Quantum Computing Market Size, Share & Growth

Updated on : October 23, 2024

Quantum Computing Market Size & Growth 

[237 Pages Report] The global quantum computing market size will be valued at USD 1.3 billion in 2024 and USD 5.3 billion by 2029, growing at a CAGR of 32.7% during the forecast period from 2024 to 2029. This quantum computing report provides an in-depth analysis of the current state of quantum computing and its potential future growth. The growth of quantum computing technology is divided into short-term, mid-term, and long-term terms. Companies in the quantum computing market are focusing on quantum error correction in the short term.

The mid-term goal for quantum computing technology is to do error correction. In the long term, companies in quantum computing are expected to focus on the modification of the architecture of the technology.

Quantum computing companies like IBM and Google, among others, have announced individual roadmaps toward developing quantum computing technology. From 2023, visionaries such as IBM plan to bring dynamic circuits to the Qiskit Routine to improve accuracy, reduce required resources, and create a scalable computation system by 2026.

As of 2023, industries like automotive & transportation, healthcare and pharma, and financial services are a few of the industries that have adopted quantum computing for various quantum computing applications like quantum optimization, quantum simulation, and quantum machine learning. Like in financial services, quantum computing is used for derivative pricing, portfolio and trading optimization, and risk management, among others.

Quantum Computing Market Statistics and Forecast to 2029

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Quantum Computing Market Trends

Driver: Rising quantum computing investments in quantum computing technology

The quantum computing ecosystem surrounding quantum computing is expanding rapidly. This technology has applications in geophysics, medical imaging, and navigation systems. Governments of countries like the US, Australia, and the European Union are working on quantum computing initiatives and investments. For instance, in January 2023, the government of Canada announced a plan to invest ~USD 355 million in initiatives to develop quantum talent, advance quantum technology applications, and commercialize quantum computing.

Restraint: Stability and error correction issues

Quantum computing is one of the fastest-growing technologies in the world, but some restrictions restrict its development. The information available in quantum computing is complex and difficult to keep stable. Like in classic computers, the information is either 0 or 1. But in quantum computers, the quantum bits exist simultaneously in a superposition of both states. This condition makes them suitable for errors from environmental noise and hardware imperfections.

Opportunity: Technological advancement in quantum computing technology

Quantum computing is a growing technology that has the opportunity to make computing faster. These devices can perform valuable tasks but have a high rate of error. In short-term quantum computing, use cases will have a hybrid quantum operating model, a mix of traditional and quantum computers. In the short term, also known as the NISQ era, the revenue for quantum computing will be entirely generated from end-user industries and quantum computing research investments. Mid-term quantum computing is expected to witness many advantages over conventional computers. To achieve this stage, quantum algorithms with a high error correction ability are required. Long-term quantum computing requires a high tolerance for error correction and scalability. At this stage, the value will be added by the quantum hardware, quantum software, and service providers.

Challenge: Shortage of quantum computing technology skilled working professional

Quantum computing technology is a growing technology. Technology development requires specialists who know quantum mechanics and have computer science and mathematics expertise. The professional should also understand quantum programming and machine learning, among other technologies, to keep up with the fast-growing field of quantum computing. Companies working in the field of quantum computing face the challenge of hiring talent with a good understanding of the technology, and hence, it is one of the significant quantum computing challenges for the market.

Quantum Computing Market Segmentation:

Quantum Computing Market Share

Systems segment to account for highest CAGR of the quantum computing market during the forecast period

Quantum computer systems are designed to solve complex problems that traditional computers find difficult. Constant investments and development in quantum computing systems are driving the market during the forecast period. Quantum computing hardware launches are becoming increasingly common. The shipment of quantum computing systems is increasing daily. For instance, in the year 2023, 2 quantum computers were shipped.

In recent years, many companies have released quantum computing hardware, including IBM, Google, Microsoft, Intel, and Rigetti Computing..

Cloud segment to register the highest market size during the forecast period.

The cloud segment is projected to account for a larger share of the quantum computing industry than the on-premises segment from 2024 to 2029. Cloud based quantum computing services provide access to quantum processors and other quantum computing resources. Over the past decade, the enterprises that carry out data processing within their facilities have shifted a significant portion of their IT load to specialized cloud services such as Amazon Web Services, Microsoft Azure, and Google Cloud. A few enterprises are using the hybrid cloud that uses private computer resources belonging to enterprises and public cloud-based services.

The quantum machine learning segment will have the highest CAGR in the quantum computing market during the forecast period

The market for machine learning technology is expected to have the highest CAGR during the forecast period. Machine learning in quantum computing is used to optimize its operations by solving complex problems faster than traditional computers. For instance, companies like IQBit (Canada) offer Optimization, Simulation, and Machine Learning Molecular Similarity (GMS) tools for virtual screening and assisting in drug discovery for pharmaceutical companies.

Quantum Computing Market Regional Analysis

Asia Pacific to hold the largest share of the quantum computing market during the forecast period.

The demand for the quantum computing market share is expected to have the largest share in the Asia Pacific region. Companies working in the area's quantum computing market and the government are spending money on research in quantum computing.The race to build powerful quantum computers is heating up with big money bets.The race to build powerful quantum computers is heating up with big money bets. Tech giant IBM is throwing down a cool USD 100 million to help universities in Japan and the US develop whopper machines with 10,000 qubits.

Quantum Computing Market by Region

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Top Quantum Computing Companies - Key Market Players:

The quantum computing companies is dominated by a few globally established players such

• IBM (US),
• D-Wave Quantum Inc. (Canada),
• Microsoft (US),
• Amazon Web Services (US),
• Rigetti Computing (US),
• Fujitsu (Japan),
• Hitachi (Japan),
• Toshiba (Japan),
• Google (US),
• Intel (US),
• Quantinuum (US),
• Huawei (China),
• NEC (Japan),
• Accenture (Ireland),
• Nippon Telegraph and Telephone (Japan),
• Bosch (Germany),
• Quantum Computing Inc (US),
• IonQ (US), QC Ware (US),
• PsiQuantum (US),
• Alpine Quantum Technologies GmbH (Tyrol),
• Xanadu (Canada),
• Zapata Computing (US), and
• Northrop Grumman (US).

Quantum Computing Market Report Report :

Quantum Computing Market Highlights

Recent Developments in Quantum Computing Industry : 

• In February 2024, D-Wave has made their 1,200+ qubit Advantage prototype available via their Leap real-time quantum cloud service. This allows existing Leap subscribers to gain immediate access to the new hardware, and new users can sign up for Leap and receive up to one minute of complimentary use of the Advantage2 prototype alongside other quantum processing units (QPUs) and solvers offered by the platform
• In November 2023, Rigetti Computing has secured Phase 2 funding from DARPA (Defense Advanced Research Projects Agency). These USD 1.5 million (potential) grants will support Rigetti in developing benchmarks to measure the performance of large-scale quantum computers for real-world applications.

Frequently Asked Questions (FAQs):

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