The Asia Pacific region is emerging as a significant force in the global quantum computing market, fuelled by rapid government intervention, strategic funding, and the formation of new startup hubs.

While the US continues to dominate quantum tech investment—capturing approximately 78 per cent of the global total in 2024—Asia Pacific is accelerating its pace, both in funding commitments and in research capabilities.

Countries such as Japan, Australia, South Korea, Singapore, and China increasingly position themselves as competitive players where cutting-edge hardware, advanced algorithms, and secure communication networks will define technological leadership.

According to McKinsey’s Quantum Technology Monitor 2025, targeted public investments and emerging entrepreneurial clusters shape Asia Pacific’s growth. In 2024 alone, five of the world’s 19 newly founded quantum tech startups originated from Asia.

This growth is driven by national quantum strategies and strategic partnerships designed to scale capabilities in quantum computing and related fields. Governments across the region are focusing on building sovereign capabilities, attracting global talent, and fostering cross-border collaborations.

Japan leads regional public funding announcements

Japan has made one of the most significant public funding pledges globally for quantum tech, committing US$7.4 billion in 2025 towards next-generation chip and quantum computing research. This ambitious move signals Japan’s intention to play a defining role in research and commercial deployment, particularly in high-performance and fault-tolerant quantum systems.

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The scale of this funding underscores Japan’s long-term commitment to becoming a hub for advanced computing innovation, with implications for sectors ranging from materials science to secure communications.

Australia accounted for roughly eight per cent of global quantum tech startup investment in 2024, bolstered by a high-profile US$620 million package from the Australian Commonwealth and Queensland governments. The funding supports PsiQuantum, a US-based quantum hardware manufacturer, in building a utility-scale, fault-tolerant quantum computer in Brisbane.

This project is expected to enhance Australia’s role as a location for large-scale quantum infrastructure while strengthening ties with international industry leaders.

South Korea is pursuing a long-term national goal to become a global leader in quantum science and tech. Its US$2.3 billion investment plan, which spans 2035, aims to build domestic capabilities in quantum computing, quantum communication, and quantum sensing. This approach positions the country for technological competitiveness and potential export opportunities in a rapidly evolving market.

Singapore, meanwhile, has taken a targeted approach through its National Quantum Strategy, allocating about US$222 million over five years. This funding is focused on quantum research, infrastructure development, and talent training, aiming to maintain Singapore’s role as a research and innovation hub within Southeast Asia.

The strategy also emphasises partnerships between academia, government, and industry to drive adoption.

China remains a unique case in the Asia Pacific quantum computing landscape. Although commercial investment data for Chinese startups is limited, the country leads globally in quantum computing-specific patent applications, accounting for about 32 per cent of filings worldwide, surpassing the US share of around 22 per cent.

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Government investment in quantum research and development exceeds US$15 billion, strongly focusing on defence, national security, and artificial intelligence applications. Much of this activity is concentrated in government-funded research institutions with limited public disclosure.

Changing global investment dynamics

Globally, investment in quantum tech startups grew by about 50 per cent year-on-year to reach US$2 billion in 2024, up from US$1.3 billion in 2023.

Over 80 per cent of this funding was directed toward quantum computing, with superconducting tech receiving the largest share, followed by photonic networks. The top two global deals—PsiQuantum’s US$624.63 million round and Quantinuum’s US$300 million raise—accounted for nearly half of the total value, underlining the concentration of capital in a small number of high-profile ventures.

Public funding now accounts for 34 per cent of all quantum technology investment, up from 15 per cent in 2023, reflecting growing government interest in supporting early-stage and high-risk ventures.

Investors are increasingly shifting their attention toward emerging startups that are less than four years old and mature companies with proven tech, while scaling-stage ventures attract less relative interest.

In 2024, most new startups globally emerged in the components and application software segments, highlighting a shift in value creation toward software development while maintaining steady demand for hardware-agnostic components. This diversification suggests that complementary solutions and integration tools will play a larger role in commercial ecosystems as quantum computing tech matures.

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