Is Quantum Computing the Next Tech Revolution?
This emerging technology is poised to reshape cybersecurity, logistics and scientific discovery.
Key Takeaways
Quantum computers could solve complex problems that challenge even today’s most advanced systems.
Potential applications include cybersecurity, logistics, drug discovery and materials science.
Quantum computing may take time to develop as engineers work through difficult technical constraints.
Quantum computing could be far more powerful than today’s computers, and its breakthrough moment may be closer than many people realize.
If quantum computing reaches that breakthrough point, we believe a wide range of companies would stand to benefit. Quantum computers are designed to use intense computing power to tackle extremely difficult problems. Once the technology is fully developed, it could resolve questions in just hours or days that traditional computers would take decades to answer.
Eventually, that could lead to advances across multiple fields, including:
faster discovery of next-generation pharmaceuticals
new materials for use in advanced semiconductors, batteries and other products
more efficient supply chains and logistics
stronger cybersecurity and encryption
No single company currently dominates the field of quantum computing. Giants like IBM and Alphabet have invested significant resources in quantum research and development (R&D), while smaller companies such as IonQ, D-Wave Quantum and Rigetti Computing are also making names for themselves.
Recognizing its potential, governments are dedicating more resources to quantum. Earlier this year, the U.S. Department of Commerce announced more than $2 billion in federal incentives. This includes $1 billion to help IBM develop a foundry for quantum-ready silicon wafers.1
The teams developing quantum still need to overcome technical challenges. However, based on recent analysis, we believe they’re just a few years away from finding workable solutions, not decades.
If developers succeed, the upside could be significant. Although quantum computing is relatively small today, it’s growing rapidly, with one forecaster predicting it will create up to $2.7 trillion in global economic value by 2035.2
This article explains how quantum computing works and explores its opportunities and possible obstacles.
How Is Quantum Computing Different from Traditional Computing?
Unlike traditional computers, which process information using bits that are either 0 or 1, quantum computers use qubits. In most forms of quantum computing, qubits use extremely small particles like atoms, electrons and photons to store information.
Physics works differently at extremely small scales. Because of this, qubits can interact in ways that allow quantum machines to explore many possible solutions to a problem more efficiently than classical computers.
Imagine you wanted to find the fastest way through a maze. A traditional computer evaluates possible routes using algorithms that narrow the options step by step. A quantum computer approaches the problem differently, using quantum effects to analyze many potential paths and identify the most promising solutions.
For certain types of problems, this could allow quantum computers to reach an answer far faster than today's most powerful classical systems.
Traditional computers encode data in small units called bits. A bit is like a yes-or-no answer: It can only be one of two choices, represented by 1 or 0. Quantum computers rely on qubits (quantum bits). Unlike a traditional bit, a qubit isn’t limited to a single value before it is measured — sort of like a coin spinning on a table. It’s not heads or tails yet. This flexibility enables quantum computers to solve certain complex problems that would be impractical for traditional computers.
This doesn’t mean quantum computers are better at every task. But for certain kinds of complex problems, they can sort through possibilities much more efficiently than today’s computers.
One way to picture this is to imagine looking for the fastest route through a maze. A traditional computer checks possible routes step by step, using shortcuts to eliminate bad options. A quantum computer uses the behavior of qubits to compare possibilities in different ways, which may help it find the most promising route faster.
This is why quantum computing is considered promising for specialized problems, even though the technology is still developing.
How Could Quantum Computing Be Used?
Cybersecurity and Post-Quantum Encryption
Quantum computing poses both risks and opportunities for cybersecurity.
Because quantum is designed to solve exceptionally hard problems, experts fear it could crack the encryption protecting online transactions, health records and other sensitive information.
In fact, some warn of “harvest now, decrypt later” activity. Attackers are collecting encrypted data today to unlock it once quantum computing becomes widely available.
While quantum represents a potential security threat, we believe it could also act as a tailwind for cybersecurity providers by spurring demand for newer, tougher defenses.
Researchers have already developed cryptography designed to withstand quantum-powered attacks. The U.S. is pushing its agencies and contractors to adopt post-quantum algorithms in the next few years, and other developed countries have similar timelines.3
Firms like Cloudflare and Palo Alto Networks have begun embedding post-quantum protections into their cybersecurity and internet infrastructure offerings.4 Google plans to complete its transition by 2029.5
Select consulting firms might also see increased demand if they help clients prepare for a post-quantum future.
Logistics and Supply Chain Optimization
Several companies have launched pilot programs to determine whether quantum computers can make their supply chains and logistics more efficient.
Supply chain management is a notoriously complex field because it involves a tremendous number of variables that often shift unpredictably. Last-minute changes in traffic, staffing, weather and other factors can disrupt carefully planned schedules, leading to delays and higher costs.
We see logistics optimization as an ideal application for quantum computing, which excels at identifying the best options from many possibilities. This could involve helping companies determine the quickest routes to transport goods from point A to point B.
Most pilot programs have remained relatively limited in scope. IonQ and Airbus, for example, used quantum computers to test a “cargo-loading” algorithm.6
The algorithm searched for the most efficient way to load packages of varying weights and sizes on multiple planes, without violating weight limits and other constraints. Solving this problem could allow airlines to maximize cargo loads on each flight, improving fuel efficiency and saving money.
