Quantum Computing Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Germany, India - Size and Forecast 2024-2028

Quantum Computing Market Size 2024-2028

The Global Quantum Computing Market size is estimated to grow by USD 17.34 billion, at a CAGR of 26.37% between 2023 and 2028. The expansion of the market is influenced by several key factors. Firstly, increased spending from stakeholders plays a crucial role, as higher investment levels typically drive market growth. Additionally, the adoption of quantum cryptography solutions is significantly impacting the market. Quantum cryptography offers enhanced security features that are becoming increasingly vital for protecting sensitive information in various sectors. Another important factor is the advent of supercomputers. These advanced systems, capable of performing a billion calculations per second, represent a significant leap in computing power and open up new possibilities for data analysis, scientific research, and complex problem-solving. Together, the rising expenditure from stakeholders, the growing use of quantum cryptography, and the development of exascale supercomputers are pivotal in driving the market forward, creating opportunities and advancements that are shaping its trajectory.

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

To learn more about this Quantum Computing market report, Request Free Sample

Quantum Computing Market Dynamics and Customer Landscape

The market is rapidly expanding, fueled by advancements in quantum hardware development and quantum technology. Companies like AMD are driving innovation in this space, while quantum initiatives from tech giants are pushing the boundaries of quantum physics and quantum mechanics. The rise of Cloud computing services, including Xanadu Cloud, is making quantum computing as a service more accessible, revolutionizing performance intensive computing workloads. Generative AI and artificial intelligence are benefiting from these advancements, promising significant gains in quantum advantage. However, the sector faces challenges such as error mitigation and suppression techniques to enhance qubit stability. Patent filings reflect the growing interest and investment in this field, despite broader macroeconomic factors affecting customer spend. As quantum computing hardware continues to evolve, it holds the potential to transform various industries by offering unprecedented computational power and capabilities. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. The market research and growth report provides a holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key 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 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.

Moreover, AI and machine learning will be some of the biggest applications of quantum computers. Artificial Intelligence 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 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.

Moreover, 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 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 2.43 billion in 2018. 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.

Key Regions

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

North America is estimated to contribute 37% 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.

Further, 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.

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.

The Quantum Computing market growth analysis 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 Quantum Computing market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Deployment Outlook
  • Cloud
  • On-premise

• End-user Outlook
  • Aerospace and defense
  • Government
  • IT and telecom
  • Others

• Region Outlook
  • 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

Market Analyst Overview

The Quantum Computing market is experiencing transformative growth, driven by breakthroughs in quantum theory and quantum information science. Key developments include quantum-accelerated AI drug discovery and quantum machine learning techniques for biomedical simulations and chemical research. Companies like Terra Quantum are pioneering quantum photonic processors and quantum networking to advance electronic material discovery and energy optimization. The rise of quantum simulators and quantum algorithms is revolutionizing sectors such as financial services, manufacturing, and telecommunications. Error correction techniques and hybrid algorithms are addressing security concerns and enhancing quantum computing resources. Product innovation and strategic partnerships are crucial for advancing quantum AI algorithms and quantum annealing algorithms. As quantum computing software and programming languages evolve, so do applications in space and defense systems, risk analysis, and traffic optimization. Despite data security challenges, the market promises to redefine high-performance computing and consumer technology markets.

Request PDF sample

What are the Key Data Covered in this Quantum Computing Market Forecasting 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