Quantum Computing in the Aerospace and Defense Market Report 2025

The quantum computing in the aerospace and defense market size has grown rapidly in recent years. It will grow from $2.23 billion in 2024 to $2.54 billion in 2025 at a compound annual growth rate (CAGR) of 13.9%. Growth in the historic period was driven by rising data volumes, increased funding, a surge in real-time quantum computing trials, growth in multi-qubit entanglement experiments, and expanded workforce training.

The quantum computing in the aerospace and defense market size is expected to see rapid growth in the next few years. It will grow to $4.25 billion in 2029 at a compound annual growth rate (CAGR) of 13.7%. Growth in the forecast period is expected to be driven by increasing military investments, expanding research efforts, rising demand for advanced data security, heightened focus on encryption, and growing emphasis on national security and cryptography. Key trends during this period include technological innovations, the adoption of hybrid quantum-classical computing models, developments in quantum sensing, advances in quantum cryptography and secure communications, and the emergence of quantum radar technologies.

The increase in military investments is expected to drive the growth of quantum computing in the aerospace and defense market in the coming years. Military investments involve government funding allocated to developing, upgrading, and maintaining defense capabilities and security infrastructure. This rise is fueled by escalating geopolitical tensions, prompting nations to boost defense budgets to enhance security and maintain strategic deterrence amid global uncertainties. These investments support the demand for quantum computing in aerospace and defense by funding advanced technologies that improve secure communication, intelligence analysis, and threat detection. For example, in April 2024, the Stockholm International Peace Research Institute reported that global military spending reached $2.44 trillion in 2023, marking a 6.8% real-term increase compared to 2022. Hence, rising military investments are propelling the growth of quantum computing in this sector.

Leading companies in the quantum computing aerospace and defense market are increasingly engaging in strategic partnerships to deliver enhanced technological solutions, boost operational efficiency, and speed up innovation in maintenance, inspection, and repair services. Strategic partnerships allow companies to combine strengths and resources for mutual benefit and success. For instance, in June 2025, Nokia Corporation, a telecommunications firm based in Finland, teamed up with Honeywell Aerospace Technologies from the US and Numana, a Canadian quantum technology organization, to advance quantum-safe networks through the Kirq Quantum Communication Testbed in Montreal, Canada. This collaboration aims to develop and deploy quantum-safe networks and encryption technologies to secure digital infrastructure and communications, including satellite and terrestrial networks.

In February 2025, IonQ Inc., a US-based quantum computing company, formed a partnership with General Dynamics Information Technology (GDIT) to co-develop quantum computing solutions for US customers. The partnership focuses on accelerating quantum adoption in government and defense agencies, targeting areas such as quantum artificial intelligence, data analytics, resource optimization, anomaly detection, and geospatial data processing. General Dynamics Information Technology (GDIT) is a US technology and professional services company.

Major players in the quantum computing in the aerospace and defense market are Microsoft Corporation, The Boeing Company, Airbus SE, International Business Machines Corporation, Honeywell International Inc., BAE Systems plc, D-Wave Systems Inc., Xanadu Quantum Technologies Inc., PsiQuantum Corp., Photonic Inc., Alice & Bob SAS, Q-Ctrl Pty Ltd, Infleqtion Inc., Quandela SAS, IonQ Inc., Classiq Technologies Ltd., QC Ware Corp., MagiQ Technologies Inc., Pan Galactic LLC, and ColdQuanta Inc.

North America was the largest region in the quantum computing in the aerospace and defense market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in quantum computing in the aerospace and defense report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the quantum computing in the aerospace and defense market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Quantum computing in aerospace and defense involves leveraging advanced quantum algorithms and processors to tackle complex problems more quickly than conventional computers. This technology improves secure communications, optimizes flight paths, enhances simulations, and aids in threat detection.

The main categories of quantum computing in this sector include hardware, software, and services. Hardware comprises the physical components like quantum processors, qubits, and control systems that enable quantum computations based on quantum mechanics principles. Applications include quantum key distribution, quantum cryptanalysis, and quantum sensing, primarily used by end-users such as the military and aerospace industries.

The quantum computing in the aerospace and defense market research report is one of a series of new reports that provides quantum computing in the aerospace and defense market statistics, including quantum computing in the aerospace and defense industry global market size, regional shares, competitors with a quantum computing in the aerospace and defense market share, detailed quantum computing in the aerospace and defense market segments, market trends and opportunities, and any further data you may need to thrive in the quantum computing in the aerospace and defense industry. This quantum computing in the aerospace and defense market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The quantum computing in the aerospace and defense market includes revenues earned by entities by providing services such as secure communications and quantum cryptography, advanced simulation and modeling, and optimization of operations and logistics. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum computing in the aerospace and defense market also includes sales of quantum computers, quantum simulators, and cryptography systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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