Quantum Computing Market

Global Quantum Computing Market Size (2024 to 2029)

The size of the global quantum computing market was estimated at USD 0.20 billion in 2023 and is expected to expand at a CAGR of 33% to reach USD 1.11 billion by 2029.

Quantum computers are fundamentally different from traditional supercomputers and use quantum effects. Unlike conventional machines, quantum bits (qubits) are used to analyze data. Moreover, they perform complicated tasks more efficiently than traditional computers, which mainly stimulates the growth of the global market.

Global Quantum Computing Market Drivers:

Factors such as more excellent investment in quantum computing technologies, increased demand for heavy-performance computing, and increased demand from medical research and financial markets are projected to fuel the market.

Traditional computers can solve typical problems at medium speeds with reasonable accuracy. Quantum computers, on the other hand, can handle complex problems faster than conventional and supercomputers. Available machines have certain drawbacks, as they are restricted by their processors, storage capacity, and latency issues, which pose a high-performance computing market. Quantum computing uses Quantum Processing Units (QPUs) to process information in a matter of seconds and also has limitless storage, which allows large corporations to implement and improve computing technology. This is a massive driver of the Market.

Global Quantum Computing Market Restraints:

Operational problems, reliability issues, and error correction issues related to quantum computing are likely to impede market growth during the forecast period.

REPORT COVERAGE:

This research report on the global quantum computing market has been segmented and sub-segmented based on the end-use, deployment, application, and region.

Global Quantum Computing Market - By End-Use:

• Aerospace and Defense

• Automotive Industry

• Health Care & Lifesciences

• IT and Telecom

The aerospace and Defense segment held the majority of the market share in 2019, with 37%. This market share is attributed to the need for secure and reliable communication systems for data transfer in the defense sector. 

Quantum computing offers heavy encryption, which takes decades for traditional computers to decode the information, so this information processing is beneficial for the defense sector. Also, the automotive industry is expected to be the fastest-growing segment, with a CAGR of 33.2%. The reason for the growth is attributed to the need to handle complex problems with parallel activities and model molecules, and materials with reliable performance allow such systems to pursue openings in end-user sectors such as automobile, energy and power, pharmaceutical, and healthcare.

Global Quantum Computing Market - By Deployment:

• Cloud

• On-Premise

Out of these, the Cloud segment holds the majority of the market share in 2019, with over 70%. The reason for such market share is attributed to the need for secure and reliable communication systems for data transfer in various industries. 

Global Quantum Computing Market - By Application:

• Machine Learning

• Material Simulation

• Optimization

Based on the Application, the Material Simulation segment holds the majority of the market share in 2019, with 40%. The reason for such market share is attributed to the need to handle complex problems in end-user sectors such as automobiles, energy and power, pharmaceutical, and healthcare. 

Also, Machine Learning is expected to be the fastest-growing segment, which can be associated with increased automation in various fields, as quantum computers can help machine learning algorithms learn quicker and more efficiently.

Global Quantum Computing Market - By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East Africa

Geographically, North America is expected to have the largest market share. This is purely due to the increased number of leading competitors located in this region. The Asia Pacific market is also expected to grow due to China’s contribution to the Alibaba Group.

KEY PLAYERS:
Some key players in the Quantum Computing market include Alibaba Group Holding Limited, Google LLC, D-Wave Systems Inc., International Business Management Corporation (IBM), Huawei Technologies Co. Ltd., Intel Corporation, ID Quantique, Rigatti & Co, Inc., and Microsoft.

Recent Happenings in the Market:

• In October 2019, Google officially announced the accomplishment of quantum supremacy in an article published in Nature's science journal. The announcement comes precisely one month after it first leaked, after Google's report was mistakenly published earlier. But now, though, it's official, ensuring that the full details of the work are available and that the entire scientific community will thoroughly scrutinize what Google claims it has done.

• Google announced that its 54-qubit Sycamore system was capable of performing a 200-second calculation that would require the world's strongest supercomputer a time of 10,000 years. That would mean that the computation, which required the creation of random numbers, was virtually impossible on a conventional, non-quantum device.