PUBLISHER: The Business Research Company | PRODUCT CODE: 1810762
PUBLISHER: The Business Research Company | PRODUCT CODE: 1810762
Space-based quantum computing involves utilizing satellites or spaceborne systems to perform quantum computations or support quantum communication by leveraging the unique conditions of space, such as extremely low temperatures, minimal environmental interference, and long-distance line-of-sight for transmitting quantum signals. This approach allows satellites in space to carry out complex calculations and transmit data securely using quantum technologies.
The primary component types of space-based quantum computing include hardware, software, and services. Hardware consists of the physical devices specifically designed to function in space for executing quantum computations or enabling quantum-secure communications. These components can be deployed through different modes, including on-premises setups and cloud-based platforms. Applications span satellite communication, Earth observation, space exploration, defense and security, and more. End-users include government agencies, commercial organizations, defense sectors, research institutions, and other related fields.
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.
The space-based quantum computing market research report is one of a series of new reports from The Business Research Company that provides space-based quantum computing market statistics, including the space-based quantum computing industry global market size, regional shares, competitors with the space-based quantum computing market share, detailed space-based quantum computing market segments, market trends, and opportunities, and any further data you may need to thrive in the space-based quantum computing industry. This space-based quantum computing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The space-based quantum computing market size has grown exponentially in recent years. It will grow from $1.07 billion in 2024 to $1.29 billion in 2025 at a compound annual growth rate (CAGR) of 20.1%. Growth during the historic period can be attributed to the increasing demand for quantum key distribution (QKD) through satellites, greater investment from government-led quantum initiatives, growing need for secure global communication networks, advancements in the miniaturization of quantum hardware, and enhanced collaboration between space agencies and technology companies.
The space-based quantum computing market size is expected to see rapid growth in the next few years. It will grow to $2.67 billion in 2029 at a compound annual growth rate (CAGR) of 20.0%. Growth in the forecast period can be attributed to the rising adoption of quantum-as-a-service (QaaS) platforms, the growing number of satellite launches for experimental missions, increased emphasis on quantum-secure defense infrastructure, expanding academic and commercial research efforts, and the surging global demand for real-time quantum sensing capabilities from space. Key trends expected during the forecast period include advancements in quantum communication protocols, integration of quantum processors into satellite payloads, technological developments in photonic and trapped-ion qubits, progress in quantum cryptography for national security applications, and innovations in satellite-based quantum networking architectures.
The rising number of satellite launches is anticipated to drive the growth of the space-based quantum computing market. Satellite launches involve sending artificial satellites into space using rockets or other launch vehicles. This increase in satellite activity is largely due to the growing global demand for internet connectivity, prompting companies to launch large constellations of satellites to deliver high-speed broadband services, even in the most remote regions of the world. Space-based quantum computing enables extremely fast data processing and advanced optimization, which enhances satellite operations by enabling more accurate trajectory planning, improved fuel efficiency, and better mission planning. These systems are capable of solving complex problems that conventional computers struggle to handle. For example, in July 2023, the Union of Concerned Scientists, a nonprofit organization in the United States focused on science-based solutions, reported that the number of active satellites orbiting Earth reached 6,718 by the end of 2022, representing a year-over-year increase of around 2,000 satellites. As a result, the growing volume of satellite launches is contributing significantly to the expansion of the space-based quantum computing market.
Leading players in the space-based quantum computing industry are concentrating on innovations like satellite-based secure communication systems to establish the first quantum-secure communication network based in space. These communication systems use satellite networks to securely transmit data between locations on Earth or in space. In May 2025, for example, IonQ, a U.S.-based company in the field of quantum computing and networking, introduced a space-based Quantum Key Distribution (QKD) network designed to transform the landscape of global secure communications. This initiative included the acquisition of Capella Space, a satellite company recognized for its radar imaging capabilities and national security authorizations. IonQ is integrating Capella's satellite assets with its own quantum technologies, along with previously acquired assets from Qubitekk and ID Quantique, to develop a secure quantum communication network that connects space-to-space and space-to-ground. The network applies quantum mechanics principles to transmit encryption keys that cannot be intercepted without detection, thereby ensuring highly secure data transmission.
In November 2024, IonQ, a US-based commercial quantum computing and networking company, acquired Qubitekk, Inc. for an undisclosed sum. Through this acquisition, IonQ seeks to enhance its quantum networking capabilities by incorporating Qubitekk's expertise and infrastructure to speed up the development of secure, scalable quantum communication systems for critical sectors. Qubitekk Inc. is a US-based company specializing in quantum networking technologies and hardware for space applications.
Major players in the space-based quantum computing market are International Business Machines Corporation, Toshiba Corporation, Thales Alenia Space S.A.S., PsiQuantum Corp., Xanadu Quantum Technologies Inc., Quantinuum Ltd., Quantum Brilliance Pty Ltd, Raytheon BBN Technologies Corp., Multiverse Computing S.L., Q-CTRL Pty Ltd, Rigetti & Co Inc., SpeQtral Pte. Ltd., IonQ Inc., Infleqtion Inc., Arqit Quantum Inc., evolutionQ Inc., Qubitekk Inc., SBQuantum Inc., Kongsberg NanoAvionics UAB, Pan Galactic Ltd.
North America was the largest region in the space-based quantum computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in space-based quantum computing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the space-based quantum computing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The space-based quantum computing market consists of revenues earned by entities by providing services such as secure quantum communication, quantum network connectivity, real-time data encryption services, cloud-based computing access and quantum sensing support. The market value includes the value of related goods sold by the service provider or included within the service offering. The space-based quantum computing market also includes sales of products including quantum communication satellites, quantum key distribution (QKD) modules, space-based quantum processors, quantum memory systems and entangled photon sources. 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.
Space-Based Quantum Computing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on space-based quantum computing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for space-based quantum computing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The space-based quantum computing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.