Quantum Computing Market Trends

Quantum Computing Market Overview

The Quantum Computing Market is projected to grow from USD 1.02 billion in 2024 to USD 6.95 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 27.04% during the forecast period (2024 - 2032). Additionally, the market size for quantum computing was valued at USD 0.78 billion in 2023.

Increased implementation of machine learning and widespread quantum computing applications are the key market drivers enhancing market growth.

Figure 1: Quantum Computing Market Size, 2024-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Quantum Computing Market Trends

The expansion of quantum computing applications is driving market growth.

The increasing expansion of quantum computing applications drives market CAGR for quantum computing. Quantum computing has the potential to spread into numerous industries by solving complex problems that are computationally infeasible for classical computers. While the technology is still growing, there has been a significant expansion in the range of quantum computing applications. Additionally, quantum cryptography and secure communication are gaining traction due to the inherent security offered by quantum principles. Quantum key distribution (QKD) enables secure communication channels that are resistant to eavesdropping, providing a foundation for secure data transmission and protecting sensitive information.

Quantum hardware plays a vital role in the development of quantum computing. Over the past years, there have been notable advancements in quantum hardware, including qubits, quantum processors, and quantum memory. These advancements have significantly improved the performance and reliability of quantum systems, paving the way for practical applications. Additionally, there has been progress in other types of qubits, such as trapped ion qubits and topological qubits. Trapped ion qubits offer excellent coherence properties, while topological qubits, based on exotic particles called anyons, promise robust error correction.

Furthermore, the industry is witnessing an increase in the number of companies offering quantum hardware solutions. These companies focus on developing scalable and reliable quantum processors essential for practical quantum computing applications. Advancements in quantum hardware are expected to drive the adoption of quantum computing solutions across various industries.

One prominent trend driving the quantum computing market is governments, technology giants, and venture capital firms' escalating investment in research and development (R&D). Recognizing the immense potential of quantum computing, countries have pledged significant funding to bolster research initiatives in this domain. Moreover, technology giants like IBM, Google, Microsoft, and Amazon are actively investing in quantum computing R&D. They are collaborating with universities, research institutions, and startups to advance the capabilities of quantum systems. The growing investment in quantum computing R&D is expected to drive technological advancements and fuel the market's growth.

For instance, the quantum computing market is experiencing significant growth driven by increasing investment in R&D, advancements in quantum hardware, and the expansion of quantum computing applications. Governments, technology giants, and startups are actively contributing to the development of quantum computing technology. As the field progresses, we can expect quantum computing to revolutionize various industries and tackle complex problems that were previously intractable, driving the Quantum Computing market revenue.

Quantum Computing Market Segment Insights

Quantum Computing Application Insights

The Quantum Computing market segmentation, based on application, includes optimization, machine learning, and simulation. The optimization segment dominated the market. Optimization problems exist across industries, such as supply chain management, logistics, finance, and scheduling. Quantum computing can tackle these problems by exploring multiple solutions simultaneously, leading to more efficient and optimal outcomes.

Quantum Computing Vertical Insights

The Quantum Computing market segmentation, based on vertical, includes aerospace & defense, BFSI, energy & power, healthcare, information technology & telecommunication, and transportation. The aerospace & defense category generated the most income. Quantum computing can enhance aerospace design, optimize logistics, improve satellite communication, and strengthen encryption for secure communications. Governments and defense organizations invest in quantum technologies to bolster national security and gain a competitive edge.

Quantum Computing Product Type Insights

The Quantum Computing market segmentation, based on product type, includes hardware, software, and services. The hardware category generated the most income. Leading companies are investing in developing more stable and scalable hardware solutions to accelerate the adoption of quantum computing.

Figure 2: Quantum Computing Market by Product Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Quantum Computing Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Quantum Computing market will dominate, owing to the presence of renowned research institutions and tech giants like IBM, Microsoft, and Google, which have fueled innovation and accelerated the commercialization of quantum computing technologies. The region's focus on developing quantum algorithms, quantum simulators, and quantum annealing systems has positioned it as a key hub for quantum computing advancements.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: QUANTUM COMPUTING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Quantum Computing market accounts for the second-largest market share due to the substantial investments in quantum research and development, aiming to establish themselves as leaders in the field. The region has witnessed the emergence of several start-ups and spin-off companies focused on quantum computing, and collaborations between research institutions and industry players have become increasingly common. Further, the German Quantum Computing market held the largest market share, and the UK Quantum Computing market was the rapid-growing market in the European region.

The Asia-Pacific Quantum Computing Market is expected to grow at the fastest CAGR from 2023 to 2032. It is due to prioritizing quantum computing in its national strategic plans and allocating substantial funding to research and development. Moreover, China’s Quantum Computing market held the largest market share, and the Indian Quantum Computing market was the rapidly growing Asian-Pacific market.

