Entangled Networks: Global Market 2027–2037

1             EXECUTIVE SUMMARY            18

• 1.1        Scope and Definition                18
• 1.2        Key Findings   19
• 1.3        Market Size and Forecast, 2027–2037          19
• 1.4        Market by Segment    21
• 1.5        Timeframe for Entangled Networks and the Importance of Quantum Repeaters              22
• 1.6        Target Applications    23
• 1.7        Commercial Landscape and Key Developments   24
• 1.8        Regional Outlook        24
• 1.9        Challenges      25
• 1.10     Future Markets Outlook          25
• 1.11     Report Methodology 26

2             INTRODUCTION TO ENTANGLED NETWORKS         27

• 2.1        Definition of Entangled Networks     27
  • 2.1.1    Entangled networks versus classical networks       27
  • 2.1.2    Entangled networks versus prepare-and-measure and trusted-node QKD          28
  • 2.1.3    What entanglement adds      28
• 2.2        Core Physics and Network Primitives            29
  • 2.2.1    Entangled pair generation     29
  • 2.2.2    Heralding          30
  • 2.2.3    Entanglement swapping        30
  • 2.2.4    Purification and distillation  30
  • 2.2.5    Teleportation  30
  • 2.2.6    Fidelity, rate and loss                31
  • 2.2.7    Memory coherence time versus link latency             31
  • 2.2.8    Detection, frequency conversion and timing            32
• 2.3        Stages of Development of the Quantum Internet   33
  • 2.3.1    The six-stage roadmap            33
  • 2.3.2    Where the industry is in 2026             33
  • 2.3.3    Timeframe for entangled networks  35
  • 2.3.4    The critical importance of quantum repeaters         35
• 2.4        Types of Entangled Networks              37
  • 2.4.1    Workgroup and intra-data-centre networks               37
  • 2.4.2    Campus and metro networks              38
  • 2.4.3    Long-haul terrestrial networks           38
  • 2.4.4    Satellite and global networks              38
• 2.5        Network Architecture and Protocol Stack   39
  • 2.5.1    Why entangled networks need a stack         39
  • 2.5.2    Classical control plane requirements           40
  • 2.5.3    Quantum network operating systems and software             40
  • 2.5.4    Standards activity       41
• 2.6        Target Applications Overview              41
• 2.7        Challenges on the Way to the Entangled Network 42

