Quantum Computing Market

Quantum Computing Market by Offering, Deployment (On-Premises And Cloud), Application (Optimization, Simulation, Machine Learning), Technology (Trapped Ions, Quantum Annealing, Superconducting Qubits), End User and Region - Global Forecast to 2029

Report Code: SE 5490 Apr, 2024, by marketsandmarkets.com

[250 Pages Report] The quantum computing market size is valued at USD 1.3 billion in 2024. It is anticipated to be USD 5.3 billion by 2029, growing at a CAGR of 32.7% during the forecast period. Factors such as the increasing adoption of quantum computing technologies like photonic networks and spin qubits, among others, in various end-user industries, and increasing funding in quantum computing technology are driving the market's growth during the forecast period.

Quantum Computing Market

Quantum Computing Market

Quantum Computing Market Forecast to 2029

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Quantum Computing Market Dynamics

Driver: Rising investments in quantum computing technology

The ecosystem surrounding quantum computing is expanding rapidly. This technology has applications in fields such as geophysics, medical imaging, and navigation systems. Governments of countries like the US, Australia, and the European Union are working on quantum computing initiatives and investment. For instance, in January 2023, the government of Canada announced a plan to invest ~USD 355 million in initiatives to develop quantum talent, advance quantum technology applications, and commercialize quantum computing.

Restraint: Stability and error correction issues

Quantum computers hold immense potential, but they face a major hurdle: keeping the information they process stable. Unlike classical bits in traditional computers, which are either 0 or 1, qubits, the building blocks of quantum computers, exist in a superposition of both states simultaneously. This fragility makes them prone to errors from environmental noise and imperfections in the hardware.

Opportunity: Technological advancement in quantum computing technology

Quantum computing transforms the way information is stored and processed. It significantly improves the efficiency of algorithms. The quantum computing ecosystem is evolving fast, contributing to the development of fifth-generation computers. Research related to quantum computing is evolving owing to ongoing innovations in traditional computing. This, in turn, has led to the transition of the classical computing industry to simulating quantum techniques. Quantum computers can potentially decipher obstacles that limit the power of classical computers, thereby solving complex problems related to the encryption and optimization of data in seconds that classical computers take a significantly long time to attempt. Using qubits in quantum computers enables them to have superposition and entanglement properties. Superimposing multiple qubits on each other raises quantum computers’ processing power. With this processing power, quantum computers can solve complex problems that classical computers fail to resolve.

Challenge: Shortage of quantum computing technology skilled working professional

Quantum computing is a relatively new and technical field that requires a specific understanding of quantum mechanics, as well as expertise in computer science and mathematics. The interdisciplinary nature of quantum computing means that professionals needs to have quantam programming, machine learning among others, which can take time to develop.

Quantum Computing Market Map:

Quantum Computing Market by Map

Systems segment to account for highest CAGR of the quantum computing market during the forecast period

Continuous investments in the development of quantum computing technology are expected to push the boundaries of this technology to address the real-world problems customers face. Moreover, companies such as IBM and Rigetti Computing have developed quantum computing systems, which are offered as a service to customers.

Cloud segment to register the highest market size during the forecast period

The cloud segment is projected to account for a larger share of the quantum computing market than the on-premises segment from 2024 to 2029. Cloud quantum computing is a type of quantum computing technology that uses cloud computing to provide access to quantum processors and other quantum computing resources. The enterprises that carry out data processing within their facilities have shifted a significant portion of their IT load to specialized cloud services such as Amazon Web Services, Microsoft Azure, and Google Cloud over the past decade. A few enterprises are using the hybrid cloud that uses private computer resources belonging to enterprises and public cloud-based services.

The machine learning  segment will have the highest CAGR in the quantum computing market during the forecast period

Quantum computing and machine learning are two closely related fields of research. Quantum computing has the potential to revolutionize the way we process data, and machine learning is a powerful tool for using that data. By combining the two, researchers hope to develop new algorithms that can take advantage of the unique properties of quantum computing to solve difficult problems faster and more efficiently.

