; Quantum Computing Market Size, Share, Trend, Forecast, 2034

Quantum Computing Market

Quantum Computing Market Size, Share, and Analysis, By Component (Hardware, Software, and Services), By Deployment (On-Premise and Cloud), By Application (Optimization, Machine Learning, Financial Services, and Others), By End User (Healthcare, BFSI, Automotive, Energy & Utilities, Chemical & Manufacturing, and Others), By Region (North America, Europe, Asia-Pacific, And Rest of the World, And Regional Forecast 2024-2034

Published on: Apr-2024
Report Code: FG ICT 01935
No. of Pages: 170-350
Report Format: PDF

Quantum Computing Market is anticipated to grow at a CAGR of 33.7% in the forecast period (2024-2034), with the market size valued at USD 0.94 billion in 2023 and projected to reach USD 23.32 billion by 2034.

Product Overview

Quantum computing is a ground-breaking technology that uses the principles of quantum mechanics to execute various computation operations. Quantum computers use quantum bits, or qubits, as the fundamental unit of information, as opposed to classical computers, which use bits. Qubits can exist in numerous states at the same time, which is called superposition, and they can even become entangled due to which their states are interconnected regardless of distance. These unique properties empower quantum computers to solve complex problems at exponentially faster rates than classical computers. In addition, quantum computing shows promising potential in tackling computationally difficult challenges across various domains, such as cryptography, drug discovery, and materials science. However, quantum computing also presents significant hurdles related to stability and error correction, which researchers are actively addressing.

Market Highlights

Quantum Computing Market is expected to exhibit a CAGR of 33.7% during the forecast period, 2024-2034

Quantum computing market is anticipated to reach USD 23.32 billion, growing at a CAGR of 33.7% during the forecast period, attributed to the growing investments from governmental bodies and private enterprises. The expansion of the quantum computing market is driven by the promising potential of this technology to alter several industries ranging from healthcare to finance. Moreover, innovations in quantum hardware and software, along with a growing demand to solve complex problems, are serving as major catalysts for the growth of the market. Furthermore, collaborations among major technology companies and academic institutions are actively promoting innovation and accelerating commercialization efforts in the industry. Therefore, as quantum computing continuously evolves and overcomes technical challenges, it will provide extraordinary computational power, leading to disruptive technological breakthroughs and multibillion-dollar valuations during the forecasted period.

Source: Fatpos Global

Quantum Computing Market Segmentation

Quantum Machine Learning segment will lead due to its diverse applications across various industries

Quantum Computing Market is divided based on Application into Optimization, Machine Learning, Financial Services, and Others. The machine learning segment is anticipated to lead the quantum computing market due to its wide-ranging applicability and potential across various industries. Machine learning algorithms are specialized at gathering insights from large datasets, which is often considered an overwhelming task for classical computers. Quantum computers can quickly handle and analyze complex data, which leads to major improvements in how machines learn and understand things. Additionally, quantum machine learning has the potential to substantially benefit industries including banking and healthcare, thereby resulting in greater adoption and investment in this industry. Consequently, machine learning applications will play a major role in exploring the full potential of quantum computing as the technology continues to develop and resolve technical obstacles.

Hardware segment will dominate as it includes essential components of cloud computing market

Quantum Computing is segmented based on Components into Hardware, Software, and Services. The hardware segment is positioned to dominate the quantum computing market as it includes the fundamental infrastructure required for quantum computing operations. The capabilities and performance of quantum computing systems are directly impacted by the hardware sector, as opposed to software and services, which depend on hardware for their operation. In addition, reliable and effective quantum computers are being developed due to the ongoing improvements in quantum hardware, such as qubit coherence and better connectivity. Subsequently, large investments are directed toward improving quantum hardware components to enhance their computational power and stability. Therefore, with increasing demand for faster and more dependable quantum computing systems across various industries, the hardware segment will maintain its leadership by promoting innovation and transforming the growth trajectory of quantum computing technology.

Market Dynamics

Growth Drivers

Recent Breakthroughs in Research Has Contributed to the Growth of the Market

Research revolutions in quantum computing include significant discoveries and innovations in both hardware and software domains. These improvements are mostly focused on improving qubit coherence, which refers to the stability and longevity of qubit quantum states. This coherence is essential for maintaining the accuracy of quantum computations. In addition, developments in error correction techniques have been crucial in reducing errors caused by external noise and environmental disturbances in quantum systems. These technological breakthroughs propel the growth of the quantum computing market by enhancing the performance and capabilities of quantum systems. Furthermore, they attract investments and expand the scope of potential applications across various industries, thereby encouraging innovation and economic growth.

