Quantum Computing Market

The global Quantum Computing Market was valued at USD 812.6 Million in 2022 and is projected to reach a value of USD 8229 Million by 2030 at a CAGR (Compound Annual Growth Rate) of 22% between 2023 and 2030.

Premium Insights

A quantum computer is a type of computer that takes advantage of quantum mechanical phenomena. Physical matter exhibits properties of both particles and waves at small dimensions, and Quantum Computing takes advantage of this behavior with specialized hardware. Classical physics cannot explain the operation of these quantum devices, and a scalable quantum computer could perform certain calculations exponentially quicker than any modern "classical" computer. The COVID-19 outbreak significantly impacted the global expansion of computing services. Since the global closure, McKinsey estimates that funding for quantum technology-focused startups has doubled from USD 700 million in 2020 to USD 1,4 billion in 2021 during the pandemic phase. In the second half of 2021, the proportion of private and venture capital investments in Quantum Computing increased significantly. This increase accounted for over 70 percent of all investments, demonstrating a growing belief among businesses that the technology will yield positive results.

Quantum computation is an evolving field of high-tech. The number of patent applications for quantum technologies has skyrocketed in recent years. Examining the number of patent applications filed by various companies around the globe fosters the expansion of the quantum ecosystem. Patents and investments shape the future by fostering the development of superior technologies. In September 2021, for instance, AMD filed a patent for teleportation to enable Quantum Computing. The model proposed in the patent is intended to improve stability and scalability by reducing the required number of qubits for accurate calculations. Government agencies worldwide are investing substantially in quantum technologies to encourage businesses and end-users to harness their potential. Additionally, they promise substantial funding to advance quantum technologies domestically. For example, China has made substantial investments in the R&D of diverse computing technologies. It has announced approximately USD 15 billion in financing, which is expected to be greater than that of all other governments. Australia, the United States, and the developed nations of the European Union are pursuing computing initiatives. In addition to increasing their investments in quantum technologies, market leaders are searching for relevant collaborations and partnerships to advance computing, create practical applications, and train a future quantum workforce.

Companies that implement this strategy are aided in combining their best quantum concepts and capabilities with those of their most established partners and technologies. With this, businesses can create superior solutions rapidly and at scale. Several companies, including Riverlane, Google LLC, and Pasqal, are collaborating with quantum experts worldwide to improve their quantum capabilities. In June 2022, Riverlane and Rigetti Computing collaborated to address syndrome extraction on superconducting quantum computers. Similarly, in January 2022, Pasqal and Qu&Co partnered to merge into a single company operating under the Pasqal brand and headquartered in Paris.

Economic Insights

Global corporations are bracing for the possible global collapse of the crisis between Russia and Ukraine. Threatening global growth and prosperity as we aim for a $100 trillion GDP by 2022, a Russian invasion would have catastrophic economic effects. Despite the parties' best efforts to reach an agreement, the economic trend is expected to reverse, making it extremely challenging to reach the GDP objective.

Top Market Trends

1. Rising Investments within Quantum Computing Technology: It is anticipated that factors such as an increase in investments in Quantum Computing technology, an increase in demand for high-performance computing, and an increase in demand from medical research and financial markets will stimulate market expansion. In addition, an increase in the demand for secure computing platforms and an increase in the use of simulation and modeling in Quantum Computing are anticipated to fuel the expansion of the market for enterprise Quantum Computing. Nonetheless, operational challenges and stability & error correction issues related to Quantum Computing are anticipated to impede the markets growth over the forecast period. In addition, the emergence of quantum computers on-premises for enterprises and technological advancements in Quantum Computing are anticipated to create growth opportunities for the market.
2. Increasing Utilization within Drug Discovery: Quantum computers offer potent resources for investigating complex systems, such as human physiology and the influence of drugs on biological systems and living organisms. These systems are anticipated to be utilized in various pharmaceutical research and development applications, particularly in the initial phases of drug discovery and development. The fundamental components of drug discovery and development are computational instruments. In many instances, they have drastically reduced the time companies spend on drug optimization. For in silico modeling of molecular structures, mapping the interactions between a drug and its target, and stimulating the metabolism, distribution, and interaction of a drug in the human body, scientists rely on the high-performance computing of powerful supercomputers or massively parallel processing systems. Quantum mechanics is utilized by the biopharmaceutical industry for energy calculations and structural optimization, particularly during molecular docking and quantitative structure-activity relationship analyses. Quantum mechanics-enabled synthetic chemistry allows scientists to exclude potentially inactive compounds and facilitate the synthesis of extremely difficult compounds. Virtual quantum screening and optimization employ molecular simulations. In the next five years, hybrid quantum-classical approaches that can predict molecule structure are anticipated to be commercially available. They should enable highly effective structure-based drug design of small molecules

Market Segmentation

The global Quantum Computing market can be categorized on the following: Offering, Deployment, Technology, Application, End User, and Regions. Based on Offering, the market can be categorized into Systems and Services. Additionally, based on Deployment, the market can be split into On-premises and Cloud. Moreover, based on Technology, the market can be split into Trapped Ions, Quantum Annealing, Superconducting Qubits, and Other Technologies. Additionally, based on Application, the market can be split into Optimization, Simulation, Machine Learning, and Other Applications. Moreover, by End User, the market can be segregated into Space & Defense, Transportation & Logistics, Healthcare & Pharmaceuticals, Chemicals, Banking & Finance, Energy & Power, Academia, and Government. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Offering

