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China Quantum Computing Market

ID: MRFR/ICT/44288-HCR
200 Pages
Aarti Dhapte
October 2025

China Quantum Computing Market Research Report By Vertical (Optimization, Machine Learning, Simulation), By Product Type (Hardware, Software, Services) and By Vertical (Aerospace Defense, BFSI, Energy Power, Healthcare, Information Technology Telecommunication, Transportation)-Forecast to 2035

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China Quantum Computing Market Summary

As per Market Research Future analysis, the China quantum computing market size was estimated at 142.8 USD Million in 2024. The China quantum computing market is projected to grow from 181.28 USD Million in 2025 to 1970.92 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 26.9%5% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The China quantum computing market is poised for substantial growth driven by strategic investments and collaborative efforts.

  • China's quantum computing market experiences increased investment in research and development, indicating a robust growth trajectory.
  • The largest segment in this market is quantum hardware, while the fastest-growing segment is quantum software, reflecting diverse technological advancements.
  • Collaborative ecosystems are emerging, fostering partnerships between academia, industry, and government to accelerate innovation.
  • Government initiatives and funding, along with the growing demand for advanced computing solutions, are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 142.8 (USD Million)
2035 Market Size 1970.92 (USD Million)
CAGR (2025 - 2035) 26.95%

Major Players

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

China Quantum Computing Market Trends

The quantum computing market is experiencing notable advancements. This is particularly true in the context of technological innovation and government support. In recent years, there has been a marked increase in investment from both public and private sectors, which appears to be driving research and development initiatives. This surge in funding is likely to enhance the capabilities of quantum systems, potentially leading to breakthroughs in various applications such as cryptography, optimization, and materials science. Furthermore, the establishment of dedicated research institutions and partnerships among universities and tech companies indicates a collaborative approach to harnessing quantum technologies. In addition, the regulatory environment is evolving to accommodate the unique challenges posed by quantum computing. Policymakers are focusing on creating frameworks that promote innovation while ensuring security and ethical considerations are addressed. This dual focus on advancement and regulation suggests a balanced approach to fostering growth in the quantum computing market. As the landscape continues to develop, it is anticipated that the integration of quantum technologies into existing infrastructures will become increasingly prevalent, paving the way for transformative changes across multiple sectors.

Increased Investment in Research and Development

There is a growing trend of heightened investment in research and development within the quantum computing market. This influx of funding is primarily driven by both governmental initiatives and private sector contributions, which aim to accelerate technological advancements and foster innovation.

Collaborative Ecosystems

The formation of collaborative ecosystems is becoming increasingly common in the quantum computing market. Partnerships between academic institutions, research organizations, and technology companies are emerging, facilitating knowledge sharing and resource pooling to advance quantum technologies.

Regulatory Framework Development

The development of regulatory frameworks tailored to the unique aspects of quantum computing is gaining traction. Policymakers are working to establish guidelines that promote innovation while addressing security and ethical concerns, ensuring a balanced approach to market growth.

China Quantum Computing Market Drivers

Talent Development and Education

The rapid evolution of the quantum computing market necessitates a skilled workforce capable of driving innovation and research. In response, China is investing heavily in talent development and education programs focused on quantum technologies. Universities are introducing specialized courses and degrees in quantum computing, while government initiatives aim to attract top talent from around the world. This focus on education is crucial, as the market requires experts in quantum mechanics, computer science, and engineering. By cultivating a robust talent pool, China is positioning itself to meet the demands of the quantum computing market, ensuring sustained growth and technological leadership in the coming years.

Government Initiatives and Funding

The Chinese government has been actively promoting the development of the quantum computing market through substantial funding and strategic initiatives. In recent years, the government allocated over $10 billion to support quantum research and development, aiming to position China as a leader in this field. This funding is directed towards both public and private sectors, fostering innovation and collaboration among universities, research institutions, and tech companies. The emphasis on quantum technology is evident in the national strategy, which identifies quantum computing as a key area for technological advancement. As a result, the The Chinese government has been actively promoting the development of the quantum computing market through substantial funding and strategic initiatives. In recent years, the government allocated over $10 billion to support quantum research and development. This funding aims to position China as a leader in this field.

International Competition and Innovation

The competitive landscape of the quantum computing market is intensifying as countries around the world, including the United States and European nations, ramp up their efforts in quantum research and development. This international competition is driving innovation within China, as domestic companies and research institutions strive to keep pace with global advancements. The need to maintain a competitive edge is prompting increased investment in research, leading to breakthroughs in quantum hardware and software. As a result, the quantum computing market is likely to benefit from this competitive environment, fostering a culture of innovation that could yield transformative technologies and applications.