3             ENABLING TECHNOLOGIES AND COMPONENTS 45

• 3.1        Quantum Interconnects and Network Interface Units (QNICs)    46
  • 3.1.1    Light-matter interfaces: spin-photon, atom-photon and ion-photon       47
  • 3.1.2    Trapped-ion interconnects    47
  • 3.1.3    Neutral-atom interconnects 48
  • 3.1.4    Superconducting interconnects        48
  • 3.1.5    Photonic-qubit interconnects             48
  • 3.1.6    Spin-qubit interconnects: Photonic Inc., memQ, Lightsynq and others  49
  • 3.1.7    QPU-agnostic network interface units          49
• 3.2        Microwave-to-optical Transduction for Superconducting Qubits               50
  • 3.2.1    Transduction approaches     50
  • 3.2.2    State of the art              51
  • 3.2.3    Commercial players and market significance         52
• 3.3        Quantum Memories  52
  • 3.3.1    Key performance metrics       52
  • 3.3.2    Atomic ensemble memories               52
  • 3.3.3    Rare-earth-doped crystals   53
  • 3.3.4    Colour centres and single-emitter memories          53
• 3.4        Quantum Repeaters  54
  • 3.4.1    Repeater architectures            54
  • 3.4.2    Demonstrations, 2022–2026              55
  • 3.4.3    Commercial repeater roadmaps      56
• 3.5        Quantum Frequency Conversion to Telecom Bands           57
• 3.6        Entanglement-based QKD and Secure Links as Network Equipment       58
  • 3.6.1    Milestones       58
  • 3.6.2    Products and suppliers           59
• 3.7        Entangled Photon Sources    59
  • 3.7.1    Spontaneous parametric down-conversion (SPDC)            60
  • 3.7.2    Spontaneous four-wave mixing (SFWM) in silicon, silicon nitride and III-V photonics   60
  • 3.7.3    Quantum-dot and other deterministic sources      60
  • 3.7.4    Narrowband and memory-compatible sources      61
  • 3.7.5    Consolidation and new entrants       61
• 3.8        Single-Photon Detectors: The Constraint Technology         63
  • 3.8.1    Superconducting nanowire single-photon detectors (SNSPDs)   63
  • 3.8.2    Semiconductor SPADs            64
  • 3.8.3    Photon-number-resolving and waveguide-integrated detectors  64
  • 3.8.4    Cryogenics      64
• 3.9        Timing, Synchronisation, Polarisation and Phase Stabilisation    65
  • 3.9.1    Time taggers and time-correlated counting               66
  • 3.9.2    Network-wide synchronisation          66
  • 3.9.3    Polarisation and phase stabilisation              66
  • 3.9.4    Classical-quantum coexistence       66
• 3.10     Optical Switching, Routing and Fibre Infrastructure             67
  • 3.10.1 Switch technologies  67
  • 3.10.2 Entanglement routing              68
  • 3.10.3 Fibre infrastructure: dark, lit and hollow-core          68
• 3.11     Satellites, Drones and Free-Space Links     69
  • 3.11.1 China: Micius and Jinan-1     69
  • 3.11.2 Europe, North America and Asia-Pacific     69
  • 3.11.3 Drones, high-altitude platforms and terrestrial free space              69
  • 3.11.4 Satellite versus terrestrial economics           71
• 3.12     Quantum Internet Software, Control Plane and Protocols               71
  • 3.12.1 Network operating systems and simulators              71
  • 3.12.2 Commercial control software             71
  • 3.12.3 Standards and protocols       72
• 3.13     Quantum Network Product Suites   73
• 3.14     Technology Readiness Levels and Costs     74
• 3.15     Market Differentiators              77

4             APPLICATIONS AND END-USE MARKETS    79

• 4.1        Overview of Applications       79
• 4.2        Distributed Quantum Computing    79
  • 4.2.1    Why networking is the scaling path 81
  • 4.2.2    IonQ: from Entangled Networks to a networked roadmap               81
  • 4.2.3    IBM and the IBM–Cisco network of fault-tolerant computers         82
  • 4.2.4    Photonic, Xanadu, Nu Quantum, Welinq and Quantinuum            82
  • 4.2.5    DARPA and government programmes           83
  • 4.2.6    Quantifying the distributed quantum computing opportunity       85
  • 4.2.7    Adoption by industry 86
• 4.3        Quantum Data Centres and the Networking Layer                87
  • 4.3.1    From cluster to quantum data centre            87
  • 4.3.2    Hyperscalers and Nvidia        87
  • 4.3.3    On-premise QPU clusters and European HPC centres       88
• 4.4        Secure Communications      89
  • 4.4.1    Entanglement-based, device-independent and prepare-and-measure QKD      89
  • 4.4.2    QKD and post-quantum cryptography are complementary            89
  • 4.4.3    Banking and financial services           90
  • 4.4.4    Government networks and telecom operators        91
  • 4.4.5    Blind and secure delegated quantum computing  92
• 4.5        Defence, Intelligence and Critical Infrastructure   92
  • 4.5.1    Defence and intelligence demand   92
  • 4.5.2    NATO, the UK and allies          93
  • 4.5.3    Critical infrastructure: power grids and utilities      93
• 4.6        Quantum Sensor Networks and the Quantum Internet of Things                94
  • 4.6.1    Distributed and entangled sensing 94
  • 4.6.2    Clock networks and timing distribution       94
  • 4.6.3    Telescope arrays and the Quantum Internet of Things       96
• 4.7        Entangled Networks in Research and Academia    96
• 4.8        Other and Emerging Applications    98
• 4.9        Industry Adoption Readiness Matrix               99

