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Quantum Computing Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, Services), By Deployment (On-premise, Cloud), By Application (Machine Learning, Optimization, Biomedical Simulations, Financial Services, Electronic Material Discovery, Others), By End-user (Healthcare, Banking, Financial Services and Insurance (BFSI), Automotive, Energy and Utilities, Chemical, Manufacturing, Others), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI104855



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The quantum computing market size was valued at USD 554.6 million in 2021 and is projected to grow from USD 712.2 million in 2022 to USD 4,758.0 million by 2029, exhibiting a CAGR of 31.2% during the forecast period. Based on our research, the global market exhibited a higher growth of 27.7% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with quantum computing experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

Quantum computing is a part of computer science that adopts the principles of quantum theory. It is an advanced technology emerging rapidly that follows the laws of quantum mechanics to resolve more complex problems for classical computers. Quantum computer has been used for computing based on quantum physics ideas. It differs from traditional computing in speed, bits, and data. Classical computing employs two bits, 0 and 1, but the system uses all states between 0 and 1, resulting in superior results and faster processing. The system is mainly used to compare several solutions and identify the best one for a complicated problem.

Key industry players, including IBM Corporation, D-Wave Systems Inc., Microsoft Corporation, and Intel Corporation are offering these computing services. Key market players are focusing on expanding their business units across developing nations. For instance, in June 2022, Xanadu launched Borealis, which outperforms the most promising classical supercomputers at distinct tasks and is available to users everywhere through Amazon Braket and Xanadu Cloud. It is a programmable photonic quantum computer with a quantum computational edge of 216 squeezed-state qubits.


Industry Share Increased Due to Significant Growth Opportunities for Market Players 

The COVID-19 outbreak significantly impacted the expansion of computing services worldwide. Since the global shutdown, according to McKinsey, the pandemic phase represented that the funding for quantum technology-focused startups doubled from USD 700 million in 2020 to USD 1.4 billion in 2021. In the second half of 2021, the share of investments in quantum computing from private and venture capital entities showcased a significant rise. This rise accounted for over 70% of investments, demonstrating growing confidence across companies that the technology will provide positive outcomes.  

Additionally, various companies operating in the market completed an Initial Public Offering (IPO) through special purpose acquisition companies. These companies allow businesses operating in the market to avoid the IPO process, saving money and time and scaling down regulatory oversight. For instance, IonQ was the first company to become the “first publicly traded, pure-play quantum computing company”. IonQ was followed by companies such as Rigetti, Arqit, and D-Wave. This strategy adopted by several pure-play quantum companies during the pandemic years is expected to nurture a promising future for the market in the coming years.


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Increase in Number of Patent Filings by Key Players in Quantum Technologies to Aid the Market Growth

Quantum computing is an evolving high-tech technology. Patent filings for quantum technologies have been increasing rapidly in recent years. The increasing expansion of the quantum ecosystem can be achieved by examining the number of patent applications filed by different firms worldwide.

Patents and investments are shaping the future by developing enhanced technologies. For instance, in September 2021, AMD filed a teleportation patent to power up quantum computing. The model proposed in the patent is intended to enhance the stability and scalability issues by reducing the number of qubits required for precise calculations.


Rising Investments in Quantum Computing Technology by Governments to Aid Growth

Government organizations across the globe are making major investments in quantum technologies to encourage companies and end-users to harness the power of these technologies. They are also promising noteworthy funding to advance quantum technologies domestically.

For instance, China has been heavily investing in the R&D of various computing technologies. It has announced around USD 15 billion in funding, which is anticipated to be more than all other governments. Computing ventures are being pursued by the governments of Australia, the U.S., and developed nations in the European Union.

Increasing Number of Strategic Alliances to Fuel Market Growth

In addition to increasing investments in quantum technologies, the market leaders are increasingly searching for relevant collaborations and partnerships to carry out computing developments, develop practical applications, and establish a future quantum workforce. Companies adopting this strategy help them combine the best of their quantum concepts and capabilities with other established partners and technologies. With this, companies will be able to create better solutions at scale and speed.

Several corporations, including Riverlane, Google LLC, and Pasqal are collaborating with quantum experts across the globe to enhance their quantum capabilities. For instance, in June 2022, Riverlane and Rigetti Computing partnered to tackle syndrome extraction on superconducting quantum computers. Similarly, in January 2022, Pasqal partnered with Qu&Co to merge into one company under the Pasqal brand and will be based in Paris.


