IQM’s State of Quantum 2025: Industry must address talent and software gaps, not just qubits

The new State of Quantum 2025 report, published today by IQM Quantum Computers in collaboration with analyst firm Omdia, reveals that solving quantum’s biggest bottlenecks requires more than increasing qubit counts. The industry must urgently address talent shortages and fragmented software development platforms to scale meaningfully.

According to the report, the global quantum computing market is projected to exceed $22 billion by 2032, driven by accelerating commercial deployments. 

The findings stress that synchronising hardware industrialisation with software platform maturity is essential. Fragmentation among software development kits (SDKs) currently limits portability and slows adoption across multi-vendor environments. Notably, 75 per cent of respondents believe that identifying the right applications is the most critical factor for broader adoption.

Dr. Jan Goetz, co-CEO and co-founder of IQM said:

Quantum’s promise is clear, but fulfilling it requires orchestrated progress across the hardware and software stack—transforming these powerful machines from niche tools into drivers of real-world outcomes.

The report also explores how high-performance computing (HPC), quantum computing, and AI are converging to drive the next wave of technological advancement. 
Industry stakeholders highlight that HPC provides the robust infrastructure and orchestration needed to integrate quantum systems into real-world workflows. This seamless interaction between quantum and classical computing resources is expected to accelerate adoption, increase early returns, and establish quantum computing as a trusted tool across scientific and industrial applications.

Key findings for Europe

Some of the key market trends and findings outlined in the report include:

• There is strong interest in seed-stage hardware startups in Europe, but a notable lack of growth-stage capital needed to support scaling and industrialisation.
• Investors also appear to expect software startups to be further along in commercialisation than many currently are.
• Although over 40 per cent of quantum startups are based in Europe, they received less than 30 per cent of global funding. The average European deal size was $12 million (compared to $38 million in North America), suggesting a funding imbalance and potential undervaluation of European firms.
• The two biggest systemic risks to global growth are talent shortages and limited growth-stage funding outside the US.

Call to action: three strategic priorities

To turn insights into action, the report outlines three critical focus areas for the industry:

1. Bridging the gap between quantum physics and real-world business use cases.
2. Integrating quantum and classical HPC resources into seamless, hybrid systems.
3. Fostering cross-functional teams that combine quantum science, domain expertise, and software development, creating a new class of quantum problem-solvers.

Alexander Harrowell, principal analyst, Advanced Computing at Omdia, stated:

Our interviewees identified three major challenges. One is reaching a level of reliability where quantum computers are industrial-grade tools, not just lab devices. Another is improving the software experience to match what we see in AI frameworks. And the third is helping users define problems they can tackle with quantum and set up meaningful experiments. Interestingly, many expect multiple quantum technologies to co-exist, each with its own specialisation.

Lead image via IQM