This Policy Brief is about the European Union’s role in the global quantum race, providing an overview of the current state of quantum technology. It examines public and private funding, the innovation potential, and market perspectives. This includes insights into how quantum technologies have emerged as a highly dynamic and promising field, attracting significant attention and investment due to their potential to revolutionise sectors like computing, communication, and sensing, , and with broader impacts on areas such as healthcare, finance, and transportation.
The European Union is actively striving for leadership in the highly dynamic and promising field of quantum technology. In fact, the EU is home to over a third of global quantum companies, surpassing the US and China. While EU firms tend to be smaller and younger, there has been a notable surge in quantum company creation within the EU since 2018, indicating growing momentum in the sector. Global private venture capital investments in quantum companies and public sector investments rose since 2011.
A significant trend is the maturing of the quantum industry, with investors showing a growing preference for more established firms and later-stage financing, focusing on scaling up existing businesses. While US-based venture capitalists have been the largest investors, notably, EU public investments are more widely dispersed across various technologies and geographies compared to non-EU investments, which often concentrate on specific technologies. The EU has demonstrated positive and stable growth in quantum patenting, with its compound annual growth rate more than doubling from 2021 to 2024, a significant trend given a global slowdown in patent filings in other major economies. The EU also exhibits strong international collaboration.
To maintain its competitive edge and attract further investment, the EU must demonstrate clear commercial potential for quantum technology by translating research into concrete solutions that address specific industry challenges. It is essential to foster collaboration among researchers, industry leaders, and investors to identify impactful applications and develop practical solutions. Furthermore, the European Commission and Member States should cooperate to build a strong ecosystem and avoid fragmentation, coordinating financial efforts towards a unified EU quantum strategy, and continuing coordinated investment in talent and infrastructure across Member States.