Strategic Partnerships and Collaborations

The quantum computing market in China is witnessing a surge in strategic partnerships and collaborations among various stakeholders, including academic institutions, private enterprises, and government agencies. These collaborations are essential for pooling resources, sharing knowledge, and accelerating technological advancements. Notably, partnerships between leading universities and tech giants have led to breakthroughs in quantum algorithms and hardware development. Such alliances not only enhance research capabilities but also facilitate the commercialization of quantum technologies. As these partnerships continue to evolve, they are expected to play a crucial role in shaping the future landscape of the quantum computing market, fostering innovation and driving competitive advantage.

Growing Demand for Advanced Computing Solutions

The increasing complexity of computational problems across various industries in China is driving the demand for advanced computing solutions, particularly in the quantum computing market. Industries such as finance, pharmaceuticals, and logistics are seeking more efficient ways to process vast amounts of data and solve intricate problems. For instance, quantum computing can potentially reduce the time required for drug discovery from years to mere months, which is particularly appealing to pharmaceutical companies. As businesses recognize the potential of quantum technologies to enhance their operations, the market is likely to expand significantly, with projections indicating a growth rate of approximately 30% annually over the next five years.

Market Segment Insights

By Application: Cryptography (Largest) vs. Drug Discovery (Fastest-Growing)

In the China quantum computing market, the application segment is led by cryptography, which captures the largest market share due to its critical role in securing communications and data. Following closely, drug discovery is emerging as a significant player, showcasing potential for rapid expansion thanks to advancements in quantum algorithms that can handle complex molecular simulations more efficiently. These applications not only reflect the technological capabilities but also respond to urgent industry needs for security and innovation. Growth trends in this segment are driven by factors such as increasing cybersecurity threats and the pressing demand for faster drug development processes. Moreover, optimization problems, financial modeling, and machine learning applications are gaining traction, with industries recognizing the power of quantum computing to solve complex challenges more efficiently. As investment in research and development continues to rise, these applications are poised for substantial growth as they attract interest from various sectors, including finance and healthcare.

Cryptography (Dominant) vs. Drug Discovery (Emerging)

Cryptography stands out as the dominant application in the China quantum computing market, driven by the need for enhanced security frameworks in digital communications and data protection. Its stronghold is established through the implementation of quantum key distribution (QKD) and other quantum-resistant algorithms that provide robust security measures against potential cyber threats. In contrast, drug discovery is emerging rapidly, fueled by the healthcare sector's increasing reliance on computational power to expedite the research and development of new pharmaceuticals. The ability of quantum computing to simulate molecular interactions at an unprecedented scale makes it a revolutionary tool for drug researchers, positioning it as a game changer in the healthcare landscape.

By Component: Hardware (Largest) vs. Software (Fastest-Growing)

In the China quantum computing market, the distribution among the component segment values reflects a strong inclination towards hardware, which dominates the landscape. This segment continues to capture the majority of market share, attributed to substantial investments in quantum hardware development and infrastructure. Meanwhile, software solutions represent a rapidly growing sector, fueled by the increasing demand for robust algorithms and programming frameworks tailored for quantum applications. The growth trends within the component segment highlight a transformative phase, where hardware remains the backbone of the quantum computing ecosystem, while software is emerging as a crucial enabler of quantum technologies. Factors driving this expansion include the need for enhanced computational capabilities to solve complex problems, rising interest from academic institutions, and increased funding initiatives from both government and private sectors, positioning the market for significant advancements in the coming years.

Hardware (Dominant) vs. Software (Emerging)

The hardware segment is characterized by advanced quantum processors and quantum bit (qubit) technologies, which are pivotal in the development of scalable quantum systems. With significant research and development activities, companies are racing to innovate qubit technologies, focusing on superconducting qubits and trapped ions. On the other hand, the software segment is emerging, driven by a surge in demand for quantum programming languages and simulation tools that facilitate the integration of quantum algorithms. This juxtaposition illustrates the existing strength of hardware while emphasizing the burgeoning potential of software solutions to unlock the full capabilities of quantum computing, making both segments vital to the evolution of technologies in this field.

