Quantum Photonics Market Size by Offering (Systems, and Services), Application (Quantum Communications, Quantum Computing, and Quantum Sensing & Metrology), Vertical (Banking & Finance, Agriculture & Environment) and Region - Global Forecast to 2030
[223 Pages Report] Quantum Photonics market size is projected to grow from USD 0.4 billion in 2023 and is anticipated to USD 3.3 billion by 2030, growing at a CAGR of 32.2% from 2023 to 2030.
Rising demand for secure communication and growing investment in quantum photonics computing to drive market growth during the forecast period. Factors such as growing R&D and investments in quantum photonics computing provides market growth opportunities for market.
Quantum Photonics Market Forecast to 2028
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Quantum Photonics Market Dynamics
Driver: Rising demand for secure communication
The need for more reliable and secure communication systems at a time of rising cyber threats is driving the rising need for secure communication in quantum photonics. Classical cryptography-based traditional communication systems are susceptible to hacking and eavesdropping, but quantum computing presents a viable answer to these security issues. Quantum cryptography, which is founded on the fundamental ideas of quantum mechanics, is used in quantum photonics to provide very secure communication. Quantum cryptography is very resistant to hacking and eavesdropping because it harnesses the characteristics of quantum states to encrypt and transfer information.
For instance, two parties can create a shared secret key using photons in quantum key distribution (QKD), which can then be used to encrypt and decode data. The safety of QKD is predicated on the fact that any effort to measure or intercept the photons will invariably cause them to lose their quantum states, alerting the parties to the presence of an observer. There is an increasing demand for highly secure communication systems that can guard against hacking and eavesdropping as the volume and sensitivity of digital communication continue to expand. In the future of secure communication, quantum photonics is anticipated to play a significant role and offers a possible solution to this problem.
Multiple factors that contribute the necessity for secure communication in quantum photonics, including Protection against cyber threats, Global connectivity, High-security applications, Legal requirements. Overall, the demand for secure communication in quantum photonics market is driven by the need for protection against cyber threats, the need for high-security applications, the need for global connectivity, and legal requirements. As the demand for secure communication continues to grow, it is expected that the market for quantum photonics will continue to expand.
In April 2022, British Telecommunications (UK) and Toshiba (Japan) launched the first commercial testing of quantum encrypted communication services. BT, Toshiba, and EY (UK) have started a trial of the world's first commercial quantum-secured metro network. The infrastructure was able to connect a large number of clients across London, allowing them to secure the transmission of vital data and information between different physical locations utilizing quantum key distribution (QKD) over regular fiber optic cables. QKD is an essential technology that plays a critical role in defending networks and data from the rising threat of quantum computing-based cyber-attacks. The London network is an important step toward the UK government's goal of becoming a quantum-enabled economy.
Restraint: Regulatory challenges can hinder quantum photonics adoption and commercialization
Regulations can be a significant obstacle for companies seeking to develop and commercialize quantum photonics technology. These regulations can come from a variety of sources, such as data privacy, intellectual property, export controls, safety regulations, and standards and interoperability. For example, strict data privacy regulations in finance and healthcare may require additional security measures to comply, while patent disputes and licensing agreements can add complexity and cost to development. Export controls and safety regulations may also delay deployment. Also, establishing new standards and interoperability with existing technologies can add further complexity and time to the development process. Companies need to work with regulatory bodies and stakeholders to ensure compliance and navigate these challenges, which can slow down the adoption and commercialization of quantum photonics computing technology.
Opportunity: Advancements in quantum communications
Researchers working on quantum communication are concentrating on creating safe communication protocols that make advantage of entanglement and superposition. Quantum key distribution, which enables the safe exchange of cryptographic keys between two parties, is one of the most promising uses of quantum communication.
Researchers are aiming to create quantum computers that employ photonic qubits (quantum bits) rather than conventional electrical qubits in quantum photonics computing. In comparison to electrical qubits, photonic qubits offer a number of benefits, such as the capacity to travel across great distances without suffering substantial information loss and their comparatively simple manipulation.
The demonstration of large-scale integrated photonic circuits for processing quantum information, such as the development of a 100-qubit photonic chip by researchers at the University of Bristol, are recent developments in quantum photonics computing. The development of effective photon sources and detectors for use in quantum photonics computing systems has also advanced. Several companies are actively working an advancements in the field of quantum photonics, which include PsiQuantum (US), Xanadu (Canada), Toshiba (Japan), etc. These are only a few instances of businesses engaged in developments in the area of quantum photonics computing. Numerous other businesses and university research teams are also making important contributions to this fascinating topic.
