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Quantum Computing Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, Services), By Deployment (On-Premise, Cloud-Based), By Application (Machine Learning, Optimization, Biomedical Simulations, Financial Services, Electronic Material Discovery, Others), By End-User (Healthcare, Banking, Financial Services and Insurance (BFSI), Automotive, Researchers, Energy and Utilities, Chemical, Manufacturing, Others), and Regional Forecast, 2021-2028

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



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The quantum computing market size was USD 392.5 million in 2020. The market is projected to grow from USD 486.1 million in 2021 to USD 3,180.9 million in 2028 at a CAGR of 30.8% during the 2021-2028 period. The impact of COVID-19 has been unprecedented and staggering, with witnessing a positive demand shock across all regions amid the pandemic. Based on our research, the global market exhibited a substantial growth of 22.4% in 2020, as compared to the average year-on-year growth during 2017-2019. The sudden rise is CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Quantum computing is a type of cutting-edge computer technology based on quantum mechanics and quantum theory. The quantum computer has been used for computing based on quantum physics ideas. It differs from traditional computing in terms of 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 mostly used to compare several solutions and identify the best one for a complicated problem. Key industry players, including IBM Corporation, D-Wave Systems Inc., Cambridge Quantum Computing Ltd., Intel Corporation, are offering these computing services. Leading players in the market are focusing on expanding their business units across developing nations. For instance,

  • In May 2021, Amazon Braket launched a new simulator called DM1 to help model noise in quantum hardware. Further, it allows implementing noise mitigation measures into a quantum program to make the results on a real quantum computer more accurate.

Machine learning, quantum simulation, quantum parallelism, cryptography, algorithms, and other applications uses these computing services. Further, it has the potential to fasten up pharmaceutical discoveries and increase the accuracy of models to explain climate change and its effects, and it will be effective in boosting solutions to tough diversified disciplines.

COVID-19 Impact

COVID-19 Pandemic to Create Significant Growth Opportunities for Market Players

The COVID-19 outbreak had a significant impact on the expansion of computing services worldwide. Since the global shutdown, demand for quantum computing ETF (exchange-traded fund) and stocks has surged in most nations, because of the COVID 19 pandemic. Governments in numerous nations have boosted their expenditure on healthcare and drugs. Also, the adoption of developing technology, such as quantum computing stocks, is a priority for companies in this area. Scientists can construct ultra-precise and ultra-personalized medical and diagnostic systems using computing technologies.

Quantum sensors can also be utilized to make ultra-precise measurements in magnetic resonance imaging (MRI) devices. Further, given the influence of post COVID-19 on society, the economy, and healthcare, we may witness future applications for computing services in vaccine development. Computing services will play an important role in these areas due to its capacity to solve bigger problem spaces with greater precision and this is further anticipated to drive the growth of the market. For instance,

  • In May 2021, Janssen Pharmaceuticals collaborated with Qu&Co. This partnership focuses on developing and testing breakthrough computing methods and software for use in pharmaceutical research and development.


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Integration of Artificial Intelligence (AI) and Machine Learning (ML) with Quantum Computing to be an Emerging Market Trend

Artificial intelligence (AI) and machine learning are transformative technologies, and major development in artificial intelligence and machine learning will certainly need computing services. These computing services can provide artificial intelligence a computational boost, allowing it to solve more complicated tasks and artificial general intelligence (AGI).

Further, the rising investment in quantum computers systems has led to the growth in demand for computing services. Also, quantum-enriched machine learning states ML algorithms to analyze classical data that are run on a quantum computer. For instance,

  • In May 2021, Classiq and ColdQuanta joined the IBM Quantum Network. Further, both the companies will incorporate IBM’s open-source Qiskit quantum software development platform for use with ColdQuanta's forthcoming 100 qubit computer "Hilbert".


Rising Investments in Quantum Computing Technology by Governments to Aid Growth

Government organizations involved in the worldwide space and military sectors are spending extensively on the development of computing technology to use quantum computers to perform various optimization segments and simulation tactics. Various governments throughout the globe are investing much in their research institutes to encourage the development of computing technologies. China is making major investments in these computing technology research and development. Computing projects are being pursued by the governments of the U.S., Australia, and nations in the European Union. For instance, in December 2021, the German Federal Ministry of Education and Research provided funding for USD 50.3 million for Ion Trap Computer Development. The government aims to build a 10-qubit ion trap in Germany that will be accessible for usage 24 hours a day, seven days a week.