Asia Pacific to hold the largest share of the quantum computing market during the forecast period

Demand for high-performance computing is growing, there is an increase in the creation of new technologies and applications, R&D spending is increasing, and industry and academic institutions are collaborating more frequently. The Asia-Pacific region’s significant growth factors for quantum computing include these developments.

Quantum Computing Market by Region

Quantum Computing Market by Region

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Top Quantum Computing Companies - Key Market Players:

The quantum computing companies is dominated by a few globally established players such IBM (US), D-Wave Quantum Inc. (Canada), Microsoft (US), Amazon Web Services (US), Rigetti Computing (US), Fujitsu (Japan), Hitachi (Japan), Toshiba (Japan), Google (US), Intel (US), Quantinuum (US), Huawei (China), NEC (Japan), Accenture (Ireland), Nippon Telegraph and Telephone (Japan), Bosch (Germany), Quantum Computing Inc (US), IonQ (US), QC Ware (US), PsiQuantum (US), Alpine Quantum Technologies GmbH (Tyrol), Xanadu (Canada), Zapata Computing (US), and Northrop Grumman (US).

Quantum Computing Market Report Scope :

Report Metric

Details

Estimated Market Size USD 1.3 billion in 2024
Projected Market Size  USD 5.3 billion by 2029
Growth Rate   CAGR of  32.7%

Market size available for years

2020-2029

Base year considered

2023

Forecast period

2024–2029

Forecast units

Value (USD Million/Billion)

Segments Covered

  • By Offering,
  • By Deployment,
  • By  Technology,
  • By Application,
  • By End User, and By Region

Region covered

  • North America,
  • Europe,
  • Asia Pacific, and
  • Rest of the World

Companies covered

The key players in the quantum computing market are IBM (US), D-Wave Quantum Inc. (Canada), Microsoft (US), Amazon Web Services (US), Rigetti Computing (US), Fujitsu (Japan), Hitachi (Japan), Toshiba (Japan), Google (US), Intel (US), Quantinuum (US), Huawei (China), NEC (Japan), Accenture (Ireland), Nippon Telegraph and Telephone (Japan), Bosch (Germany), Quantum Circuits (US), IonQ (US), QC Ware (US), PsiQuantum (US), Alpine Quantum Technologies GmbH (Tyrol), Xanadu (Canada), Zapata Computing (US), and Northrop Grumman (US).

Quantum Computing Market Highlights

Segment

Subsegment

By Offering

  • Systems
  • Services

By Deployment

  • On-premises
  • Cloud

By Technology

  • Trapped Ions
  • Quantum Annealing
  • Superconducting Qubits
  • Photonic Networks
  • Others

By Application

  • Optimization
  • Simulation
  • Machine Learning
  • Others

By End User

  • Space & Defense
  • Transportation & Logistics
  • Healthcare & Pharmaceuticals
  • Chemicals, Banking & Finance
  • Energy & Power
  • Academia
  • Government

By Region

  • North America
    • US
    • Canada and Mexico
  • Europe
    • Germany
    • UK
    • France
    • Netherland
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Rest of the World (RoW)
    • Middle East and Africa (MEA)
    • South America

Recent Developments in Quantum Computing Industry : 

  • In February 2024, D-Wave has made their 1,200+ qubit Advantage2 prototype available via their Leap real-time quantum cloud service. This allows existing Leap subscribers to gain immediate access to the new hardware, and new users can sign up for Leap and receive up to one minute of complimentary use of the Advantage2 prototype alongside other quantum processing units (QPUs) and solvers offered by the platform
  • In December 2023, IBM has announced that the company has collaborated with Keio University, The University of Tokyo, Yonsei University, Seoul National University, and The University of Chicago to work together to support quantum education activities in Japan, Korea, and the United States. IBM intends to deliver educational offerings, in combination with contributions from each of the participating universities, to advance the training of up to 40,000 students over the next 10 years to prepare them for the quantum workforce and promote the growth of a quantum computing ecosystem.
  • In November 2023, Rigetti Computing has secured Phase 2 funding from DARPA (Defense Advanced Research Projects Agency). These USD 1.5 million (potential) grants will support Rigetti in developing benchmarks to measure the performance of large-scale quantum computers for real-world applications.
  • In June 2023, Intel has taken a step towards expanding the field of quantum computing research by making its latest quantum chip, the 12-qubit Tunnel Falls, accessible to universities and federal research labs. This initiative aims to bolster the research community by allowing more researchers to gain hands-on experience with cutting-edge quantum technology.

