Quantum Internet in 2025: Current State of Projects and Leading Countries in Commercial and Research Sectors

The development of the quantum internet in 2025 has reached a stage where theoretical concepts are steadily transforming into practical applications. This emerging technology is built upon the principles of quantum mechanics, specifically quantum entanglement and quantum key distribution (QKD), enabling communication channels that are resistant to eavesdropping by classical computational methods. The stakes are high: the quantum internet promises unparalleled levels of security for government, financial, and healthcare sectors, and has the potential to revolutionise scientific collaboration on a global scale. Competition among leading countries is intensifying, with governments, research institutions, and private companies investing billions to secure their positions in both commercial and academic fields. The global race is now not only about who will develop the most advanced technology, but also who will define the standards and infrastructure for future international quantum communication networks.

Global Progress in Quantum Internet Development

China continues to lead the world with a well-established terrestrial quantum communication backbone that links key metropolitan areas such as Beijing, Shanghai, and Guangzhou. This network relies on fibre-optic QKD systems, allowing secure communication over hundreds of kilometres, and is further enhanced by satellite-based quantum communication using the Micius satellite. In 2025, China announced significant upgrades to Micius, enabling more stable entanglement distribution over longer distances and increasing the capacity for international quantum key exchanges. These advancements make China not only a leader in technological capability but also a primary driver in shaping future quantum communication protocols.

The European Union’s EuroQCI (European Quantum Communication Infrastructure) programme is moving into large-scale deployment, aiming to link all 27 member states through a hybrid quantum-classical network. This initiative focuses heavily on safeguarding critical infrastructure, protecting sensitive governmental data, and enabling secure communications for sectors such as banking and healthcare. In 2025, multiple cross-border trials have been successfully conducted between France, Germany, and Spain, proving the feasibility of a continent-wide quantum network. The EuroQCI has also begun working on compatibility with quantum satellites to ensure global outreach.

In the United States, the Department of Energy, NASA, and a consortium of top-tier universities are collaborating on building a hybrid quantum network connecting academic institutions, research laboratories, and defence organisations. Key progress has been made in integrating quantum repeaters into existing fibre networks, a step that will allow quantum signals to travel farther without losing integrity. Pilot projects in Chicago, Boston, and New York are currently testing interoperability between different QKD systems, with a goal of creating a national quantum-secure communication backbone within the next decade.

Key Commercial Initiatives

Japan’s commercial adoption of quantum internet technologies is accelerating, driven by strategic partnerships between telecom giants like NTT and research leaders such as Toshiba. In 2025, these collaborations have delivered quantum-secure communication services to Tokyo’s financial district, where several major banks are now using QKD links to secure interbank transactions. The Japanese government is also providing subsidies for private enterprises to adopt quantum encryption, ensuring that commercial usage scales rapidly.

In the United Kingdom, British Telecom (BT) and Toshiba Europe have expanded quantum-secure network trials across central London, with coverage now extending to the City and Canary Wharf. These pilot systems are not only testing the security of QKD in real-world scenarios but also evaluating integration with cloud-based business services. If successful, the UK aims to roll out commercial offerings for governmental agencies, critical infrastructure operators, and fintech firms by 2027.

Australia, though a smaller player compared to China or the EU, has positioned itself as an innovator in quantum encryption integration. Collaborative projects between Sydney-based universities and telecom companies are embedding QKD into existing fibre infrastructure, focusing initially on critical healthcare systems and government facilities. This approach allows for gradual, cost-effective adoption, while still meeting the highest security requirements.

Leading Countries in Research and Innovation

China’s University of Science and Technology in Hefei remains a powerhouse in quantum communication research. In 2025, its team achieved a record-breaking distance in entanglement swapping, a critical process for extending quantum networks over continental scales. The research has also made strides in miniaturising quantum devices, making them more practical for integration into mobile and satellite-based systems. These advances have global implications for both defence and civilian applications.

In Europe, the University of Vienna, in collaboration with the Austrian Academy of Sciences, has conducted pioneering experiments in satellite-ground quantum communication. Working with the European Space Agency, they have successfully tested quantum links between ground stations in Austria, Italy, and Germany. This work is crucial for the future development of a global quantum internet, as it bridges the gap between terrestrial and space-based systems, ensuring communication security even across intercontinental distances.

The United States, with contributions from MIT, Caltech, and the University of Chicago, is heavily invested in the development of quantum repeaters. These devices are essential for overcoming the attenuation limits of photons in optical fibres, enabling stable communication over thousands of kilometres. In 2025, US researchers demonstrated a new generation of quantum repeaters capable of maintaining entanglement for longer durations, a significant leap toward practical, large-scale deployment of quantum networks.

Research Partnerships and Funding

The European Union’s Horizon Europe programme has allocated multi-billion-euro funding streams specifically for quantum communication research. By encouraging collaboration between startups, national labs, and established universities, the EU is ensuring that advancements in QKD protocols, hardware miniaturisation, and satellite integration remain at the forefront of global innovation. This funding has also prioritised the development of open standards for interoperability between networks in different countries.

Japan has recognised quantum internet technology as a matter of national strategic importance. Its ten-year funding plan, launched in 2024, aims to integrate quantum-secure systems across multiple critical sectors, including healthcare, defence, and transport. This ensures not only technological advancement but also resilience against potential cyber threats that could target national infrastructure in the coming decades.

Canada, while not as prominent in large-scale quantum infrastructure, continues to excel in niche research areas. The University of Waterloo and its associated Quantum Valley Investments fund are focusing on secure multiparty computation and advanced quantum repeater designs. These innovations could become crucial components for scaling quantum networks globally, and Canada’s specialised expertise ensures it remains a respected contributor to the field.

Challenges and Future Prospects

While progress is impressive, several technical and strategic challenges must be overcome before a truly global quantum internet can be realised. One of the most significant obstacles is the commercial readiness of quantum repeaters. Without cost-effective and mass-producible repeaters, long-distance terrestrial quantum networks will remain limited in scope. Satellite-based systems can bridge some gaps, but they come with their own challenges, including weather-related signal disruptions and high operational costs.

Another challenge lies in the creation of international standards. At present, different countries and companies are developing proprietary systems, which could lead to incompatibility issues in the future. Without agreed-upon protocols for quantum key distribution, entanglement swapping, and network authentication, the vision of a seamless, secure global quantum internet will be harder to achieve. Standardisation efforts are under way through international bodies, but progress is slow due to competing national interests.

Despite these challenges, the outlook remains highly optimistic. Many experts predict that by the early 2030s, hybrid communication networks combining classical and quantum systems will become commonplace, initially in sensitive government and defence sectors, and later in broader commercial use. Such networks could revolutionise industries such as finance, healthcare, and logistics, offering a level of data protection that is currently unattainable by classical cryptographic methods.

Upcoming Milestones

By 2026, the first operational phase of the EuroQCI is expected to connect at least ten EU member states via quantum-secure channels, enabling encrypted governmental communications and secure transactions in the banking sector. This will mark the first large-scale, multinational quantum internet network in the world.

China is preparing to launch its second-generation quantum communication satellite, which will have increased bandwidth, improved error correction, and more stable entanglement generation. These upgrades will strengthen China’s capacity for secure intercontinental communications and enhance its leadership position in the global quantum race.

In the United States, the Chicago Quantum Exchange plans to expand its network to additional research hubs across the country, forming the backbone for a nationwide quantum-secure infrastructure. This expansion will also serve as a testing ground for interoperability between different quantum network technologies, a crucial step toward international connectivity.