Insider Brief:

• The European Union is expanding its quantum communication capabilities through the EuroQCI initiative to establish ultra-secure communication channels across its member states.

• The latest funding call encourages consortia to propose solutions involving both terrestrial and satellite quantum networks, focusing on secure cross-border connections via quantum key distribution to prevent eavesdropping and ensure communication security.

• According to data from The Quantum Insider intelligence platform, quantum communication companies make up 15% of the quantum technology sector, with fluctuating investments; the EuroQCI initiative renews focus on this area with $97 million, representing 8% of total EU quantum investments.

The European Union is working towards the expansion of its quantum communication capabilities with the EuroQCI (European Quantum Communication Infrastructure) initiative, a project committed to establishing ultra-secure communication channels across its member states. The EuroQCI project, as outlined in recent calls for proposals under the Connecting Europe Facility, emphasizes the development of secure quantum communication networks designed to protect critical public infrastructures and sensitive data transmissions across borders​.

The latest funding call invites consortia to propose solutions for Europe’s quantum communication networks, including both terrestrial and satellite components. A central goal of the initiative is to create secure cross-border connections utilizing quantum key distribution, a technology that uses the principles of quantum mechanics to prevent vulnerabilities such as eavesdropping. This initiative is part of a broader strategic effort to ensure Europe’s digital autonomy and enhance the security of its communications.

The Quantum Insider Insights: Quantum Communications Companies and Investment Trends

Quantum communication, though a specialized field, plays an integral role in the broader quantum technology landscape. According to data from The Quantum Insider, 15% of quantum companies focus on quantum communications and security, with 204 of the 1,351 companies identified in this space.

Despite its critical importance, the quantum communication sector has experienced fluctuations in investment. After a notable surge in 2018, investment in this sector began to taper off, showing a proportional decline from 2022 to 2024. However, with the EU’s renewed focus through the EuroQCI, significant resources are being redirected into this area. The $97 million allocated to EuroQCI represents 8% of the total $1.2 billion invested in quantum technologies across the EU. These funding initiatives signal a renewed commitment to quantum communication.

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The Backbone of Ultra-Secure Communication Networks

At the center of the EuroQCI initiative is the implementation of QKD to create encryption keys that are virtually immune to interception. QKD’s inherent security stems from the fact that any attempt to eavesdrop on the key exchange would disrupt the quantum states involved, immediately alerting the communicating parties to a breach. According to the EuroQCI initiative, QKD’s ability to secure communication channels at a fundamental physical level makes it an attractive solution for securing critical infrastructure, particularly for governmental and research entities.

Integrating QKD into existing telecommunications networks presents certain challenges. It must seamlessly coexist with conventional communication systems, ensuring scalability and compatibility. To address this, the EuroQCI initiative promotes proposals that enhance the interoperability of quantum and traditional communication technologies. A key aspect of the project is the deployment of optical ground stations that will link quantum communications between terrestrial and satellite segments, enabling seamless integration across diverse infrastructure layers.

Cross-Border Quantum Connectivity: Building the Pan-European Quantum Network

The EuroQCI initiative also intends to create a cohesive, pan-European quantum communication network. A major focus is on establishing cross-border terrestrial links that interconnect national quantum communication infrastructures. These links, supplemented by satellite-based components, will extend the network’s reach, ensuring secure communication across the continent. The funding call specifically highlights the need for “trusted nodes,” which act as secure access points that maintain the integrity of communication across long distances.

The Connecting Europe Facility’s investment in quantum communication infrastructure is necessary to achieving this vision. By supporting projects that interconnect Member States through secure quantum channels, CEF Digital co-funding ensures that quantum-secure communications will be accessible across national borders.

Quantum Communication’s Revival and Catalyzing Innovation

The broader vision for the EuroQCI initiative extends beyond communication security. By supporting the development of quantum-based secure networks, the initiative hopes to spur the growth of a new European ecosystem for quantum communication technologies. This could not only lead to market growth but also drive the creation of new industries within the quantum sector.