Global Quantum Computing Market Overview

Quantum Computing Market Size Was Valued at USD 195.62 Million in 2023 and is Projected to Reach USD 1054.91 Million by 2032, Growing at a CAGR of 5.59% From 2024-2032.

Quantum computing is a research field focused on the development of computational technology that focuses on the principles of quantum theory. Quantum theory describes the properties and behavior of energy and matter at the quantum level (atoms and subatomic). Quantum computing uses a combination of bits to perform a specific computing task. And all of this is much more efficient than its traditional counterparts. The development of quantum computers is demonstrating a breakthrough in computing power by significantly improving the performance of certain applications. For example, quantum computing is characterized by similar simulations. The quantum computer market will evolve from research-based use cases to commercial use cases as technology gains a quantum advantage over the next four years. When that happens, the development will progress rapidly, and companies capable of leveraging quantum computing will soon enjoy the rewards of their initial investment. Quantum computing impacts several aspects of the IT environment, from power consumption to data generation to traditional computing integration. The rapid effects of quantum computing will be an important factor in determining who will win and who will lose in this technological change. Early quantum computing is cloud-centric, but various vendors will benefit financially and hence boosting the growth of the quantum computing market globally.

Market Dynamics And Factors For Quantum Computing Market

Drivers:

Quantum computing is gaining importance in the banking and financial services industry, which focuses on accelerating trading activities, trading, and computing equipment. One of the most important possible applications of quantum computing is simulation. Quantum computing helps identify improved and efficient ways to manage financial risk. Using traditional computers in financial institutions can dramatically increase processing time and the cost of high-quality solutions, but quantum computers can perform high-speed operations at optimized costs, resulting in cost savings and revenue. It brings new opportunities for creation. Rise in investments in quantum computing technology.

Various government agencies involved in the world's space and defense sectors are increasingly investing in the development of quantum computing technology to enable quantum computers to implement various optimization and simulation strategies. Governments in different countries around the world are investing heavily to support research institutes in the development of quantum computing technology. China has invested heavily in research and development related to quantum computer technology. Governments in the United States and Australia, as well as countries in the European Union, are promoting quantum computing initiatives. In August 2017, the Commonwealth Bank (CBA) partnered with telecommunications companies Telstra, the Federal Government, the Government of New South Wales, and the University Of New South Wales (UNSW) to achieve the first quantum in a USD 83 million project.

Restraints:

Traditional computers are programmed using bits as data units. Quantum computers use so-called qubits, which can simultaneously represent combinations of zeros and ones, based on a principle called superposition. Quantum computers use physical qubits, which are error-prone. It is estimated that 1,000 physical qubits are required to make a single logical qubit error-free, which is a goal yet to be realized. Till 2020, devices with up to 5,000 physical qubits had been developed. However, a commercially useful quantum computer is expected to be a 200 logical qubit machine with 200,000 physical qubits. Commercializing quantum computers is a complex task. To date, it is not possible to maintain the quantum mechanical state of qubits for a long period as they are delicate and can get easily disrupted by changes in environmental temperature, noise, and frequency. Moreover, several blockchain-based technologies rely on the elliptic curve digital signature algorithm (ECDSA), which is not quantum-safe at present.

Opportunities:

Several government agencies involved in the global defense and space sector are gradually investing in quantum computing technology to enable various simulation and optimization strategies to be applied to quantum computing. Governments in many countries around the world are investing heavily to support research institutes in the expansion of quantum computing technology. In 2020 the Russian government announced an investment of USD 790 million in the development of practical quantum computing technology. The government plans to establish a new National Quantum Institute to incorporate international best practices and resources from research institutes, universities, technology starters, and companies.

Data analytics is one of the fastest emerging sectors of having the massive opportunity for integration of quantum computing in the sector. Quantum mechanics and quantum computing help solve large-scale problems in various industries which have a large amount of data. Topology analysis describes calculations that geometry behaves in a particular way and is simply not possible with today's traditional computers due to the datasets used. In quantum computing, this can be reduced to a relatively simple calculation.  NASA is using quantum computers to analyze the vast amount of data collected about space and research better and safer ways to travel in space.