5             MARKET LANDSCAPE, INVESTMENT AND REGIONAL ANALYSIS 101

• 5.1        Current Commercial Activity               101
  • 5.1.1    What is being sold today        101
  • 5.1.2    First commercial sales and deployments   102
  • 5.1.3    The entangled-network value chain                103
• 5.2        Key Developments, 2023–2026        103
• 5.3        Competitive Landscape and Key Players     105
  • 5.3.1    Players by segment    105
  • 5.3.2    Geographic distribution of key players          106
  • 5.3.3    Positioning: start-ups, incumbents and hyperscalers         107
  • 5.3.4    Consolidation: IonQ as the market's consolidator                108
• 5.4        Investment and Funding         109
  • 5.4.1    Venture investment in quantum networking              109
  • 5.4.2    Government funding programmes  112
  • 5.4.3    Corporate R&D             114
• 5.5        Regional Analysis       114
  • 5.5.1    United States and Canada   116
  • 5.5.2    Europe                116
  • 5.5.3    China  117
  • 5.5.4    Japan  117
  • 5.5.5    South Korea, Singapore, India and Australia             117
  • 5.5.6    Rest of World: the Middle East and others  118
• 5.6        Market Drivers               118
  • 5.6.1    Security demand and harvest-now-decrypt-later  118
  • 5.6.2    Government investment         118
  • 5.6.3    The need to scale quantum computers        118
  • 5.6.4    Telecom adoption       118
  • 5.6.5    Technology maturation and cost reduction                118
• 5.7        Market Challenges and Barriers        121
  • 5.7.1    Technical barriers       121
  • 5.7.2    Capital intensity           121
  • 5.7.3    Skills gap          121
  • 5.7.4    Infrastructure compatibility and integration              122
  • 5.7.5    ROI uncertainty            122
  • 5.7.6    Export controls and geopolitical fragmentation      123
• 5.8        Regulatory Environment, Standards and Policy      123
  • 5.8.1    Export controls             123
  • 5.8.2    National security positions and data-protection rules       123
  • 5.8.3    Standards and certification  123
  • 5.9        Business Models and Go-To-Market               124

6             RESEARCH NETWORKS, TESTBEDS AND TRIALS   126

• 6.1        Introduction    126
• 6.2        North America              129
• 6.3        Europe                137
• 6.4        Asia-Pacific    140
• 6.5        Comparative Analysis of Testbed Technologies and Suppliers      141
• 6.6        Lessons from Testbeds for Commercialisation       142

7             MARKET FORECASTS 2027–2037    144

• 7.1        Likely Scenario for Entangled-Network Market Evolution 144
• 7.2        Forecast Methodology             145
  • 7.2.1    Pricing 146
• 7.3        Total Market Forecast               147
• 7.4        Forecasts by Type of Equipment on the Network    148
• 7.5        Forecasts by Application       150
• 7.6        Forecasts by Network Reach               151
• 7.7        Forecasts by Node Technology Platform      153
• 7.8        Forecasts by Transmission Type       154
• 7.9        Forecasts by Region  155
• 7.10     Forecasts by Customer Type               157
• 7.11     Unit Shipments and Pricing  158
• 7.12     Scenario Analysis       159
• 7.13     Forecast Risks and Sensitivities        160

