Quantum Interconnects Market

Quantum Interconnects Market Outlook 2025 to 2035

The global quantum interconnects market is expected to reach USD 23,213 million by 2035, up from USD 1,750 million in 2025. During the forecast period 2025 to 2035, the industry is projected to expand at a CAGR of 29.5%.

The quantum interconnects market is experiencing high growth rates, mainly due to quantum programs funded by the government, the need to have Franklin networks with greater level of security and high rate of development of photonic and superconducting technology.

Scalable, high-fidelity quantum networks are becoming feasible through increasing investment in quantum repeaters, quantum transducers and quantum memory modules, and national cybersecurity requirements and data security requirements across borders are also driving the uptake.

The research institutes, telecommunication companies, and infrastructure vendors are collaborating to promote innovation and standardization throughout the ecosystem. All these drivers put the market in a position of massive growth, providing the opportunity in distributed quantum computing, quantum-safe communication, and next-generation network infrastructure in the next decade.

Quick Stats for Quantum Interconnects Market

• Industry Value (2025): USD 1,750 Million
• Projected Value (2035): USD 23,213 Million
• Forecast CAGR (2025 to 2035): 29.5%
• Leading Segment (2025): Photonic fiber links (55.1% Market Share)
• Fastest Growing Country (2025-2035): China (31.0% CAGR)
• Top Key Players: PsiQuantum, Xanadu Quantum Technologies, IonQ, Welinq, QphoX

What are the drivers of the Quantum Interconnects market?

The increasing requirement to have scalable and modular quantum computing infrastructure is driving the quantum interconnects market. Interconnects are becoming significant as quantum processors become more complex, to connect a number of chips or modules together to form larger and distributed quantum systems. This allows better counts of qubits and performance without using a monolithic processor, and interconnects are a key building block of future fault-tolerant quantum computers.

The other significant motivation is the increasing need of safe quantum communication and quantum key distribution (QKD). Entanglement distribution over long distances are facilitated by photonic fiber links and quantum repeaters and is the foundation of quantum networks and the quantum internet of the future. The market is further being increased by governments and telecom operators investing a lot in building quantum-safe communications infrastructure.

Last but not least, more public and private R&D funding is speeding up the innovation in transduction technologies, photonic integration and cryogenic hardware. Startup-academia-industry partnerships are now moving lab-scale demonstrations into operating commercial products.

What are the regional trends of the Quantum Interconnects market?

North America is also the foremost center in the development of quantum interconnect, with enormous government funding initiatives like the U.S. National Quantum Initiative and DOE quantum networking testbeds. Hardware players and cloud providers located in the region have a robust concentration of the piloting of modular quantum processors and photonic interconnect solutions. Canada has its share of photonic quantum computing and integrated optics development, which augurs well in favor of the region.

Europe is experiencing a very high growth rate with the help of the EuroQCI program and national quantum programs in Germany, France, and the Netherlands. European companies are leading research in quantum transducer and repeaters and are working on the creation of continent-wide entanglement distribution networks. It focuses on interoperability, standardization and cooperation between the telecom operators and research institutes.

Asia-Pacific is also rapidly accelerating investments with China as the forefront in the large-scale quantum communications networks and Japan concentrating in photonic and satellite-based connections. New initiatives underway in India, South Korea and Australia are developing regional quantum testbeds and infrastructure.

What are the challenges and restraining factors of the Quantum Interconnects market?

The market of the quantum interconnects is characterized by great technical challenges, which make the commercialization slow. The transfer of quantum states with low loss and high fidelity over long range is challenging because of decoherence, photon loss and noise during transmission media. The development of efficient quantum transducers capable of converting optical and microwave signals is not yet fully developed, and restricts cross-platform interactions between photonic, ion-trap and superconducting platforms.

The second limiting aspect is that quantum interconnect infrastructure is costly and complex to construct. Cryogenic environments, ultra-stable lasers, and fine photonics are needed in most systems, which are costly to deploy and do not scale well. Production capacity is also limited by limited supply chains of special components like single-photon detectors and quantum memories.

There is a problem of absence of standards and interoperability in the market. Using the protocols that are not widely deployed, it is difficult to connect various quantum platforms and networks. This poses integration risk to the end-users and hinders adoption outside the government and research sectors.

