Germany is considered one of the emerging global leaders in quantum computing, backed up by its driven government support, academic foundations, and strategic investments. Primarily, the German Federal Government’s commitment includes a €650 million quantum technologies framework in 2018, followed by a €2 billion quantum initiative in 2020. These efforts align with the EU’s €1 billion investment plan through 2028.
On top of that, in 2021, Germany also strategically invested and installed IBM’s Quantum System One, the first circuit-based commercial quantum computer, which IBM introduced in January 2019. Moreover, in 2022, the German Aerospace Center (DLR) placed a €208 million order for ion-trap quantum computing, supported by €740 million from the Federal Ministry for Economic Affairs and Climate Action. Most of this funding—€600 million—focuses on further research and development activities and partnerships with leading companies.
Kipu Quantum
Kipu Quantum, founded in 2021, is a German quantum computing company in Karlsruhe, Germany. The company develops application- and hardware-specific quantum algorithms packaged into software products.
Kipu Quantum introduced its Bias-Field Digitized Counterdiabatic Quantum Optimization (BF-DCQO), a pioneering algorithm based on counterdiabatic protocols. This innovation drastically reduces computational resource requirements and improves today’s quantum hardware problem-solving capabilities.
Not only that, but Kipu has also been breaking barriers with IBM’s 156-Qubit Processor. With its most recent breakthrough in the industry, the company was able to execute the largest optimization quantum algorithm using all 156 qubits of an IBM quantum processor, achieving unprecedented results and setting the stage for larger processors, including those with 433 qubits and beyond.
planqc
planqc is a German tech company known for its processors, which are designed to use atoms in artificial light crystals. It is the fastest way to scale to practical quantum advantage. Founded in 2022, the company demonstrated a substantial headstart with its significant milestone of being chosen to spearhead a €20 million initiative to develop and deploy a 1,000-qubit quantum computer at Germany’s Leibniz Supercomputing Centre.
Utilizing neutral atom technology, this state-of-the-art quantum computer will be seamlessly integrated into the center’s high-performance computing system, enhancing scientific research and driving industrial innovation. This project is named “Multicore Atomic Quantum Computing System” (MAQCS), which aims to install a universally programmable quantum computer that will leverage neutral atoms through an innovative multi-core architecture.
HQS Quantum Simulations
HQS Quantum Simulations, founded in 2017, is well known for developing cloud-based simulation software for the chemical and pharmaceutical industries. The company aims to provide a precise modeling of quantum phenomena, enabling sensor optimization for diverse applications. This software accelerates innovation, propelling the evolution of next-generation quantum sensor technologies.
One of the company’s significant breakthroughs is the project, The QuantiCoM | MatQML, integrating quantum machine learning (QML) and optimization algorithms with HQS Quantum Simulations to revolutionize the prediction and optimization of alloy material properties. These two companies’ collaborative efforts aim to surpass traditional methods’ limitations, striving for a quantum advantage in key areas.
Specifically, the project focuses on enhancing machine learning capabilities—particularly in network training—through advanced solutions for quadratic unconstrained binary optimization (QUBO) and improving the trainability of quantum neural networks (QNNs). This innovative approach promises to set new material science and quantum technology benchmarks.
Crypta Labs
Crypta Labs, a pioneering German quantum computing company established in 2014, is known for its patented concept that involves a diffuser to scatter photons, enabling their capture by a camera to harness entropy. While this approach proved challenging to integrate and miniaturize, the team pressed on in their quest for innovative entropy sources.
Moreover, in 2021, the company achieved a significant breakthrough with the invention of the discrete Quantum Optical Module (QOM). This cutting-edge solution revolutionized the Quantum Random Number Generation (QRNG) field, offering users a secure and remote solution to access quantum random numbers through reliable API calls. This advancement solidified Crypta Labs’ position at the forefront of quantum technology innovation.
Crypta Labs has secured $4.4 million through four investment rounds since its establishment. Then, in October 2016, the company raised $290,000 in seed funding through Angels Den, followed by a non-equity assistance fund from Pitch@Palace in November 2017. The most significant funding came in July 2019, with a $2.1 million debt financing round led by Innovate UK and supported by Bloc Ventures. Bloc Ventures continued to invest in 2021 and 2022. Crypta Labs also benefits from Innovate UK grants and loans and is a funded member of the Aqurand Quantum Assurance Program.
Expanding Horizons: German Industries Embracing Quantum Technologies
Apart from these well-renowned quantum computing companies, the country has also launched a consortium, Quantum Technology & Application Consortium (QUTAC), a collective of leading German companies dedicated to advancing the industrial application of quantum computing. This collaboration aims to foster quantum applications across industries and develop use cases that address real-world challenges in fields such as automotive, chemicals, telecommunications, and finance whilst also ensuring that the country will not be spearheading as a global leader in quantum computing innovation.
BASF (Chemical Industry)
BASF, one of the largest chemical companies that supplies chemicals to various industries, including automotive, construction, and agriculture, has collaborated with SEEQC and is exploring quantum computing to develop industrial catalysts, focusing on homogeneous catalysis for the chemical and pharmaceutical sectors. Primarily, BASF aims to expedite drug discovery by using SEEQC’s chip-based quantum computer; they aim to simulate catalysts for paints, adhesives, and lubricants—challenging tasks for classical computing—potentially revolutionizing catalyst development.
