Global Quantum Computing & Technologies Market Size By Component (Hardware, Software, Services), Deployment (Cloud-based, On-premises), Application (Optimization, Machine Learning, Simulation & Data Modelling, Cyber Security, Others), By Technology (Quantum Annealing, Superconducting Qubit, Trapped Ion, Others) By Vertical (BFSI, Healthcare & Lifesciences, IT & Telecommunications, Manufacturing, Government, Aerospace & Defense, Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
The global Quantum Computing & Technologies Market was worth around USD 624.8 million in 2022 and is anticipated to grow to around USD 5897 million by 2030 at a CAGR of around 32.39% between 2023 - 2030.
The quantum computing and technologies market encompasses a revolutionary domain that exploits the principles of quantum mechanics to carry out intricate calculations and data processing tasks at extraordinary speeds surpassing the capabilities of classical computers. This dynamic and rapidly evolving market is fueled by a multitude of factors that underpin its growth and potential.
The escalating demand for advanced computational power in critical sectors, including cryptography, material science, and drug discovery, is among the major driving factors that are likely to support the growth of the market. These industries grapple with increasingly complex challenges, which need quantum computing solutions, owing to their unparalleled computational capabilities, and further offer breakthroughs that were previously unattainable. For instance, quantum computing's ability to efficiently factor large numbers has the potential to revolutionize cryptography and enhance data security on a global scale.
Furthermore, market trends reveal a surge in interest and investment from governments, tech giants, and start-ups alike, as they recognize the transformative potential of quantum technologies. Governments worldwide are allocating substantial resources to quantum research and development initiatives, aiming to gain a competitive edge in this burgeoning field. Tech giants and startups, driven by the pursuit of innovation and market dominance, are actively investing in quantum computing capabilities to harness its immense power and explore its boundless possibilities.
Over the forecast period, the quantum computing market holds immense opportunities, offering the prospect of solving previously insurmountable problems and driving innovation across industries. The transformation of technology continues to advance and its impact will reverberate globally, shaping various industries.
Key Insights
- Based on component, the services segment held the dominating position with a market value in 2022
- Based on deployment, the cloud-based segment acquired the largest market share in 2022
- Based on application, the machine learning segment is set to grow with the highest CAGR over the assessment timeframe
- Based on vertical, the BFSI segment accounted for the highest revenue in 2022
- On the basis of region, North America accounted for the largest market share in 2022
Growing Demand for Cryptographic Security to Drive Market Development
The disruptive potential of quantum computing in breaking conventional cryptographic systems stands as a formidable driving force behind the thriving market for quantum technology. The realization that widely employed encryption methods like RSA and ECC could be compromised by quantum computing has compelled organizations to proactively seek post-quantum cryptography solutions. This surge in demand has resulted in a robust growth trajectory within the quantum technology market.
The demand for post-quantum cryptography solutions has witnessed a remarkable upsurge of over 30% in recent years. Organizations across various sectors, including finance, healthcare, and government, have recognized the urgent need to safeguard their sensitive data from potential quantum-based cyber threats. As a result, significant investments have been allocated toward the development and implementation of advanced cryptographic mechanisms resilient against quantum attacks.
Technical Challenges and Scalability to Hinder Market Growth
The quantum computing market faces significant hurdles due to the complex technical challenges involved in constructing and sustaining stable quantum systems. These challenges stem from the inherent sensitivity of quantum computers to environmental influences and stringent operational requirements, such as ultra-low temperatures. Maintaining the desired level of qubit coherence and implementing effective error correction mechanisms are critical yet formidable obstacles that impede the rapid commercialization of quantum computing technologies. These challenges have led to delays in achieving scalable and reliable quantum systems for practical use.
The average qubit coherence time, a measure of how long quantum information can be preserved, currently stands at a few milliseconds. However, for quantum computers to be viable for widespread adoption, coherence times need to be extended to durations of several minutes or even hours. This significant improvement is necessary to perform complex computations and increase the overall efficiency of quantum systems. However, ongoing research and investments in these areas hold promise for overcoming these hurdles and advancing the commercialization of quantum computing technologies.
Recent Development
September 2023 (Product Innovation) - Quantum engineering firm Riverlane developed the world's inaugural dedicated decoder chip and made its decoder intellectual property (IP) and roadmap for early error-corrected quantum computing publicly available. This significant achievement aligns with the company's ongoing efforts to construct the Quantum Error Correction Stack, a foundational element required by all quantum computers to achieve practical scalability.
June 2022 (Acquisition) - Quantum Computing Inc. (QCI), a renowned company specializing in accessible quantum computing, concluded its merger agreement with QPhoton, Inc. The acquisition involved QPhoton, Inc., an innovative quantum photonics company known for developing a quantum photonic system (QPS). With the completion of this transaction, QCI is now poised to provide the market with the first comprehensive QPS solution that is readily available, easily deployable, and cost-effective. This ground-breaking development was intended to empower non-quantum experts to utilize the QPS for practical business applications, regardless of their location.
Segmentation Analysis
Based on components, the market is categorized into hardware, software, and services. The services segment dominated the revenues in 2022 owing to the increasing adoption of quantum computing in various industries. Organizations are seeking support in developing and implementing quantum algorithms, optimizing quantum hardware, and integrating quantum solutions into their existing systems. Additionally, as the technology evolves, service providers play a crucial role in providing updates, maintenance, and support for quantum systems. They assist in troubleshooting issues, ensuring smooth operation, and maximizing the performance of quantum computing resources.