Country-Wise Insights

China is Accelerating Quantum Interconnects to Build a Nationwide Quantum Network

China is quickly becoming a quantum interconnects market leader due to solid government support and national programs. Already, the Beijing-Shanghai quantum communication backbone has been implemented in the country and efforts are underway to expand it to include a fully integrated quantum internet.

Quantum repeats, photonic fiber connections, and satellite-based quantum connections using free-space to guarantee long-distance entanglement distribution are the areas of interest of Chinese firms like QuantumCTek and research institutes like the University of Science and Technology of China (USTC). Research is happening at breakneck speed in quantum memory modules and transduction technologies with massively state investments and public-private collaborations that will allow other quantum systems to interoperate.

China is aligning policies, funds, and industrial capabilities to take control of the global quantum networking market, providing dependable communications and scalable quantum connection of quantum computing to both military and commercial purposes.

United States Leads the Charge in Building a Scalable Quantum Interconnects Ecosystem

With the heavy government backing, the best research institutions globally, and an active private sector, the United States is now becoming the world leader in the Quantum Interconnects market. The federal programs such as the DOE Quantum Internet Blueprint and Quantum Leap Challenge Institutes are hastening efforts to develop scale, secure infrastructure of quantum communication. The photonic fiber links, quantum repeaters, and transducer technologies are in the lead of the U.S. based companies, which facilitates modular quantum computing and quantum networks throughout the country.

Besides government efforts, large technology firms and startups have been working with colleges and national research centers to establish testbeds that demonstrate the interoperability of platforms. Commercialization is being driven by venture capital and corporate investments, and alliances with telecom operators are in readiness to be launched. All these make the U.S. a major player in the innovations sphere and with high prospects of overtaking the global market share in the next ten years.

Japan Strengthens Photonic Innovation to Power Quantum Interconnects Development

Japan is also fast turning out to be a key market in quantum interconnects with strong photonics, semiconductor fabrication and precision engineering. Photonic-based quantum links and transduction technologies, which are the key to scalable quantum networking, are being prioritized in the country. The National Institute of Information and Communications Technology (NICT) is engaged in the national programs in the development of high-fidelity quantum repeaters, quantum memory and fiber-based entanglement distribution systems.

The close cooperation between Japanese academia, industry and government is creating a powerful innovation ecosystem, which is fastening the process of the research in the laboratory to field application.

Japanese key companies and research consortia are striving to improve interoperability between quantum processors, to allow modular and distributed quantum computing. Together with government funding programs like the Moonshot R&D Program, Japan is currently setting itself up to be on the forefront in next-generation secure communications networks and scalable quantum infrastructure in the coming decade.

Category-Wise Analysis

Photonic Fiber Links are the Backbone of Scalable Quantum Interconnects

The quantum interconnects market is based on photonic fiber links that allow transmitting qubits over a long distance with minimum loss. Based on the well-established optical fiber infrastructure, they are the most developed and used currently solution to quantum networking. Fiber-based connections are essential in entanglement distribution and quantum key distribution (QKD) with high-rate, thus can be utilized in secure communications and distributed quantum computing.

The advantage that the segment has is that it is compatible with the existing telecom networks hence can be deployed faster and is cost effective than the other technologies. The current developments on low-loss fibers, sources of single photons, and quantum repeaters are expanding the communication range beyond metropolitan regions, which will create a global quantum internet. With governments and commercial actors investing in constructing quantum testbeds and trans-city networks, photonic fiber connections will surpass other quantum interconnects products and be the backbone of quantum processor-to-quantum processor connections and secure quantum communications.

Hardware is the Backbone of Quantum Interconnects Market Expansion

The hardware component is the heart of the quantum interconnects market, which facilitates the physical exchange of qubits and entanglement throughout quantum computers and networks. The segment comprises of photonic fiber connections, free space optical connections, quantum transducers, repeaters and quantum memory modules.

It leads on this power because strong, zero-loss hardware is required to scale-up quantum communication and distributed computing. Entities Hardware inventions- e.g. high efficiency photon sources, superconducting microwave links, low-noise transducers - are driving the limits of the performance of connectivity.

The hardware is reported to contribute over half of the market revenue, therefore, heavy investments in R&D have been made to reduce decoherence, enhance fidelity and cross-platform interoperability. Infrastructure pilots are being funded by governments and non-governmental players and standards are being developed that will lead to the adoption of hardware.