Challenge: Experimental constraints in quantum photonics computing
Quantum photonics computing is a new area of study that intends to employ photons, which are light particles, to carry and analyze quantum information. While this technology has the potential to revolutionize computing, various obstacles must be overcome before it can be implemented in practice. The area of quantum photonics computing has recently experienced various hurdles that have hindered its development toward practical applications. Experimental constraints provide a substantial hurdle to quantum photonics. Although theoretical models and methods for quantum photonics computing have been established, implementing them in actual devices remains a significant issue due to experimental constraints. Some of these challenges include high error rates, scaling up quantum photonics computing systems, maintaining the coherence of qubits which are the basic building blocks of quantum computers, detection and measurement of photonic qubits.
Quantum Photonics Market Ecosystem
The quantum photonics market is highly competitive. It is marked by the presence of a few tier-1 companies, such as Toshiba (Japan), Xanadu (Canada), Quandela (France), and ID Quantique (Switzerland).These companies have created a competitive ecosystem by investing in research and development activities to launch highly efficient and reliable quantum photonics solutions.
Systems segment to register highest CAGR during forecast period
During the forecast period, the systems segment is expected to experience the highest growth rate and hold the largest market share in the quantum photonics market. The systems segment is likely to hold the largest share of the market during the forecast period. This segment has witnessed rapid growth due to advanced hardware technology and a rise indemand across industries. Companies such as Xanadu (Canada) and Quandela (France) have introduced high-performance quantum photonics hardware, making the technology accessible and beneficial for various applications such as cryptography, machine learning, and optimization.
Quantum communications segment to hold the largest market share during forecast period
The quantum communications segment within the quantum photonics market is anticipated to witness substantial growth during the forecast period. Quantum communications involve the transfer of quantum information using photons between quantum devices such as quantum computers or sensors. It uses quantum key distribution (QKD) and quantum random number generation to provide robust security against spying or hacking. These technologies have potential applications in the military, government, and healthcare, where secure communication is vital.
Transportation & logistics segment is expected to grow at the highest CAGR quantum photonics market during the forecast period
The transportation & logistics segment market is projected to grow at the fastest CAGR during the forecast period. Factors driving this growth include the ability of quantum computing to optimize logistical operations such as route planning and supply chain management, resulting in cost savings and faster delivery times. Quantum sensors provide real-time environmental data for better decision-making, while advancements in quantum technologies promise innovative solutions for transportation system design.
North America by region to hold the larger share during the forecast period
North America plays an important role in the development and commercialization of quantum photonics computer technologies. Several leading quantum computing companies, research institutions, and universities are located in the region, driving innovation in the field. PsiQuantum (US), Xanadu (Canada), AOsense (US), and Quantum Xchange (US) are some of the companies catering to this market in North America. The development of quantum computers and associated technologies is one of the primary ways North America contributes to the quantum photonics business.
Quantum Photonics Market by Region
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Key Market Players
The quantum photonics companies is dominated by globally established players such as Toshiba (Japan), Xanadu (Canada), Quandela (France), ID Quantique (Switzerland), ORCA Computing (UK), PsiQuantum (US), TundraSystems (UK), Quix Quantum (Netherlands), Nordic Quantum Computing Group (Norway), Thorlabs (US), AOSense (US), Single Quantum (Netherlands), Qubitekk (US), QuintessenceLabs (Australia), NTT Technologies (Japan), NEC (Japan), M Squared (UK), CryptaLabs (UK), Nu Quantum (UK), Microchip Technology (US), Amazon Web Services (AWS) (US), QuantumXchange (US), Quantum Dice (UK), Menlo Systems (Germany), and QUSIDE (UK). These players have adopted product launches/developments, contracts, collaborations, agreements, and acquisitions for growth in the market.
