Quantum Computing Market Eyes US$116.26 Billion by 2035 at 41.8% CAGR as Japan Commits ¥100 Billion and Targets the 1,000-Qubit Era

TOKYO, Japan, August 25, 2026 - Japan's quantum computing strategy is entering a more commercially significant phase. The focus is shifting from demonstrating increasingly large processors toward building the infrastructure required to make quantum computation usable: cryogenic systems, control electronics, error-handling software, hybrid HPC integration and industry-specific applications. The global Quantum Computing Market was valued at US$3.52 billion in 2025 and is projected to reach US$116.26 billion by 2035, growing at a CAGR of 41.8% during 2026-2035, according to DataM Intelligence. Asia-Pacific is identified as the fastest-growing regional market, putting Japan's latest funding and system-scaling initiatives into a wider competitive context.

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Recent 2026 Official Developments in Quantum Computing

** Japan secured about ¥100 billion for next-generation quantum computing. In his January 2026 New Year address, Japan's Minister of Economy, Trade and Industry said roughly ¥100 billion had been secured in the supplementary budget to accelerate next-generation quantum-computer development and build a globally competitive domestic industry.

** RIKEN and Osaka University began operating the 144-qubit "Ei-II" quantum computer on March 26. The new superconducting system more than doubles the 64 qubits of the original Ei machine and is available through a quantum-computing cloud service. RIKEN also reported longer qubit lifetimes and a compact system architecture despite the higher qubit count.

** RIKEN, Cleveland Clinic and IBM demonstrated a 12,635-atom protein simulation in May. The project combined IBM quantum processors with supercomputers and hybrid algorithms to model biologically meaningful protein complexes, providing a concrete example of quantum-classical computing moving toward problems relevant to chemistry and life sciences.

** RIKEN's quantum-HPC platform gained a new operating system in June. The JHPC-quantum GPU supercomputer "ROQUO" entered operation in Kobe to support tightly coupled work involving Fugaku, IBM Quantum System Two and Quantinuum's Reimei trapped-ion system. The architecture is designed for quantum simulation, algorithm evaluation and hybrid workloads that combine quantum processors, GPUs and HPC.

** NEDO moved industrialization funding from components toward complete systems and large demonstrations. In July, NEDO announced implementation arrangements for a 2026-2028 program covering large-scale domestic quantum-computer systems, critical components, fault-tolerant system-software platforms and large use-case demonstrations. The program explicitly targets industrialization around 2030 and strengthening Japan's ability to develop and manufacture quantum systems domestically.

Japan Is Funding the Quantum Stack, Not Only the Processor

The structure of Japan's 2026 program reveals where new commercial opportunities may appear.

NEDO is separately addressing large-scale quantum systems, ultra-low-temperature refrigerators, laser equipment, fault-tolerant software platforms and large-scale application demonstrations. This is important because scaling physical qubits creates additional engineering problems rather than automatically creating useful computing capacity.

More qubits require more sophisticated microwave or optical control, cooling, calibration, error management and orchestration. As systems scale, suppliers of enabling equipment and software can therefore become strategically important even if they never manufacture a quantum processor.

Japan's quantum opportunity is consequently becoming broader than Fujitsu, NEC or other headline computing brands. Specialized component suppliers, cryogenic-equipment developers, photonics companies, software specialists and HPC operators can potentially capture parts of the value chain as the industry progresses toward fault-tolerant architectures.

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The 1,000-Qubit Milestone Needs a More Careful Reading

Fujitsu and RIKEN's roadmap is one of Japan's most closely watched hardware programs. Their 256-qubit superconducting quantum computer was unveiled in 2025, with development continuing toward a 1,000-qubit-class system targeted for availability in fiscal 2026. Fujitsu has also disclosed plans for systems beyond 1,000 qubits and longer-term fault-tolerant quantum computing.

The important distinction is that the 1,000-qubit system remains a development target rather than a milestone that should already be treated as completed.

That distinction matters commercially. A machine with more physical qubits does not necessarily produce proportionately more useful computational value. Fidelity, coherence, gate quality, connectivity, calibration overhead and error correction determine how much of the theoretical capacity can actually be used.

The more meaningful race is therefore becoming usable computation per system, rather than raw qubit count.

Quantum-HPC Integration Could Monetize Earlier Than Stand-Alone Quantum Machines

Japan's recent activity also suggests that practical adoption may arrive through hybrid computing rather than through quantum computers replacing conventional systems.

RIKEN is developing software that connects quantum processors with supercomputers, while its January collaboration with Fujitsu, NVIDIA and Argonne includes work on integrating quantum computing with AI supercomputers.

This model allows CPUs and GPUs to handle the parts of a problem they already solve efficiently while quantum processors are assigned narrower calculations where they may eventually provide an advantage.

The 12,635-atom protein project demonstrates why this matters. Instead of waiting for a fully fault-tolerant machine capable of solving an entire scientific workflow independently, researchers combined quantum hardware with classical supercomputing and improved algorithms.

For Japanese chemicals, materials, pharmaceutical, financial, mobility and manufacturing organizations evaluating quantum technology, this could shift investment priorities. Access to quantum-HPC environments, application software and specialist expertise may become more relevant in the near term than owning quantum hardware.

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The Competitive Measure Is Changing from Qubits to Useful Work

Through 2035, the quantum computing market is likely to separate companies that can demonstrate increasingly large machines from those that can turn those machines into repeatable computational value.

For Japan, the ¥100 billion policy commitment, domestic hardware scaling, and expansion of quantum-HPC infrastructure create a strong foundation. But commercialization will depend on whether the ecosystem can improve fidelity, manage errors, reduce infrastructure complexity, and move algorithms from laboratory demonstrations into industrial workflows.

That makes hardware, cryogenics, control systems, error mitigation and correction, hybrid orchestration and application software part of the same competitive equation. The companies that connect these layers effectively may capture commercial value before fully fault-tolerant quantum computers become mainstream.

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This release was published on openPR.