Frequently Asked Questions (FAQs):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

TABLE OF CONTENTS
 
1 Introduction 
    1.1. Study Objectives  
    1.2. Market Definition and Scope 
           1.2.1. Inclusions and Exclusions
    1.3. Study Scope 
           1.3.1. Markets Covered
           1.3.2. Geographic Segmentation
           1.3.3. Years Considered for the Study.
    1.4. Currency 
    1.5. Limitations 
    1.6. Stakeholders 
    1.7. Summary of Changes  
           1.7.1. Recession Impact on Quantum Computing Market
 
2 Research Methodology 
    2.1. Research Data 
           2.1.1. Secondary Data
                    2.1.1.1. Major Secondary Sources
                    2.1.1.2. Key Data from Secondary Sources
           2.1.2. Primary Data
                    2.1.2.1. Primary Interviews with Experts
                    2.1.2.2. Key Data from Primary Sources
                    2.1.2.3. Key Industry Insights
                    2.1.2.4. Breakdown of Primaries
    2.2. Market Size Estimation 
           2.2.1. Bottom-Up Approach 
                    2.2.1.1. Approach for Capturing Market Share by Bottom-Up Analysis (Demand Side)
           2.2.2.  Top-Down Approach
                    2.2.2.1. Approach for Capturing Market Share by Top-Down Analysis (Supply Side)
    2.3. Market Breakdown and Data Triangulation 
    2.4. Research Assumptions 
    2.5. Risk Assessment 
    2.6. Assumptions of Recession 
    2.7. Limitations of Research 
 
3 Executive Summary 
 
4 Premium Insights 
 
5 Market Overview 
    5.1. Introduction 
    5.2. Market Dynamics 
    5.3. Trends/Disruptions Impacting Customer’s Business 
    5.4. Pricing Analysis 
           5.4.1. Average Selling Price Trend of Key Players, By Offering
           5.4.2. Average Selling Price Trend, By Region
    5.5. Value Chain Analysis 
    5.6. Ecosystem Analysis 
    5.7. Investment and Funding Scenario 
    5.8. Funding, By Application 
    5.9. Technology Analysis 
           5.9.1. Key Technologies
                    5.9.1.1. Superposition
                    5.9.1.2. Qubits
                    5.9.1.3. Entanglement
                    5.9.1.4. Quantum Computing for Large Language Models Workloads
           5.9.2. Complementary Technology
                    5.9.2.1. High Performance Computing
           5.9.3. Adjacent Technologies
                    5.9.3.1. Quantum Communication
                    5.9.3.2. Quantum Sensing
    5.10. Patent Analysis 
    5.11. Trade Analysis 
    5.12. Key Conferences and Events (2024-2025) 
    5.13. Case Study Analysis 
    5.14. Tariff and Regulatory Landscape 
           5.14.1. Tarrifs
           5.14.2. Regulatory Bodies, Government Agencies, and Other Organizations
    5.15. Porters Five Force Analysis 
           5.15.1. Threat from New Entrants
           5.15.2. Threat of Substitutes
           5.15.3. Bargaining Power of Suppliers
           5.15.4. Bargaining Power of Buyers
           5.15.5. Intensity of Competitive Rivalry
    5.16. Key Stakeholders and Buying Criteria 
           5.16.1. Key Stakeholders in Buying Process
           5.16.2. Buying Criteria
 
6 Quantum Computing Market, By Offering 
    6.1. Introduction  
    6.2. System (Hardware) 
    6.3. Software 
    6.4. Services 
           6.4.1. Quantum computing as a service (QCAAS)
           6.4.2. Consulting Services
 
7 Quantum Computing Market, By Deployment  
    7.1. Introduction 
    7.2. On Premises 
    7.3. Cloud 
 
8 Quantum Computing Market, By Application 
    8.1. Introduction 
    8.2. Optimization 
    8.3. AI/Machine Learning 
    8.4. Simulation 
    8.5. Others(Factorization, Sampling and Research) 
 
