Global Quantum Computing Market By Application (Machine Learning, Maximization, Weather Forecasting, and Financial Intermediation), By Deployment Mode(Cloud and On-Premise), By Offering (Services and Systems), By End User(Transporation, Defence, Banking, Community Care, and Cyber Security), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: March 2024
- Report ID: 12497
- Number of Pages: 219
- Format:
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Report Overview
The Global Quantum Computing Market size is expected to be worth around USD 8,285.6 Million by 2033, from USD 719.3 Million in 2023, growing at a CAGR of 31.2% during the forecast period from 2024 to 2033.
Quantum computing is an emerging field of technology that holds immense potential to revolutionize various aspects of computing and problem-solving. Unlike classical computers that use bits to store and process information, quantum computers leverage quantum bits, or qubits, which can exist in multiple states simultaneously. This unique property enables quantum computers to perform complex calculations and solve problems at an unprecedented speed and scale.
The quantum computing market is experiencing rapid growth as more companies and research institutions recognize the transformative power of this technology. Key players in the market include IBM, Google, Microsoft, and several startups that are actively working on developing and commercializing quantum computing systems. These companies are investing heavily in research and development to overcome the technical challenges associated with scaling up quantum computers and improving their stability and error correction capabilities.
Key Takeaways
- Market Growth: Quantum computing market valued at USD 719.3 million in 2023, expected to reach USD 8,285.6 million by 2032 at a 31.2% CAGR.
- 8,000 quantum computing patents are expected to be filed globally by the end of 2023. This shows a lot of people are working on and investing in quantum computing technology.
- The number of companies making quantum hardware and software is expected to grow to over 40 by 2023, up from about 25 in 2021. This means more businesses are getting involved in quantum computing.
- By 2024, the money spent on quantum computing research and development is expected to be ~$3 billion every year. This indicates that quantum computing is becoming increasingly important.
- The amount of startups focusing on quantum computing is estimated to reach 150 by 2023, which is up from around 100 in 2021. This shows that more new businesses are entering the quantum computing field.
- Over 50 universities and research institutions around the world are expected to have special programs or centers for quantum computing by 2024. This means more schools and research places are studying and teaching about quantum computing.
- It’s projected that over 20 countries will have set up national quantum computing research centers or labs by 2024, increasing from around 10 countries in 2021. This shows that countries around the world are investing in and focusing on quantum computing research.
- Growth Drivers: Adoption of quantum computing technology and advancements in quantum hardware components drive market growth.
- Challenges: Technical hurdles, including qubit errors and temperature sensitivity, hinder quantum computing advancements.
- Dominant Applications: Machine learning leads revenue generation, fuelled by its applications in error correction, system features, and quantum algorithm development.
- Deployment Modes: Cloud segment exhibits the highest growth rate, providing widespread quantum computing solutions through simulators and processors.
- Offering Segment: Services dominate, driven by the demand for quantum computing proficiency, while system investments are on the rise.
- Key End-Users: Banking sector extensively utilizes quantum computing for financial algorithms, while community care benefits from healthcare data analysis.
- Regional Landscape: North America and Europe lead, owing to rapid cloud adoption and digital government initiatives.
- Key Market Players: IBM, Google Quantum AI, Microsoft, and Amazon Web Services contribute significantly to the evolution of the quantum computing market through technological advancements and partnerships.
Application Analysis
Based on application, the market for Quantum Computing is segmented into Machine Learning, Maximization, Weather Forecasting, and Financial Intermediation. Among these applications, the machine learning segment is the most lucrative in the global quantum computing market. It had the major market share during the prophesy period.
The machine learning segment has gained propulsion because of the rise in the popularity of computing. It helps the users to discover the appraisal of error-correcting codes of quantum, system features of quantum, and development of novel quantum algorithms. The Financial Intermediation segment is expected to grow significantly during the bulge rate. Due to the enhancement in quantum computing technology, startups across BFSI and healthcare have decided to adopt the technology.
Deployment Mode Analysis
The market is further divided by deployment mode into cloud and on-premise segments. The cloud stores segment is expected to be the most lucrative in the global quantum computing market. Google is investing more in the cloud and trying to enhance and make advanced quantum computing in the cloud. Cloud-based quantum computing is the appeal of quantum simulators, emulators, or processors through the cloud. Also, the cloud uses different approaches to implement quantum computers to provide more widespread solutions to major market players.
Offering Analysis
Based on offering, the market is segmented into Services and Systems. Among these offerings, both segments have likely growth in the quantum computing market. Considering the services side, there is a rising request for quantum computing proficiency, as many organizations are interested in discovering the latent applications of technology.
Quantum computing training, consulting, and algorithm development services are all instances of services. The system side has a growing demand for software, hardware, and cloud services that empower entree to quantum computing assets. In addition, as technology advances, more companies are investing in quantum hardware.
