Quantum Computing Market
Global Market Study on Quantum Computing: Disruption Due to Emerging Digital Technologies To Spur Market Growth
Quantum Computing Market Segmented By Enterprise Quantum Computing with Hardware, Software Component by On-premise, Cloud Deployment
As per latest quantum computing industry analysis by Persistence Market Research, market revenue will total US$ 6.9 Bn in 2021. Registering tremendous growth at 33.7% CAGR from 2021 to 2031, market valuation is expected to surpass US$ 127.4 Bn by 2031.
Persistence Market Research reports that global quantum computing solutions generated revenue of US$ 5.6 Bn in 2020. In terms of value, the services segment is identified as the fastest-growing component segment, estimated to register the highest CAGR of 39% over the next ten years.
Find Out More about the Report Coverage
- IBM Corporation
- D-Wave Systems Inc.
- Microsoft Corporation
- Intel Corporation
- Atom Computing, Inc
- Xanadu Quantum Technologies Inc.
- Zapata Computing, Inc.
- Strangeworks, Inc.
- Quantum Circuits, Inc.
Detailed Insights Offered in Quantum Computing Industry Research:
- Market Estimates and Forecasts 2016-2031
- Key Drivers and Restraints Impacting Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Quantum Computing Industry and How to Navigate
- Recommendation on Key Winning Strategies
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2016-2020 Quantum Computing Demand Analysis Compared to 2021-2031 Market Outlook
Quantum computing saw soaring growth in 2021 with worldwide revenue up 24.7% year-over-year. A revised report by Persistence Market Research estimates that quantum computing revenue will increase at a significant rate, reaching nearly US$ 127.4 Bn by 2031, at a CAGR of 33.7%.
Quantum computing is used in vast array of applications and tasks that are very difficult to comprehend. It is known to have applications in the development of new drugs and materials, simulating complex systems, cryptography, defense sector, and cyber-security as well. In addition, usage of quantum computing will also have significant consequences in the development of artificial intelligence as well as machine learning.
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How are Rising Investments in Quantum Computing Technology Impacting Market Growth?
Quantum computing technology can change the dynamics in the strategic balance of power, military affairs, and commerce. Governments of different countries are planning to expand exploratory research on new technologies for the establishment and development of a quantum computing solutions. Rising governmental investments in quantum computing solutions for a vast array of applications are expected to boost sales of quantum computing components.
- For instance, in October 2019, the Netherlands unveiled its national agenda to become a prominent player in quantum computing development. Under this program named Quantum Delta NL, the nation will have a budget of around US$ 113 Mn for already existing programs and new investments for new action lines.
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Why is Need for High Level Computing Performance Gaining Traction in the Global Market?
Expanding datacenter workloads, growing preference for software-as-a-service (SaaS) business models, coupled with increasing complexity in processor designs of classical binary computing systems are key factors driving demand for quantum computing.
A classical binary computing system stores data in tiny transistors, and each of these transistors hold a single “bit” of information such as a 0 or a 1, whereas, quantum computing works on a phenomenon called superposition – that stores/process both a 1 and a 0 simultaneously, which is significantly more powerful compared to classical quantum computing systems.
For example: a classical computer that uses transistors will continue searching each line of a database until it finds the match for a specific search query, and then it will return the match.
Quantum computer processes data in qubits, and hence, it can search the entire database immediately by assessing each line concurrently. Thus, quantum computers work much faster compared to classic computers, and, as such, are anticipated to propel demand for quantum computing solutions.
How Big is the Opportunity for Quantum Computing Adoption in the U.S.?
The U.S. is predicted to remain one of the most attractive markets during the forecast period, according to Persistence Market Research. According to the study, the U.S. is expected to account for over 74.7% of the North American market by 2031.
Due to the presence of a large number of U.S.-based users and significant players in the quantum computing landscape, there is high adoption of quantum computing technology in the country.
Moreover, the government is investing heavily in the research & development of quantum computing systems, which is also anticipated to propel market growth.
Why is Demand for Quantum Computing Increasing in Germany?
Demand in Germany is expected to rise at nearly 28% CAGR over the forecast period (2021-2031). It has been observed that, France, Spain, Russia, and Germany are holding a large part of the European quantum computing industry. Alliances with other quantum computing providers along with regional expansion are some strategies opted by key players to fuel their sales growth.
As per the report, Germany is recognized as a primary market, and is expected to continue exhibiting high demand for quantum computing over the coming years.
How is India Contributing towards Sales of Quantum Computing?
