Quantum Computing Market Size, Share and Industry Growth Analysis Report by Offering, Deployment (on-Premises and Cloud), Application (Optimization, Simulation, Machine Learning), Technology (Trapped Ions, Quantum Annealing, Superconducting Qubits), End User and Region- Global Growth Driver and Industry Forecast to 2028
Updated on : September 12 , 2023
The global quantum computing market in terms of revenue was estimated to be USD 866 Million in 2023 and is poised to reach USD 4,375 Million by 2028, growing at a CAGR of 38.3% from 2023 to 2028. The new research study consists of an industry trend analysis of the market.
Factors such as the rising adoption of quantum computing technology in various industries and sectors, and increasing investments in quantum computing technology are driving the growth of the quantum computing industry during the forecast period.
Quantum Computing Market Forecast to 2028
To know about the assumptions considered for the study, Request for Free Sample Report
Quantum Computing Market Dynamics
Driver : Rising adoption of quantum computing technology in various industries and sectors
Quantum computing is gaining traction in the banking and finance services industry, which is focusing on increasing the speed of trade activities, transactions, and data processing manifolds. One of the significant potential applications of quantum computing is simulation. Quantum computing helps identify an improved and efficient way to manage financial risks. The processing time and the costs of high-quality solutions can increase exponentially if classical computers are used in financial institutions. In contrast, quantum computers can carry out speedy operations at optimized costs, resulting in cost savings and new opportunities for revenue generation.
The potential benefits of quantum computing for financial services include providing relevant and required cybersecurity solutions to safeguard consumers’ financial data using next-generation cryptography. Moreover, detecting fraudulent activities by recognizing consumers’ behavior patterns is fast using quantum computing technology that leads to proactive fraud risk management. Additionally, the optimization of portfolio management of assets with interdependencies and predictive analytics in customer behavior can be achieved by combining quantum computing with artificial intelligence (AI). A combination of quantum computing and blockchain technology is expected to lead to the development of the most hack-proof technology in this era of IoT. This combination is also expected to significantly increase the transaction speed and reduce processing costs in the banking and finance industry, thereby reducing infrastructural downtime.
In April 2022, HSBC (UK) and IBM (US) formed a three-year partnership to look into the potential of quantum computing in the banking industry. HSBC will examine how quantum computing might be used to discover and stop fraud, optimize pricing and portfolios, and progress its net zero goals. In March 2022, CaixaBank (Spain) and D-Wave Quantum Inc. (Canada) announced the commercial results for two significant financial quantum hybrid computing applications for investment portfolio optimization and investment hedging calculation. VidaCaixa, the life insurance and pensions company of CaixaBank, created a quantum computing application for investment portfolio allocation, selection, and hedging by utilizing D-Leap Wave’s quantum cloud service and quantum hybrid solvers, which combine the strengths of classical and quantum computing. Quantum computing has helped CaixaBank, among other business benefits, cut the time to solution for investment portfolio hedging and portfolio optimization by up to 90%.
Quantum computing can significantly enhance the capabilities of space and defense systems. Quantum computing can be used in space to simulate and improve the movements of complicated systems like satellite constellations and interplanetary spacecraft. Quantum computing can be applied to the military industry for complex system simulation, secure communication, and cryptography. Numerous nations and organizations, including NASA and the Department of Defense, have invested in research and development in this field, demonstrating an interest in the potential applications of quantum computing in the military and space programs. For instance, NASA’s Quantum Artificial Intelligence Laboratory (QuAIL) is a collaboration between NASA, Google, and the Universities Space Research Association (USRA) to develop quantum algorithms and software for space missions and scientific research.
Restraint: Stability and error correction issues
Presently, 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, a goal yet to be realized. Till 2020, devices with up to 5,000 physical qubits have 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 impossible to maintain the quantum mechanical state of qubits for a long time as they are delicate and can be 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 currently not quantum-safe.
Opportunity : Growing adoption of quantum computing technology in drug discovery
The research and development activities related to biopharmaceuticals, from drug discovery to production, are expensive, lengthy, and risky. A new drug typically takes 10–15 years to progress from its discovery stage to its launching, and the capitalized costs related to it exceed USD 2.0 billion. The success rate of the development of new drugs is less than 10% from their entry into the clinical development stage to their launch. As such, biopharmaceutical companies count on a few blockbuster drugs to realize the payback of more than USD 180.0 billion that the industry spends each year on research and development activities related to new drugs.
