The quantum economy is attracting more and more investments

The technological revolution in which we have been caught up for almost three decades is making great strides, suggesting that what we have seen so far is only the beginning. First it was computers, then the internet, smartphones, artificial intelligence, blockchain and now quantum technology is coming to revolutionize the world and open up great investment opportunities.

Quantum technology is based on the principles of quantum mechanics, which is the theory of physics describing the behavior of matter and energy at the subatomic level. Unlike classical physics, which deals with macroscopic objects, quantum mechanics applies to tiny particles, such as electrons and photons. Something this complex may have a huge array of applications, ranging from quantum computers, to telecommunications, and including medical and pharmaceutical science. 

At present, quantum computing is still at the fledgling stages, although companies such as IBM have already released the first quantum computer for commercial use. However, what is most important is to understand this technology and its ensuing impact on the economy and the world. What is truly revolutionary about this scientific development is that it allows computers to perform multiple calculations simultaneously, whereas at the moment they are only capable of doing so sequentially. Furthermore, quantum particles can be millions of kilometers apart and yet be entangled, immediately reflecting actions.

“Quantum computers could do calculations that we can't do now, and others that would take months or years,” Leigh Lapworth, head of quantum computing at Rolls-Royce, told the BBC. This enables companies such as the British engineering firm to be able to transform their design systems, creating engines that are far more advanced than those currently in existence. Not only that, but quantum technology could potentially also be used to speed up drug design by accurately simulating their chemical reactions, a calculation beyond the reach of even today’s supercomputers.

Another major development this new technology promises is in the telecommunications sector. That's because when quantum mechanics is applied to information, when a quantum message is sent, the receiver can determine whether someone has intercepted the message, or tried to read or modify it. This ensures that only the sender and the recipient know the secret key. Quantum properties of matter, especially the polarization of photons, are used to distribute passwords using this field of physics. This is a much more secure communication method, and has implications for countries, businesses, the financial sector and the entire realm of cybersecurity. 

To better understand the size of this subsector and the great opportunities it offers, one need only consider the estimates published by the prestigious consulting firm Fortune Business Insight, which puts the market size at 928.8 million dollars, compared to 6.528 billion euros by 2030. This implies a compound annual growth rate of 32.1% over the next six years. These estimates only consider the area of quantum computing.

The consulting firm McKinsey, in turn, states that the quantum sector as a whole, consisting especially of computation, communications and the entire field of sensors, could reach $1.3 trillion by 2035. In 2022 alone, investors channeled 2.35 billion dollars to companies linked to the sector.

Investing in this technology can be very appealing from the standpoint of expectations and estimated returns. However, it is no less important to know how and where to invest. There are different ways of doing it. One accessible and simple method is through ETFs or stocks. Right now, there are very few active investment funds specializing in this technology, mostly hedge funds.

If you want to invest through stocks, Nasdaq notes seven companies that are highly exposed to the technology. The queens of quantum on the American stock exchange are familiar, namely Google, Microsoft, IBM, Intel, Honeywell, Alibaba Group or Lockheed Martin. This is a way to invest in quantum technology through businesses that are well established in other areas.

Finally, according to Forbes, investors can opt for businesses that are less known and highly specialized in this type of technology. This entails more risks because the companies are smaller, but they are in sectors as diverse as finance, energy, manufacturing, cybersecurity and chemistry.

Among the countries most deeply involved in quantum technology is undoubtedly Switzerland, one of the world leaders. For this purpose, it created the Swiss Quantum Initiative (SQI), coordinated and led by the Swiss Quantum Commission (SQC). These initiatives, backed by the country’s government, are aimed at developing infrastructure for this new technology, training tomorrow’s leaders in the field and financing projects. Furthermore, the Swiss pact involves the collaboration of the country’s private universities and the private sector, resulting in the creation of the SQC to position Switzerland as a major future player.