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Quantum technologies

Three quantum technology areas

This chapter provides readers with a concise overview of the three primary categories of quantum technologies, quantum computing, quantum sensing, and quantum communication, which are central to shaping future competitiveness and innovation in the Nordic-Baltic region.
Quantum computing, leveraging quantum mechanics to revolutionize data processing capabilities, has the potential to solve problems currently beyond classical computational limits.
Quantum sensing exploits quantum properties to measure physical quantities with unprecedented precision, enabling advances in sectors such as healthcare, navigation, and environmental monitoring.
Quantum communication harnesses quantum mechanics principles to enhance security and efficiency in information exchange, presenting opportunities to redefine cybersecurity and communication infrastructure.
Understanding these technologies is essential for informed decision-making, fostering regional collaboration, and securing a competitive advantage on the global quantum stage.

Quantum computing

What is quantum computing?

Quantum computing is a radically new computing paradigm that leverages the principles of quantum mechanics to process information in ways fundamentally different from classical computers. Instead of bits that are either 0 or 1, quantum computers use quantum bits (qubits), which can exist in a superposition of both states. This feature, combined with entanglement and quantum interference, allows quantum algorithms to explore many computational paths in parallel.
Quantum computing is not only about building advanced hardware—it also involves developing new types of software and algorithms that structure and solve problems in ways uniquely suited to quantum systems. These quantum algorithms aim to unlock advantages for specific classes of problems that are too complex or inefficient for classical machines to solve within reasonable timeframes. Such problems include quantum chemistry and materials simulation, combinatorial optimisation, factoring, machine learning, and solving large systems of equations.
Importantly, quantum computers do not simply “process data faster.” Instead, they offer a different way of structuring and solving problems, potentially uncovering solutions that are unreachable by classical methods. Their impact is expected to be highly focused but transformative in domains where classical computation faces fundamental limits.
As with classical computing, quantum computation can be performed either on dedicated, on-premises quantum hardware or accessed remotely via cloud-based platforms. Several providers now offer quantum computing as a service, allowing users to experiment with and develop quantum applications without owning physical quantum processors.
The following table outlines where these breakthroughs are most anticipated across sectors.

Global market development

Quantum technology is rapidly becoming a focal point of international and geopolitical competition. Countries and companies that lead in developing and deploying quantum technologies stand to gain substantial economic and security advantages. This has triggered intense global investment, particularly from governments in China and the United States, as well as major technology firms such as Microsoft, Google, IBM, Rigetti, and IonQ.
Public investment figures in Europe vary significantly by country; for example, Germany has pledged €3 billion, UK €4.2 billion, France €1.8 billion, and the Netherlands €965 million[1]. The overall market potential is substantial: quantum technologies are projected to reach a global market size of approximately €106 billion by 2040[2]. Quantum computing alone could generate an estimated €1 trillion in economic value by 2035, driven by its expected impact on industries such as pharmaceuticals, chemicals, finance, and automotive[3].
In this competitive context, understanding global market dynamics is essential for positioning the Nordic-Baltic region. While the individual countries may be smaller in scale compared to global frontrunners, the region stands out for its world-class research and niche industrial strengths. Denmark, Finland, and Sweden have established vibrant quantum ecosystems supported by growing startup activity. Meanwhile, Norway and the Baltic countries are taking steps to build their capabilities and integrate more actively into the global quantum landscape.
Distribution of quantum computing patent families per country/region
Source: PatSnap 16.5.2025

Potential application areas of quantum computing

Global systems, security and resilience
  • Predict and prevent infrastructure failures (e.g., energy, telecom)
  • Improve crisis response through faster scenario modeling and resource allocation
  • Optimize supply chains under uncertainty
  • Detect and mitigate fraud and cyber threats
Scientific discovery
  • Simulate new materials at an atomic scale (e.g., for batteries and clean energy)
  • Explore complex physical phenomena (e.g., superconductivity)
  • Solve currently intractable computational problems
Healthcare and wellbeing
  • Accelerate drug discovery through molecular simulation
  • Enable personalized medicine using genomic and clinical data
  • Speed up vaccine and treatment development for pandemic response
  • Model biological processes to understand diseases
Sustainability and climate
  • Improve climate forecasting for better policy decision-making
  • Design advanced clean tech (e.g., solar panels, EV batteries)
  • Optimize resource use in agriculture, energy systems and industry
  • Increase computing energy efficiency

Quantum sensing

What is quantum sensing?

