Quantum Computing Market by Deployment, End-user and Geography - Forecast and Analysis 2023-2027

Quantum Computing Market Report Summary

Global Quantum Computing Market size is estimated to grow by USD 9,013.68 million between 2022 and 2027 accelerating at a CAGR of 18.84% during the forecast period. The growth of the market depends on several factors including the rise in expenditure from stakeholders, along with the increasing utilization of quantum cryptography and the emergence of exascale supercomputers, which are factors contributing to this driver.

This report extensively covers market segmentation by deployment (cloud and on-premise), end-user (aerospace and defense, government, IT and telecom, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Quantum Computing Market During the Forecast Period?

To learn more about this report, Request Free Sample

Quantum Computing Market: Key Drivers, Trends, Challenges, and Customer Landscape

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Quantum Computing Market Driver

The market growth is being notably driven by the growing utilization of quantum cryptography, which is a technique for secure code-writing and solving. Quantum cryptography offers the highest level of security for transmitting even the most critical data, and with the advent of quantum computers, vast amounts of encrypted data can be processed at incredibly high speeds. Furthermore, quantum computing can decrypt encrypted data into plain text in a matter of seconds, whereas classical computers might take years to do so. This decryption process is achieved by increasing the length of keys with more bits, which provides heightened security. However, there is a concern that hackers may also use quantum computers to decrypt sensitive information, which has prompted many governments to invest millions of dollars in developing quantum computers with top-notch security features. At the same time, efforts are also underway to develop mathematical programs that prevent quantum computers from decrypting data.

Significant Quantum Computing Market Trends

The growth of AI and machine learning is the primary trend in the market. AI is a branch of science that deals with computers, machines, software, and computer-operated robots to think intelligently to find solutions for complex problems in a manner that is like how a human brain thinks. Machine learning is a type of AI that allows computers to self-learn. When a computer is exposed to new data, it can analyze it, make decisions, grow, and learn from this data.

AI and machine learning will be some of the biggest applications of quantum computers. AI requires fast processors to work, and the development of quantum computing processor chips will be used in AI applications as these processors will work at high speeds to compute data efficiently. Quantum computing will witness steady growth in the field of AI and machine learning mainly because AI issues involve difficult optimization and sampling problems, which can be solved in a matter of minutes by quantum computers.

Major Quantum Computing Market Challenge

The short lifecycle of supercomputers is the major challenge impeding the market growth. A supercomputer does not have a very long lifespan. In fact, it has a shorter lifespan than average electronic products, such as a home theatre or an Xbox 360. Industrial experts opine that this happens because a supercomputer can be categorized as world-class for two or two and a half years at the most, with it being a useful resource for another 3-4 years.

The cost of a supercomputer is very high, considering factors such as its maintenance, high heat generation that reduces the lifespan of components, and high power consumption. Thus, it is not wise to keep a supercomputer system for a long duration. Instead, a company can easily opt for a new system, which will have the latest hardware and other upgraded components. This can also be seen in the case of some of the fastest supercomputers. Therefore, the short lifespan of supercomputers may be a significant factor hindering the adoption of such systems.

What is the Fastest-Growing Segment in the Quantum Computing Market?

The market share growth of the cloud segment will be significant during the forecast period. Quantum computing on the cloud is a platform wherein firms can access quantum computing systems through a cloud network and, therefore, reduce the need for hardware and software. One of the major drivers of this segment is the low cost of entry. Since buyers do not need to invest in the hardware, it makes it highly attractive for companies. Speed of setup and implementation increases the attractiveness of a cloud-based quantum computing system.

Get a glance at the market contribution of various segments Request a PDF Sample

The cloud segment was valued at USD 2,063.52 million in 2017 and continued to grow until 2021. The increasing investments by several software giants to offer PC on the cloud as a service is a significant driver of the segment. These investments indicate a new area of revenue generation, which is based on a subscription fee model. Furthermore, enterprises integrate quantum computing capabilities by using quantum computing-as-a-service through the cloud to employ data analytics that allows the firm to make business decisions. This will further drive the market during the forecast period.

Which are the Key Regions for the Quantum Computing Market?

For more insights on the market share of various regions Request PDF Sample now!

North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The main driver for the growth of the market in North America is the presence of a substantial number of US-based customers. The main companies of quantum computers, D-Wave, which is headquartered in Canada, has sold quantum computing machines to major US-based clients such as Lockheed Martin, Google, NASA, and Temporal Defense Systems. Moreover, these firms have collaborations with D-Wave to upgrade to the latest machine once it has been developed. The growth of the market in North America is being driven by the fact that these US-based firms are getting access to quantum computers on their immediate release. In addition, these clients have high economies of scale and, therefore, have the finances and resources to adopt these technologies at a much faster pace compared to other regions.

Another vital reason for the growth of the regional market is the increased spending by the US government for the realization of quantum computers on a large scale. Quantum computers can encrypt and decrypt secure information at fast processing speeds. Once quantum computers are commercialized, hackers can use these computers to break into secure systems and steal sensitive data. Such cyberattacks are an area of major concern for the US government. Hence, they have increased their spending on quantum computing technology so that it can be developed at the earliest.

The economy of most countries in North America came to a complete halt owing to the COVID-19-induced lockdowns. Scientists from different US-based organizations used quantum computing systems to predict the protein structure of the SARS-CoV-2 virus that causes COVID-19. This helped not only in the development of vaccines but also in accelerating other research projects related to COVID-19. Therefore, the factors mentioned above increased the demand for quantum computing systems in the region. Furthermore, several countries in North America planned to take initiatives to put the economy back on track, which will increase the investments in the market and will propel the use of quantum computing systems and, in turn, the growth of the regional market during the forecast period.

Who are the Major Quantum Computing Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Rigetti and Co. LLC - The company offers quantum computing services which support new solutions to existing and emerging threats and also provide secure communications over untrusted networks to ensure the security reliability of the electrical grid. Under this segment, the company is involved in offering computers using cloud infrastructure and quantum computing services for artificial intelligence technology along with computational chemistry to various end users.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Anyon Systems Inc.
• Atos SE
• D-Wave Quantum Inc.
• Honeywell International Inc.
• ID Quantique SA
• International Business Machines Corp.
• IonQ Inc.
• Microsoft Corp.
• QC Ware
• QRA Corp.
• Quantica Computacao
• Quantinuum Ltd.
• Quantum Circuits Inc.
• Qubitekk Inc.
• Intel Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook (USD Million, 2017 - 2027)
  • Cloud
  • On-premise

• End-user Outlook (USD Million, 2017 - 2027)
  • Aerospace and defense
  • Government
  • IT and telecom
  • Others

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Quantum Computing Market Scope
Report Coverage	Details
Page number	143
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 18.84%
Market growth 2023-2027	USD 9,013.68 million
Market structure	Fragmented
YoY growth 2022-2023(%)	18.6
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	1QB Information Technologies Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Anyon Systems Inc., Atos SE, D-Wave Quantum Inc., Honeywell International Inc., ID Quantique SA, International Business Machines Corp., IonQ Inc., Microsoft Corp., QC Ware, QRA Corp., Quantica Computacao, Quantinuum Ltd., Quantum Circuits Inc., Qubitekk Inc., Rigetti and Co. LLC, and Intel Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Quantum Computing Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the quantum computing market between 2023 and 2027
• Precise estimation of the quantum computing market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of quantum computing market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch