Gartner predicts more than half of quantum computing startups will shut down by 2030

[NatureBoyDave24]

The Register has a sobering read on a new Gartner forecast. The analyst firm expects more than half of quantum computing startups to shut down by 2030. Its reasoning is simple enough: there are an estimated 200 to 300 firms in a crowded market, and most of them struggle to earn real commercial revenue. Gartner also expects customers to reject technologies that never reach fault tolerance

The revenue figures give a sense of scale. Gartner forecasts worldwide quantum revenue of $869.9 million for 2026, rising to $1.1 billion in 2027. That is real money, but it is small when you compare it with the amounts investors are pouring in. Public sector spending leads at first, at $245 million in 2027, up from $219 million this year

Banking, finance and insurance are expected to overtake the public sector in 2028, spending $289 million against $280 million. Gartner thinks they stay the largest sector through to 2030. That fits with everything we see about banks preparing for post quantum cryptography and testing optimisation tools. Finance tends to pay early for anything that might give it an edge

Gartner VP analyst Gaurav Gupta said the early quantum advantage era has arrived, and he advised companies to treat their quantum journey as a multi year effort. So this is not a story about quantum failing. It is a story about too many companies chasing too little revenue, which is exactly what happens in every new technology wave. The Register also took a swipe at the US Department of Energy's plan for a fault tolerant, scientifically useful machine by 2028, calling it almost certain to fail

Timing is everything here, because on the same day Oratomic raised $475 million and Universal Quantum raised over $100 million. Those two stories and this forecast are not in conflict. Big rounds tend to go to the companies investors think will survive the shake out. The smaller firms with no clear route to revenue are the ones at risk

Does a shake out sound healthy to you, or worrying? And which kinds of quantum startups do you think are most likely to survive?

Too many quantum startups, too little money to keep them alivewww.theregister.com