8             COMPANY PROFILES                162 (55 company profiles)

9             REFERENCES 286

LIST OF TABLES

• Table 1. Scope of the entangled-networks market 18
• Table 2. Global entangled-networks market, 2025–2037 (US$ millions) 19
• Table 3. Entangled-networks market by application, 2027 and 2037        21
• Table 4. Entangled-networks market by type of equipment, 2027 and 2037        21
• Table 5. Target applications for entangled networks            23
• Table 6. Selected key developments in entangled networking, 2023–2026         24
• Table 7. Entangled-networks market by region, 2027, 2030 and 2037 (US$ millions)    24
• Table 8. Challenges on the way to the entangled network                25
• Table 9. Comparison of classical, QKD and entangled network types     28
• Table 10. What entanglement adds to a network    29
• Table 11. Key performance metrics for entangled networks and state of the art, 2026 32
• Table 12. Quantum internet six-stage roadmap and industry status, October 2026      33
• Table 13. Quantum repeater generations    36
• Table 14. Quantum memory and network-node platforms for entangled networks, 2026          36
• Table 15. Types of entangled networks by reach     38
• Table 16. Entangled-network protocol stack             40
• Table 17. Selected standards and architecture activities relevant to entangled networks         41
• Table 18. Entangled-network applications, requirements and timeframe             42
• Table 19. Challenges for entangled networks, emerging solutions and expected resolution    43
• Table 20. Entangled-network component categories covered in Chapter 3         45
• Table 21. Light-matter interface characteristics by qubit modality            47
• Table 22. Remote entanglement and interconnect performance records by platform  49
• Table 23. Microwave-to-optical transduction approaches compared      50
• Table 24. Selected microwave-to-optical transducer records       51
• Table 25. Quantum memory performance specifications, including commercial products      53
• Table 26. Quantum repeater generations and architectures           55
• Table 27. Quantum repeater and long-distance entanglement benchmarks      55
• Table 28. Quantum repeater vendor comparison matrix   56
• Table 29. Quantum frequency conversion schemes for network qubits 57
• Table 30. QKD protocol families and their relationship to entangled networks  58
• Table 31. Entanglement-based QKD and secure-link systems and performance             59
• Table 32. Entangled photon source technologies compared         62
• Table 33. Commercial and pre-commercial entangled photon sources 62
• Table 34. Single-photon detector technology comparison for entangled networks         65
• Table 35. SNSPD vendors serving quantum networking    65
• Table 36. Timing, synchronisation and stabilisation products for entangled networks 66
• Table 37. Selected classical-quantum coexistence and deployed-fibre demonstrations, 2024–2026                67
• Table 38. Switching, routing and fibre infrastructure options for entangled networks    68
• Table 39. Quantum satellite missions and their entanglement capability             70
• Table 40. Satellite versus terrestrial entanglement distribution implementation costs (Future Markets estimate)          71
• Table 41. Quantum network software, simulators and control platforms              72
• Table 42. Protocol and standards development status for entangled networks 73
• Table 43. Quantum network product suites and end-to-end suppliers   73
• Table 44. Technology readiness levels by component class, 2026 versus 2030 and 2035 (Future Markets estimate)          74
• Table 45. Indicative component prices, 2026 versus 2037 (Future Markets estimate)   75
• Table 46. Market differentiators for entangled-network component and system suppliers        77
• Table 47. Entangled-network applications, readiness and commercial timeframe         79
• Table 48. Networked quantum computing roadmaps of leading vendors              83
• Table 49. Key distributed and networked quantum computing demonstrations, 2023–2026   84
• Table 50. Distributed quantum computing network opportunity, selected years (Future Markets base case)   85
• Table 51. Indirect adoption of distributed quantum computing by end-user industry   86
• Table 52. Quantum data-centre and networking-layer initiatives 88
