Quantum Computing Market - Forecasts from 2023 to 2028

The quantum computing market was valued at US$592.99 million in 2021 and is expected to grow at a CAGR of 49.34% to reach US$9,822.347 million by 2028.

Computer science's application of quantum theory is known as quantum computing. Quantum computing makes use of subatomic particles like electrons or photons. These quantum bits or qubits allow these particles to exist concurrently in two states. Traditional computers employ a binary flow of electric signals to encapsulate data in bits (1 and 0). This restricts the amount of information they can process compared to quantum computing. Identifying potential solutions to challenging problems can be done using quantum computing, which has the power to sift through large volumes of choices. Quantum computing has a major impact on various industries, including security, banking, military intelligence, drug discovery, aircraft design, utilities (nuclear fusion), polymer design, machine learning, artificial intelligence (AI), big data search, and digital manufacturing. They can be utilized to improve secure information exchange or to increase radars' ability to identify missiles and airplanes.

The quantum computing market is driven by increasing federal initiatives and innovative collaborations to support digitization.

Governments are spending heavily on quantum computing technology, which reflects the growing demand for the technology. For instance, the German government announced in November 2021 that, within the next four years, quantum computer prototypes based on several architectures would be created as part of DLR's (German Aerospace Centre) Quantum Computing Initiative. Through this procedure, DLR is asking businesses, start-ups, and other research organizations to work together to further the creation of quantum computer hardware, software, and applications. The growth of strategic collaborations may also encourage the creation of higher-caliber computing solutions. For instance, a high-level Finnish team visited the Centre for Development of Advanced Computing (C-DAC), Pune, in December 2022 to explore opportunities for bilateral cooperation on quantum technologies, HPC-quantum integration, and related applications. C-DAC has invented its motherboard, server, and connection in HPC.

Additionally, the Ion Trap Computer development was funded in December 2021 with USD 50.3 million from the BMBF (German Federal Ministry of Education and Research). Similarly, one of the US Department of Energy's research and development facilities, Argonne National Laboratory, is engaged in a project to create and deliver hardware, firmware, and software to read out and manage a multi-qubit system. The system will continuously monitor qubit faults and query qubit statuses.

The expansion of this industry is hampered by stability and maintenance difficulties.

Quantum computers employ practical quantum bits that are prone to mistakes. Additionally, it is a difficult challenge to commercialize quantum computers. Since qubits are sensitive and quickly perturbed by fluctuations in the temperature, sound, and wavelength of their surroundings, retaining their quantum mechanical state for an extended length of time is challenging. Additionally, several blockchain-based solutions use the ECDSA, a digital signature method that is not yet quantum-safe.

Market Developments:

• Uniseed invested US$3 million in the start-up Analog Quantum Circuits (AQC) of the Australian Research Council Centre of Excellence for Engineered Quantum Systems (EQUS) in October 2022 to support the creation of crucial parts needed for the scaling up of quantum computing. AQC expands the research funded by the Australian Research Council (ARC), EQUS, and Founders' Future Fellowships.
• In December 2021, the French research institute CEA-Leti and the premier Si-based quantum computing team CNRS Néel published two papers on the subject, one of which was an invited study outlining the material and integration issues large-scale Si quantum computing faces. The second work introduced a novel Si quantum device integration that offers full controllability in 1D FD-SOI quantum dot (QD) arrays while reducing the effective gate pitch by half.

The North American market is anticipated to hold a sizeable share of the quantum computing market.

The main factor driving the expansion of the North American market is the presence of major technology companies like Google, Intel, and IBM Corporation, among others. In addition, the industry is primarily driven by established technological development centers spread in the region. The European quantum computing industry is anticipated to grow steadily in the forecast period. The large investments made by market participants are the main factor promoting the regional market's expansion. Additionally, it is anticipated that an increasing amount of projects and financing from governments across a range of European countries would impact the development of the local market. Further, the quantum computing industry is anticipated to expand the most in the Asia Pacific region. Numerous sectors, including medicine, transportation, finance, and chemicals, are growing, and countries like India, Japan, and South Korea have a thriving IT industry, supporting the market expansion.

Market Segmentation:

By Application

• Hardware
• Software and Service

By Deployment

• On-Premises
• Cloud-Based

By Industry Vertical

• BFSI
• Automotive
• Manufacturing
• Healthcare
• IT & Telecom
• Energy & Power
• Others

By Applications

• Artificial Intelligence & Machine Learning
• Computational Chemistry
• Drug Design & Development
• Cybersecurity & Cryptography
• Financial Modelling
• Logistics Optimisation
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others