By 2031, India will account for over 52.5% of share in South Asia and Pacific. India a rapidly growing economy and is expected to offer a favorable market for quantum computing vendors.
Enterprises in India are investing significantly to accelerate quantum computing research operations. Demand for cloud-based quantum computing solutions has increased rapidly in various banking and financial industries in major economies of the South Asia & Pacific such as India and Australia, which has created potential growth opportunities for market players.
Which Component of Quantum Computing Will Enjoy Higher Demand in Near Future?
Revenue from quantum computing software surged 35.3% year-over-year in 2021. Demand for services is expected to show sturdy growth, giving the services product segment year-over-year growth of 40.5% in 2021, according to Persistence Market Research.
Based on component, demand for quantum computing devices is expected to balloon at 44.7% CAGR, accounting for a market share nearly 34% of the market in 2031. Quantum computing devices include quantum computing machines, quantum chips, test equipment, control electronic components, and others.
Expanding research operations, growing government focus on quantum technologies, and increasing investments by large corporations to develop innovative quantum computing devices are key factors driving sales of quantum computing devices.
Why Do Simulation & Testing Applications Hold Major Market Share in Quantum Computing?
Simulation & testing applications are expected to contribute maximum revenue share of more than 29.4% to quantum computing in 2021. Quantum computing simulators processes data in binary zeros and ones, whereas, quantum computers process data in quantum bits that are a superposition of zeroes and ones.
Commercial availability of these simulators aids in increasing research & development activities on the end-user side. Organizations have started developing and testing quantum computing applications based on requirements. With the help of quantum computing simulators, developers can study the behavior of a quantum computer and execute quantum algorithms.
What’s the Market Share of Banking & Financial Services in Quantum Computing?
Among the end-users industries, the market is segmented as healthcare & life sciences, banking & financial services, manufacturing, academics & research, aerospace & defense, and others.
The healthcare & life sciences industry is set to witness a relatively higher CAGR of 40.5% during the forecast period. The banking & financial services sector accounted for the largest market share of 22% in 2021.
Quantum computers can solve critical challenges across various financial components at unprecedented speed, such as portfolio risk optimization, detecting market instabilities, optimizing trading trajectories, risk modeling, detecting market instabilities, trading strategies, and asset price optimization.
Quantum computing for applications in the finance sector would enable new ground-breaking processes. Quantum computers can work on several solutions simultaneously, and deliver new ways to model financial data as compared to the current classical binary computing approaches. Quantum computers are expected to outperform classical binary systems in several areas such as simulation of quantum systems, factorization, optimization problems, machine learning, and big data analysis.
According to the Persistence Market Research’s industry analysis, Huawei Technologies Co., Ltd., IBM Corporation, Google Inc. (Alphabet Inc.), Microsoft Corporation, and Intel Corporation are identified as key providers of quantum computing.
Quantum computing solution providers are partnering with leading providers of crypto-agile and quantum-?safe security solutions to resolve issues at first point of contact, and bring in significant improvements to current banking & financial services. They are generally seen to partner with companies who work with the necessary and latest technology, which would benefit the standard product of the company.
- For instance in July 2019, Utimaco GmbH, a leading software and hardware security modules provider, partnered with ISARA to utilize PQC (Post Quantum Cryptography) software provided by ISARA Corporation. This partnership will enable their users to have encrypted and secured communications that cannot be decrypted by other computers.
Quantum computing component manufacturers’ and providers’ strategy has been consistent with a more conservative approach to product innovation, which enables customers to integrate newer technologies in an evolutionary manner. This strategy also helps companies enhance their customer base and product offerings.
- For instance, in September 2020, Xanadu Quantum Technologies Inc. launched a quantum cloud platform. Developers can now access Xanadu’s gate-based photonic quantum processors with 8-qubit or 12-qubit chips — 24-qubit chips.
Quantum Computing Market Report Scope
Historical Data Available for
US$ Million for Value
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Customization & Pricing
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Quantum Computing Industry Survey by Category
- Quantum Computing Devices
- Quantum Computing Software
- Quantum Computing Services
- Consulting Services
- Implementation Services
- Support & Maintenance
- Simulation & Testing
- Financial Modeling
- Artificial Intelligence & Machine Learning
- Cybersecurity & Cryptography
- Quantum Computing for Healthcare & Life Sciences
- Quantum Computing for Banking & Financial Services
- Quantum Computing for Manufacturing
- Quantum Computing for Academics & Research
- Quantum Computing for Aerospace & Defense
- Quantum Computing for Energy & Utilities
- Quantum Computing for IT & Telecom
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