Global Defense Quantum Technologies Market: Quantum Sensing, QKD & Navigation Systems Market Size, Share, Trends and Forecasts 2031

Key Findings

• The global defense quantum technologies market focuses on quantum sensing, quantum communication, quantum key distribution (QKD), and quantum-based navigation systems engineered for high-assurance military operations.

• Militaries are rapidly adopting quantum sensing for ultra-precise detection, stealth object tracking, submarine localization, and enhanced situational awareness in GPS-denied environments.

• QKD is emerging as a critical enabler for next-generation secure communication networks, providing encryption theoretically immune to classical cyberattacks and future quantum decryption threats.

• Quantum inertial navigation systems are being integrated into aircraft, naval vessels, missiles, and autonomous platforms to ensure uninterrupted navigation without reliance on GPS.

• Defense agencies are expanding quantum R&D investment to gain strategic advantage in intelligence, surveillance, secure communication, and contested-domain operations.

• Quantum radar prototypes are advancing, enabling detection of low-RCS aircraft, stealth platforms, hypersonic vehicles, and surface/subsurface threats.

• Strategic partnerships between defense OEMs, national laboratories, startups, and quantum computing firms are accelerating capability development.

• Nations are competing to achieve “quantum superiority” in defense applications as part of broader national security modernization strategies.

• Rapid advancements in cold-atom technologies, photonic chips, quantum magnetometers, and superconducting systems are enabling deployable military hardware.

• Supply chain scale-up and secure domestic production of quantum components are becoming priorities for defense readiness.

Defense Quantum Technologies Market Size and Forecast

The global defense quantum technologies market is valued at USD 4.8 billion in 2024 and is projected to reach USD 19.2 billion by 2031, growing at a CAGR of 22.1%. Growth is driven by rising demand for secure communication (QKD), strategic quantum sensing capabilities, and resilient quantum navigation systems for military aircraft, submarines, missiles, drones, and space platforms. As quantum R&D transitions into field-ready demonstrators and deployable systems, procurement will expand especially in the U.S., China, Europe, India, Israel, and Japan. By 2031, quantum sensing and navigation are expected to be embedded into frontline military platforms, while QKD networks become foundational to national and defense communication architectures.

Market Overview

Defense quantum technologies represent a paradigm shift in sensing, communication, and navigation. Quantum sensing uses atomic and photonic phenomena to achieve ultra-high precision in detecting threats, tracking movement, mapping anomalies, and conducting submarine and underground surveillance. Quantum communication—especially QKD—enables secure encryption through entangled photons and quantum-state transmission. Quantum inertial navigation systems (QINS) provide highly accurate positioning without GPS, enabling survivability in heavily contested or degraded environments. As militaries focus on information dominance, electromagnetic resilience, and stealth detection, quantum technologies are emerging as transformational capabilities across land, air, sea, space, and cyber domains. However, challenges include system miniaturization, cooling requirements, cost barriers, and scaling quantum components for operational deployment.

Future Outlook

The future of defense quantum technologies will be defined by battlefield-deployable quantum sensors, resilient quantum navigation for autonomous systems, global QKD-secured military networks, and quantum-enhanced threat detection. Quantum sensing will transform ISR by detecting stealth aircraft, underwater platforms, and low-observable threats over long distances. QKD will underpin strategic military communications, naval networks, and space-based command-and-control architectures. Quantum accelerometers and gyroscopes will replace GPS in next-generation missiles, aircraft, and hypersonic systems. Integrated quantum-AI fusion will enable predictive threat assessment and multi-domain decision superiority. By 2031, quantum technologies will be core to national defense modernization and strategic advantage.

Defense Quantum Technologies Market Trends

• Rapid Deployment of Quantum Sensing for Stealth Detection and Subsurface Surveillance
  Quantum sensing enables detection of extremely weak electromagnetic, acoustic, and magnetic signatures, allowing militaries to detect stealth aircraft, submarines, and concealed underground structures. Cold-atom interferometers and quantum magnetometers offer unprecedented sensitivity, enabling ISR missions in environments traditionally difficult to monitor. These sensors enhance early-warning systems and strategic surveillance capabilities. Militaries are testing airborne and shipborne quantum sensing payloads for wide-area monitoring. This trend reshapes ISR architectures and improves threat identification in contested theaters.