Quantum Computing Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to spread their product lines, which will help the Quantum Computing market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Quantum Computing industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Quantum Computing industry to benefit clients and increase the market sector. In recent years, the Quantum Computing industry has offered some of the most significant advantages to medicine. Major players in the Quantum Computing market, including Intel Corporation, Atos SE, Cambridge Quantum Computing Ltd., IBM Corporation, Rigetti & Co Inc., D-Wave Systems Inc., and others, are attempting to raise market demand by investing in research and development operations.

Atos SE, founded in 2000, and located in Bezons, France, is a European international information technology and consulting and servicing company spread worldwide. It specializes in hi-tech transactional services, cloud, big data, unified communications, and cybersecurity services. In January 2021, Atos, a leader worldwide in digital transformation, launched that it welcomes the French government's initiative to develop a national strategy on quantum technologies. The national quantum strategy offers Atos the opportunity to accelerate its Quantum Learning Machine (Atos QLM) expertise to offer the French quantum ecosystem the benefits of quantum computing in the Noisy Intermediate-Scale Quantum era as soon as possible.

The University of Glasglow, founded in 1451, located in Glasglow, Scotland, UK, is a public research university and one of Scotland's ancient universities. In January 2021, The University of Glasgow launched its deal with Oxford Instruments NanoScience on Quantum Computing. The university is a topmost institution in quantum technology development. Under the partnership, Glasgow University would use Oxford Instruments' next-generation Cryofree refrigerator, Proteox, as part of its research to accelerate quantum computing commercialization in the UK.

Key Companies in the Quantum Computing market include

• 
  

  Intel Corporation

  
  


• 
  

  Atos SE

  
  


• 
  

  Cambridge Quantum Computing Ltd.

  
  


• 
  

  D-Wave Systems Inc.

  
  


• 
  

  IBM Corporation

  
  


• 
  

  Rigetti & Co Inc.

  
  

Quantum Computing Industry Developments

February 2024:

D-Wave announces the availability of 1,200+ qubit Advantage2™ prototype in its Leap™ Quantum Cloud Service, showcasing 20x faster time-to-solution for hard optimization problems. The new prototype features a lower-noise fabrication stack, doubling qubits and couplers, and demonstrates significant performance gains. The release marks a milestone in D-Wave's product delivery roadmap, enabling businesses, developers, and researchers to access advanced quantum computing technology.

February 2024:

D-Wave and Zapata AI announce a strategic partnership to develop quantum-enabled machine learning applications, leveraging generative AI and quantum computing technologies. The collaboration aims to address complex optimization problems, initially focusing on building quantum generative AI models to accelerate the discovery of new molecules. This partnership combines D-Wave's quantum computing systems with Zapata AI's generative AI software, facilitating joint technical development and commercial deployment.

December 2023:

 At the annual IBM Quantum Summit, IBM unveiled 'IBM Quantum Heron,' boasting IBM's best-performing quantum processor to date with improved error reduction. The introduction of IBM Quantum System Two marks a significant milestone in IBM's quantum computing architecture, combining scalable infrastructure with modular qubit control electronics. Additionally, IBM announced plans for Qiskit Patterns and integration of generative AI to simplify quantum software programming, aiming to democratize quantum computing development and expand access to users.

March 2023:

Microsoft announced the release of its Integrated Hybrid feature in Azure Quantum, enabling seamless integration of quantum and classical computing in the cloud. This advancement allows researchers to develop hybrid quantum applications combining classical and quantum code, empowering quantum innovators to create new algorithms. Azure Quantum facilitates the development of adaptive phase estimation algorithms, high-level programming constructs, and exploration of quantum error correction on real hardware, marking a significant milestone towards scaled quantum computing.

November 2023:

IBM and Bosch announced a strategic quantum computing partnership, with Bosch joining the IBM Quantum Network. The collaboration aims to develop quantum algorithms for material science applications in electromobility, renewable energy, and sensor technology. IBM's Osprey processor deployment marks progress towards a 4,000+ qubit-powered system by 2025, supporting Bosch's efforts in climate and sustainability targets.

August 2023:

BMW Group, Airbus, and Quantinuum collaborate on quantum computing research for sustainable mobility, focusing on chemical reactions in fuel cells. They report accurate modeling of the oxygen reduction reaction on platinum catalysts using Quantum Computers. The collaboration aims to accelerate innovation in materials science for electromobility and aviation, with potential applications in metal-air batteries. This breakthrough underscores the transformative potential of Quantum Computing in addressing critical challenges in sustainable energy transition.

Quantum Computing Market Segmentation

Quantum Computing Application Outlook

• 
  

  Optimization

  
  


• 
  

  Machine Learning

  
  


• 
  

  Simulation

  
  

Quantum Computing Product Type Outlook

• 
  

  Hardware

  
  


• 
  

  Software

  
  


• 
  

  Services

  
  

Quantum Computing Vertical Outlook

• 
  

  Aerospace & Defense

  
  


• 
  

  BFSI

  
  


• 
  

  Energy & Power

  
  


• 
  

  Healthcare

  
  


• 
  

  Information Technology & Telecommunication

  
  


• 
  

  Transportation

  
  

Quantum Computing Regional Outlook