The cloud-based deployment segment is witnessing substantial growth, driven by several factors such as it offers scalability and flexibility, allowing organizations to access quantum computing resources on-demand. It eliminates the need for upfront investment in hardware and infrastructure, making it accessible to a wider range of businesses. Moreover, cloud-based deployment provides ease of integration with existing systems and applications, enabling organizations to leverage quantum computing without significant disruptions. It offers seamless connectivity, enabling efficient data transfer and collaboration between different stakeholders.
Additionally, cloud-based deployment offers enhanced security measures, including encryption and data protection, ensuring the confidentiality and integrity of sensitive information. It also provides regular updates and maintenance, relieving organizations of the burden of managing and maintaining their own quantum computing infrastructure.
Based on application, the market is segregated into optimization, machine learning, simulation & data modeling, cyber security, and others. Optimization applications of quantum computing dominated the market in 2022 due to the pervasiveness of optimization problems across various industries, including logistics, supply chain management, finance, and manufacturing. Quantum computing has the potential to provide significant advancements in solving complex optimization problems, offering faster and more efficient solutions.
Additionally, as organizations strive for enhanced operational efficiency and cost reduction, they are increasingly turning to quantum optimization algorithms. These algorithms can optimize resource allocation, scheduling, and decision-making processes, leading to improved productivity and profitability.
Furthermore, it benefits from the advancements in quantum hardware and software. As quantum computing technology matures, it becomes more capable of solving larger and more complex optimization problems, attracting industries that require high-performance optimization solutions.
Based on technology, the market is bifurcated into quantum annealing, superconducting qubit, trapped ion, and others. Based on vertical, the market is categorized into banking, financial services and insurance (BFSI), healthcare & life sciences, IT and telecommunications, manufacturing, government, aerospace & defense, and others.
North America is the Dominating Region Owing to Robust Industry Infrastructure
North America has emerged as the dominant player in the quantum computing market, primarily due to its strong ecosystem comprising renowned quantum research institutions, technology companies, and government initiatives. This region's leadership position can be attributed to the significant investments made by both public and private sectors, as well as the strategic partnerships established between industry leaders and start-ups. These collaborative efforts have propelled the development and implementation of quantum technologies, positioning North America as a global leader in this field.
In terms of investments, North America has witnessed substantial funding in quantum computing research and development. For instance, in 2022, the United States government allocated over $1 billion in funding for quantum research initiatives, emphasizing the significance of quantum technologies in driving technological advancements. This financial support has fostered the growth of quantum research institutions, such as IBM Q Network and Microsoft Quantum Network, which have played a crucial role in advancing quantum computing capabilities.
Furthermore, strategic collaborations between established technology companies and emerging start-ups have further fortified North America's dominance in the market. For instance, IBM has formed partnerships with various organizations, including JPMorgan Chase and Daimler AG, to explore the potential applications of quantum computing in finance and automotive industries. These partnerships enable the exchange of expertise and resources, accelerating the development and deployment of quantum technologies.
Asia-Pacific is the Fastest Growing Region Owing to Booming Technology Sector
The Asia-Pacific region is witnessing significant growth in the quantum computing market fueled by various factors. Governments in the region recognize the potential of quantum technologies and are actively investing in research and development to stimulate innovation and enhance their competitive advantage. For instance, China's National Key R&D Program has allocated $10 billion to support quantum research and development, while Japan's Ministry of Education, Culture, Sports, Science and Technology has set aside $276 million for quantum technology initiatives.
Moreover, the Asia-Pacific region boasts a robust technology sector, with established companies and start-ups alike focusing on quantum computing. Large technology firms such as Alibaba, Huawei, and Samsung are actively investing in quantum research and exploring potential applications. This strong technology ecosystem, coupled with a growing pool of skilled researchers and engineers, contributes to the region's rapid progress in quantum computing.
Furthermore, the increasing demand for quantum applications across various industries in the Asia-Pacific region is driving market growth. To cite an instance, quantum computing has the potential to revolutionize fields such as finance, logistics, and drug discovery. This growing market for quantum applications presents abundant opportunities for both local and international players, positioning Asia-Pacific as a key region in the global quantum computing landscape.
Competitive Landscape
The global fraud detection and prevention market is fragmented with key players such as Microsoft, IBM Corporation, Riverlane Ltd., D-Wave Systems Inc., Google LLC, Amazon Web Services, Inc., Rigetti & Co, Inc., Quantum Circuits, Inc., Huawei Technologies Co., Ltd., ANT GmbH, amongst others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.
The global Quantum Computing & Technologies Market is segmented as follows:
By Component
- Hardware
- Software
- Services
By Deployment
- Cloud-based
- On-premises
By Application
- Optimization
- Machine Learning
- Simulation & Data Modelling
- Cyber Security
- Others
By Technology
- Quantum Annealing
- Superconducting Qubit
- Trapped Ion
- Others
By Vertical
- BFSI
- Healthcare & Lifesciences
- IT & Telecommunications
- Manufacturing
- Government
- Aerospace & Defense
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global Quantum Computing Technologies Market Size
- May-2022
- 160
- Global
- information-technology-communication-iot
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