• Expansion of Quantum Key Distribution (QKD) for Defense-Grade Secure Communications
  QKD networks provide theoretically unbreakable encryption by transmitting quantum states that collapse if intercepted. Defense agencies are launching satellite-based QKD systems, secure fiber networks, and battlefield tactical QKD modules. Integration with command-and-control networks enhances cybersecurity resilience against both classical and future quantum-computer attacks. QKD supports nuclear command systems, naval communications, and cross-border defense alliances. This trend creates next-generation secure communication frameworks for multi-domain operations.

• Integration of Quantum Navigation Systems for GPS-Denied Military Operations
  Quantum accelerometers, gyroscopes, and atom interferometers offer ultra-precise inertial navigation without satellite signals. These systems ensure uninterrupted navigation for aircraft, submarines, missiles, and autonomous platforms operating in EW-heavy or GPS-denied environments. Militaries are testing quantum navigation prototypes aboard naval vessels and long-range unmanned aircraft. This trend strengthens operational survivability and reduces reliance on vulnerable satellite infrastructure.

• Rise of Photonics-Based Quantum Computing and Simulation for Defense Applications
  Quantum computing accelerates cryptanalysis, logistics optimization, hypersonic vehicle simulation, and material modeling for defense. Photonic quantum processors offer high-speed computation and compatibility with defense communication architectures. Defense laboratories are developing specialized quantum algorithms for battlefield simulation and sensor optimization. This trend boosts computational superiority and informs mission planning, threat analysis, and advanced material development.

• Deployment of Quantum Radar and Quantum RF Systems for Anti-Stealth Capabilities
  Quantum radar leverages entangled photons and quantum illumination to detect low-RCS and stealth targets. These systems resist jamming and deception techniques that affect classical radar. Prototypes show improved detection sensitivity for aircraft, missiles, and drones. Quantum RF systems enhance enemy radar detection, EW countermeasures, and passive surveillance. This trend challenges traditional stealth concepts and contributes to next-generation air defense modernization.

• Growth of Defense–Industry Partnerships for Quantum Component Miniaturization and Field Deployment
  Quantum systems require cryocoolers, photonic chips, stable lasers, and ultra-coherent atomic sources. Defense OEMs are partnering with quantum startups to miniaturize these components into rugged, field-ready hardware. Collaboration accelerates TRL-level advancement and transitions research from laboratories to frontline forces. This trend facilitates scalable deployment across military platforms, strengthening technological readiness.

Market Growth Drivers

• Increasing Vulnerability of GPS, Satellite Communication, and Classical Encryption Systems
  Adversaries’ EW systems, cyber operations, and anti-satellite weapons threaten conventional guidance and communication networks. Quantum navigation and QKD provide robust, future-proof alternatives. Militaries prioritize quantum technologies to ensure operational continuity in denied environments. This vulnerability accelerates the adoption of resilient quantum-enabled systems.

• Rising Need for High-Precision ISR, Early Warning, and Subsurface Detection
  Quantum sensing enables unprecedented accuracy in detecting stealth aircraft, submarines, and underground structures. Advances in atomic interferometry expand surveillance depth and detection range. Enhanced ISR capabilities strengthen strategic deterrence and national security. This high-precision requirement drives significant R&D and procurement.

• Defense Modernization Programs Prioritizing Information Superiority and EW Resilience
  Militaries increasingly focus on secure communication, electromagnetic spectrum dominance, and decision superiority. Quantum technologies support resilient C2 networks, secure data exchange, and advanced threat detection. Defense modernization programs allocate growing budgets to quantum-enabled platforms. This doctrinal shift strongly drives long-term demand.

• Global Competition Among Major Powers to Achieve Quantum Military Advantage
  The U.S., China, Russia, EU, India, Israel, and Japan view quantum technologies as strategic differentiators. Quantum supremacy in defense is tied to intelligence, nuclear command systems, and electromagnetic dominance. This competition fuels aggressive investment in quantum infrastructure. Global rivalry accelerates technology maturity and deployment.

• Increased Use of Autonomous Systems Requiring GPS-Independent Navigation and Secure Links
  Drones, unmanned vessels, and autonomous ground systems require resilient navigation and secure communication in contested environments. Quantum navigation and QKD enable autonomous platforms to operate safely without satellite dependence. Growth of autonomous warfare significantly boosts demand.