By End Use: Academic (Largest) vs. Government (Fastest-Growing)

In the China quantum computing market, the distribution of market share among the end use segments reveals that the Academic segment holds the largest share, reflecting the significant investments in research and development by educational institutions. This segment is characterized by extensive collaboration between universities and tech companies, driving the innovation landscape. Conversely, the Government segment is emerging as the fastest-growing area as public sector investments intensify, aiming to harness quantum capabilities for national security and technological supremacy. Growth trends in the China quantum computing market indicate a robust expansion in both the Academic and Government segments. The academic sector is witnessing increased funding from both public and private sources, enabling groundbreaking research. Meanwhile, the Government's commitment to advancing quantum infrastructure is evident through strategic initiatives that promote domestic quantum technology companies, suggesting a competitive landscape that aligns with the country's tech policy and innovation goals.

Academic (Dominant) vs. Government (Emerging)

The Academic segment remains dominant in the China quantum computing market due to its foundational role in fostering talent and research breakthroughs. Academic institutions are pivotal players, leveraging collaborations with industry leaders to propel scientific discovery and application. On the other hand, the Government segment is seen as emerging, highlighted by growing commitments and funding aimed at establishing a robust quantum ecosystem. The government is actively engaging in partnerships with educational institutions and private sector players, focusing on enhancing quantum capabilities for economic and strategic advantages. This creates a dynamic where academia fuels innovation while government initiatives seek to operationalize these advancements in real-world applications.

By Technology: Superconducting Qubits (Largest) vs. Trapped Ions (Fastest-Growing)

The China quantum computing market is witnessing a diverse distribution across its technology segment, with superconducting qubits taking the lead due to their scalability and efficiency in processing data. Trapped ions, while currently smaller in market share, are rapidly gaining traction among researchers and companies for their precision and stability, reflecting a dynamic interplay of preferences in the technology landscape. Growth trends in the technology segment are driven by advances in material science and the increasing availability of funding from both the private and public sectors. As industries explore quantum solutions for complex problem-solving, the focus on superconducting qubits remains strong, while trapped ions emerge as a favorite for applications in quantum communication and cryptography, indicating a promising future for both technologies.

Technology: Superconducting Qubits (Dominant) vs. Trapped Ions (Emerging)

Superconducting qubits are recognized for their superior performance, currently dominating the market and appealing to a range of applications from artificial intelligence to financial modeling. Their manufacturing processes are well-established, enabling faster development cycles. Conversely, trapped ions, although seen as an emerging technology, exhibit exceptional coherence times and controlled interactions which position them uniquely in niche applications such as quantum simulation and secure communication. The combination of their stability and precision could allow trapped ions to carve out a significant presence in the market, particularly as research progresses and practical implementations are developed.

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Key Players and Competitive Insights

The quantum computing market exhibits a dynamic competitive landscape, characterized by rapid technological advancements and strategic maneuvers among key players. Major companies such as IBM (US), Alibaba (CN), and Google (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. IBM (US) emphasizes innovation through its Quantum System One, focusing on expanding its quantum ecosystem and fostering partnerships with academic institutions. Conversely, Alibaba (CN) leverages its robust cloud infrastructure to integrate quantum computing capabilities, aiming to democratize access to quantum technologies across various sectors. Google (US), with its focus on achieving quantum supremacy, continues to invest heavily in research and development, positioning itself as a leader in quantum algorithms and applications. Collectively, these strategies contribute to a competitive environment that is increasingly collaborative yet fiercely competitive.

In terms of business tactics, companies are localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse innovation pathways, although the influence of major players like IBM (US) and Alibaba (CN) remains substantial, shaping industry standards and driving technological advancements.

In October 2025, IBM (US) announced a strategic partnership with a leading Chinese university to develop quantum applications tailored for financial services. This collaboration is poised to enhance IBM's foothold in the Asian market, particularly in sectors where quantum computing can optimize complex financial models. The partnership underscores IBM's commitment to fostering local talent and innovation, which may yield significant competitive advantages in the region.

In September 2025, Alibaba (CN) launched its Quantum Development Kit, aimed at providing developers with tools to create quantum applications. This initiative not only strengthens Alibaba's position in the cloud computing space but also signals its intent to lead in quantum software development. By empowering developers, Alibaba is likely to accelerate the adoption of quantum technologies across various industries, potentially reshaping the competitive landscape.

In August 2025, Google (US) unveiled a new quantum processor, boasting enhanced qubit connectivity and error correction capabilities. This advancement is critical as it positions Google to tackle more complex quantum problems, thereby reinforcing its leadership in the race for quantum supremacy. The introduction of this processor may catalyze further investments in quantum research and development, influencing competitors to accelerate their innovation cycles.

