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Quantum Computing Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Service), By Deployment (On-Premise and Cloud), By Application (Machine Learning, Optimization, Biomedical Simulations, Financial Services, Electronic Material Discovery, and Others), By End User (Healthcare, Banking, Financial Services and Insurance (BFSI), Automotive, Energy and Utilities, Chemical, Manufacturing, and Others), and Regional Forecast, 2023-2030

Last Updated :April 01, 2024 | Format: PDF | Report ID: FBI104855

 

KEY MARKET INSIGHTS

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The quantum computing market size was valued at USD 717.3 million in 2022 and is projected to grow from USD 928.8 million in 2023 to USD 6,528.8 million by 2030, exhibiting a CAGR of 32.1% during the forecast period (2023-2030). North America accounted for a market value of USD 308.2 million in 2022. Quantum computing is a subfield of computer science based on quantum theory. It is a cutting-edge technology that uses quantum mechanics to solve more difficult problems for classical computers and is rapidly developing. Quantum computers have made it possible to use concepts from quantum physics in computing. It differs from standard computing in terms of speed, data, and bits. Most of the time, the system is used to compare and select the best answer to a complex problem. 


Key industry players, including IBM Corporation, D-Wave Systems Inc., Microsoft Corporation, and Intel Corporation are offering these computing services. They 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.


COVID-19 IMPACT


Industry Share Increased Due to Significant Growth Opportunities for Market Players


The global expansion of computing services was significantly impacted by the COVID-19 outbreak. According to McKinsey, the pandemic phase signified that funding for startups focused on quantum technology doubled from USD 700 million in 2020 to USD 1.4 billion in 2021, following the global shutdown. The proportion of private and venture capital-backed investments in quantum computing increased significantly in the second half of 2021. Over 70% of investments were accounted for by this rise, indicating a growing belief among businesses in the technology's potential benefits.  


Hence, considering the above factors, Artificial Intelligence (AI), cloud computing, quantum computing, and other technologies are expected to be the disruptive technologies to enable future platforms.


LATEST TRENDS


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


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, AMD submitted a patent for teleportation in September 2021, to power quantum computing. By reducing the number of qubits needed for precise calculations, the patent's model aims to address issues of stability and scalability.


DRIVING FACTORS


Rising Investments in Quantum Computing Technology by Governments to Drive Market Expansion


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.


RESTRAINING FACTORS


Talent Shortage Across the Globe to Hinder Market Proliferation


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 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.


SEGMENTATION


By Component Analysis


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


The market is divided into software, hardware, and services according to component. Hardware segment held the dominant market share in 2022 as it is a major ecosystem bottleneck. Several hardware platforms for quantum computing are currently in development. Commercially available quantum computers are based on trapped ions and superconducting circuits, which are the most advanced. Neutral atoms, spin qubits, and photonic networks are all promising platforms.


The software and services segments are anticipated to grow in the near future due to rise in 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


The market is divided into cloud and on-premise by deployment type. During the forecast period, it is anticipated that the cloud segment will lead the market. As more robust systems are developed, the demand for cloud-based computing services and solutions is likely to rise. Google is expected to launch an improved cloud computing service in the coming years, and the company is investing heavily in and researching quantum technologies.


Cloud provides a number of alternative methods for putting quantum computers into use in addition to more comprehensive solutions from the major market players. The freedom of access offered to users is another factor driving the popularity of cloud-based services and systems.


By Application Analysis


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


The market is divided into biomedical simulations, optimization, machine learning, electronic material discovery, financial services, and others (traffic optimization, weather forecasting, and others). During the forecast period, the machine learning segment will hold the majority of the market share. Quantum error-correcting codes, the creation of novel quantum algorithms, and the estimation of quantum system features are all made possible by it.


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


BFSI Industry Players Focusing on Streamlining their Business Processes to Propel the Market Growth


Healthcare, automotive, BFSI, chemical, manufacturing, energy and utilities, and others (transportation, logistics, and others) are the end users of the market. During the forecast period, the BFSI segment is anticipated to hold the largest share of the market. In addition, the medical futurist claims that quantum computing can aid the formation of virtual environments in which specialists can examine variables, such as skin temperature, electrolytes, circulation, body fluids, and metabolism, on digital human replicas. This is one reason why quantum computing is gaining traction in the healthcare industry.


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.


