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
[247 Pages Report] The global 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 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:
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
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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 :
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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% |
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Market size available for years |
2020-2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
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Region covered |
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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
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Segment |
Subsegment |
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By Offering |
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By Deployment |
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By Technology |
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By Application |
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By End User |
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By Region |
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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):
How big is the quantum computing Market?
The market for quantum computing market was valued at USD 899 million in 2023. Growth of the Internet penetration rate propels the demand for quantum computing across different verticals during the forecast period.
Are quantum computing in Demand?
Quantum computing is indeed in demand, primarily because of its potential to solve complex problems that are practically intractable for classical computers. Industries such as finance, pharmaceuticals, materials science, cryptography, and logistics are particularly interested in leveraging quantum computing for tasks such as optimization, simulation, and cryptography.
What are the various verticals of the quantum computing market?
The banking and finance is vertical to showcase the largest market size during the forecast period.
What region is expected to have a high adoption of the quantum computing market?
Asia Pacific is expected to lead the market during the forecast period.
Who is the Leader in the quantum computing market?
D Wave Quantum Inc (Canada) is one of the key players in the quantum computing market. The company is one of the leading providers globally, relying on its R&D capabilities and balanced product portfolio.
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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.
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.
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
Generating Response ...
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