Quantum Photonic Neural Network Market Report 2025

The quantum photonic neural network market size has grown exponentially in recent years. It will grow from $1.33 billion in 2024 to $1.78 billion in 2025 at a compound annual growth rate (CAGR) of 34.1%. The growth during the historical period was driven by rising government funding, increasing interest in quantum computing, demand for secure communications, the need for high-speed data processing, and the expansion of quantum computing-as-a-service offerings.

The quantum photonic neural network market size is expected to see exponential growth in the next few years. It will grow to $5.69 billion in 2029 at a compound annual growth rate (CAGR) of 33.7%. The growth during the forecast period is expected to be driven by the expansion of artificial intelligence applications, increasing demand for secure communication systems, growth in data center infrastructure, the need for scalable computing solutions, and the rise of quantum cloud services. Key trends in this period include the integration of quantum photonics with AI, advancements in photonic integration, adoption of photonic quantum computing, development of quantum-enhanced sensors, and miniaturization of photonic devices.

The rising prevalence of cyber threats and growing data privacy concerns are expected to drive the growth of the quantum photonic neural network market. Cyber threats and data privacy issues involve unauthorized digital access, data breaches, and misuse of sensitive information that affect individuals and organizations. These challenges are increasing due to rapid digitalization and the widespread adoption of connected technologies, which expand the attack surface and create vulnerabilities in critical systems. Quantum photonic neural networks utilize quantum computing and photonics principles to strengthen cybersecurity by enabling ultra-fast, highly secure data processing and advanced threat detection, addressing key data privacy issues. For example, in November 2023, the Australian Signals Directorate reported that ReportCyber received nearly 94,000 cybercrime reports during the 2022-23 financial year, a 23% increase from the previous year, averaging one report every six minutes. This escalation of cyber threats and data privacy concerns is therefore a key factor driving the market growth of quantum photonic neural networks.

Leading companies in the quantum photonic neural network market are focusing on incorporating technologies such as integrated graphics processing unit (GPU) systems to accelerate hybrid quantum-classical computations and improve model performance. Integrated GPU processing uses a GPU within the system to manage complex calculations, enabling faster large-scale computations, parallel processing, and hybrid quantum-classical workflows, which enhances overall system efficiency and performance. For example, in October 2024, Orca Computing Limited, a UK-based quantum computing firm, launched the PT-2, the newest system in its PT Series of photonic quantum computers. The PT-2 combines photonic quantum processors with high-performance GPU processing, supporting quantum-enhanced generative artificial intelligence (AI) and hybrid quantum-classical neural network workflows. This system helps organizations accelerate complex computations in areas such as chemical formulation, vaccine development, and optimization problems, providing a commercially viable platform for industrial-scale quantum AI applications.

In November 2024, Orca Computing Limited, a UK-based quantum computing company, partnered with Poznańskie Centrum Superkomputerowo-Sieciowe (PCSS) and NVIDIA Corporation to develop and implement hybrid quantum-classical computing infrastructure for AI and quantum innovation. The collaboration aims to design and demonstrate systems and algorithms that accelerate AI and quantum applications, including training hybrid neural networks that utilize both quantum processors and classical GPUs to address complex tasks such as biological imaging and generative modeling. PCSS, based in Poland, is a supercomputing and networking center, while NVIDIA, based in the US, specializes in AI supercomputing platforms, GPU-accelerated development tools, and software frameworks such as CUDA-Q for quantum-classical computing.

Major players in the quantum photonic neural network market are Lightmatter Inc., PsiQuantum Corp., Q.Ant GmbH, Quantum Brilliance Pty Ltd, Xanadu Quantum Technologies Inc., Photonic Inc., HyperLight Corporation, Quandela SAS, Salience Labs Ltd., TensorFlow, NTT Research Inc., TundraSystems Global Ltd., Orca Computing Limited, Quix Quantum B.V., M Squared Lasers Limited, Nordic Quantum Computing Group AS, Aegiq Ltd., Qboson, Nu Quantum, Anyon Systems.

North America was the largest region in the quantum photonic neural network market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in quantum photonic neural network report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the quantum photonic neural network 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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

A quantum photonic neural network is a computational system that combines quantum mechanics and photonics to process and transmit information using light-based quantum states. It utilizes quantum phenomena such as superposition and entanglement to perform parallel computations, potentially offering greater speed and efficiency compared to classical neural networks. Optical components such as waveguides, beam splitters, and phase shifters are used to implement quantum operations and encode data in photonic qubits.

The main components of quantum photonic neural networks include hardware, software, and services, with hardware encompassing the physical elements that enable scalable, efficient, and reliable computation. These networks can be deployed on-premises or via cloud-based platforms and are applied across various sectors, including healthcare, finance, telecommunications, defense, and research and development. Key end users include academic and research institutions, enterprises, government organizations, and others.

The quantum photonic neural network market research report is one of a series of new reports that provides quantum photonic neural network market statistics, including quantum photonic neural network industry global market size, regional shares, competitors with the quantum photonic neural network market share, quantum photonic neural network market segments, market trends, and opportunities, and any further data you may need to thrive in the quantum photonic neural network industry. This quantum photonic neural network 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 photonic neural network market consists of revenues earned by entities by providing services such as quantum photonic hardware sales, quantum photonic software licensing, custom quantum neural network design, algorithm development, data processing and analysis, and supply of quantum photonic components. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum photonic neural network market also includes sales of photonic systems, quantum algorithms, software development kits (SDKs), and simulation tools. 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 that 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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