Government Policy Addresses Key Quantum Challenges: Omdia

Government policy holds an important role in addressing the risks and challenges quantum computing vendors face, according to a new report from research company Omdia.

According to the report, Government Policy Support for Quantum Technology 2024, governments can provide several types of support to the quantum vendor ecosystem. These include investment and other types of funding, ecosystem development and coordination and improved regulatory frameworks.

Governments, in turn, often see quantum technology as a key strategic priority for national security and economic development. This includes quantum sensing, communications and materials alongside quantum computing.

Quantum computing is a deep tech at an early stage of technological and market development. Numerous scientific and engineering challenges remain to be solved before quantum computers can reach their full potential as large-scale, fault-tolerant quantum computers (FTQCs).

Hundreds of quantum computing vendors have joined academic institutions and government initiatives to develop QC technology. However, most stakeholders expect it will be at least 2030 before FTQCs become possible and there are no guarantees that these development efforts will ultimately be successful.

If FTQCs are realized, they could enable dramatic speedups for certain types of complex computations that are impossible on today’s classical computers. These types of computations include the physical simulation of quantum mechanical processes, combinatorial optimization and machine learning.

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However, quantum computer vendors, particularly hardware vendors, require large amounts of capital to fund their research and development efforts. At the same time, they are years away from their full revenue potential if they become able to sell FTQC-level technology.

The challenges quantum computing vendors face include resource constraints and a long wait until significant revenue is possible. Over the past few years, there has been a decline in quantum computing startup funding and new quantum computing startup formation. This is where government support can help.

According to Omdia research, 30 countries have committed over $32 billion in public funding for quantum technology development as of March 2024. Europe leads with $16,948 million, followed by Asia & Oceania with $8,762 million, then North America ($6,055 million), Middle East & Africa ($414 million) and Latin America ($12 million).

Governments have also announced diverse policy tools to support quantum technology development, such as infrastructure support, government procurement, and academic and workforce development.

This is an extract from the Omdia report Government Policy Support for Quantum Technology — 2024 by Omdia chief analyst, quantum computing Sam Lucero. Access the full report here.