The hardware segment will be the biggest and the fastest growing pillar of quantum interconnects ecosystem, as these components grow in maturity and come out of the laboratory prototypes and into the commercial deployment.

Competitive Analysis

Key players in the Quantum Interconnects market PsiQuantum, Xanadu Quantum Technologies, IonQ, Welinq, QphoX, QuTech / QuantWare, Qunnect, Inc., ID Quantique (IDQ), Toshiba Corporation, QuantumCTek Co., Ltd., Huawei Technologies, NEC Corporation, Fujitsu Limited, MagiQ Technologies Inc., QuintessenceLabs

Quantum Interconnects market is extremely competitive because of the high rates of technological development and intensive research in the field of collaboration among academia, startups and government bodies. Companies are concentrating on designing scalable systems (quantum repeaters, transducers, and photonic links) in order to facilitate long-range quantum communication.

Joint ventures and strategic alliances are not new, and various players can integrate hardware, software, and network integration. Competitive environment is being influenced by investments in pilot projects, test beds and standardization. The main distinguishing factors that have an impact on the market positioning and potential to grow over time are continued innovation, cost reduction, and high-fidelity transfer of quantum state.

Recent Development

• In March 2024, Xanadu, a leading photonic quantum computing company, and Corning Incorporated, the global leader in fibre, cable, and connectivity, will collaborate to develop customized fibre and fibre-array solutions to enable low-loss networking of photonic quantum computing chips. This collaboration will bring together Xanadu's world-leading expertise in developing ultra-low-loss photonic chip components using customized fabrication and design techniques, and Corning's future-ready innovations in low-loss optical fibre and high-precision fibre arrays. The combination of expertise will help enable the development of fault-tolerant, universal photonic quantum computers at scale.
• In February 2025, Quantum technology leaders Welinq and QphoX announced a partnership to develop optical quantum interconnects for superconducting quantum computers, enabling a significant increase in computing power. These interconnects will link quantum processors, allowing them to work together in clusters, a major step toward building larger, more powerful quantum systems.

Fact.MR has provided detailed information about the price points of key manufacturers of Quantum Interconnects Market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

The report on the 2025 global Quantum Interconnects market by Fact.MR is created through the contribution of the 1,200 stakeholders in 12 countries, with at least 75 replies per country. Among these, 65 percent of them were end users such as quantum computing researchers, telecom operators, data center architects, and OEM integration specialists whereas 35 percent were network infrastructure planners, standards and compliance experts, and quantum ecosystem policy advisors.

The fieldwork took place in September 2024 – August 2025, which was dedicated to interconnect performance indicators, interoperability issues, the readiness level of the technology, the feasibility of network deployment, and the role of cross-border data security. The balanced sampling model provided proper representation in North America, Europe and Asia-Pacific.

The paper reviewed more than 95 sources which have been validated such as quantum network testbeds, interoperability experiments, hardware performance checks, telecom integration report and filings by quantum networking projects. Triangulation protocols guaranteed a high level of reliability in data which yielded accurate predictions and pieces of action to stakeholders in the quantum ecosystem.

Fact.MR used advanced tools of analysis like multi-variable regression, scenario modeling, Monte Carlo simulation to make sure that the forecasting was robust. Following the consistent observation of the quantum technology space since 2018, this report presents an organization-level strategy to acquire competitive edge, innovation, and sustainable expansion in the quantum interconnects market.

Segmentation of Quantum Interconnects Market

• By Technology :

  • Photonic fiber links
  • Free-space optical links
  • Microwave / superconducting links
  • Quantum transducers
  • Quantum repeaters & quantum memory modules

• By Component :

  • Hardware
  • Software
  • Services

• By Application :

  • Distributed quantum computing / modular quantum processors
  • Quantum key distribution (QKD) / secure communications
  • Quantum cloud access and linking quantum datacenters
  • Quantum sensing & distributed metrology

• Recycling Method :

  • Pyrometallurgical Feedstock
  • Hydrometallurgical Feedstock
  • Mechanical Separation Feedstock

• End-use Industry :

  • Telecom & network operators
  • Government & defense (secure comms, strategic R&D)
  • Cloud providers & hyperscalers
  • Financial services (secure comms / advanced algorithms)
  • Research & academia / national labs

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa