Electronics, Photonics and Quantum Market Report 2026

The electronics, photonics and quantum market size has grown rapidly in recent years. It will grow from $134 billion in 2025 to $148.76 billion in 2026 at a compound annual growth rate (CAGR) of 11%. The growth in the historic period can be attributed to increasing demand for faster computing and communication systems, growth of semiconductor manufacturing capabilities, rising adoption of fiber optic communication networks, expansion of consumer electronics industry, increasing investment in research and development of photonics and electronics.

The electronics, photonics and quantum market size is expected to see rapid growth in the next few years. It will grow to $227.89 billion by 2030 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to rising adoption of quantum computing and quantum communication systems, increasing demand for ultra-low latency data transmission, growth of AI-optimized chip design and fabrication, expansion of high-performance computing applications, increasing integration of photonics in telecom and data infrastructure. Major trends in the forecast period include rising adoption of silicon photonics for high-speed data transfer, growing integration of quantum key distribution in secure communication, increasing use of photonic integrated circuits in data centers, expansion of AI-driven semiconductor design and optimization, rising demand for miniaturized high-performance sensors and chips.

The expansion of data center infrastructure is anticipated to drive the growth of the electronics, photonics, and quantum market in the coming years. Data center infrastructure encompasses both physical and virtual resources, such as servers, storage systems, networking equipment, and cooling systems, that enable the storage, processing, and management of vast volumes of digital data. Data center infrastructure is expanding due to the rapid growth of cloud computing, which demands large-scale computing, storage, and networking capabilities to support rising digital workloads and online services. Electronics, photonics, and quantum technologies improve data center infrastructure by enabling high-performance computing, ultra-fast optical communications, and advanced processing capabilities that enhance data transfer speed, system efficiency, scalability, and the capacity to manage large and complex digital workloads. For instance, in September 2024, according to the National Telecommunications and Information Administration, a US-based government agency, the United States has approximately 5,000 data centers, and demand for these facilities is projected to rise by around 9% annually through 2030. Therefore, the expansion of data center infrastructure is driving the growth of the electronics, photonics, and quantum market.

Key companies operating in the electronics, photonics and quantum market are focusing on developing innovative products such as silicon-photonic quantum integrated circuit chips to enable scalable, high-speed quantum computing and efficient photonic-based information processing. Silicon-photonic quantum integrated circuit chips are advanced microchips that use photons (light particles) traveling through silicon-based optical circuits instead of electrons to process and transmit information, helping enable faster, more scalable, and energy-efficient quantum computing by reducing signal loss, improving qubit control, and allowing complex quantum operations through integrated photonic components on a single chip. For instance, in November 2024, Electronics and Telecommunications Research Institute (ETRI), a South Korea-based government-funded research institute, developed an 8-photon qubit silicon photonic quantum integrated circuit chip designed for advanced quantum computation and scalable photonic quantum information processing. The chip is built on a silicon photonics platform that integrates optical waveguides, photon sources, phase shifters, and linear optical quantum gates onto a single compact semiconductor substrate. It operates by encoding quantum information into photons and manipulating them through controlled interference and entanglement, enabling multi-qubit quantum operations within a highly stable optical architecture. Unlike traditional electronic processors that rely on electron charge and classical binary states, this photonic quantum chip leverages the quantum properties of light, allowing for potentially faster computations, reduced energy loss, and improved resistance to thermal noise.

In June 2025, Pasqal SAS, a France-based quantum computing technology company, acquired AEPONYX Inc. for an undisclosed sum. Through this acquisition, Pasqal sought to reinforce its hardware platform and speed up its roadmap toward fault-tolerant quantum computing by incorporating advanced photonic integrated circuit technology into its neutral-atom quantum systems, thereby enhancing scalability, stability, and qubit control precision. AEPONYX Inc. is a Canada-based photonic integrated circuits technology company specializing in silicon nitride-based photonic integrated circuits and MEMS-enabled optical systems.

Major companies operating in the electronics, photonics and quantum market are Nippon Telegraph and Telephone Corporation; NEC Corporation; Quantum Source; Thorlabs Inc.; PsiQuantum Corp.; Quantum Brilliance Pty Ltd; PASQAL SAS; ID Quantique SA; Silicon Quantum Computing Pty Ltd; Alice & Bob SAS; Quandela SAS; Equal1 Laboratories Ltd; Quantum Motion Technologies Ltd; MagiQ Technologies Inc.; Menlo Systems GmbH; ORCA Computing Ltd; QuiX Quantum B.V.; AegiQ Ltd; planqc GmbH; Nord Quantique Inc.; Alpine Quantum Technologies GmbH; Xanadu Quantum Technologies Inc.; TuringQ; QBoson.

North America was the largest region in the electronics, photonics and quantum market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electronics, photonics and quantum market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electronics, photonics and quantum market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electronics, photonics, and quantum market consists of revenues earned by entities by providing services such as system design, integration, simulation, testing, consulting, and maintenance of electronic, photonic, and quantum-enabled systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The electronics, photonics, and quantum market also includes sales of electronic devices, optical and photonic systems, quantum-enabled hardware platforms, and associated software solutions. 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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