer by 2026.

The McKinsey analysis of 2023 also shows that the greatest economic impact of quantum technologies is expected to be in the financial sector, with added value between $394 and $700 billion. If we look at the main investors, it is obvious that there are differences between the requirements for the development of AI and QT. It remains to be seen how these areas will develop and where the synergies will lie.

Overall, it can be said that quantum technologies are well on the way to not only offering innovative solutions to old problems, but also making a significant economic contribution. The coming years will be crucial as to whether Europe and Germany in particular will be ahead in the race for technological leadership.