Quantum computing in Luxembourg: from theory to R&D

The second quantum revolution is a rapidly unfolding reality. As reported by a quantum computing report published by Luxinnovation, the European quantum computing market was valued at $479.1 million in 2024 and is projected to reach $1.11 billion by 2030, representing a compound annual growth rate of 33.2%. As countries position themselves to benefit from this digital shift, early preparation is essential to secure technological sovereignty and competitive advantage.

A pioneering collaboration between Luxembourg Quantum Researcher Marko Rančić and South Korean researchers provides the real-world proof of this shift. This initiative demonstrates how the Grand Duchy is preparing its ecosystem for a hybrid classical-quantum future.

The rise of quantum computing in Luxembourg

Providing the practical proof of this transition is Marko Rančić, Associate Professor in High Performance and Quantum Computing at the University of Luxembourg's department of computer science (FSTM). "I can see the emergence of an ecosystem," says Professor Rančić. "With every technology, there is a right moment to enter a technological race, and Luxembourg decided to enter."

Professor Rančić recently coordinated a two-year project with South Korea's Advanced Institute of Science and Technology (KAIST). The team used actual quantum computers to model quantum phase transitions in the Dicke model, where molecules in a superconducting cavity interact to radiate light. "The physics and quantum optics work was based in South Korea, while the algorithmic aspect of quantum computing was developed in Luxembourg," explains Professor Rančić. This exchange allowed local researchers to gain hands-on experience with physical quantum hardware.

When I arrived in Luxembourg [a couple years ago], there was quite little activity," Professor Rančić recalls. "The government was still drafting the strategy, there was no group of enthusiasts, and there was no clear plan forward." Today, a vibrant community has emerged, qlthough he wishes for a local quantum umbrealla structure such as the ones in Germany or Singapore. However, he notes a major advantage of the local ecosystem: "It is very easy in Luxembourg to engage policy makers in dialogue, compared to some other countries where this is extremely difficult."

Industrial use cases and energy-efficient AI

Rather than waiting for a broad-scale quantum advantage, European industries are focusing on "quantum utility"—the practical business value that quantum systems can deliver today. Luxinnovation's Quantum Computing: Market Applications report highlights that near-term opportunities lie in simulation and combinatorial optimisation. Near-term high-potential sectors include:

• Space: satellite optimisation, orbital simulations
• Logistics: scheduling, route optimisation, maritime operations
• Health: drug discovery, molecular simulation
• Finance: portfolio optimisation, risk modelling

Professor Rančić, who previously led quantum computing efforts at TotalEnergies, emphasises that quantum computers are specific-purpose devices: "Quantum computers are never going to completely supersede classical computers; they are specific-use, specific-purpose devices." He highlights a critical, often overlooked benefit: energy efficiency. "Where the real benefit of quantum computing will lie is in saving energy costs for AI," he notes, adding that quantum devices consume up to two million times less energy than classical processors when executing specific algorithms.

How Luxembourg AI Factory supports quantum readiness

Luxembourg is exploring the integration of MeluXina-Q, a quantum accelerator, into its existing MeluXina supercomputing infrastructure operated by LuxProvide. This ongoing procurement process aims to offer businesses a hybrid classical-quantum environment.

To help local businesses navigate these barriers and explore early quantum use cases, Luxembourg AI Factory offers its Matchmaking - Enterprise & Research Centre service, connecting enterprises with Luxembourg-based research centres, such as SnT, to co-develop cutting-edge solutions. 

Furthermore, the initiative provides tailored guidance on securing European funding from major EU programmes like Horizon Europe and the Digital Europe Programme. By bridging the gap between industry needs, academic expertise and European funding, Luxembourg AI Factory enables companies to de-risk their R&D and prepare for the hybrid classical-quantum future.

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