• Table 53. Comparison of QKD protocol families relevant to entangled networks             89
• Table 54. Security approaches for the quantum era: cost and characteristics   90
• Table 55. Selected telecom operator quantum networking activities, 2022–2026          91
• Table 56. Defence, intelligence and critical-infrastructure programmes involving entangled networks                93
• Table 57. Networked quantum sensing and timing applications 95
• Table 58. Timing requirements in key end markets and the role of networked quantum clocks              95
• Table 59. Representative entangled-network research testbeds 97
• Table 60. Emerging entangled-network applications           98
• Table 61. Industry adoption readiness for entangled networks     99
• Table 62. Commercially available entangled-network products, October 2026 102
• Table 63. Selected commercial milestones in entangled networking, 2023–2026          102
• Table 64. Entangled-network value chain   103
• Table 65. Key developments in entangled networking, 2023–2026            104
• Table 66. Technology focus areas of key entangled-network companies               105
• Table 67. Competitive positioning by player type   108
• Table 68. IonQ's networking-related acquisitions, 2023–2026     109
• Table 69. Major funding rounds of quantum networking companies, 2019–2026            110
• Table 70. Government programmes relevant to entangled networking, by country         112
• Table 71. Entangled-network market by region, 2027, 2030 and 2037 (US$M)   114
• Table 72. North America entangled-network landscape   116
• Table 73. Europe entangled-network landscape    117
• Table 74. Asia-Pacific entangled-network landscape         118
• Table 75. Market drivers and their impact on the entangled-network market      118
• Table 76. Cybersecurity threats and demand for entanglement-based solutions            119
• Table 77. Cost reduction projections by component, 2027–2037 (US$ thousands per unit, Future Markets estimates)    120
• Table 78. Skills gaps in the entangled-network workforce                122
• Table 79. Infrastructure compatibility and integration issues        122
• Table 80. Regulatory and policy framework comparison by country          124
• Table 81. Business models in the entangled-network market        124
• Table 82. Summary of entangled-network research testbeds and trials covered in this chapter, October 2026    126
• Table 83. Chicago-area quantum network milestones, 2020–2026          131
• Table 84. Long Island and New York City network: sites, roles and partners        132
• Table 85. Headline public funding attached to selected North American testbeds and programmes 136
• Table 86. European entanglement testbeds: platforms and best reported results          139
• Table 87. Asia-Pacific quantum network programmes: scale and entanglement capability     141
• Table 88. Recurring suppliers and their roles across entanglement testbeds     142
• Table 89. Testbed outcomes and their commercial implications 142
• Table 90. Phases of entangled-network market evolution, 2025–2037   144
• Table 91. Key forecast assumptions               146
• Table 92. Indicative average selling prices by product category, 2027–2037 (US$ thousands) 146
• Table 93. Global entangled-networks market, 2025–2037 (US$ millions)             147
• Table 94. Entangled-networks market by type of equipment, 2027–2037 (US$ millions)            148
• Table 95. Share of entangled-networks revenue by type of equipment, 2027–2037       149
• Table 96. Entangled-networks market by application, 2027–2037 (US$ millions)            150
• Table 97. Share of entangled-networks revenue by application, 2027–2037       151
• Table 98. Entangled-networks market by network reach, 2027–2037 (US$ millions)     151
• Table 99. Entangled-networks market by node technology platform, 2027–2037 (US$ millions)           153
• Table 100. Entangled-networks market by transmission type, 2027–2037 (US$ millions)          154
• Table 101. Entangled-networks market by region, 2027–2037 (US$ millions)     155
• Table 102. Entangled-networks market by customer type, 2027–2037 (US$ millions)  157
• Table 103. Entangled-network endpoint node shipments and average hardware price, 2027–2037   158
• Table 104. Entangled-networks market scenarios, 2027–2037 (US$ millions)   159
• Table 105. Scenario assumptions   160
• Table 106. Sensitivity of 2037 market size to key variables              161