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Report Metric |
Details |
Estimated Market Size
|
USD 0.4 billion in 2023 |
Projected Market Size | USD 3.3 billion by 2030 |
Growth Rate | CAGR of 32.2% |
Market size available for years |
2020–2030 |
Base year considered |
2022 |
Forecast period |
2023–2030 |
Forecast units |
Value (USD Million/Billion) |
Segments covered |
By offering, By application, By vertical, and By Region |
Region covered |
North America, Europe, Asia Pacific, and Rest of World |
Companies covered |
The key players in the quantum photonics market are Toshiba (Japan), Xanadu (Canada), Quandela (France), ID Quantique (Switzerland), ORCA Computing (UK), PsiQuantum (US), TundraSystems (UK), Quix Quantum (Netherlands), Nordic Quantum Computing Group (Norway), Thorlabs (US), AOSense (US), Single Quantum (Netherlands), Qubitekk (US), QuintessenceLabs (Australia), NTT Technologies (Japan), NEC (Japan), M Squared (UK), CryptaLabs (UK), Nu Quantum (UK), Microchip Technology (US), Amazon Web Services (AWS) (US), QuantumXchange (US), Quantum Dice (UK), Menlo Systems (Germany), and QUSIDE (UK). |
Quantum Photonics Market Highlights
The study categorizes the quantum photonics market based offering, application, vertical, and region
Segment |
Subsegment |
By Offering |
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By Application |
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By Vertical |
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By Region |
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Recent Developments
- In March 2023, CryptoNext Security (France), and Quandela (France) partnered to develop an integrated solution for securing post-quantum communication protocols. The solution leverages their expertise in quantum computing and post-quantum cryptography remediation. They aim to offer a fully integrated quantum-safe solution to secure sensitive data transfer in various industries, including defense, finance, manufacturing, energy, automotive, and digital services.
- In October 2022, Quandela (France) partnered with the Electronics and Information Technology Laboratory of the French Atomic Energy Commission (CEA-Leti) to manufacture a high-performance photonic chip entirely in France.
- In June 2022, Xanadu launched Borealis, a photonic-based quantum computer. According to Xanadu, it is the world’s largest photonic quantum computer with 216 squeezed-state qubits. Xanadu claims to achieve the quantum advantage due to Borealis’ capability of performing a task in 36 microseconds which would take more than 9,000 years for a supercomputer.
Frequently Asked Questions (FAQ):
What will be the dynamics for the adoption of the desiccant dehumidifier market based on product type?
The fixed or mounted is expected to hold the largest share of the desiccant dehumidifier market during the forecast period. This can be attributed to the growing expansion of manufacturing units, warehouses, water treatment facilities, and lithium-ion battery production plants across the globe. These plants and facilities require large desiccant dehumidifiers that cannot be moved due to the large area.
Which application will contribute more to the overall market share by 2028?
The energy segment will contribute the most to the desiccant dehumidifier market. The market for energy segment is expected to account for the largest share of the desiccant dehumidifier market during the forecast period owing to their growing adoption in power plants as desiccant dehumidifiers can provide the ideal low humidity environment for preservation and deactivation of power plants, as they can maintain RH as low as 1% or even lower at a constant level, regardless of ambient conditions.
How will technological developments such as cloud computing technology, and artificial intelligence (AI) technology change the desiccant dehumidifier market landscape in the future?
Cloud computing technology utilizes IOT connected to IoT gateway modules and Edge computing devices, which collect data from the system and send it for analysis for different AI applications. Most commercial companies and factories are starting to manage energy efficiency better using AI and IoT solutions for building desiccant dehumidifiers to minimize and save on unnecessary operation costs without sacrificing ambient comfort status. With cloud computing, the AI model can predict maintenance requirements for the system, reducing downtime and improving the efficiency of the system. With cloud computing technology, desiccant dehumidifiers can be connected to the internet, allowing for remote monitoring and control. This can enable users to monitor the performance and status of their dehumidifiers from anywhere with an internet connection.
Which region is expected to adopt desiccant dehumidifier systems at a fast rate?
Asia Pacific region is expected to adopt desiccant dehumidifiers at the fastest rate. Developing countries such as India and China are expected to have a high potential for the future growth of the market.
What are the key market dynamics influencing market growth? How will they turn into strengths or weaknesses of companies operating in the market space?