• Advancements in Photonics, Cryogenics, and Atomic Engineering Enabling Deployable Systems
  Improvements in cooling systems, compact lasers, and quantum photonics reduce system size and cost. Deployable quantum systems become feasible for mobile, airborne, and maritime applications. Technological progress accelerates transition from lab prototypes to field systems. This readiness enhances market growth prospects.

Challenges in the Market

• High Cost, Complexity, and Technical Barriers in Quantum Hardware Development
  Quantum systems require sophisticated materials, cryogenic cooling, and high-precision photonics. Production costs are extremely high, limiting large-scale field deployment. Technical complexity slows program timelines and increases procurement risk. These barriers hinder widespread adoption.

• Miniaturization and Environmental Stability Challenges for Battlefield Deployment
  Quantum devices are sensitive to vibration, temperature fluctuations, and electromagnetic disturbances. Achieving rugged, portable designs suitable for operational environments remains difficult. Stability challenges reduce deployment readiness for frontline platforms.

• Limited Skilled Workforce and Quantum Engineering Expertise
  Quantum technology development requires deep expertise in physics, photonics, cryogenics, and advanced algorithms. Global talent shortages slow innovation and scaling. Workforce constraints present a long-term challenge for industry and governments.

• Uncertain Standardization, Interoperability, and Defense Integration Frameworks
  Quantum communication, sensing, and navigation lack standardized protocols across nations and defense alliances. Interoperability challenges affect integration into joint forces and coalition operations. Absence of uniform standards slows procurement and fielding.

• Cybersecurity Risks Associated With Hybrid Classical–Quantum Systems
  Transitioning to quantum systems creates vulnerabilities in interfaces between classical and quantum networks. Hybrid systems require robust verification, authentication, and anti-tampering protections. These risks introduce additional security challenges.

• Supply Chain Constraints for Quantum Components and Materials
  Many quantum components depend on rare materials, precision optics, and specialized manufacturing tools. Supply chain bottlenecks affect system production and scalability. Dependence on limited vendors poses strategic vulnerabilities for defense procurement.

Defense Quantum Technologies Market Segmentation

By Technology Area

• Quantum Sensing

• Quantum Key Distribution (QKD)

• Quantum Navigation Systems

• Quantum Radar & Quantum RF

• Quantum Communication Networks

• Quantum Simulation & Computing for Defense

By Platform

• Airborne Platforms (Aircraft, UAVs)

• Naval Platforms (Submarines, Ships)

• Ground Systems & Armored Vehicles

• Space-Based Platforms

• Autonomous & Unmanned Systems

By Application

• ISR & Reconnaissance

• Secure Military Communications

• GPS-Denied Navigation

• Electronic Warfare & Counter-Stealth

• Strategic Command & Control

• Nuclear Deterrence and Security

By End User

• Army

• Navy

• Air Force

• Space Commands

• Defense Intelligence Agencies

Leading Key Players

• Lockheed Martin

• Northrop Grumman

• Raytheon Technologies

• BAE Systems

• Thales Group

• Honeywell Quantum Solutions

• Toshiba Quantum Technologies

• ID Quantique

• QinetiQ

• IBM (Defense Quantum R&D Partnerships)

Recent Developments

• Honeywell Quantum Solutions demonstrated a deployable quantum inertial navigation system prototype for aircraft and naval platforms.

• Thales Group launched a quantum magnetometer system designed for anti-submarine surveillance missions.

• ID Quantique expanded QKD deployments for government and defense communication networks across Europe and Asia.

• Northrop Grumman advanced quantum RF sensing research for next-gen counter-stealth detection.

• BAE Systems initiated field tests of compact quantum accelerometers for GPS-denied navigation missions.

This Market Report Will Answer the Following Questions

• What technologies—quantum sensing, QKD, quantum navigation—are driving next-generation defense modernization?

• How are militaries deploying quantum systems for ISR, stealth detection, and secure communication?

• Which nations are leading global investment in defense quantum capabilities?

• What challenges hinder widespread deployment of quantum hardware in battlefield environments?

• How will QKD networks reshape future military communication architectures?

• What role will quantum navigation play in autonomous systems and GPS-denied warfare?

• Which companies are developing breakthrough quantum defense systems?

• How will quantum radar influence air-defense and counter-stealth strategies?

• What long-term trends will shape defense quantum adoption through 2031?