LIST OF FIGURES

• Figure 1. Global entangled-networks market forecast by scenario, 2027–2037 (US$ millions)               20
• Figure 2. Entangled-networks market by application, 2027 vs 2037 (US$ millions)        21
• Figure 3. Entangled-networks market by type of equipment, 2037 (share of US$5.12B)             22
• Figure 4. Expected entangled-network milestones, 2026–2037 (Future Markets view) 23
• Figure 5. Repeaterless capacity limit (PLOB bound) versus fibre length, for a 1 GHz channel at 0.2 dB/km 31
• Figure 6. Selected entangled-network milestones, 2015–2026   34
• Figure 7. Expected entangled-network milestones, 2027–2037 (Future Markets view) 35
• Figure 8. Positioning of network memory platforms by memory performance and deployability, 2026 (Future Markets estimate)     37
• Figure 9. Entangled-network market by reach, 2027 and 2037 (share of total, Future Markets base case)                39
• Figure 10. Entangled-network equipment revenues by component category, 2027 and 2037 (base case)                46
• Figure 11. Selected quantum interconnect milestones, 2022–2026        50
• Figure 12. Quantum memory platforms: storage time versus commercial readiness (Future Markets assessment)  54
• Figure 13. Quantum repeater development timeline, 2024–2037 (Future Markets view)             57
• Figure 14. Entangled photon source revenue share by technology type, 2026 (Future Markets estimate)                63
• Figure 15. Milestones in space and airborne entanglement distribution 70
• Figure 16. Technology readiness versus market potential by component class (Future Markets estimate; bubble size indicates 2037 segment revenue)         75
• Figure 17. Projected price index by component class, 2027–2037 (2027 = 100; Future Markets estimate)                76
• Figure 18. Equipment segments covered in this section, 2027 versus 2037 (US$ millions, Future Markets base case)       77
• Figure 19. Application share of the entangled-network market, 2027 vs 2037 (Future Markets base case)                80
• Figure 20. Milestones in networked and distributed quantum computing, 2023–2030 85
• Figure 21. Distributed quantum computing and quantum data centre network revenue, 2027–2037 (US$M)               86
• Figure 22. Networked sensing, timing and clock distribution revenue by sub-application, 2027–2037 (US$M)               96
• Figure 23. Research, academic and government testbed revenue, 2027–2037 (US$M)              98
• Figure 24. Entangled-network adoption readiness matrix by industry (bubble size indicates relative 2037 revenue opportunity) 100
• Figure 25. Key developments in entangled networking, 2023–2026          104
• Figure 26. Geographic distribution of key entangled-network players (number of companies)               107
• Figure 27. Competitive positioning of selected entangled-network players (Future Markets estimate)                108
• Figure 28. Investment in quantum networking and enabling technologies, 2020–2025 (US$M)             110
• Figure 29. Disclosed cumulative funding of selected quantum networking companies, to October 2026 (US$M)               112
• Figure 30. Entangled-network market by region, 2027, 2030 and 2037 (US$M) 115
• Figure 31. Regional share of the entangled-network market, 2037 (Future Markets estimate) 115
• Figure 32. Projected price per unit by component, 2027–2037 (US$ thousands, Future Markets estimate)          121
• Figure 33. Deployed fibre length of selected entanglement-capable testbeds and trials (km) 129
• Figure 34. Testbeds and trials covered in this chapter by region and entanglement capability                130
• Figure 35. Headline public and private funding attached to selected North American testbed programmes (US$M) 137
• Figure 36. Selected milestones in entanglement distribution and quantum networking testbeds, 2017–2026    143
• Figure 37. Phases and milestones of entangled-network market evolution, 2025–2037 (Future Markets view)    145
• Figure 38. Global entangled-networks market, 2025–2037 (US$ millions)           148
• Figure 39. Entangled-networks market by type of equipment, 2027–2037 (US$ millions)          149
• Figure 40. Entangled-networks market by type of equipment, 2037         150
• Figure 41. Entangled-networks market by application, 2027–2037 (US$ millions)          151
• Figure 42. Entangled-networks market by network reach, 2027–2037 (US$ millions)   152
• Figure 43. Share of entangled-networks revenue by network reach, 2027 vs 2037 (%) 152
• Figure 44. Entangled-networks market by node technology platform, 2027–2037 (US$ millions)         154
• Figure 45. Entangled-networks market by transmission type, 2027–2037 (US$ millions)           155
• Figure 46. Entangled-networks market by region, 2027–2037 (US$ millions)      156
• Figure 47. Entangled-networks market by region, 2037     156
• Figure 48. Entangled-networks market by customer type, 2027–2037 (US$ millions)   157
• Figure 49. Entangled-network endpoint nodes shipped per year, 2027–2037    158
• Figure 50. Average hardware selling price per entangled-network endpoint node, 2027–2037 (US$ thousands)     159
• Figure 51. Entangled-networks market scenarios, 2027–2037 (US$ millions)    160

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Entangled Networks: Global Market 2027–2037

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Entangled Networks: Global Market 2027–2037

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