9 Quantum Computing Market, By Technology 
    9.1. Introduction 
    9.2. Superconducting Qubits 
    9.3. Trapped Ions 
    9.4. Quantum Annealing 
    9.5. Photonic Networks 
    9.6. Other (Topological, Spin Qubits, Neutral Atoms) 
 
10 Quantum Computing Market, By End User Industry 
     10.1. Introduction 
     10.2. Space and Defense 
     10.3. Banking, Financial Services and Insurance (BFSI) 
     10.4. Healthcare and pharmaceuticals 
     10.5. Energy and Power 
     10.6. Chemicals 
     10.7. TMT 
     10.8. Logistics and Transportation 
     10.9. Academic 
     10.10. Government 
 
11 Quantum Computing Market, By Region  
     11.1. Introduction 
     11.2. North Americas 
             11.2.1. Impact of Recession
             11.2.2. US
             11.2.3. Canada
             11.2.4. Mexico
     11.3. Europe 
             11.3.1. Impact of Recession
             11.3.2. Germany
             11.3.3. France
             11.3.4. UK
             11.3.5. Netherlands
             11.3.6. Rest of Europe
     11.4. Asia Pacific 
             11.4.1. Impact of Recession
             11.4.2. China
             11.4.3. Japan
             11.4.4. South Korea
             11.4.5. India
             11.4.6. Rest of Asia Pacific
     11.5. RoW 
             11.5.1. Impact of Recession
             11.5.2. Middle East
                        11.5.2.1. GCC Countries
                        11.5.2.2. Rest of Middle East & Africa
                        11.5.2.3. South America
 
12 Quantum Computing Market, Competitive Landscape 
     12.1. Key Player Strategies/Right to Win 
     12.2. Revenue Analysis 
     12.3. Market Share Analysis 
     12.4. Company Valuation and Financial Metrics 
     12.5. Brand/Product Comparison 
     12.6. Company Evaluation Matrix: Key Players, 2023 
             12.6.1. Stars
             12.6.2. Emerging Leaders
             12.6.3. Pervasive Players
             12.6.4. Participants
             12.6.5. Company Footprint: Key Players, 2023
                        12.6.5.1. Company Footprint
                        12.6.5.2. Region Footprint
                        12.6.5.3. Application Footprint
                        12.6.5.4. End User Industry Footprint
                        12.6.5.5. Technology Footprint
     12.7. Company Evaluation Matrix: Startups/SMEs, 2023 
             12.7.1. Progressive Companies
             12.7.2. Responsive Companies
             12.7.3. Dynamic Companies
             12.7.4. Starting Blocks
             12.7.5. Competitive Benchmarking: Startups/SMEs, 2023 
                        12.7.5.1. Detailed List of Key Startups/SMEs
                        12.7.5.2. Competitive Benchmarking of Key Startups/SMEs
     12.8. Competitive Situation and Trends 
 
13 Quantum Computing Market, Company Profiles  
     13.1. Key Players 
             13.1.1. IBM
             13.1.2. D-Wave Quantum Inc
             13.1.3. Microsoft
             13.1.4. RIGETTI COMPUTING
             13.1.5. Google
             13.1.6. Intel
             13.1.7. Toshiba
             13.1.8. QUANTINUUM
             13.1.9. QC Ware
             13.1.10. IonQ
     13.2. Other Players 
             13.2.1. 1QB Information Technologies
             13.2.2. Amazon
             13.2.3. Huawei
             13.2.4. Bosch
             13.2.5. NEC
             13.2.6. Alpine Quantum Technologies GmbH (AQT)
             13.2.7. NTT
             13.2.8. Hitachi
             13.2.9. Northrop Grumman
             13.2.10. Accenture
             13.2.11. Fujitsu
             13.2.12. Quantica Computacao
             13.2.13. Zapata Computing
             13.2.14. Xanadu
             13.2.15. IonQ
             13.2.16. Riverlane
             13.2.17. Quantum Circuits
             13.2.18. evolutionQ
             13.2.19. ABDProf
             13.2.20. Anyon Systems
             13.2.21. PsiQuantum
 
14 Appendix 
     14.1. Discussion Guide 
     14.2. Knowledge Store: MarketsandMarkets’ Subscription Portal 
     14.3. Available Customizations 
     14.4. Related Reports 
     14.5. Author Details 
 

 

The study involved four major activities in estimating the size of the quantum computing market. Exhaustive secondary research has been done to collect information on the market, peer market, and parent market. Validation of these findings, assumptions, and sizing with industry experts across the value chain through primary research has been the next step. Both top-down and bottom-up approaches have been employed to estimate the global market size. After that, market breakdown and data triangulation have been used to estimate the market sizes of segments and subsegments.