Applications of Quantum Computing Across Industries are Driving Expansion

Quantum computing offers diverse applications across various industries, such as finance, healthcare, logistics, and cybersecurity. In the finance sector, quantum computing has the potential to transform portfolio optimization and fraud detection processes by analyzing large datasets and resolving complex optimization challenges. Similarly, in healthcare, it can accelerate drug discovery, improve treatment strategies, and inspect genomic data. In addition, logistics and supply chain management benefit from quantum computing due to its ability to improve routes and simplify supply chain networks. In cybersecurity, quantum computing could strengthen encryption methods and improve security protocols. Therefore, the vast spectrum of applications across various industries propels the expansion of the quantum computing market by attracting investment and promoting its wider adoption.

Restraints

Technical challenges present an important obstacle to the adoption of quantum computing

Quantum computing faces major technical challenges, which limits its vast adoption and commercialization. Qubit coherence is required for precise quantum calculations but is difficult to maintain as qubits are susceptible to ambient noise, leading to decoherence and computational mistakes. Additionally, scaling quantum systems to manage several qubits while maintaining coherence is an extremely difficult task. Furthermore, addressing these challenges needs improvements in materials science, along with engineering and quantum error correction methods. Therefore, it is extremely important to tackle these problems to realize the full potential of quantum computing and integrate it into real-world applications.

Recent Developments

  • In 2023, IBM introduced the Quantum System One – a commercially available, on-premises quantum computer for enterprise clients. They have also announced the Quantum Accelerator initiative, offering access to its most advanced quantum processors via the cloud.
  • In 2023, Google upgraded their Sycamore quantum processor to 53 qubits and achieved quantum supremacy on the new benchmark. The company has collaborated with BMW and other companies on a quantum computing research project for automotive applications.
  • In 2023, Microsoft Released the Azure Quantum Service, which offers access to various quantum hardware and software tools. They have also introduced Quantum Intermediate Representation (QIR) – a standard language for describing quantum programs.
  • In 2023, Rigetti Computing unveiled Aspen-M, a commercially available quantum computer with 80 qubits. They have focused on developing Quantum Virtual Machines for simulating quantum hardware on classical computers.
  • In 2023, IonQ Announced the Quantum IonQ system, a trapped-ion quantum computer available for cloud access. The company has successfully acquired PASQAL, a French quantum software company, expanding its software expertise.

Quantum Computing Market

Key Players:

  • IBM
  • Google
  • Microsoft
  • Rigetti Computing
  • IonQ
  • D-Wave Systems
  • Alibaba Quantum Lab
  • Honeywell Quantum Solutions
  • QuTech
  • Quantum Brilliance
  • Orca Computing
  • Pasqal
  • Xanadu
  • Raytheon
  • Intel
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Quantum Computing Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region is expected to dominate the quantum computing market due to its vibrant ecosystem for technological innovation, which is driven by leading research institutions and government support. Furthermore, North America has a strong venture capital network, which encourages investment in quantum start-ups and commercialization efforts.

Source: Fatpos Global

Impact of Covid-19 on Quantum Computing Market

Covid-19 pandemic has left a notable impact on the quantum computing market, as it presented a mix of challenges and opportunities. Global disruptions in supply chains resulted in shortages of necessary components for building quantum computers. Moreover, economic uncertainties during the pandemic have prompted corporations to reevaluate their investments, which resulted in setbacks for quantum development efforts. Furthermore, travel restrictions and social distancing measures have hindered in-person collaborations among researchers and engineers, which slowed innovations in various aspects of quantum computing research and development. However, amid these challenges, the pandemic accelerated the demand for innovative solutions across industries. This highlighted the potential of quantum computing to perform various tasks such as drug discovery, material sciences, and financial modeling.

Quantum Computing Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Quantum Computing Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 33.7% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Component

  • Hardware
  • Software
  • Services

By Deployment

  • On-Premise
  • Cloud

By Application

  • Optimization
  • Machine Learning
  • Financial Services
  • Others

By End User

  • Healthcare
  • BFSI
  • Automotive
  • Energy and Utilities
  • Chemical and Manufacturing
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions (FAQ):

Quantum Computing Market size was valued at USD 0.94 billion in 2023 and is projected to reach the value of USD 23.32 billion in 2034, exhibiting a CAGR of 33.7% during the forecast period.

Quantum computing is based on the principles of quantum mechanics to process information, which provides a different approach to classical computing.

The Hardware segment and Machine Learning segment accounted for the largest Quantum Computing Market share.

Key players in the Quantum Computing Market include IBM, Google, Microsoft, Rigetti Computing, IonQ, D-Wave Systems, Alibaba Quantum Lab, Honeywell Quantum Solutions, QuTech, Quantum Brilliance, Orca Computing, Pasqal, Xanadu, Raytheon, Intel, and Other Prominent Players.

Recent breakthroughs in research and diverse applications of quantum computing are responsible for driving the growth of the Quantum Computing Market.

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