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 Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The quantum computing market size was estimated at USD 10.19 billion in 2022 and is expected to hit around USD 235.45 billion by 2032, poised to reach at a notable CAGR of 36.89% during the forecast period 2023 to 2032.

quantum computing market size

Key Takeaways:

  • Services segment to account for larger share of quantum computing market during forecast period
  • Cloud segment to register higher CAGR during forecast period
  • Optimization segment to hold the largest share of quantum computing market during the forecast period
  • North America is expected to hold the second largest share of the quantum computing market during forecast period
  • Asia Pacific to hold the largest share of the quantum computing market during the forecast period

Quantum Computing Market Report Scope

Report Attribute Details
Market Size in 2023 USD 13.95 Billion
Market Size by 2032 USD 235.45 Billion
Growth Rate From 2023 to 2032 CAGR of 36.89%
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Offering, Deployment, Technology, Application, End User
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Report Coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Key Companies Profiled 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).

The market for quantum computing is expanding due to the rising need for high-performance computing. The worldwide quantum computing market is expanding as a result of reasons such as rising demand for SaaS business models, rising data center workloads, and complicated processor designs in traditional binary computing systems. In a traditional binary computer system, data is kept in small transistors, each of which can store a only "bit" of data, such as a 0 or 1. 1 and 0 are simultaneously stored and processed via the superposition phenomenon, which makes quantum computing significantly more potent than a classical-quantum computing system.

Governments' increasing funds in quantum computing technologies will also help the quantum computing market expand. The dynamics of the strategic balance of power, trade, and military affairs can shift as a result of quantum computing technology. Various governments intend to increase exploratory research on novel technologies in order to construct and develop quantum computing systems. The development of the global quantum computing market is anticipated to be aided by rising governmental expenditures in such solutions for a wide range of applications.

 

Additionally, more strategic agreements are being formed to advance the quantum computing market. It is challenging for producers of quantum computing systems to be all-around specialists in this rapidly expanding field. As a result, partnerships or alliances are crucial for market expansion. Additionally, it is essential to have new dimensions of application connection in order to maintain one's existing position in the quantum computing market or to develop new distribution channels. In order to benefit from new technologies in the workplace, businesses might connect with or open up to business partners. As clients continue to seek superior solutions with high capability and innovation, businesses with these strategic alliances also put an emphasis on innovations.

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.

Some of the prominent players in the Quantum Computing Market include:

  • 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)
  • Northrop Grumman (US).

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the Quantum Computing market.

By Offering

  • Systems
  • Services

By Deployment

  • On-premises
  • Cloud

By Technology

  • Trapped Ions
  • Quantum Annealing
  • Superconducting Qubits
  • 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
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

The quantum computing market size was estimated at USD 10.19 billion in 2022 and is expected to hit around USD 235.45 billion by 2032

The global quantum computing market is poised to grow at a CAGR of 36.89% from 2022 to 2030.

The major players operating in the quantum computing market are IBM Corporation (New York, U.S.), D-Wave Systems Inc. (Burnaby, Canada), Cambridge Quantum Computing Ltd. (Cambridge, U.K.), Intel Corporation (California, U.S.), Rigetti & Co, Inc. (California, U.S.), Google LLC (California, U.S.), Quantica Computacao (Tamil Nadu, India), Zapata Computing (Massachusetts, U.S.), XANADU (Toronto, Canada), Accenture Plc. (Dublin, Ireland).

Proceed To Buy

USD 4500
USD 3800
USD 1900
USD 1200

Customization Offered

  • check-imgCross-segment Market Size and Analysis for Mentioned Segments
  • check-imgAdditional Company Profiles (Upto 5 With No Cost)
  • check-img Additional Countries (Apart From Mentioned Countries)
  • check-img Country/Region-specific Report
  • check-img Go To Market Strategy
  • check-imgRegion Specific Market Dynamics
  • check-imgRegion Level Market Share
  • check-img Import Export Analysis
  • check-imgProduction Analysis
  • check-imgOthers