The construction sector is booming with an upsurge in residential, commercial, and infrastructure projects worldwide. The demand for construction is rising due to huge economic growth in developing countries and low-interest rates in a number of developed countries. Also, factors such as increasing private sector investments in construction, technological development, and rising disposable income are expected to provide momentum to construction activities worldwide. As the construction industry has evolved, and through practical application, it has been evident that a desiccant dehumidifier is much more effective at drying construction materials than a heater. Because a desiccant dehumidifier reduces both humidity and vapor pressure, it is the most effective method for providing a construction environment where materials dry at an accelerated pace, and the potential for mold growth is considerably decreased.
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The study involved four major activities in estimating the size of the quantum photonics 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 were used to estimate the market sizes of segments and subsegments.
Secondary Research
Various secondary sources were referred to in the secondary research process for identifying and collecting information pertinent to this study. Secondary sources included annual reports, press releases, investor presentations, white papers, journals & certified publications, articles by recognized authors, directories, and databases. Secondary research was conducted to obtain key information about the quantum photonics supply chain, value chain, the total pool of the key players, market segmentation according to the industry trends (to the bottommost level), geographic markets, and key developments from both market- and technology-oriented perspectives. The secondary sources used for this research study included government sources; corporate filings (such as annual reports, investor presentations, and financial statements); and trade, business, and professional associations. The secondary data was collected and analyzed to determine 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 photonics 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 photonics market.
Extensive primary research was conducted after gaining knowledge about the current scenario of the quantum photonics market through secondary research. Several primary interviews were conducted with the market experts from the demand- (quantum computer users) and supply (service and system providers) sides across four key regions: North America, Europe, Asia Pacific, and RoW. Approximately 20% and 80% of the primary interviews have been conducted with parties from the demand and supply sides, respectively. Primary data has been collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the quantum photonics 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 quantum photonics.
- Analyzing historical and current data pertaining to the size of the quantum photonics market for each application
- Analyzing the average selling prices of quantum photonics 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 photonics products, studying their portfolios, and understanding features of their products and their underlying technologies, as well as the types of quantum photonics 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 photonics, and products wherein they are deployed, and analyze the break-up of the scope of work carried out by key manufacturers of quantum photonics products 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 size of the quantum photonics market from the estimation process explained earlier, the market’s overall size has been split into several segments and subsegments. The market breakdown and data triangulation procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments of the market. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated using both top-down and bottom-up approaches.
The main objectives of this study are as follows:
- To define, describe, and forecast the quantum photonics market based on offering, application, and vertical in terms of value
- To forecast the size of the quantum photonics market for North America, Europe, Asia Pacific, and the Rest of the World (RoW) regions, in terms of value
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the market growth
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To describe the quantum photonics value chain
- To analyze opportunities in the market for the stakeholders and provide a detailed competitive landscape of the quantum photonics market
- To strategically profile the key players and comprehensively analyze their market rankings and core competencies2
- To analyze competitive developments, such as product launches, partnerships, and collaborations, in the quantum photonics market
Market Definition
Quantum photonics is a field of study that focuses on the use of photons, which are fundamental particles of light, to manipulate and control quantum information. It involves the generation, manipulation, and detection of individual photons in order to develop new technologies for communication, computing, and sensing & metrology that are based on quantum mechanics. In quantum photonics, researchers use various techniques such as single-photon sources, photonic circuits, and detectors to create and manipulate quantum states of light for quantum information processing. This field is at the forefront of research in quantum technologies and has the potential to revolutionize various industries, including telecommunications, cryptography, and computing.
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
Research Objectives
- To define, describe, and forecast the quantum photonics market size, offering, application, vertical, and region, in terms of value
- To forecast the market size, in terms of value, for various segments with respect to four main regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To strategically analyze the micromarkets with respect to individual growth trends, prospects, and contributions to the overall market
- To identify the drivers, restraints, opportunities, and challenges impacting the growth of the market and submarkets
- To analyze the quantum photonics supply chain and identify opportunities for the supply chain participants
- To provide key technology trends and patent analysis related to the quantum photonics market
- To provide information regarding trade data related to the quantum photonics market
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the quantum photonics ecosystem
- To strategically profile the key players in the quantum photonics market and comprehensively analyze their market shares and core competencies in each segment
- To benchmark the market players using the proprietary company evaluation matrix framework, which analyzes the market players on various parameters within the broad categories of market ranking/share and product portfolio
- To analyze competitive developments such as product launches, alliances and partnerships, joint ventures, and mergers and acquisitions in the quantum photonics 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)
Growth opportunities and latent adjacency in Quantum Photonics Market