Increasing Number of Strategic Alliances to Fuel the Quantum Computing Market Growth

To carry out computing developments, develop practical applications, and establish a quantum workforce of the future, the creation of scalable quantum computers need devoted partners. Several corporations, including Intel Corporation, Google LLC, and IBM Corporation, are working together with universities worldwide to conduct computing research and development. For instance, in December 2021, Thales, Pasqal, GENCI and Paris Region partnered to investigate Pasqal's Quantum Processor's Planning and Scheduling Applications. Similarly, in November 2019, IBM Corporation and the Unitary Fund partnered to provide subsidies and preferential access to select IBM Q systems. The Unitary Fund wants to build a quantum technology enterprise that benefits most people.


Problems with Stability and Error Correction to Hinder Growth

Quantum computer’s commercialization is a difficult, complex task as qubits are sensitive and readily disrupted by changes in ambient temperature, noise, and frequency, it has been impossible to retain their quantum mechanical state for a long time. Furthermore, the elliptic curve digital signature technique (ECDSA), which is currently not quantum-safe, is used in various digital ledger-based applications. Also, the capacity to store a complicated state in a single bit is what gives these services its power. This factor is also why quantum systems are difficult to construct, test, and design. Due to the fragility of quantum states, production must be accurate, and bits must frequently function at extremely low temperatures.


By Component Analysis

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Hardware to Dominate, Owning to the Rising Demand in BFSI and Research Industries

Based on components, the market is categorized into hardware, software and services. Hardware is expected to have significant growth, as it is widely used in BFSI for increasing the speed of trade transactions, activities, and data processing manifolds. Also, it aids in the discovery of a more effective and efficient method of managing financial risks. Further, conventional classical computers are employed in financial institutions, processing time and costs for high-quality solutions can rise exponentially, but quantum computers can perform faster processes at lower costs, resulting in cost savings and new income potential.

Whereas the software and services segment is expected to grow in the near future because of the rise in the number of startups around the world and heavy investments in research and development activities related to computing technology. This information technology is utilized in optimization, deep learning and simulation applications, resulting in lower operating costs and more efficient operations in various sectors.

By Deployment Analysis

Increasing Adoption of Cloud Technology to Propel Market Growth

Based on deployment, the market is categorized into on-premise and cloud. The cloud is expected to dominate the market during the forecast period. The need for cloud-based deployment of computing products and services is likely to rise as more powerful systems are developed. Users paying for access to noisy intermediate-scale quantum (NISQ) systems that can address real-world issues are projected to result in a substantial income stream for service providers. Cloud service companies also benefit from the short lifespan of rapidly evolving computing equipment. Another element driving the popularity of cloud-based quantum computing systems and services is the freedom of access provided to users. Quantum computers are unlikely to be portable for the predictable future. From their computers, customers may access various devices and simulations over the cloud.

By Application Analysis

Rising Popularity of Quantum Computing Among Machine Learning (ML) and Financial Services is Likely to Gain Traction during the Forecast Period

By application, the market is categorized into machine learning, optimization, biomedical, simulations, financial services, electronic material discovery and others. Machine learning is expected to account for the largest share during the forecasted period. It assists end users in discovering the estimation of quantum system features, quantum error-correcting codes, or the development of novel quantum algorithms.

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

By End-User Analysis

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

Based on end-user, the market is categorized into healthcare, banking, financial services, and insurance (BFSI), automotive, researcher, energy and utilities, chemical, manufacturing and others. BFSI is expected to hold maximum market share during the forecast period. It allows end-users with quantum algorithms and computing that assist in handling complicated procedures requiring historical data to deliver correct results. Further, HFT (High-Frequency Trading) and ADM (Automated Decision Making) utilize computing services as they demand extraordinary computing capacity for real-time processing with minimal errors.

The research and healthcare are expected to observe significant revenue growth during the quantum computing forecast period. Computing services are deployed in the research and healthcare industry to manage various applications such as expediting diagnosis, customizing treatment, and optimizing pricing, these might allow a variety of disruptive use cases for providers and health insurance. The sector is particularly interested in quantum-enhanced machine learning methods.


North America Quantum Computing Market Size, 2020 (USD Million)

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

North America has seen rapid growth in the market trend owing to the early adoption of advanced technologies and a highly competitive landscape. The penetration of computing services in the region is due to key market players. The readiness of end-users to adopt emerging technologies has also encouraged key providers to develop advanced services.

