by Andrea Pahon

The global competition in quantum technologies is intensifying, and Europe is beginning to position itself more strategically. With the release of its first-ever EU Quantum Strategy, the European Commission is taking steps to move beyond its traditional strength in research and become a more active player in the commercial and industrial development of quantum technologies.

Why now?

Quantum computing is revolutionary. In cybersecurity, it means instant communication that is impossible to decrypt by currently known means. With a projected €155 billion global market by 2040, this is no longer a future concern, it’s an urgent economic and geopolitical priority. China has already committed over $15 billion in public quantum funding, building national infrastructure from satellites to superlabs[1]. The United States is investing around $1 billion annually under its National Quantum Initiative, with total public funding nearing $7.7 billion and private investment growing rapidly. In 2024 alone, U.S. quantum startups raised $1.7 billion, while IBM pledged $30 billion in R&D commitments.

Europe recognizes it cannot afford to be left behind. To remain globally competitive and technologically sovereign, the EU must transform its fragmented quantum ecosystem into a coordinated European platform for innovation, investment, and industrial deployment.

Europe’s strength – and its stumbling block

Europe is already a heavyweight in quantum science. It leads the world in scientific publications on quantum technologies and supplies nearly half of all hardware and software components used in quantum computers[2]. It also boasts one of the largest quantum startup ecosystems. Much as in the supply of components for semiconductor manufacturing machines – another key sector of the tech revolution – Germany has a leading global role in quantum R&D as well as bringing it to market through the QUTAC industry consortium.

But turning this scientific edge into industrial leadership has proven difficult. Too many European quantum startups are acquired by foreign buyers. Adoption and scaling remain slow. Fragmented national strategies, limited venture capital, and a lack of early industrial adopters continue to hold Europe back. Research excellence alone isn’t enough; the real challenge lies in commercialization.

Can the new strategy close the gap?

The new Quantum Strategy aims to change that. It sets out five core pillars to turn research into industrial and geopolitical advantage:

  1. Scale infrastructure – including chip pilot lines, open-access computing facilities, and pan-European research networks.
  2. Accelerate commercialization – by supporting startups, strengthening supply chains, and connecting researchers with industry.
  3. Boost investment – through targeted EU funding, public-private partnerships, and incentives for member states to align and commit.
  4. Secure sovereignty – integrating quantum into critical sectors such as space, defence, and cybersecurity.
  5. Grow the workforce – by investing in skills development, mobility programs, and education to ensure talent doesn’t leak abroad.

Still, major hurdles ahead

Despite clear intent, success will hinge on execution. Europe’s investment environment remains fragmented and risk-averse. While both Brussels and national governments have rolled out public funding programs, industry stakeholders fear that these efforts still lack the scale and focus needed to compete globally. Venture capital lags behind that of the U.S., and many promising technologies face a tough path to market. The EU wants to mobilize private capital across a wide range of strategic priorities, but quantum, like other emerging technologies, faces the same structural challenges: limited risk appetite, fragmented investment frameworks, and insufficient incentives to crowd in private funding.

There is also a risk of overregulation. While the EU has a strong track record in ethical tech governance, quantum technologies are still in their infancy. The upcoming Quantum Act, planned for 2026, must strike a careful balance between enabling innovation and safeguarding strategic interests. Getting this right will be crucial, not just for economic growth but also for Europe’s future in defence and security.

[1] SRI International. “New Data on the Growing Quantum Industry.” SRI International, May 15, 2024. https://www.sri.com/press/story/new-data-on-the-growing-quantum-industry/

[2] European Commission, A Quantum Technology Agenda for Europe: Communication from the Commission, July 2025.