Systems to Grow Rapidly Owing to the Rising Availability of Quantum Computers

Systems are a major impediment in the ecosystem. It is anticipated that system growth will be substantial. Multiple hardware platforms for Quantum Computing are presently in development. All commercially available quantum computers are the most advanced based on superconducting circuits and confined ions. Photonic networks, spin qubits, and neutral atoms are promising platforms. The services segments are anticipated to expand shortly due to the global increase in businesses and the substantial investments in computing technology-related R&D. This information technology is utilized in applications involving deep learning, optimization, and simulation.

Based on Deployment

Cloud-based Deployment to Account for Largest Market Share Due to Increasing Reliance

The Cloud segment is anticipated to dominate the market during the forecast period. The demand for cloud-based solutions and services will likely rise as more resilient systems are created. Google is investing heavily in quantum technology research and is expected to launch an improved cloud computing service within the next few years. In addition to more comprehensive solutions from the main market players, the cloud provides various alternative implementation strategies for quantum computers. The user-friendly access provided by cloud-based services and systems contributes to their rising popularity.

Based on the End User

Banking & Finance to Accommodate Dominant Position Owing to Increasing Focus on Banking Transactions

During the forecast period, Banking and Finance are anticipated to hold the largest market share in the Quantum Computing market. According to the medical futurist, Quantum Computing is gaining traction in the healthcare industry. The computing technology can facilitate the construction of virtual environments in which professionals can analyze body fluids, electrolytes, circulation, metabolism, and skin temperature on digital replicas of humans. The healthcare and research industries are anticipated to experience significant revenue growth in the future. In the healthcare and research industries, computing services are utilized to administer various applications, such as processing large healthcare data and rapid DNA sequencing. Particularly appealing to the industry are quantum-enhanced machine learning techniques.

Based on Application

Machine Learning Applications to Dominate Market Share Due to Rising Integrating Within Banking Applications

During the forecast period, the machine learning segment holds the largest Quantum Computing market share. It enables users to learn about estimating quantum system characteristics, error-correcting codes, and creating novel quantum algorithms. The financial services segment is anticipated to grow significantly during the projection period. Startups in the healthcare and BFSI industries focus on incorporating these services to improve their cloud-based offerings in response to the intensifying competition to attract more customers.

Based on Form

Solid Form to Account for the Largest Market Share Owing to Enhanced Resistance

In 2022, solid form dominated the Quantum Computing market regarding revenue share. This high market share can be attributed to its enhanced resistance to exposure to light and moisture. Solid forms include crystals, beadlet, and beadlet that have been cross-linked. In feed production, beadlet technology reliably shields active constituents from mechanical and thermal stress, making them more stable and bioavailable. The liquid form is gaining popularity among feed formulators because it contributes to the animals good health and enhanced performance faster than solid forms and is less expensive. In addition, the liquid form of these feed additives is favored due to their ability to reduce enteric pathogens and gastric pH and their affordability.

Based on Region

Europe to Dominate Global Sales Due to Rising Product Demand

The market has grown significantly in North America due to the regions intense competition and early adoption of sophisticated technologies. The rate of cloud adoption readiness across regions and the end-users readiness to develop advanced services have positively impacted North Americas market growth.

Europe is anticipated to experience significant development due to the regions increasing number of technology-based startups. In addition, digital government regulatory environments and initiatives and an increase in cloud technology utilization in the region are expected to drive market growth and technological advancements. In 2022, the use of cloud computing in Europe has increased by 8% compared to 2021. Due to these factors, the region is anticipated to experience robust market growth in the coming years.

Competitive Landscape

Numerous businesses worldwide are vying for a piece of the rapidly expanding Quantum Computing market. Several startups and research institutions compete with more established tech giants like IBM, Google, and Microsoft. Competitive variables include performance, scalability, and simplicity of use, and these businesses are developing a full spectrum of Quantum Computing technologies, from hardware to software to applications. In addition, there is a developing industry of service providers who, through the cloud, make quantum computers available for use. Companies that can create and market useful applications for Quantum Computing will be in the greatest position to take advantage of the market as it changes. Quantum Computing has the potential to revolutionize the computing industry, but the business is still in its infancy, and several technological and commercial hurdles must be cleared.

The key players in the global Quantum Computing market include - IBM Corporation (U.S.) among others.

Recent Market Developments

• September 2022: The German aerospace center has contracted Quix Quantum to deliver 64 and 8-qubit universal quantum computers. These systems will be based on photonics and will integrate their processors' existing technologies with feedforwards, sources, and detectors.
• July 2022: ORCA Computing intends to partner with the Israeli company Quantum Machines. The corporations intend to establish a newly announced Israeli computing center with this partnership.
• May 2022: Azure Quantum will provide cloud-based access to Pasqals neutral-atom-based quantum processors through a partnership between Pasqal and Microsoft.

Segmentation of the Global Quantum Computing Market