Talent Shortage across the Globe to Hinder Growth

Quantum computing is still an emerging concept, and there is an increasing talent shortage among regions worldwide. According to a McKinsey report, there could be a demand for around 10,000 quantum skilled workers but a supply of under 5,000 by 2025. This factor is expected to hinder the quantum computing market growth in the coming years. However, to mitigate these risks, there is a rising number of schools and training programs such as the University of Chicago establishing quantum PhD programs.


By Component Analysis

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Hardware to Dominate owing to Rising Product Demand in BFSI and Research Industries

Based on component, the market is categorized into hardware, software, and services. Hardware is expected to grow significantly as hardware is a significant bottleneck in the ecosystem. Multiple quantum-computing hardware platforms are currently in development. The most advanced are superconducting circuits and trapped ions, on which all commercially available quantum computers are based. Other promising platforms are photonic networks, spin qubits, and neutral atoms.

The software and services segments are anticipated to grow in the near future due to the rise in the number of startups around the world and heavy investments in R&D activities related to computing technology. This information technology is used in deep learning, optimization, and simulation applications, resulting in more efficient operations and lower operating costs in various sectors.

By Deployment Analysis

Increasing Adoption of Cloud Technology to Propel Market Growth

Based on deployment, the market is categorized into cloud and on-premise. The cloud segment is anticipated to lead the market during the forecast period. The need for cloud-based computing solutions and services is likely to increase as more robust systems are developed. Google is highly investing and researching quantum technologies and is anticipated to launch an enhanced cloud computing service in the coming years. In addition to more extensive solutions from the major market players, several alternative methodologies to implement quantum computers are being provided through the cloud. Another factor driving the popularity of cloud-based services and systems is the freedom of access provided to users.

By Application Analysis

Machine Learning Segment to Gain Traction due to Rising Popularity of Such Computing

By application, the market is categorized into optimization, biomedical simulations, machine learning, financial services, electronic material discovery, and others (traffic optimization, weather forecasting, and others). Machine learning segment accounts for the major quantum computing market share during the forecast period. It enables users in discovering the estimation of quantum system features, quantum error-correcting codes, and the development of novel quantum algorithms.

Financial services segment is anticipated to have a significant growth rate during the projection period. With rising competition to gain more consumers, startups across healthcare and BFSI are focused on adopting these services to enhance their offerings over cloud channels.

By End-user Analysis

Increasing Adoption of Such Computing in Banking Financial Services and Insurance to Propel the Market Growth 

Based on end-user, the market is categorized into healthcare, automotive, Banking, Financial Services and Insurance (BFSI), chemical, energy and utilities, manufacturing, and others (transportation, logistics, and others). BFSI is expected to hold the maximum market share during the quantum computing market forecast period. Furthermore, quantum computing is gaining traction in the healthcare sector as according to the medical futurist, the computing technology can fuel the creation of virtual environments where professionals can analyze variables such as body fluids, electrolytes, circulation, metabolism, and skin temperature on digital replicas of humans.

The healthcare and research sectors are expected to witness significant revenue growth in the coming years. Computing services are deployed in the healthcare and research industries to manage various applications such as processing big healthcare data and quick DNA sequencing. The sector is particularly interested in quantum-enhanced machine learning methods.


North America Quantum Computing Market Size, 2021 (USD Million)

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Geographically, the market is segmented across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America has seen a noteworthy growth in the market owing to a highly competitive landscape and the early adoption of advanced technologies. The cloud adoption readiness rate of countries across the regions and end-users’ readiness to develop advanced services have positively impacted the market growth across North America.

Europe is expected to have significant growth as the region has increasing start-ups operating on the technology. Further, digital government regulatory environments and initiatives and increased usage of cloud-based technology in the region are anticipated to drive the market growth and technological advancements. In Europe, compared to 2020, the use of cloud computing has escalated by 5% in 2021. Owing to these reasons, the region is expected to promise healthy market growth in the coming years.