BMW Group (Automotive Industry)
BMW is leveraging quantum computing to solve optimization problems in manufacturing, logistics, and material design. Moreover, BMW launched this global competition to identify quantum computing solutions for real-world challenges like vehicle design, production line optimization, and supply chain logistics.
The BMW group recently collaborated with one of the leading quantum computing companies, Classiq and NVIDIA, in July 2024, wherein the company group of experts successfully developed one of the most advanced quantum programs to date, incorporating multiple complex subroutines. The cutting-edge modeling and compilation tools of the Classiq platform facilitated this achievement. The program’s large and intricate quantum circuit was simulated using NVIDIA GPUs and the high-performance NVIDIA CUDA-Q platform, showcasing a significant milestone in quantum computing advancements.
“Our collaboration with Classiq and NVIDIA has enabled an innovative quantum implementation that pushes the boundaries of what is possible in the application to automotive technologies”
Lukas Mueller, Lead Future Compute at BMW Group IT.
Volkswagen (VW) (Automotive Industry)
Volkswagen Group of America is at the forefront of technological advancements in the automotive sector, with a robust portfolio spanning artificial intelligence, cloud computing, and quantum computing. In 2019, Volkswagen partnered with D-Wave to pioneer the first live quantum-powered traffic-routing system.
This groundbreaking test, conducted in Lisbon, Portugal, utilized quantum computing to predict traffic volumes and optimize bus routes. The system successfully reduced passenger wait times and bus travel times while minimizing traffic congestion, demonstrating the potential of quantum computing to enhance real-world traffic efficiency.
“We see great potential for quantum computing across our entire business. Many challenges in the automotive industry can benefit from the inherent power quantum computing can generate.”
Florian Neukart, Director, Volkswagen Group Data Lab
Bosch (Technology and Services)
Bosch has also engaged in the quantum computing sensing industry; the company primarily focuses on Magnetic-field quantum sensing technology that leverages quantum physics to achieve measurements with unparalleled precision. The company’s design combines exceptional sensitivity with a compact design, these sensors are poised to revolutionize applications across diverse industries.
Unlike earlier techniques such as SQUIDs (superconducting quantum interference devices), vapor cells, or optical traps—which require large, complex setups and offer limited flexibility— Bosch’s advanced quantum sensors deliver comparable performance in a smaller, more versatile, and cost-effective form. This innovation opens up new possibilities for sensing applications previously beyond reach.
Moreover, Bosch will be joining IBM Quantum Network; both companies have initiated a strategic partnership to explore quantum computing applications in material science. As part of this collaboration, Bosch will be gaining access to IBM’s advanced quantum technology and Qiskit Runtime via the IBM Cloud. Experts from both companies work together to develop algorithms and workflows for computational materials design, focusing on industry-relevant materials.
Early progress includes advancing beyond traditional solid-state physics approximations, like the single-band Hubbard model, and scaling models to more realistic system sizes. This partnership aims to harness quantum computing’s potential to revolutionize material science and industrial innovation.
“Quantum technology will be a game changer in many areas – truly an “Invented for Life” technology.”
Dr. Stefan Hartung, Chairman of the Board of Management of Robert Bosch GmbH
Germany’s Photonic Breakthrough: Advancing Quantum Computing with PaQS
Germany’s research industry has also contributed significantly; researchers at Paderborn University in Germany have developed “PaQS” (Paderborn Quantum Sampler), Europe’s largest sampling-based quantum computer. This groundbreaking accomplishment represents a major advancement in light-based quantum technology. Supported by approximately 50 million euros in funding from the Federal Ministry of Education and Research, the project unites the expertise of 13 academic and industry partners, positioning Germany as a leader in photonic quantum computing innovation.
The PaQS machine leverages the power of squeezed states, a quantum mechanical phenomenon that significantly enhances computational capabilities in quantum systems. Developed by the “Integrated Quantum Optics” research group at Paderborn University, these highly refined squeezed states are achieved using advanced optical waveguides. The project is a collaborative effort involving key partners such as Menlo Systems, Fraunhofer IOF Jena, and Swabian Instruments, with coordination led by Q.ANT, a German company specializing in industrial quantum technologies. This partnership underscores a unified effort to advance quantum computing through cutting-edge photonic innovations.
Germany’s Roadmap to Quantum Computing Leadership by 2026: The €3 Billion Vision
Furthermore, Germany has set out a plan to allocate €3 billion to advance the development of a universal quantum computer by 2026. This initiative aims to position Germany competitively alongside global leaders like the US and China. Of the total funding, €1.37 billion will be managed by the Ministry of Research, while €800 million will support state-funded research institutes. The federal cabinet is expected to approve and implement the plan by the end of April.
Germany’s quantum strategy creates a robust ecosystem, empowering its academic excellence, industrial collaboration, and public investment, positioning it as a decisive key player in the rapidly evolving quantum computing sector.