As of November 2025, current trends in the quantum computing market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence (AI). Strategic alliances are becoming pivotal, as companies recognize the need for collaborative efforts to navigate the complexities of quantum technology. Looking ahead, competitive differentiation is likely to evolve, shifting from price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This transition may redefine market dynamics, emphasizing the importance of strategic partnerships and cutting-edge research in maintaining a competitive edge.

Key Companies in the China Quantum Computing Market market include

Industry Developments

In recent months, the China Quantum Computing Market has seen significant developments driven by both government initiatives and private sector advancements. The Chinese government has continued to prioritize quantum technology as a key area for development, allocating substantial funding for research and innovation. Companies such as Alibaba and Tencent are actively investing in quantum computing, with Alibaba exploring cloud-based quantum services and Tencent making strides in quantum algorithms.

Academic institutions like the University of Science and Technology of China and Tsinghua University are also crucial players, conducting breakthrough research in quantum mechanics and technologies .Additionally, collaboration has been observed among companies and institutions, enhancing the development of quantum applications. Notably, in April 2023, Peking University partnered with Huawei to advance quantum hardware and software development. Furthermore, the growth in market valuations of companies like Baidu and ZTE is indicative of increasing investor interest in quantum technologies, which is influencing market dynamics significantly.

Over the past two to three years, landmark projects, such as China's establishment of a national quantum laboratory in May 2021, have further solidified its position in the global quantum landscape.

 

Future Outlook

China Quantum Computing Market Future Outlook

The quantum computing market in China is projected to grow at a 26.95% CAGR from 2024 to 2035, driven by advancements in technology and increased investment.

New opportunities lie in:

  • Development of quantum algorithms for financial modeling
  • Partnerships with telecommunications for quantum encryption solutions
  • Creation of quantum computing training programs for workforce development

By 2035, the market is expected to be a leader in technological innovation and economic growth.

Market Segmentation

China Quantum Computing Market End Use Outlook

  • Academic
  • Government
  • Enterprise

China Quantum Computing Market Component Outlook

  • Hardware
  • Software
  • Services

China Quantum Computing Market Technology Outlook

  • Superconducting Qubits
  • Trapped Ions
  • Topological Qubits
  • Photonic Quantum Computing

China Quantum Computing Market Application Outlook

  • Cryptography
  • Drug Discovery
  • Optimization Problems
  • Financial Modeling
  • Machine Learning

Report Scope

MARKET SIZE 2024 142.8(USD Million)
MARKET SIZE 2025 181.28(USD Million)
MARKET SIZE 2035 1970.92(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 26.95% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled IBM (US), Google (US), Microsoft (US), Rigetti Computing (US), D-Wave Systems (CA), IonQ (US), Honeywell (US), Alibaba (CN), Xanadu (CA)
Segments Covered Application, Component, End Use, Technology
Key Market Opportunities Advancements in quantum algorithms drive demand for specialized quantum computing solutions across various industries.
Key Market Dynamics Intensifying competition drives rapid advancements in quantum computing technologies and applications within the market.
Countries Covered China

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FAQs

What is the expected market size of the China Quantum Computing Market in 2024?

The China Quantum Computing Market is expected to be valued at 124.95 USD Million in 2024.

What will be the market value of the China Quantum Computing Market by 2035?

By 2035, the market is projected to reach a value of 1538.46 USD Million.

What is the expected CAGR for the China Quantum Computing Market from 2025 to 2035?

The market is anticipated to grow at a CAGR of 25.638% during the forecast period from 2025 to 2035.

Which verticals are driving the China Quantum Computing Market?

The key verticals include Optimization, Machine Learning, and Simulation.

What is the market size for Optimization in the China Quantum Computing Market by 2035?

The Optimization segment is expected to reach a market size of 462.15 USD Million by 2035.

What will be the market size for Machine Learning in the China Quantum Computing Market in 2024?

In 2024, the Machine Learning segment is valued at 49.97 USD Million.

Who are the key players in the China Quantum Computing Market?

Major players in the market include Alibaba, Tencent, Baidu, and Huawei among others.

What is the projected market value for Simulation by 2035 in the China Quantum Computing Market?

The Simulation segment is expected to reach a market value of 454.44 USD Million by 2035.

What growth opportunities exist within the China Quantum Computing Market?

The rapid advancement in technologies and increased investments present significant growth opportunities.

How is the China Quantum Computing Market expected to evolve by 2035?

The market is poised for substantial growth, driven by technological innovations and rising demand across various applications.

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