Quantum sensing harnesses quantum mechanical effects such as superposition, entanglement, or quantized energy levels to detect and measure physical quantities with extraordinary precision. Its evolution began with pioneering devices like atomic clocks and superconducting quantum interference devices (SQUIDs), which emerged in the mid-20th century. These early quantum sensors revolutionized fields like timekeeping and magnetic field detection by measuring quantities such as frequency, magnetic flux, and electrical resistance, albeit often requiring bulky setups and specialised conditions like cryogenic cooling.
Today, the field is experiencing a transformation with the advent of a new generation of quantum sensors. Advances in nanofabrication, materials science, and quantum control techniques have enabled the development of more compact, efficient, and versatile devices. Modern quantum sensors can now measure a wide range of physical quantities, including:
  • Time and frequency: Ultra-precise atomic clocks and frequency standards underpin global positioning systems and telecommunications.
  • Magnetic fields: Magnetometers based on atomic vapors, NV centers in diamonds, or superconducting circuits are used in applications ranging from biomedical imaging to navigation and geological surveys.
  • Temperature: Quantum thermometers and bolometers capable of detecting minute thermal changes are essential for materials research and environmental monitoring.
  • Acceleration and rotation: Inertial sensors like cold-atom accelerometers and gyroscopes enable precise navigation, even in GPS-denied environments.
  • Optical phase and light intensity: Interferometric and photonic sensors that measure optical phase shifts and intensities with high sensitivity, facilitating breakthroughs in imaging and spectroscopy.
  • Force and pressure: Detecting extremely small forces and pressure variations, applicable in fields ranging from biomedical research to industrial quality control.

Worldwide market trends and Nordic-Baltic positioning

The quantum sensing market shows particular near-term promise. Over the next 5–10 years, the global quantum sensor market is expected to grow substantially (10-15% CAGR[4]). Driven by rapid technological advances in nanofabrication, materials science, and quantum control, new generation quantum sensors are transitioning from experimental prototypes to commercially viable products. Key application areas, such as defense, healthcare, and environmental monitoring, are set to benefit from the unparalleled sensitivity and miniaturization of these devices.
Venture funding in the field of quantum sensing has received comparatively less attention due to the dominance of investment in quantum computing firms. According to McKinsey, 80% of all venture capital in quantum sensing has gone to the five most highly funded startups[5]. However, this does not necessarily indicate industry concentration as there are large numbers of recently established small startups in the field. Many sensing companies are drawing on a mix of revenue streams, including government funding, strategic private investments, and sales of both classical and quantum sensors.
Distribution of quantum sensing patent families per country/region
Source: PatSnap 16.5.2025
While global quantum sensing markets are accelerating, the Nordic-Baltic region remains in the early stages of commercialization. As in Europe more broadly, patent activity across the Nordics is still very modest, but this does not fully reflect the region’s strong technical foundation. Nordic and Baltic countries host notable expertise in classical sensors and related enabling technologies, which could be redirected toward quantum applications. Emerging startups, particularly in Sweden and Denmark, are now developing next-generation biomedical and navigation sensors, supported by innovation hubs such as WACQT and the Center for Biomedical Quantum Sensing. With targeted investment and better-defined commercial pathways, the region holds the potential to become a strong player in quantum-enabled sensing solutions.

Potential application areas of quantum sensing

Healthcare and wellbeing
  • Quantum-enhanced imaging (e.g., MRI, handheld micro-MRI, magnetoencephalography)
  • Early and precise disease detection with sensitive biosensors (e.g., cancer, dementia, heart, neurological)
Navigation and positioning (PNT)
  • Precision navigation without GPS (e.g., underground, underwater, airborne)
Environmental monitoring
  • Gravitational field sensing for geological surveys and resource exploration (oil, gas, minerals)
  • Detection of pollutants and environmental changes for climate monitoring
Security and defense
  • Advanced surveillance and reconnaissance (e.g., ghost imaging, quantum radar)
  • Detection of hidden objects or people (e.g., weapons, disaster areas)
  • Enhanced object detection (e.g., submarines, mines) with quantum magnetometers
  • Intrusion detection in sensitive areas
Infrastructure and engineering
  • Subsurface imaging for inspections and construction safety
  • Detection of material defects
  • Precision sensing of pressure, temperature, and magnetic fields
Fundamental scientific research
  • Quantum metrology for fundamental physics (e.g., gravitational waves, atomic physics, cosmology)

Quantum communication

What is quantum communication?