Market Segmentation

Segmentation Analysis of Quantum Computing Market:

By Type, Service is the dominating segment in the Quantum Computing Market during the forecasted period. The growth of this service segment is due to the growing number of startups around the world investing in R & D activities related to quantum computing technology. Used in optimization, simulation, and machine learning applications, this technology provides optimal usage costs and highly efficient processes in a variety of end-user industries. Quantum Computing as a Service is the leading service-based application in the quantum computing market.

By Deployment, Cloud-based deployment is dominating the segment in Quantum Computing Market. With the development of high-performance systems, the demand for cloud-based provision of quantum computing systems and services is expected to increase. This is expected to be an important source of revenue for service providers as users pay to access a noisy midscale quantum system (NISQ) that can solve real problems. The limited lifespan of rapidly advancing quantum computer systems also benefits cloud service providers. The flexibility of access provided to users is another factor driving the adoption of cloud-based delivery of quantum computing systems and services. Quantum computers are unlikely to be portable shortly. The cloud allows users to access a variety of devices and simulators from their laptops.

By Application, Machine Learning is expected to be dominating segment in Quantum Computing Market. Quantum machine learning involves integrating quantum algorithms into machine learning programs. Complex models make it very difficult to systematically sort a large number of variables. Therefore, users can choose quantum computing technology to solve this complexity accurately and quickly. For example, the Monte Carlo method uses sampling techniques to estimate numbers from large datasets. Quantum algorithms can be used to speed up solution execution, and algorithms can be used to speed up Monte Carlo implementations and reduce computational time.

By Industry Use, Healthcare and Pharmaceuticals are expected to be dominating segments in Quantum Computing Market. Governments in various countries are increasing their spending on health and medicine to address this issue. Companies in this industry are focused on adopting new technologies such as quantum computers. Quantum computing technology enables scientists to develop ultra-precision, ultra-personalized medical and diagnostic tools. In addition, quantum sensors can be used in magnetic resonance tomography (MRT) for ultra-precision measurements.

Regional Analysis of Quantum Computing Market:

The APAC region is the premier hub for multiple industries such as healthcare and pharmaceuticals, banking and finance, and chemicals. Countries such as China, Japan, and South Korea are major manufacturers of home appliances such as smartphones, laptops, and game consoles in APAC. These industries need to deal with the complexity of optimization, simulation, and machine learning applications. The large-scale development of emerging markets in the APAC region and the increased use of advanced technology in the manufacturing industry are contributing to the development of SMEs in the region. This is driving the demand for APAC's quantum computing services and systems.

The European region has seen accelerating growth in the research and development of the quantum computing sector. Partnerships with other quantum computing providers and regional expansion are part of the strategy chosen by key players to drive sales growth. Germany is recognized as a primary market and high demand for quantum computing may continue in the coming years.

North America is the hub of the development of quantum computing technology with companies like Google, IBM, Microsoft, and other blue ocean companies which are investing massive funding and technology to the growth of the technology.

Players Covered in Quantum Computing Market are:

• International Business Machines (US)
• D-Wave Systems (Canada)
• Microsoft (US)
• Amazon (US)
• Rigetti Computing (US)
• Google (US) and other major players.

Key Industry Developments in Quantum Computing Market

• In April 2024, Quantinuum and Microsoft announced a vital breakthrough in quantum computing that Microsoft described as a major achievement for the entire quantum ecosystem. By combining Microsoft’s innovative qubit-virtualization system with the unique architectural features and fidelity of Quantinuum’s System Model H2 quantum computer.
• In January 2024, D-Wave Quantum Inc. a leader in quantum computing systems, software, and services and the world’s first commercial supplier of quantum computers, announced it has calibrated a 1,200+ qubit Advantage2 prototype, available via their Leap real-time quantum cloud service. Developed with a new lower-noise, multilayer superconducting integrated-circuit fabrication stack, the new Advantage2 prototype demonstrates significant performance gains on hard optimization problems.