End-User Analysis
The global quantum computing market serves various end-user segments, including transportation, defense, banking, community care, and cybersecurity. Banking is considered the most profitable segment globally due to its use of quantum computing for financial algorithms and risk management. Community care benefits from quantum computing by analyzing health variables on digital human simulations and managing healthcare data. Quantum computing is revolutionizing healthcare and research practices in the community care sector.
Key Market Segments
Based on Application
- Machine Learning
- Maximization
- Weather Forecasting
- Financial Intermediation
Based on the Deployment mode
- Cloud
- On-Premise
Based on Offering
- Services
- Systems
Based on End-User
- Transportation
- Defense
- Banking
- Community Care
- Cyber Security
- Other End-Users
Driver
Rising adoption of quantum computing technology in various industries and sectors
The growth of the quantum computing market can be attributed to its increasing acceptance across diverse sectors and industries. Quantum computing, known for its potential to process complex data at unprecedented speeds, is transforming how problems are solved in fields such as finance, healthcare, and cybersecurity.
Industries are leveraging quantum computing to optimize operations, enhance data security, and drive innovation, thus fueling market expansion. Financial institutions are utilizing quantum algorithms for faster and more accurate risk assessment and portfolio optimization. In healthcare, quantum computing aids in the analysis of vast datasets, improving diagnostics and personalized medicine.
Furthermore, its application in cybersecurity offers advanced encryption methods, making data transmission more secure. This widespread adoption underscores the significant impact of quantum computing on enhancing efficiency and solving intricate challenges across various domains.
Restraint
Stability and error correction issues
Despite its potential, the quantum computing market faces significant challenges, particularly in terms of stability and error correction. Quantum bits, or qubits, the basic units of quantum information, are highly sensitive to their environment. This sensitivity leads to quantum decoherence, where qubits lose their quantum state, thereby affecting the computer’s performance and reliability. Error rates in quantum computations are currently higher compared to classical computing, posing a significant barrier to practical and commercial applications.
Efforts to improve qubit stability and develop effective quantum error correction techniques are crucial. Overcoming these issues is essential for advancing quantum computing from experimental setups to widespread commercial use. The industry’s ability to address these challenges will play a pivotal role in determining the pace at which quantum computing can be integrated into mainstream technology solutions.
Opportunity
Growing adoption of quantum computing technology in drug discovery
One of the most promising opportunities for the quantum computing market lies in the field of drug discovery. Quantum computing’s ability to analyze and simulate molecular structures at a quantum level can revolutionize the pharmaceutical industry. This technology allows for the modeling of complex molecular interactions at a speed and accuracy unattainable with traditional computing methods.
As a result, it can significantly reduce the time and cost associated with discovering new drugs. The potential for quantum computing to fast-track the development of treatments for diseases, including those without current effective treatments, presents a substantial market opportunity.
Pharmaceutical companies are increasingly investing in quantum computing to enhance drug discovery processes, signaling a shift towards more efficient and innovative research methodologies. This trend underscores the transformative impact of quantum computing on healthcare and offers a glimpse into its potential to address some of the most pressing medical challenges.
Challenge
Physical challenges related to using quantum computers
Quantum computing, despite its potential, faces considerable physical challenges that hinder its widespread adoption. The operation of quantum computers requires extremely low temperatures, close to absolute zero, to maintain the quantum state of qubits. This requirement for cryogenic environments makes quantum computing systems complex and expensive to build and maintain.
Additionally, quantum processors need to be isolated from any form of environmental noise and vibration, which could disrupt their operation. The physical infrastructure required to support these conditions is currently substantial, limiting the accessibility of quantum computing technology.
Overcoming these physical constraints is a significant challenge for the industry. Advancements in quantum computing hardware and the development of more robust and scalable quantum systems are essential for making quantum computing more accessible and practical for broader applications
Geopolitics and Recession Impact Analysis
- Trade Tensions: Geopolitical tensions among major economies like the United States, China, and Russia impede the global quantum computing market. Trade restrictions, export controls, and technology transfer regulations hinder the free flow of quantum technology and expertise across borders. This fragmentation stalls progress in the quantum computing, leaving innovators and industries struggling amid geopolitical uncertainties.
- National Security Concerns: National security concerns in quantum computing, especially encryption and cryptography, lead to strict export regulations. These measures aim to protect sensitive information but can limit global collaboration and market growth for quantum computing companies. Balancing security and technological progress remains a key challenge in this field.
- Investment Funding: During economic recessions, investment funding for emerging technologies like quantum computing typically declines. This is because venture capital and private equity firms become more risk-averse, leading to reduced support for quantum startups and research projects due to the uncertainty associated with economic downturns.
- Corporate Budgets: During economic downturns, corporations tend to be more cautious with their finances, impacting their investment in quantum computing. High initial costs for quantum tech deter spending during recessions as companies prioritize immediate financial stability. This leads to slower adoption until economic conditions improve.
