Briefing: Quantum Software 

The quantum application software segment offers more favorable risk-return potential and nearer-term returns than quantum hardware alone, as software companies can generate revenue while quantum advantage remains aspirational for most hardware approaches.

Nearer-Term Returns and Better Risk-Return Potential

From our previous post: 2025, the Year of Quantum Science and Technology: 

Near-term returns will come through software applications and integration:

• Quantum computing software adoption has begun and is expected to scale fast over the next 10 years.
• Application-based solutions are being widely used for material discovery, data and network security, and optimization.
• Hybrid quantum-classical computing is gaining traction as a practical pathway to achieving quantum advantage.
• Collaboration between Quantum Computing and Machine Learning (ML)
  • Quantum augmentation of AI/ML processes
  • AI-driven quantum programming
  • Hybrid computing architectures

Market.us predicts that the Global Quantum Computing Software Market is projected to reach USD 31.8 Billion by 2034, growing from USD 1.1 Billion in 2024, at a CAGR of 40.00% over the forecast period from 2025 to 2034. 

Quantum Software Categories

The quantum software sector has three major categories at a high-level view: 

• Enterprise cloud platforms (Classiq, Xanadu, Strangeworks, and major cloud providers), 
• Specialized infrastructure software for quantum technologies (Riverlane for error correction), 
• Vertical-focused applications (Algorithmiq for drug discovery, Zapata for hybrid workflows). 

Investment and Business Model Shift

• The scalable SaaS subscription model has been validated. Classiq and Xanadu have successfully demonstrated scalable SaaS licensing models generating subscription revenue from enterprise customers, validating quantum software as a recurring revenue business rather than project services.​ 
• Government and private investor participation has accelerated sector-focused applications. The U.S. National Quantum Initiative and European Quantum Flagship program allocate billions to quantum research, frequently co-investing with private ventures. This accelerates commercialization timelines.​
• The emergence of sector-specific quantum software (Algorithmiq for pharma, Classiq for cross-sector optimization, Q-CTRL for navigation) reflects market maturation toward domain-specific solutions. Organizations recognize that quantum value lies in solving specific high-value problems rather than general-purpose quantum advantage (shifting investment toward application software).​

Sector-Specific Application Trends

• Pharmaceutical and Drug Discovery: The pharmaceutical sector represents the most mature quantum application vertical, with IBM, Algorithmiq, and Quantum Circuits collaborating with major biopharma companies on molecular simulation use cases. The drug discovery quantum market was valued at $400 million in 2023 with 13% projected CAGR through 2032. Key applications include enzyme pharmacokinetics modeling, binding energy calculations, and protein folding simulations.​
• Finance and Optimization: Financial services companies leverage quantum software for portfolio optimization, fraud detection (HSBC partnerships), and risk analysis. Multiple quantum platforms (Classiq, Xanadu, Zapata) target finance-specific optimization problems with demonstrated customer traction.​
• Supply Chain and Logistics: Quantum optimization software addresses supply chain constrained optimization—warehouse network design, inventory allocation, last-mile delivery routing, and supplier risk modeling. (Zapata, D-Wave)
• Navigation and Sensing: Q-CTRL's pioneering work in quantum sensing for GPS-denied navigation represents emerging application sector combining quantum sensors (or quantum communication in other cases) with AI-powered control software. Partnerships with U.S. Department of Defense, UK Royal Navy, and Airbus validate defense and aerospace market potential.​

Our Research Method

We at Global League conduct top-down research on extensive public and paid data to identify market trends, opportunities over 3-5 years, and the landscapes of frontier tech. We are tracking industry groups, quality investors, public and private companies, competitions and partnerships, and geopolitical and policy shifts, starting from industry knowledge bases, plus using an array of AI tools, and verifying and cross-checking by analysts. We can customize market research and reports and introduce companies or investors to meet specific needs.