Europe is expected to have significant growth as start-ups are on the rise. Further, digital government initiatives and regulatory environments and increased usage of cloud-based technology, are also rising in the region that is anticipated to drive the growth of the market and technology. Also, industry leaders focus on expanding their business in the region. For instance, in December 2021, IQM Quantum Computer’s European development continues, with a new French subsidiary focusing on IQM's co-design customers in the aviation, space, and cybersecurity. Similarly, in December 2021, QuTech collaborated with Fraunhofer to develop a Pan-European Quantum Network. The deployment of the projects will be a cross-border quantum key distribution (QKD) network linking hubs in Germany and the Netherlands.

Banking and finance, healthcare and chemicals are all major businesses in the Asia Pacific. Asia Pacific manufacturers of electronics, such as laptops, cellphones, and gaming consoles, are Japan, China, and South Korea. Across these industries, there is a need to tackle issues in simulation, optimization, and machine learning applications. The region's large and medium-sized enterprises are benefiting from the fast expansion of APAC's growing economies and increased use of new technologies in the industrial sector. As a result, Asia Pacific is seeing increased demand for these computing services and systems. For instance,

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  • In December 2021, SpeQtral is, a Singapore-based startup, received USD 8.3 million in funding for creating commercial space-based QKD based on technologies developed at the National University of Singapore's Centre for Quantum Technologies (CQT). The company has a partnership with Toshiba to power quantum-secure communication systems in Southeast Asia, among other initiatives.


Emphasis of on Partnerships and Acquisition by Key Players to Strengthen Competition

  • In December 2021, Classiq partnered with NTT DATA to Implement Algorithms for Credit Risk Analysis. Further, Classiq software will enable end users to specify algorithms targeting various quantum hardware platforms that will give a potential lender a more accurate or faster response in the future.

  • In November 2021, Q-CTRL, a provider of quantum control solutions, announced Series B funding of USD 25 mn led by Airbus Ventures. This development will allow Q-CTRL to develop new data as a service marketplace using quantum sensors for acceleration, gravity, and magnetic fields.

List of Key Companies Profiled:


  • November 2021 – Zurich Instruments launched a New Superconducting Qubit Controller. Further, it combines qubit control and readout for up to 6 qubits in a single device. The SHFSG Signal Generator for producing microwave pulses and the SHFQA Quantum Analyzer for reading are combined into one box.

  • November 2021 – Dell partnered with IonQ to test hybrid classical-quantum solutions, making hybrid classical-quantum solutions more feasible. Further, classical and quantum simulation workloads can run on-premises using the platform, while quantum workloads, including modeling bigger, more complicated molecules for pharmaceutical research, can run remotely on IonQ QPUs.


An Infographic Representation of Quantum Computing Market

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The global market research report highlights leading regions worldwide to offer a better understanding of 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)


Component; Deployment; Application; End-Users; and Region

By Component

  • Hardware

  • Software

  • Services

By Deployment

  • On-Premise

  • Cloud-Based

By Application

  • Machine Learning

  • Optimization

  • Biomedical Simulations

  • Financial Services

  • Electronic Material Discovery

  • Other (Traffic Optimization, Weather Forecasting, and others.)

By End-Users

  • Healthcare

  • Banking, Financial Services and Insurance (BFSI)

  • Automotive

  • Researchers

  • Energy and Utilities

  • Chemical

  • Manufacturing

  • Others (Transportation, Logistics, and others.)

By Region

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

    • U.S. (By Component)

    • Canada (By Component)

    • Mexico (By Component)

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

    • Brazil (By Component)

    • Argentina (By Component)

    • Rest of South America

  • Europe (Component; Deployment; Application; End-Users; 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-Users; 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-Users; 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 3,180.9 million by 2028.

Fortune Business Insights says that the market value stood at USD 392.5 million in 2020.

By 2028, the market size is expected to reach USD 3,180.9 million.

The market is expected to grow at a CAGR of 30.8% in the forecast period (2021-2028).

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

Rising investments in quantum computing technology by governments to aid the growth.

IBM Corporation, D-Wave Systems Inc., Cambridge Quantum Computing Ltd., Intel Corporation, Rigetti & Co, Inc., Google LLC, Quantica Computacao, Zapata Computing, XANADU, Accenture Plc are the top companies in the market.

By end-user, banking, financial services and insurance (BFSI) hold the major market share.

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