Regional Analysis
North America emerged as the dominant player in the quantum computing market with 31.3% market share. Commanding a substantial share. Its prominence owes much to the swift embrace of cloud computing, bolsters region’s market expansion. Europe, too, plays a vital role in driving quantum computing’s growth, boasting a thriving startup ecosystem and a notable 5% uptick in cloud computing adoption.
The region’s dedication to digital government initiatives, innovation, and widespread integration of cloud-based technologies is poised to steer market growth and foster technological advancements. This information offers a comprehensive snapshot of the present quantum computing landscape, encompassing its challenges, prospects, and regional intricacies.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
Several key players vie for dominance in the dynamic global quantum computing market, each contributing to the field’s evolution. IBM, Google, Rigetti Computing, D-Wave Systems, Honeywell, Intel, Microsoft, IonQ, Alibaba, and Quantum Circuits, Inc. (QCI) lead the pack. They offer diverse quantum solutions, from cloud-based platforms to trapped-ion and superconducting quantum processors. The competitive landscape continually evolves, shaped by technological advancements, strategic partnerships, and market adoption.
Listed below are some of the most prominent quantum computing industry players.
- IBM Corporation
- Google Quantum AI
- Microsoft Corporation
- Amazon Web Services, Inc
- Atos Quantum
- D-Wave Quantum Inc.
- Intel
- Hitachi
- QC Ware
- Zapata Computing
- Toshiba Corporation
- Other Key Players
Recent Developments
- Quantum Computing Inc. launched a series of products in the first half of 2023, including the Dirac Series Entropy quantum computer, Zero-Trust cybersecurity solutions, and quantum sensing products (QLiDAR and Photonic Vibrometer)
- In 2023, IBM Corporation made significant advancements in the field of quantum computing. On December 4, 2023, IBM introduced the “IBM Quantum Heron,” a utility-scale quantum processor designed to deliver high performance with significantly reduced error rates
Report Scope
Report Features Description Market Value (2023) USD 719.3 Mn Forecast Revenue (2032) USD 8,285.6 Mn CAGR (2023-2032) 31.2% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Application (Machine Learning, Maximization, Weather Forecasting, and Financial Intermediation), By Deployment Mode(Cloud and On-Premise), By Offering (Services and Systems), By End User(Transportation, Defense, Banking, Community Care, and Cyber Security) Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape IBM Corporation, Google Quantum AI, Microsoft Corporation, Amazon Web Services, Inc., Atos Quantum, D-Wave Quantum Inc., Intel, Hitachi, QC Ware, Zapata Computing, Toshiba Corporation, and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is Quantum Computing?Quantum computing is a type of computation which utilizes quantum mechanics principles to perform complex calculations. This approach differs substantially from classical computers which rely on binary bits for computation - bits that represent information with either zeros and ones (bits are binary numbers between zero and one) as basic units; quantum computers utilize quantum bits called qubits which exist simultaneously across various states for greater processing power when used for certain applications.
How big is the quantum computing market?In 2022, the Global Quantum Computing Market was valued at USD 548.3 Million and is expected to reach USD 8,285.6 Million by 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 31.2%.
Is there a market for quantum computing?Yes, quantum computing has an expanding market. Due to their potential applications across industries like finance, healthcare, materials science and artificial intelligence; quantum computers have seen rising interest from both public and private entities alike. As demand for quantum computers continues to increase within both these spheres of industry - both public and private alike! - quantum computers continue to show promise.
Who is the market leader in quantum computing?The current market leader in quantum computing is IBM. However, there are a number of other companies that are developing quantum computers, including Intel, Google, Microsoft, and Amazon Web Services.
What are the main applications of quantum computing?Quantum computing has the potential to revolutionize a wide range of industries, including:
- Finance: Quantum computers can be used to develop new financial algorithms that can more accurately predict market trends and reduce risk.
- Healthcare: Quantum computers can be used to develop new drugs and treatments, and to improve the diagnosis of diseases.
- Materials science: Quantum computers can be used to design new materials with improved properties, such as strength, lightness, and conductivity.
- Artificial intelligence: Quantum computers can be used to develop new AI algorithms that can learn and solve problems much faster than classical AI algorithms.
What is the future of the quantum computing market?Quantum computing market prospects look bright. Quantum computing's revolutionary power could revolutionize many industries and is growing quickly in demand; yet some challenges still need to be met before quantum computing can become mainstream, including high costs associated with quantum computers and lack of standardization within this sector.
- IBM Corporation
- Google Quantum AI
- Microsoft Corporation Company Profile
- Amazon Web Services, Inc
- Atos Quantum
- D-Wave Quantum Inc.
- Intel
- Hitachi Ltd. Company Profile
- QC Ware
- Zapata Computing
- Toshiba Corporation Company Profile
- Other Key Players
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