If quantum computing breaks through, we believe it could eventually be applied to larger, more complex tasks. In the future, quantum machines might coordinate entire supply chains in real time — with potentially massive gains in efficiency.
Drug Discovery and Molecular Modeling
Quantum computers might someday help pharmaceutical companies identify new drugs faster than current methods.
Today, when pharma firms develop new drugs, they first build computer simulations to predict how those complex molecules would interact with the human body. If a specific molecule appears more likely to have a desirable impact — such as killing more cancer cells — scientists can prioritize it for testing and development.
However, these simulations aren’t perfect, and some combinations that look promising fail in real-world testing. Advocates of quantum computing say it may be able to model interactions more precisely, especially when it comes to potential drugs’ effectiveness, stability and toxicity.
That could reduce the trial-and-error required for drug development, allowing companies to develop new and better medicines on an accelerated timeline.
Advanced Materials and Manufacturing
Eventually, quantum computing may lead to the development of advanced alloys that are both stronger and lighter, improved batteries, and superconductors that reduce energy loss during electricity transmission.
Like drug developers, materials scientists already use computers to build simulations of new materials “in silico” before synthesizing them in the lab. The models try to forecast the performance and characteristics of different molecules to identify those with the highest potential.
Similar to pharma, these simulations aren’t always flawless because they rely on approximations. Researchers think that quantum computing might provide more precise models of potential materials' properties.
These efforts are still in the early stages, but we believe the potential upside could be substantial.
Take ammonia, for instance. It’s a critical input for the fertilizers that support global food production. Producing ammonia requires a massive amount of energy — about 2% of global energy consumption, according to one estimate.7
Researchers are using quantum computers to develop catalysts that could convert nitrogen and hydrogen into ammonia more efficiently.8 If successful, this could prompt a major reduction in energy use and carbon emissions.
What Are the Obstacles to Quantum Computing?
Despite its potential, the technology hasn’t yet achieved “quantum advantage.” That’s the point at which quantum computers can solve problems more efficiently than traditional computers. For now, quantum still faces several constraints that limit its usefulness.
One of the biggest challenges in quantum computing is error correction. Qubits are highly sensitive to heat, vibrations and other forces, which can lead to a loss of their quantum state, a phenomenon known as decoherence. When decoherence occurs, it can result in errors in a quantum computer’s calculations.
Quantum computers also need highly specific conditions to function properly. Some systems must be kept at extremely cold temperatures to reduce errors. Others use vacuums or precision lasers.
As a result, quantum technology remains expensive and complex, potentially limiting its commercial viability. But we also note multiple signs of progress, including lower error rates. Microsoft and Quantinuum, a quantum firm that recently went public, collaborated on a project that has reported notable gains in accuracy.9
You might also wonder if quantum computers can be used with artificial intelligence (AI) models? Maybe someday. Right now, however, AI mostly runs on traditional computers because quantum machines are still in their early stages.
Getting Ready for Quantum Advantage
Quantum advantage may not arrive tomorrow, but we believe it’s steadily moving closer to reality. If it does, the technology could spark significant changes across a wide range of industries.
While it’s currently possible to invest in companies with exposure to quantum computing, no clear leader has yet emerged.
Still, given quantum’s potential, we believe it’s important to understand the technology and its possible implications now.
Authors
Senior Client Portfolio Manager
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U.S. National Institute of Standards and Technology, “Department of Commerce Announces Letters of Intent with 9 Companies for $2 Billion to Accelerate U.S. Leadership in Quantum Computing,” Press Release, May 21, 2026.
Henning Soller, Duc Nam Nguyen, Martina Gschwendtner, Victor Kermans, Waldemar Svejstrup, and Waris Ziarkash, “McKinsey Quantum Technology Monitor 2026: A Commercial Tipping Point,” McKinsey Technology, April 28, 2026.
The White House, “Securing the Nation Against Advanced Cryptographic Attacks,” Executive Order 14412, June 22, 2026.
Cloudflare Docs, “Post-Quantum Cryptography,” June 24, 2026; Richu Channakeshava and Sean Morgan, “Palo Alto Networks Announces New Quantum Security Innovations,” Blog, Palo Alto Networks, August 14, 2025.
Heather Adkins, “Quantum Frontiers May Be Closer Than They Appear,” Google, March 25, 2026.
IonQ, “IonQ, Airbus Sign Agreement to Collaborate on Aircraft Loading Project using Quantum Computing,” News Release, August 18, 2022.
International Energy Agency, “Ammonia Technology Roadmap,” October 11, 2021.
Fujitsu, “Fujitsu and Atmonia Discover a Novel Catalyst Candidate for Clean Ammonia Synthesis Leveraging High-Speed Quantum Chemical Calculations,” Press Release, October 3, 2023.
Jason Zander, “Advancing Science: Microsoft and Quantinuum Demonstrate the Most Reliable Logical Qubits on Record with an Error Rate 800x Better Than Physical Qubits,” Blog, Microsoft, April 3, 2024.
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