Quantum computers provide powerful tools for studying complex systems such as human physiology and the impact of drugs on biological systems and living organisms. These computers are expected to be used in a number of applications in pharmaceutical research and development activities, especially during the early phases of drug discovery and development. Computational tools are the key components for drug discovery and development. In many instances, they have significantly shortened the time companies consume on drug optimization. Researchers rely on high-performance computing of powerful supercomputers or massively parallel processing systems for carrying out in silico modeling of molecular structures, mapping the interactions between a drug and its target, and developing a simulation of the metabolism, distribution, and interaction of a drug in a human body.
The biopharmaceutical industry uses quantum mechanics for energy calculations and structural optimization, especially during molecular docking and quantitative structure-activity relationship analyses. Quantum mechanics-enabled synthetic chemistry gives researchers the tools to preclude potentially inactive compounds and support the synthesis of highly challenging compounds. Quantum-based virtual screening and optimization leverage molecular simulations. Hybrid quantum-classical approaches that can predict molecule structure are expected to be available in the market within the next five years. They are expected to allow highly effective structure-based drug designs of small molecules.
Challenge: Physical challenges related to using quantum computers
Qubits require low-temperature conditions to run algorithms. They heat up easily during calculations; therefore, a cooling mechanism is required to quickly bring down the temperature of qubits for running several quantum algorithms back to back. Standard fans fail to provide the cooling required by quantum computers. In short, quantum computers require a cool environment for their stable operations. For instance, the quantum computer offered by D-Wave Quantum Inc. requires it to be kept at a temperature of 0.02 K, which is about −460°F. Researchers are making efforts to overcome this challenge.
Moreover, quantum computers are difficult to engineer, develop, and program. As a result, they are crippled by errors in the form of noise, faults, and quantum coherence loss, which is crucial for their operations. This loss of coherence (called decoherence), caused by vibrations, temperature fluctuations, electromagnetic waves, and other interactions with the outside environment, ultimately disrupts the required quantum properties of quantum computers. This pervasiveness of decoherence and other errors result in incorrect responses from existing quantum computers to various programs.
Services segment to account for larger share of quantum computing market during forecast period
The growth of this segment can be attributed to the increasing number of startups investing in research and development related to quantum computing technology. Quantum computing systems and services are used in optimization, simulation, and machine learning applications, leading to optimum utilization costs and highly efficient operations of end-use industries.
Cloud segment to register higher CAGR during forecast period
The cloud segment is projected to account for a larger share of the quantum computing market than the on-premises segment from 2023 to 2028. As potent systems are being developed, the cloud approach is expected to become a significant revenue source for quantum computing service providers, with users paying for access to noisy intermediate-scale quantum (NISQ) systems that can solve real-world problems. The limited lifespan of rapidly advancing quantum computing systems also favors cloud service providers. The flexibility offered by quantum computing systems to users is another factor favoring the adoption of cloud quantum computing systems and services. For the foreseeable future, quantum computers are expected not to be portable. A cloud can give users access to different devices and simulators from their laptops.
Optimization segment to hold the largest share of quantum computing market during the forecast period
Quantum computing optimization is the process of using quantum computing to improve the performance of optimization algorithms. This involves using quantum algorithms to solve optimization problems more quickly and efficiently than traditional methods. Quantum computing can be used in various fields, including finance, logistics, artificial intelligence, and operations research. In addition, quantum computing can be used to solve difficult optimization problems that are too difficult to solve using traditional methods. By leveraging the power and speed of quantum computing, organizations can optimize their operations, improve their decision-making, and reduce costs
North America is expected to hold the second largest share of the quantum computing market during forecast period
North America accounted for the second largest share of the quantum computing market during the forecast period. The growth of the market in this region can be attributed to the presence of key quantum computing system and service providers in North America, as well as an increase in the adoption of quantum computing applications in distinct industries, such as space & defense, chemical, and banking & finance.
Asia Pacific to hold the largest share of the quantum computing market during the forecast period
The significant growth of the Asia Pacific quantum computing market can be attributed to the increasing demand for quantum computing systems and services from emerging economies such as China and South Korea for use in different applications in the space & defense, healthcare & pharmaceutical, and energy & power industries in the coming years.
Quantum Computing Market by Region
To know about the assumptions considered for the study, download the pdf brochure
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 Circuits (US), IonQ (US), QC Ware (US), PsiQuantum (US), Alpine Quantum Technologies GmbH (Tyrol), Xanadu (Canada), ABDProf (Spain), Zapata Computing (US), and Northrop Grumman (US).
