Quantum computing has captured the investment attention of the tech sector over the past few years, with estimates exceeding $60B to realize the incredible power and promise of quantum. Recently, however, it has become apparent that quantum networking – the ability to connect quantum systems in a way that doesn’t collapse the quantum state – will be key to realizing this potential. With this, quantum networking is quickly becoming seen as its own market segment, supportive of but distinct from quantum computing and sensing. Recent market data and investment flows show that secure entanglement links are moving from research labs into commercial pilots and use-cases, attracting carriers, cloud providers, and dedicated start‑ups to what is expected to be a multi-billion dollar market segment in its own right.
Quantum networking refers to the ability to enable entanglement of qubits (the fundamental element of quantum computing power) across different quantum processing units, either within a system or at distance.. This capability allows modular systems to work together in concert, providing ever-greater numbers of qubits (think: quantum horsepower) to address larger, more complex problems and workloads more easily. Quantum networking has emerged as a discrete layer within the world of quantum, rather than being a mere technical footnote of quantum computing. The 2025 McKinsey’s Quantum Technology Monitor, released at the end of last month, outlines three key technology areas in the quantum communications sector: quantum security (e.g. QKD and post‑quantum cryptography), quantum networking, and quantum communication services. It also further subdivides the quantum networking area into those of regional networks, modular interconnects, and an eventual global “quantum internet.” With leading firms such as McKinsey defining market segments and value‑chain roles for core components of networking (including quantum repeaters, switches, and memories) to be used by network operators, investors and customers now have an increasingly clear picture of the quantum landscape.
The quantum networking market is both large and accelerating. McKinsey estimates put the total quantum communications sector at roughly US $1 billion in 2023, with quantum networking enabled offerings helping to lift the figure to $11-15 billion by 2035, a 22-25% CAGR. Even more interesting is the spend-shift from academia/government to commercial sectors during the analysis period. While academia/governments accounted for roughly 88-96 % of quantum‑communications spending in 2023, commercial segments (including telecom, cloud providers, financial services, automotive, and manufacturing) is forecast to reach up to 67% of this $11B – $15B market by 2035. Telecom carriers and large data‑center operators alone will lift their share from ~2-6 % today to about 26 % in this timeframe. The inflection point is expected once metropolitan‑scale quantum‑backbone pilots move into production, letting banks, stock exchanges, and hyperscale cloud providers pay a premium for quantum‑safe links. The hardware side alone already spans photonic links, satellite free‑space channels, and fiber systems, with repeaters expected to unlock inter‑continental routes within the next decade.
Crucially, the centre of gravity is shifting from university labs to venture‑backed companies and corporate R&D groups. Total quantum‑technology start‑up funding jumped ~50 % year‑on‑year to $2 billion in 2024. At the same time, incumbent telecom and cloud providers, alongside Big-Tech players such as AWS, Google, IBM, and Microsoft, have entered the hardware segment or launched joint ventures, while regional carriers (e.g., BT-Toshiba in London) pilot commercial quantum links. Analysts note that start‑ups often lead on technical innovation and readiness, prompting those larger firms to partner, incubate, or acquire rather than build in‑house. Nearly half of all quantum‑communication patent applications now come from U.S. organizations, and quantum‑technology patents granted worldwide rose by 13% in 2024. These numbers show that quantum networking is shifting from academic research to a commercial phase in which securing patents, rather than merely publishing papers, is the key marker of progress.
Forecasts of a tenfold revenue rise, doubled venture funding, and a surge in patents all point the same way: quantum networking’s commercial take‑off has begun. Stakeholders that act now can still influence the standards, partnerships, and value chains that will define this emerging market. And potentially realize a sizable return on investment.
