Quantum Computing Market

Increasing Need for High Level Computing Performance Fueling the Growth of Quantum Computing Market

Expanding datacenter workloads, growing preference for Software-as-a-Service (SaaS) business models coupled with increasing complexity in processor design of classical binary computing systems are key factors driving growth of the global quantum computing market. 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 system.

For instance, a classical computer that uses transistors will continue searching each line of a database until it finds the match of a specific search query and then it will return the match. While quantum computer processes data in qubits, and hence it can search the entire database immediately by assessing each line concurrently. Thus the quantum computer works much faster compared to a classical computer and hence it is anticipated to propel the growth of the quantum computing market.

Quantum computing is used in a vast array of applications and tasks which are very difficult to comprehend. Quantum computing is known to have applications in the development of new drugs and materials, in simulating complex systems, in cryptography, defense sector and cyber security as well. In addition, the usage of quantum computing will also have significant consequences in development of artificial intelligence as well as machine learning.

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.

Rising Investments in Quantum Computing Technology by Governments to Spur Quantum Computing Market Growth

Quantum computing technology can change dynamics in strategic balance of power, military affairs, and commerce. Governments of different countries are planning to expand exploratory research on new technologies for establishment and development of a quantum computing solutions. Rising governmental investments in quantum computing solutions for vast array of applications is expected to boost the growth of global quantum computing market.

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 about $113M USD for already existing programs and new investments for new action lines.

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Increase in the Number of Strategic Alliances to Boost Quantum Computing Market

In this fast-growing marketplace, it is difficult for the quantum computing solutions providers to specialize in everything. Thus, alliances or partnerships are essential for growing in the market. In addition, to defend their current position in the quantum computing market or to emerge new distribution channels, it is very crucial to have new dimensions of applications connectivity. Thus, companies can interface or open up with business partners to capitalize on new technology in the business. With these strategic alliances, companies also focus on innovations as customers continue to demand improved solutions with high capability and innovation.

For instance, in September 2019, IQM-a quantum hardware provider partnered with JoS Quantum, a company providing quantum computing software. Through this partnership IQM will provide hardware that useful for some very specific requirement.

Technical and Implementation Challenges to Restrain Market Growth

Engineering of quantum computing is still in the research stage. Implementation of quantum computing solutions for real-time applications has various technical challenges. Quantum computers are extremely sensitive to interaction with the environment, since any interaction will collapse the state function.

Development of physical universal computer, which can be used for real-time applications are only theoretically proved and exact contribution of quantum computing solutions to the existing computing methods is not yet clear. These are the factors that have developed a gap between research labs, investment companies, and enterprise ecosystem, which in turn is expected to adversely affect the progress of global quantum computing market.

North America to Continue its Primacy in Quantum Computing Market

Due to the presence of large number of US based users and significant players in quantum computing market in this region, there is high adoption of quantum computing technology in this region. Moreover, the government in this region are investing heavily in research and development of quantum computing systems, hence it is also anticipated to propel the growth of the quantum computing market.

Analyst’s Viewpoint

A comprehensive view of the quantum computing market has led our analysts to conclude that, the market is escalating at a significant rate. Regions such as Western Europe and North America are holding a large part of the quantum computing market. Alliances with other quantum computing providers along with regional expansion are some strategies opted by key players to fuel their sales growth.