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Major businesses in Asia Pacific comprise banking and finance, healthcare, and chemicals. The manufacturers in the region of electronics, such as mobile phones, laptops, and gaming consoles, are in South Korea, China, and Japan. Across these industries, there is a need to tackle issues in simulation, machine learning, and optimization applications. The region's medium-sized and large enterprises are profiting from the fast expansion of Asia Pacific’s growing economies and increased use of new technologies in the industrial sector. As a result, Asia Pacific sees increased demand for these quantum services and systems, further positively influencing the growth of the market.


Market Value to Rise Due to Growing Emphasis on Partnerships and Acquisitions by Key Players

  • July 2022 - ORCA Computing announced plans to partner with a company based in Israel, Quantum Machines. The companies intend to begin a newly announced Israeli computing center with this association.

  • March 2022 - Pasqal partnered with Microsoft, intending to offer cloud-based access to the company’s neutral-atom-based quantum computers on Azure Quantum.  

List of Key Companies Profiled:


  • September 2022 – Quix Quantum secured a contract to deliver 64 and 8 qubit universal quantum computers with the German aerospace center. These systems will be based on photonics, integrating the existing technologies from their processors with feedforwards, sources, and detectors.

  • September 2022 – Alpine Quantum Technologies GmbH launched Beech, a completely digital, rack-compatible laser frequency stabilization module for up to four different wavelengths.

  • June 2022 – ORCA Computing is working with the U.K. Ministry of Defense (MoD) to enhance future data processing capabilities. The company will use ORCA's PT-1 model, the first computer-based on-premises and capable of operating at room temperature.

  • March 2022 – Quix Quantum launched a photonic quantum processor developed at the company’s facility. It outperforms the current generation of processors by almost a factor of two. This processor has a record number of qumodes (20) and the highest operating specifications.

  • February 2021 - ParityQC and eleQtron collaborated on ion-trap quantum computing. These businesses are working with an association to develop ion-trap computing demonstrators for the funded ATIQ project.


An Infographic Representation of Quantum Computing Market

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The research report highlights leading regions worldwide to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

Report Scope and Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Million)


By Component, Deployment, Application, End-user, and Region

By Component

  • Hardware

  • Software

  • Services

By Deployment

  • On-Premise

  • Cloud

By Application

  • Machine Learning

  • Optimization

  • Biomedical Simulations

  • Financial Services

  • Electronic Material Discovery

  • Others (Traffic Optimization, Weather Forecasting, and Others)

By End-user

  • Healthcare

  • Banking, Financial Services and Insurance (BFSI)

  • Automotive

  • Energy and Utilities

  • Chemical

  • Manufacturing

  • Others (Transportation, Logistics, and Others)

By Region

  • North America (Component; Deployment; Application; End-user; and Country)

    • U.S. (By Component)

    • Canada (By Component)

    • Mexico (By Component)

  • South America (Component; Deployment; Application; End-user; and Country)

    • Brazil (By Component)

    • Argentina (By Component)

    • Rest of South America

  • Europe (Component; Deployment; Application; End-user; and Country)

    • U.K. (By Component)

    • Germany (By Component)

    • France (By Component)

    • Italy (By Component)

    • Spain (By Component)

    • Russia (By Component)

    • Benelux (By Component)

    • Nordics (By Component)

    • Rest of Europe

  • Middle East & Africa (Component; Deployment; Application; End-user; and Country)

    • Turkey (By Component)

    • Israel (By Component)

    • GCC (By Component)

    • North Africa (By Component)

    • South Africa (By Component)

    • Rest of MEA

  • Asia Pacific (Component; Deployment; Application; End-user; and Country)

    • China (By Component)

    • India (By Component)

    • Japan (By Component)

    • South Korea (By Component)

    • ASEAN (By Component)

    • Oceania (By Component)

    • Rest of Asia Pacific

Frequently Asked Questions

According to Fortune Business Insights, the global market is expected to reach USD 4,758.0 million by 2029.

Fortune Business Insights says that the market value stood at USD 554.6 million in 2021.

The market is expected to grow at a CAGR of 31.2% in the forecast period (2022-2029).

By component, the software segment is expected to lead the market during the forecast period.

One of the prominent factors driving the market is the rise in number of quantum software providers.

IBM Corporation, Google LLC, Intel Corporation, Microsoft Corporation, D-Wave Systems Inc., Rigetti & Co, Inc., IonQ, XANADU, and Pasqal are the top companies in the market.

By end-user, Banking, Financial Services and Insurance (BFSI) segment holds the major market share.

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