Motivated by topology, we develop a general theory of traces and shadows for an endobicategory, which is a pair: bicategory C and endobifunctor Σ : C C. For a graded linear bicategory and a fixed invertible parameter q, we quantize this theory by using the endofunctor Σ q such that Σ q α := q − deg α Σα for any 2-morphism α and coincides with Σ otherwise.Applying the quantized trace to the bicategory of Chen-Khovanov bimodules we get a new triply graded link homology theory called quantum annular link homology. If q = 1 we reproduce Asaeda-Przytycki-Sikora (APS) homology for links in a thickened annulus. We prove that our homology carries an action of U q (sl 2 ), which intertwines the action of cobordisms. In particular, the quantum annular homology of an n-cable admits an action of the braid group, which commutes with the quantum group action and factors through the Jones skein relation. This produces a nontrivial invariant for surfaces knotted in four dimensions. Moreover, a direct computation for torus links shows that the rank of quantum annular homology groups does depend on the quantum parameter q.