Quantum Industry in The Netherlands

One notable player in this landscape is Fermioniq, a groundbreaking Amsterdam-based startup at the intersection of quantum and classical computing. “Timing was on our side. As we were starting the company, there was a real momentum for quantum initiatives in the Netherlands, and we benefited from that,” explains co-founder Chris Cade, who develops innovative quantum simulators using classical GPUs.

The Netherlands’ quantum ecosystem thrives on strategic government policies and research hubs like Quantum Delta NL. The global quantum computing market, valued at $472 million in 2021, is projected to reach $1.765 billion by 2026, with a 30.2% Compound Annual Growth Rate.

The quantum industry utilises quantum-mechanical principles across computing, communication, and sensing applications. The importance of quantum technology lies in its potential to solve complex problems beyond the capabilities of classical technologies. This sector, a critical pillar of Dutch innovation strategy, is revolutionising healthcare, finance, materials science, and cybersecurity.

Quantum computing uses superposition and entanglement, enabling novel approaches to cryptography, drug development, and climate modelling.

“The Netherlands is very strong in quantum computing. The research groups in Amsterdam and Leiden are arguably some of the best in Europe, and Delft has world-class efforts in quantum hardware. Along with France and Germany, the Netherlands is a key player in this field.”

Chris Cade, Co-founder Fermioniq

 

The country has emerged as a leader in the global quantum landscape due to strong academic and research institutions, government support, and a thriving innovation ecosystem.

The Dutch quantum industry is poised for substantial growth, with market projections of €1 billion by 2027 (45% in hardware), $65 billion by 2030, and $300 billion by 2050. The country expects to capture a 5-10% share of the global quantum market, translating to approximately 6000-12000 direct and indirect jobs by 2027.

“It’s interesting to see how the market evolves, especially as the industry shifts from research-focused to practical applications.”

Dan Howell, Director Quantum Delta Delft

 

The country advances quantum technology through initiatives like Quantum Delta NL, supported by €615 million in government funding.

Revenue Growth: The Dutch quantum sector is developing steadily through increased R&D investments, establishing leadership across multiple industries. Employment Growth: By 2040, 30,000 high-tech positions are anticipated to be created, supported by robust talent development programs. A focus on talent development ensures a steady supply of skilled professionals. Segment-Specific Insights: The Dutch quantum market is set for substantial growth over the next decade, fueled by public and private investments.

Dominance of these segments are as followed. Quantum computing: It leads the Dutch quantum market with a 45% share, driven by early infrastructure investments, particularly in Delft’s hardware development hub. It represents about 50% of the global quantum industry. Quantum communications: With roughly 30% of the market, quantum internet projects and secure networks fuel this segment. Quantum sensing: Accounting for 25% of the market, this subdomain focuses on precision measurement technologies for environmental and healthcare applications.

Quantum sensing’s market share indicates a growth of 5-10% locally and 15-20% globally, driven by advances in precision measurement.

Quantum computing shows 10-15% local and 20-25% global annual growth, particularly in finance and logistics.

Quantum communications expand more moderately at 5-10% locally and 10-15% globally, supported by government initiatives for a national quantum network.

Productivity and economic impact: The quantum sector employs 4,000+ professionals, contributing €500 million annually to the Dutch GDP, with projections reaching €1 billion by 2025. The €615 million Quantum Delta NL program allocates funds across research (€270M), ecosystem development (€150M), and human capital (€150M).

The Netherlands features a dynamic ecosystem of Dutch and international quantum technology companies, research institutions, and startups. Key players include:

QuTech: A collaboration between Delft University of Technology and TNO, QuTech is central to quantum computing and internet research, supporting hardware development.

Quantum Delta NL: The country’s national quantum program that unites five major tech hubs to advance quantum research, support startups, and develop local talent.

“Quantum Delta NL has been hugely supportive. We received an SME grant from them early on which was invaluable in getting started, and they’ve continued to support us with funding and advice.”

Chris Cade, Co-founder Fermioniq

 

QuiX Quantum: This company focuses on photonic quantum technology and is developing Europe’s first universal photonic quantum computer.

Key Startups: Notable startups like Fermioniq (quantum emulators), QuantWare (quantum processors), Qblox (control systems), and QphoX (quantum networking) significantly contribute to hardware and software advancements.

These institutions and companies create a robust Dutch quantum ecosystem supported by ongoing government investment and international collaborations.

The Netherlands has made remarkable developments in quantum technology, from discoveries in quantum computing hardware to creating secure communication networks.

“Quantum networks and communication are emerging as significant areas of focus in the Netherlands. This is not only about secure communication but also lays the groundwork for a future quantum internet, which could revolutionise how data is transmitted globally.”

Koen Groenland, Coordinator, Quantum.Amsterdam

Some key breakthroughs that demonstrate Dutch quantum leadership are: QuTech’s first three-node quantum network for secure communications. Europe’s first public quantum computer (Quantum Inspire). The improved quantum error correction for enhanced qubit stability. The development of room-temperature quantum sensors. Finally, the extended coherence times for superconducting qubits.These advances strengthen the Netherlands’ position in quantum technology innovation.

The Dutch government champions quantum innovation through strategic policies and the National Agenda Quantum Technology. It maintains a supportive regulatory framework through:

€615 million National Growth Fund (NGF) investment

A tax ruling for international talent

WBSO R&D tax credits covering up to 40% of research costs,

Innovation Box’s reduced 9% tax rate on qualifying R&D profits.

Quantum Technology Impact Fund

€250 million Deep Tech Fund

Simplified intellectual property regulations for quantum startups

Strategic partnerships with EU’s €1 billion Quantum Flagship program

Regional hubs like Amsterdam Science Park and Delft’s Quantum Campus offer fast-track startup permits and research facilities.

Julian Rabbie, a quantum technology strategy consultant at TNO, highlights the Centre for Quantum and Society’s role in addressing quantum technology’s legal and societal impacts. The government develops policies governing quantum technology use while ensuring privacy compliance, including investments in domestic quantum computing capabilities for secure data processing within national borders.

The Dutch government supports quantum technology through funding initiatives, tax benefits, incentives and grants to investors and entrepreneurs. More information about foreign direct investment in the quantum sector in the Nehterlands can be found via the Netherlands Foreign Investment Agency (NFIA)

To address the funding shortfall, initiatives like Quantum Delta NL provide critical financial support, foster collaboration, and attract venture capital. Accelerators such as YES!Delft equip startups with mentorship, resources, and networking opportunities to scale. Additionally, government-private partnerships encourage co-funding models, while programs like the Dutch Good Growth Fund and sure early-stage companies secure the essential funding needed to thrive.

“There’s been a lot of public investment to push the technology to the next level, and private investment is now crucial for companies to scale up.”

Julian Rabbie, Strategy Consultant, TNO

The country’s rich innovation ecosystem, skilled workforce, supportive government policies, world-class research infrastructure and several funding options, including venture capital, government grants, and corporate partnerships, make it an attractive destination for investment.