From quantum chip breakthroughs by tech giants such as Microsoft [MSFT] and Alphabet’s [GOOGL] Google, to the meteoric rises of pure-play stocks such as D-Wave Quantum [QBTS], IonQ [IONQ] and Rigetti Computing [RGTI], quantum computing has been in the spotlight of late.
McKinsey & Co has even dubbed 2025 “The Year of Quantum”.
Amid all the excitement, you could be forgiven for forgetting that quantum tech is some years away from commercial use, with one exception: quantum sensing.
In their fourth annual Quantum Technology Monitor, McKinsey & Co outline that quantum sensing “has entered a pivotal phase, and real-world application development will be central to unlocking its full potential”.
So, what is quantum sensing, and which companies stand to benefit from a field that could reach a market value of $7bn–10bn by 2040?
What is Quantum Sensing?
Like other forms of quantum technology, quantum sensing uses the principles of quantum mechanics for real-world applications. At its most basic level, quantum sensing allows sensors to collect data at an atomic level, offering more precise readings and more consistency than traditional sensors. They rely on physical constants for calibration and are capable of frequent or continuous measurements without needing to scale up in size.
Through observing the physical qualities of atoms or subatomic particles, quantum sensors are capable of measuring phenomena such as magnetic or electric fields, temperature, pressure or chemical composition.
As sci-fi as it sounds, several applications of quantum sensing have been in use for decades. Atomic clocks use it to accurately measure time, with the first practical model built in 1955. Magnetic resonance imaging, another common application of quantum sensing, has been used since the 1970s in diagnostic medicine and research.
With the road to commercialization relatively short, quantum sensing is expected to impact advancements in navigation, medical technology and even semiconductor manufacturing.
Quantum Navigation
As with many innovative technologies, quantum sensing is moving toward commercialization thanks to the work of privately owned start-ups, often supported by larger corporations willing to foot the R&D bill.
As a form of electronic warfare known as GPS spoofing — in which a radio transmitter sends fake signals to the target receiver — becomes more common, firms are exploring the possibility of using quantum sensing to replace the world’s primary navigation technology.
Airbus’ [EADSY] Silicon Valley based-innovation arm, Acubed, and Google spinoff SandboxAQ have developed a device known as the MagNav, which uses quantum mechanics to measure the unique magnetic signatures at different locations in the Earth’s crust, and then uses artificial intelligence to match those signatures to determine an exact location. The device has been vetted on more than 150 hours of flight tests around the US.
On April 14, Australian quantum infrastructure software firm Q-CTRL announced it had demonstrated quantum navigation technologies that outperform conventional GPS by up to 50x, marking what the company called “the first achievement of commercial quantum advantage for any of the recently posed applications of quantum technology”.
Since quantum navigation works by monitoring the Earth’s magnetic field, which cannot be faked, this application is virtually unspoofable, and has caught the attention of prominent defense players. SandboxAQ had been testing and refining its previous AQNav device since 2022 in collaboration with the US Air Force.
In March 2025, the US Department of Defense awarded a contract to Lockheed Martin [LMT], Q-CTRL and an undisclosed partner to develop a prototype inertial navigation system that uses quantum sensing. SandboxAQ CEO Jack Huidary notes that the technology is likely to catch on among defense customers first, before being used in commercial flights.
Key Applications
Quantum sensors could also potentially be deployed on the battlefield. Germany’s Quantum Systems, for example, develops quantum sensors for drones that can be used to monitor ground conditions, especially in conflict zones. At the Paris airshow in June 2025, Quantum Systems signed a memorandum of understanding to develop aerial reconnaissance solutions — a key step at a time when Europe is looking to boost local technical and defense capabilities.
A recent demonstration has also shown that quantum sensing could be deployed in space, potentially revolutionizing an already dynamic and fast-growing sector. In August 2024, NASA tested an ultracold quantum sensor on the International Space Station. While the test run monitored the space station’s vibrations, experts expect the technology could be used to measure gravity and track subtle surface changes on Earth and other planets.
Quantum sensing could also support the development of more advanced semiconductors. In October 2024, Germany’s QuantumDiamonds launched the QD m.0, a commercial quantum scanner designed for semiconductor chip failure analysis. Using diamond-based quantum microscopy, the device provides greater precision in identifying faults in integrated circuits.
Given the technology’s ability to precisely measure the composition of the Earth’s crust, quantum sensors can also be deployed in a mining setting. In March 2024, Canada’s SBQuantum announced a partnership with UK start-up Silicon Microgravity to deploy drone-based sensors to aid in the analysis of underground mineral deposits. The technology has the potential to accelerate the exploration phase of mining projects.
Conclusion
A relatively mature segment within the wider field of quantum technology, quantum sensors are close to commercial deployment in a number of key themes, including defense, aerospace, semiconductors and space. Nonetheless, investors should be aware that the technologies are relatively early in the commercialization stage, and in the hands of a multi-national cohort of largely private companies and start-ups.
However, the involvement of larger, publicly traded players such as Airbus, Lockheed Martin and Google has shown that the technology could be more widely adopted moving forward. In the meantime, quantum sensing is a key theme to watch for anyone interested in the deployment of quantum technology.
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