Global Quantum Computing Market (by Component, Application, Technology, End-user, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Quantum computing is an innovative technology that employs quantum mechanics laws to resolve issues that are too complicated for ordinary computers. The term "quantum" is derived from the science concept of Quantum Mechanics, which describes the physical characteristics of electrons and photons.

Quantum computers work on the basis of "qubits." A qubit, sometimes referred to as a quantum bit, is a fundamental unit of quantum information that is physically realized using a two-state device. The increasing demand for high speed computing, the expanding use of quantum mechanics in encryption, the growing application of quantum computing in drug discovery, and other factors are driving the shift to quantum computing. The global quantum computing market is anticipated to reach US$856.33 million by 2023, growing at a CAGR of 40.07%, during the forecast period.

Segment Covered

By Component: On the basis of component, the report provides the bifurcation of the quantum computing market into three segments: Hardware, Software, and Services. The hardware segment occupied the maximum share in the quantum computing market, whereas the services quantum computing market is expected to grow at the highest CAGR due to the rise in number of start-ups around the world and heavy investments in research and development activities related to computing technology.

By Application: In terms of application, the report offers insights of the global quantum computing market into three segments: Optimization, Machine Learning, and Material Simulation. The optimization segment held the highest share in the market, whereas machine learning segment is expected to be the fastest growing segment in the forecasted period. This is mainly owing to the crucial role of quantum computing in improving capacity, runtime, and learning efficiency.

By Technology: Further, the report provides the segmentation of the market, based on technology: Quantum Annealing, Superconducting, Trapped Ion, Quantum Dot and Others. The superconducting segment dominated the market, owing to the faster operations of quantum computers based on superconducting qubits technology than the computers equipped with other technologies.

By End-User: In the report, the global quantum computing market is divided into twelve segments on the basis of end-user: Finance & Investment, Transportation & Logistics, Aerospace, Agriculture, Automotive, Energy, Healthcare, Information Technology, Life sciences, Manufacturing, Oil, Gas, and Mining, and Others. The agriculture quantum computing market is expected to grow at the highest CAGR. Data analytics and AI-backed crop intelligence solutions represent the latest advancement that can assist farmers to make smarter decisions and take action to resolve various crop pressures before they have a chance to affect yield. A growth calculator, using quantum computing technology, enables farmers to control the speed at which plants grow to meet the optimal balance between harvest forecasts and customer demand. A quantum computer provides better machinery, soil management practices which can improve fertility. Therefore, the agriculture segment is expected to grow at the fastest rate.

Geographic Coverage

According to the report, the global quantum computing market can be divided into five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The countries covered in North America region are the US, Canada, and Mexico, while Europe includes Germany, UK, France, Italy, Spain, and Rest of Europe. Moreover, China, Japan, India, and Rest of the Asia Pacific are included in the Asia Pacific region. The North America dominated the market, owing to the region's well-established technology development centers, increased R&D activity in developing quantum computing concepts, quantum computing applications, and quantum computers, etc. The US held the highest share in the North American quantum computing market due to early adoption of advanced technologies and an extremely competitive landscape. Asia Pacific is anticipated to lead the global quantum computing market during the forecast period, due to the growing use of emerging technologies in industrial manufacturing, continuous advancements in the IT (information technology) sector, rapid expansion of banking & finance industry, etc. In the report, the US quantum computing market is further bifurcated based on the end-user (Finance & Investment, Aerospace, Automotive, Energy, and Others).

Top Impacting Factors

Growth Drivers

• Rising Investments in Quantum Technology
• Increase in Quantum Computing Start-ups
• Growing Number of Strategic Partnerships & Collaborations
• Surging Demand for High Performance Computing (HPC)

Challenges

• High Cost of Quantum Computing Solutions
• Stability and Error-correction Issues

Trends

• Increasing Adoption of Cloud-Based Quantum Computing
• Integration of Quantum Computing with IoT (Internet of Things)
• Popularity of Quantum Mechanics in Cryptography Proteomics
• Technological Advancement in Quantum Computing

Driver: Surging Demand for High Performance Computing (HPC)

The insatiable need to compress time to insights from massive and complex datasets is fueling the demand for quantum computing integration into high performance computing (HPC) environments. Such an integration would allow enterprises to accelerate and optimize current HPC applications and processes by simulating and emulating them on noisy intermediate scale quantum (NISQ) computers. HPC systems are limited in their ability to process and analyze large amounts of data needed to execute multiple workflows, even with the added compute power of classical accelerators. Using quantum computing technologies, not only would enterprises be able to accelerate current HPC processes, but they would also be empowered to solve intractable industry problems beyond the scope of the most advanced classical compute systems. Therefore, an increase in demand for HPC would positively impact the quantum computing market.

Challenge: High Cost of Quantum Computing Solutions

Quantum computers are not equal to desktop or laptop computers in size or function and are not marketed to the general public for a home purchase or use. Quantum computers supersede these machines and are large complex, sophisticated computers mostly with cloud access managed by companies like IBM, Microsoft, and Google. Quantum computers require specialized parts that aren’t being produced at large scales. They must constantly be at nearly absolute zero operating temperatures to increase their stability, which drives up costs. The cost of developing a large-scale quantum computer with many qubits is still prohibitively expensive. The cost of qubits can exceed tens of thousands of dollars and has to be supported by specialized electronics. These need to be housed within large controlled indoor spaces to function. Therefore, the high price of quantum computers is impeding the market's expansion.

Trend: Integration of Quantum Computing with IoT (Internet of Things)

IoT and Quantum Computing are technological phenomena that are shaping businesses and industries. Moreover, integrating IoT and Quantum Computing solutions evolve ecosystems to offer optimum commercial practices. The emergence of these two phenomena offers revolutionary advancements. IoT brings a technological change in our lives and became a part of everyday life. As the new technologies would emerge in our society, they open a pathway to improve the present one. Here quantum computing is the new opportunity for improving the existing IoT technology. With the help of the proposed system, quantum computing would be easily and efficiently implemented in IoT without the need of replacing the whole network making the existing system more reliable, efficient, secure and fast in terms of processing. Therefore, quantum computing market is further expected to increase in the coming years.

The COVID-19 Analysis

The COVID-19 breakout had a significant impact on the global growth of computing services. The alarming rise in COVID patients, as well as the advent of new viral strains, has prompted the adoption of work-from-home and digitization. Rapid digitization and the adoption of smart software boosted quantum technology adoption in 2020. The pandemic has emphasized society's need for faster optimization computations and more accurate numerical models, both of which quantum computers excel at.

Analysis of Key Players

The global quantum computing market is fragmented, with the presence of big tech players, to special purpose acquisition companies (SPACs) and start-ups operating worldwide. The key players of the global quantum computing market are Alphabet Inc. (Google Cloud Platform), Microsoft Corp. (Microsoft Azure), Amazon.Com, Inc. (Amazon Web Services, Inc.), IBM, Intel Corporation, Alibaba Group (Alibaba Cloud), Nvidia Corporation, Toshiba Corporation, Rigetti Computing, Quantum Computing Inc., QC Ware Corp., Ion Q, Zapata Computing, Xanadu Quantum Technologies Inc., and D-Wave Systems Inc.