REGIONAL INSIGHTS


North America Quantum Computing Market Size, 2022 (USD Million)

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The global market scope is classified across five regions, North America, Asia Pacific, Europe, the Middle East & Africa, and South America.


Due to the early adoption of advanced technologies and a highly competitive market, the North America quantum computing market share has experienced significant expansion and is the dominant one. The North American market's expansion has been positively impacted by end users' readiness to develop advanced services and the countries' readiness to adopt cloud computing.


Europe is expected to have significant growth as the region has an increasing number of 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 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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Healthcare, chemicals, and banking and finance are major industries in Asia Pacific. South Korea, China, and Japan are the regions' producers of electronic goods such as gaming consoles, mobile phones, and laptops. Simulation, machine learning, and optimization applications must be addressed across these industries. The rapid expansion of Asia Pacific's expanding economies and the increased use of new technologies in the industrial sector are providing opportunities for the region's medium-sized and large businesses. Quantum services and systems are in high demand in Asia Pacific, which has a positive impact on the market's expansion.


 KEY INDUSTRY PLAYERS


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


The leading players in the market are focusing on collaborations, partnerships, product innovation, and expansion of the market presence globally. The key players in the market include IBM Corporation, Microsoft Corporation, Intel Corporation, D-Wave Systems, QC Ware, Gogle LLC, and others developing innovative quantum solutions.


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


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


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS



  • September 2022: The German aerospace center awarded Quix Quantum a contract to supply universal quantum computers with 64 and 8 qubits. Photonics will serve as the foundation for these systems, which will combine processor-based technologies with feedforwards, sources, and detectors.

  • September 2022: Beech, a rack-compatible, digital laser frequency stabilization module for up to four distinct wavelengths, was launched by Alpine Quantum Technologies GmbH.

  • June 2022: ORCA Computing and the U.K. Ministry of Defense (MoD) are collaborating to improve data processing capabilities in the future. The first computer-based on-premises model that can function at room temperature will be the PT-1 model from ORCA.

  • March 2022: The launch of a photonic quantum processor created at Quix Quantum's facility. It performs nearly two times better than current processors. This processor has a record number of qumodes (20) and the highest operating specifications.

  • February 2021: Ion-trap Quantum Computing was developed in conjunction with electron and ParityQC. Ion-trap computing demonstrations for the ATIQ project, which has received funding, are being developed by these businesses and an association.


REPORT COVERAGE


An Infographic Representation of Quantum Computing Market

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The research report provides a comprehensive analysis of the market. It focuses on key aspects such as prominent companies and leading applications of the product. Besides this, the report highlights key industry developments and offers insights into the market trends. In addition to the above-mentioned factors, the report includes several factors that have contributed to the growth of the market in recent years.


REPORT SCOPE & SEGMENTATION






























































ATTRIBUTE



  DETAILS



Study Period



2019–2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023–2030



Historical Period



2019–2021



Growth Rate



CAGR of 32.1% from 2023 to 2030



Unit



Value (USD million)



Segmentation



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 (By Component, By Deployment, By Application, By End User, By Country)

    • U.S. (By Component)

    • Canada (By Component)

    • Mexico (By Component)



  • Europe (By Component, By Deployment, By Application, By End User, By 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





  • Asia Pacific (By Component, By Deployment, By Application, By End User, By Country)





    • China (By Component)

    • India (By Component)

    • Japan (By Component)

    • South Korea (By Component)

    • ASEAN (By Component)

    • Oceania (By Component)

    • Rest of Asia Pacific



  • Middle East & Africa (By Component, By Deployment, By Application, By End User, By Country)

    • Turkey (By Component)

    • Israel (By Component)

    • GCC (By Component)

    • North Africa (By Component)

    • South Africa (By Component)

    • Rest of the Middle East & Africa



  • South America (By Component, By Deployment, By Application, By End User, By Country)

    • Brazil (By Component)

    • Argentina (By Component)

    • Rest of South America








Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 717.3 million in 2022.

Fortune Business Insights says that the market is expected to reach USD 6,528.8 million in 2030.

Growth of 32.1% CAGR will be observed in the market during the forecast period (2023-2030)

The software segment is expected to lead during the forecast period among component.

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

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

By end user, the BFSI segment is expected to grow exponentially at the highest CAGR during the forecast period.

The revenue of the market in North America in 2022 was USD 308.2 million.

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