Telecom, Media & Technology

Global Conflict Could Accelerate Development and Deployment of Quantum Technologies

Key Takeaways

  • National security demands could accelerate quantum computing’s emergence from theoretical research to practical deployment on the battlefield.
  • More technologies like quantum sensing, quantum key distribution and atomic clocks are poised to transform communications and surveillance.
  • Acceleration by China compels the U.S. to prioritize near-term quantum applications to maintain operational advantage.

Quantum is Coming to the Battlefield

Quantum technology is any technology that harnesses the principles of quantum mechanics on the subatomic level. With the defense technology sector in a transformative period driven by accelerating technological advancement, significant public and private investment, and elevated global threats, the demand for faster tools and more sophisticated decision-making capabilities is growing. Quantum technologies like quantum sensing, quantum computing, and quantum communications could upend traditional thinking about defense and national security.

Conflict can accelerate the transition from the lab to the real world. When military necessity demands solutions, the pace of innovation compresses dramatically, and technologies mature faster under pressure than through research and development alone. Some of the technologies we rely on in our day to day lives originated or accelerated during wartime, including:

After years of incremental steps, in late 2025 the Department of War included quantum as one of six critical technology areas “that will define the future of American military superiority.” As nations adjust their defense spending accordingly, it is only a matter of time before quantum arrives on the battlefield.

Application to Defense & National Security

The near-term defense and national security implications for quantum are varied and present both opportunities and risk. Emerging applications include:

  • Cybersecurity: Quantum computing poses urgent risks to the integrity of computer systems that both government and industry must prepare for. Implementation of post-quantum cryptography (PQC) protocols will be necessary to keep computer systems, and the highly sensitive information stored on them, safe from bad actors seeking to hack systems or steal data.
  • Secure Communications: Quantum key distribution (QKD) is a new method to encrypt communication using photons to verify data and generate secret keys. QKD could help secure military communications and protect critical infrastructure like power grids.
  • Enhanced Surveillance: Advanced quantum sensing technologies offer both an opportunity and a threat for national security. In the defense realm, it could be “the end of stealth” with the ability to “see” previously undetectable objects like submarines, aircraft, or hidden facilities. It could also aid in search and rescue or asset recovery missions.
  • Reliable Navigation: Quantum magnetometers and other quantum enabled systems can provide position, navigation and timing (PNT) solutions operable in GPS-denied environments and resistant to jamming, an increasing concern with present-day GPS and a vulnerability being exploited by Russia.
  • Ultra-precise Targeting: Some quantum sensing solutions, including atomic clocks, can be applied to weapons systems to provide extreme precision at longer range and with less collateral damage.
  • Rapid Response: The computational power of quantum computers will allow for rapid processing of data and intel for faster decision-making in high-pressure situations. The need is urgent: in Ukraine, bandwidth requirements and the need for resilient, jam-proof connectivity are outstripping computation power as traditional technologies struggle to meet the demands of modern warfare.

Recent commercial partnerships and acquisitions between defense tech startups, established defense companies, satellite telecommunications companies, intelligence companies, and leading quantum computing companies demonstrate industry recognition of quantum’s potential.

China Understands the Stakes

Governments are also taking notice. In its 2025 Worldwide Threat Assessment the U.S. Defense Intelligence Agency stated that quantum technologies like quantum computing are rapidly developing with practical deployment in sight, and an area adversaries are significantly investing.

With geopolitical competition mounting, countries like China will not seek to merely compete but to win, and the country that achieves quantum supremacy may be the one that achieves military dominance and control of critical industries. China’s 15th Five-Year Plan (2026–2030), approved in March, officially designates quantum technology as a “Future Industry” with estimated state-led funding exceeding $15 billion. As in other sectors, China will use centralized planning to align academic research, talent and industry in a play for quantum dominance as the country already claims to be a global leader in quantum communications.  

What companies and investors need to know

With all this in mind, there are several things quantum companies and investors alike should strategically plan for. It’s important to have a team of policy and communications experts who can help navigate the changing landscape and clearly communicate priorities.

  • The time is ripe for commercial partnerships across defense tech startups, established satellite and telecommunications companies, and quantum tech firms to demonstrate real-world quantum applications.
  • Merger and acquisition activity could pick up as quantum tech firms target established companies with platforms ideal for disruption, or vice versa. Companies may risk getting left behind if they don’t strike a deal before their competitors.
  • As governments move to compete on quantum, new programs and funding opportunities will be available to industry and academia.
  • ‘Companies looking to scale rapidly should be mindful and disciplined about foreign investment and ownership structures given the profound national security implications of quantum technology and as the geopolitical landscape remains ever-changing. 

Conclusion

The defense sector is emerging as the critical proving ground for quantum technology deployment. Military leaders recognize the potential, and industry partnerships demonstrate that quantum systems are beginning the transition to mission-critical defense applications.

As quantum technologies mature, the pathway to broader civilian deployment becomes plausible. The optimization capabilities that solve defense logistics and resource allocation problems could translate to commercial applications in manufacturing, supply chain management, and energy efficiency, and beyond. This defense-to-civilian progression mirrors historical technology adoption patterns, positioning quantum computing not as a distant frontier but a transformative force set to reshape both the U.S. approach to defense, national security, and the broader economy as soon as the next decade.

Additional Quantum Insights

Related Expertise

The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals. 

FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm. 

FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. FTI Consulting professionals, located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges and opportunities. ©2026 FTI Consulting, Inc.  
All rights reserved. fticonsulting.com 

Related Articles

4th Annual Shareholder Activism State of the Market

September 8, 2025—4th Annual Shareholder Activism State of the Market Request Report The 4th Annual Shareholder Activism State of the Mark...

Use It or Lose It: U.S. Hydrogen Industry Must Act To Maintain Momentum

July 12, 2025—Key takeaway: Following the passage of the “One Big Beautiful Bill Act”, time is of the essence for hydrogen produce...

Quick Analysis: ‘One Big Beautiful Bill’ Drives More Gas and Batteries, Less Renewables

July 3, 2025—With the recent passage of the “One Big Beautiful Bill” (“OBBB” or the “Legislation”),[1] FTI Consulting’s...

IR Monitor – 10 June 2026

June 10, 2026—In this week’s newsletter: The stories that investor relations professionals need to read this week: Elon Musk’s Spa...

How Defense Tech Companies Can Turn Stakeholder Engagement Into a Growth Engine

June 9, 2026—The defense technology market has become increasingly crowded, but many companies still struggle with a fundamental chal...

FTI Consulting News Bytes – 5 June 2026

June 5, 2026—FTI Consulting News Bytes This week, we kick off with news of Hyve’s acquisition by private equity leader, Hellman &am...