Secondary Research

Secondary sources for this research study include corporate filings (such as annual reports, investor presentations, and financial statements), trade, business, and professional associations, white papers, certified publications, articles from recognized authors, directories, and databases. Secondary data was collected and analysed to determine the overall market size, further validated by primary research.

Primary Research

Extensive primary research was conducted after understanding and analysing the quantum computing market scenario through the secondary research process. Several primary interviews were conducted with key opinion leaders from the demand- and supply-side vendors across four major regions—North America, Asia Pacific, Europe, and RoW (including the Middle East, Africa, and South America). After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primary. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.

Quantum Computing Market
 Size, and Share

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

Both top-down and bottom-up approaches have been used to estimate and validate the total size of the quantum computing market. These methods have also been extensively used to estimate the sizes of various market subsegments. The research methodology used to estimate the market sizes includes the following:

  • Identifying various applications that use or are expected to use the quantum computing market.
  • Analyzing historical and current data pertaining to the size of the quantum computing market for each application
  • Analyzing the average selling prices of quantum computing based on different technologies
  • Studying various paid and unpaid sources, such as annual reports, press releases, white papers, and databases
  • Identifying leading providers of quantum computing, studying their portfolios, and understanding features of their products and their underlying technologies, as well as the types of quantum computing products offered
  • Tracking ongoing and identifying upcoming developments in the market through investments, research and development activities, product launches, expansions, and partnerships, and forecasting the market size based on these developments and other critical parameters
  • Carrying out multiple discussions with key opinion leaders to understand the technologies used in quantum computing, and products wherein they are deployed, and analyze the break-up of the scope of work carried out by key manufacturers of quantum computing providers
  • Verifying and crosschecking estimates at every level through discussions with key opinion leaders, such as CXOs, directors, and operations managers, and finally with domain experts at MarketsandMarkets

Market Size Estimation Methodology-Bottom-Up Approach

Quantum Computing Market Size, and Bottom-Up Approach

Data Triangulation

After arriving at the overall market size-using the market size estimation processes explained above-the market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides.

Market Definition

Quantum computing involves phenomena such as quantum entanglement and quantum mechanics superposition that are used by quantum computers for their enhanced computing power. The improved computing power of quantum computers can be attributed to how data is represented. Conventional computers use bits that can either be 1s or 0s, while quantum computers use qubits (quantum bits), which can be both 0s and 1s simultaneously due to superposition. Quantum computing devices or quantum computers operate with nanoscale components at low temperatures, and they have the potential to address some of the most challenging computational problems.

Key Stakeholders

  • Research organizations and universities
  • Original equipment manufacturers (OEMs)
  • Technology standard organizations, forums, alliances, and associations
  • Analysts and strategic business planners
  • Government bodies, venture capitalists, and private equity firms
  • End users

Report Objectives

  • To define, describe, segment, and forecast the quantum computing market, in terms of value based on offering, deployment, technology, application, end-user, and region.
  • To forecast the size of the market and its segments concerning four main regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), along with their key countries
  • To provide detailed information regarding the key factors influencing market growth, such as drivers, restraints, opportunities, and challenges
  • To provide a detailed analysis of the quantum computing value chain
  • To analyze the opportunities in the market for stakeholders and provide a detailed competitive landscape of the market leaders
  • To strategically profile the key players and comprehensively analyze their market ranking and core competencies
  • To analyze key growth strategies such as expansions, contracts, joint ventures, acquisitions, product launches and developments, and research and development activities undertaken by players operating in the quantum computing market.

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of 25 market players
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