Quantum Computing Market Report Scope :
|
Report Metric |
Details |
| Estimated Market Size | USD 4,375 Million |
| Projected Market Size | USD 866 Million |
| Growth Rate | 8.0% |
|
Market size available for years |
2019–2028 |
|
Base year considered |
2022 |
|
Forecast period |
2023–2028 |
|
Forecast units |
Value (USD Million/Billion) |
|
Segments covered |
|
|
Region covered |
|
|
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), ABDProf (Spain), Zapata Computing (US), and Northrop Grumman (US). |
| Key Market Driver | Rising adoption of quantum computing technology in various industries and sectors |
| Key Market Opportunity | Growing adoption of quantum computing technology in drug discovery |
| Largest Growing Region | Asia Pacific |
| Largest Market Share Segment | Services |
Quantum Computing Market Highlights
The study categorizes the quantum computing market based on offering, deployment, technology, application, end user, and region
|
Segment |
Subsegment |
|
By Offering |
|
|
By Deployment |
|
|
By Technology |
|
|
By Application |
|
|
By End User |
|
|
By Region |
|
Recent Developments in Quantum Computing Industry
- In November 2022, Microsoft (US) launched the Azure Quantum Resource Estimator, a tool that will assist quantum algorithm developers in designing and optimizing algorithms that will run on future quantum computers.
- In September 2022, Intel (US) launched Intel Quantum SDK enables developers to develop new quantum algorithms for executing qubits in simulation and on real quantum hardware in the future.
- In May 2022, Quantinuum (US) launched InQuanto which is a quantum computational chemistry software platform that makes it easy for computational chemists to experiment with many quantum algorithms on today’s quantum computers.
- In July 2022, Mastercard (US) and D-Wave Quantum Inc. collaborated to develop quantum-hybrid solutions
- In May 2021, Toshiba (Japan) collaborated with Dharma Capital (US) to test the use of quasi-quantum technologies in financial trading
Frequently Asked Questions (FAQ):
What is the current size of the global quantum computing market?
The quantum computing market size is valued at USD 866 Million in 2023 and is anticipated to be USD 4,375 Million by 2028; growing at a CAGR of 38.3% from 2023 to 2028.
Which is the fastest growing region for the quantum computing market?
The Asia Pacific region is expected to have the highest CAGR in the quantum computing market. The rise in per capita income of countries in Asia Pacific and large-scale industrialization and urbanization are critical factors for the quantum computing market growth in Asia Pacific.
What is the Application that dominates the quantum computing market?
The optimization segment is projected to account for the largest quantum computing market size during the forecast period.
What are the key strategies adopted by key companies in the quantum computing market?
The key companies have been focusing on collaborations, acquisitions, and partnerships to significantly grow in the quantum computing market.
Which are the major companies in the quantum computing market?
IBM (US), D-Wave Quantum Inc. (Canada), Microsoft (US), Amazon Web Services (US), Rigetti Computing (US), QC Ware (US), Toshiba (Japan), Google (US), Intel (US), Quantinuum (US), are the players dominating the global quantum computing market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
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
In the secondary research process, various secondary sources were referred to for identifying and collecting information important for this study. The secondary sources include corporate filings (such as annual reports, investor presentations, and financial statements), trade shows, professional associations, white papers, process and communication-related journals, websites, and certified publications. They also include articles from recognized authors, gold- and silver-standard websites, directories, and databases. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, and key developments from both market- and technology-oriented perspectives. The secondary data was collected and analyzed to arrive at the overall market size, which was further validated through primary research.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative information for this report. The primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology and innovation directors, and related key executives from the major companies and organizations operating in the quantum computing market.
After the complete market engineering (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at in this process. Primary research was conducted to identify segmentation types, industry trends, key players, competitive landscape, and key market dynamics, such as drivers, restraints, opportunities, and challenges, along with the key strategies adopted by the players operating in the quantum computing market.
Extensive primary research was conducted after acquiring knowledge about the quantum computing market through secondary research. Several primary interviews were conducted with market experts from the demand and supply sides across four major regions—North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW). RoW comprises the Middle East and Africa. Approximately 20% and 80% of the primary interviews have been conducted with parties from the demand and supply sides, respectively. This primary data was collected through questionnaires, emails, and telephonic interviews.
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
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.
The main objectives of this study are as follows:
- 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 with respect to four main regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), along with their key countries
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- 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 competencies2
- 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:
MarketsandMarkets offers the following customizations for this market report:
- Further breakdown of the market in different regions to the country-level
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Quantum Computing Market
I have a specific Interest in Commercialisation of quantum technologies
Interested in learning more about the quantum computing market.
Photonics application for quantum computer qbit device fabrication
To gain an insight of the economic perspectives of quantum computing, as an essential part of scientific planning (I am a professional physicist working in superconductivity)
Quantum simulation market size over years, use cases, most promising approaches.