Quantum communication uses the unique properties of quantum particles to make our data exchanges more secure, not by sending every message bit as a quantum particle, but by creating unbreakable encryption keys. In today’s quantum communication systems, two parties send tiny quantum signals (qubits) over a dedicated link to agree on a secret key. If anyone tries to intercept those qubits, their quantum state is disturbed, and both parties immediately know the key has been compromised. That secret key then encrypts all normal data — emails, phone calls or files — over conventional networks.
While researchers are investigating advanced concepts such as “quantum teleportation” for transmitting quantum information itself, current real-world deployments are centered on quantum key distribution (QKD). QKD provides a proven, physics-based layer of security to existing communication systems, ensuring that only intended recipients can access the information and that any attempt at eavesdropping is immediately detectable.
Across Europe, current deployments focus on building test networks that connect key nodes either between countries or within national borders. These pilot infrastructures, often developed under the EuroQCI initiative, aim to demonstrate the technical feasibility and policy relevance of QKD in government, critical infrastructure, and cross-border communication. In these systems, quantum links and classical data channels operate together, offering a hybrid solution for securing today’s sensitive information while paving the way for more advanced quantum communication networks.
In parallel, post-quantum cryptography (PQC) uses classical cryptographic algorithms specifically designed to resist attacks by future quantum computers. Depending on the source, PQC is either considered a complementary solution or is not categorized under quantum communication, since it does not rely on quantum particles but addresses the same long-term security challenges.
Looking further ahead, quantum communication technologies such as QKD form the building blocks of the quantum internet — a global network designed to connect quantum devices and users via entangled quantum states. The following table describes some of the near-term and future opportunities of quantum communications.

Potential application areas of quantum communication

Secure data transmission (QKD)
  • Protecting classified government and defense communications
  • Securing financial transactions and data exchange between institutions
  • Safeguarding energy, transport, and healthcare infrastructure communications
  • Ensuring enterprise data privacy and protection of intellectual property
  • Enabling global QKD via satellites for long-distance secure links
Quantum Internet
  • Enabling distributed quantum computing across remote quantum processors
  • Supporting secure, cloud-based quantum computing services
  • Enabling fundamental tests of quantum mechanics over global distances
Advanced sensing and metrology networks
  • Linking quantum sensors securely across locations
  • Enhancing measurement precision through networked quantum systems
Secure voting and identity verification
  • Developing tamper-proof electronic voting systems
  • Using quantum digital signatures to verify identity and secure transactions

Worldwide market development and Nordic-Baltic positioning

Quantum communication is on a sharp upward trajectory, driven by the urgent need for ultra‑secure networks in finance, defense and critical infrastructure. The global market is projected to grow from approximately USD 1.3-1.6 billion in 2025 to USD 10.5-14.9 billion by 2035, representing 23-25% compound annual growth rate (CAGR).[6] Rising cybersecurity threats, from quantum‑capable adversaries to conventional hackers, underpin this rapid growth. Significant edge‑computing and 6G development efforts integrate quantum‑secure links into existing telecom and data‑centre architectures.
Increasing importance is evident also in the statistics of academic publications. Fraunhofer ISI study[7] points out a 10-fold increase in publications globally (from 200 in 2020 to nearly 2000 publications in 2022). Out of papers published in 2022, around 33 % originate from China, 29 % from the EU, and 16 % from the USA. Although China leads in volume, European research, often cited more frequently, demonstrates high impact. Nordic‑Baltic institutions are increasingly visible within this ecosystem, contributing niche expertise in areas like secure network protocols and satellite‑based key distribution that bolster the region’s growing academic footprint in the quantum‑communication arena.
Patent filings in quantum communication highlight China’s dominant role: it accounts for nearly 70 % of global quantum communication patent families, followed far behind by the United States, Europe, Korea and Japan.
Number of quantum communication patent families per country/region
Source: PatSnap 16.5.2025
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