ID: MRFR/ICT/1943-CR | January 2019 | Region: Global | 117 pages
Global Quantum Computing Market is estimated to reach USD 2.82 Billion by 2023, registering a 34% CAGR during the forecast period (2018-2023).
Quantum computing is emerging as an area of interest for quantum information science research. The technology has already started attracting R&D investments to achieve quantum supremacy. In 2019, Google officially announced that it achieved quantum supremacy.
Quantum computing promises great potential in diverse areas, including financial modeling, medical research, traffic optimization, weather forecasting, artificial intelligence, and more. It can be a ground-breaking technology in tackling climate change and enabling companies to improve their cybersecurity strategies.
The COVID-19 pandemic onset has aggressively accelerated digitization across the globe. The global economy is struggling to adapt to changes brought by the pandemic, and industries are trying to sustain their momentum in digital transformation, adapting to the new normal of implementing remote workstations. In such scenarios, quantum computing remains a major attribute of the solid research strengths.
Substantial investments are transpired by companies for strong sectarian expertise in technology with their proximity to Asian markets. The investment spans data centers and cloud computing companies like Google, Oracle, and Cisco Systems. Industry experts assert that quantum computing promises great potential in diverse areas, such as medical research, financial modeling, artificial intelligence, traffic optimization, and weather forecasting,
Closing the quantum computing skills gap could make all the difference in tackling climate change. Innovative industry players have actively started looking for increasing quantum computing application areas like drug development and in the battle to overcome climate change. This, as a result, is providing a huge impetus to the quantum computing market, allowing it to garner significant traction and investments.
Widespread Quantum Computing Applications
The global quantum computing market is witnessing significant traction mainly due to the widespread applications in the aerospace & defense sector for space exploration verification, critical modeling, and aerodynamic performance simulation. Additionally, increasing implementations of machine learning and quantum computers to detect recurring patterns drive the market growth exponentially.
Rising quantum computing market demand from sectors such as BFSI, defense, and automotive fosters the growth of the market. Moreover, the increasing rate of cybercrimes and stringent government initiatives for the development of quantum computing technology are major driving forces behind the market growth.
Quantum Computing & Public Sectors Opportunities
Public sectors present significant quantum computing market opportunities. Increasing quantum computing applications in aerospace & defense, traffic optimization, weather forecasting, and higher commercial interest in the technology are the major factors projected to offer vast growth opportunities. However, the potential of quantum computing is not just limited to the government sectors and industrial uses.
The growing adoption in the life sciences in the field of computer-aided drug design and silico modeling is also expected to provide major quantum computing market opportunities. Furthermore, the rising focus on researching and implementing cutting-edge use cases for quantum computing in pharmaceutical research and development, specifically molecular dynamics simulations, would boost the market growth exponentially.
Restraints & Challenges
Complexities in Quantum Computing Implementation to Restrict Market Growth
Despite lucrative growth opportunities, the quantum computing market faces some underlying intellectual challenges. Complexity in quantum computing implementations is a major factor restricting the growth of the market. Also, compatibility issues and quantum entanglement during network communication challenge the growth of the market.
Quantum Computing Market is segmented into Product, Application, Verticals, and Region.
Hardware Segment to Witness Significant Demand
The product type segment is sub-segmented into hardware, software, and services. Hardware accounts for the largest segment in the market. In 2017, the segment accounted for a 44.9% share of the market by product types. The hardware segment is likely to remain highly attractive, reaching a valuation of USD 1,180 million with a 32% CAGR during the assessment period.
Optimization – the Largest Application Segment
The application segment is sub-segmented into optimization, machine learning, simulation, and others. Among these, the optimization segment accounts for the largest market share. In 2017, the segment accounted for a 37.6% market share, reaching a valuation of USD 201.41 million. The optimization segment is expected to grow at a 31.7% CAGR during the assessment period.
Aerospace & Defense Vertical Holds the Largest Market Share
The vertical segment is sub-segmented into aerospace & defense, BFSI, energy & power, healthcare, information technology (IT) & telecommunication, transportation, and others. Among these, the aerospace and defense vertical is the largest adopter of quantum computing technology.
In 2017, the segment reached a valuation of USD 118.04 million, which is projected to grow further at a 38.3% CAGR during the forecast period. Quantum computing technology finds widespread application in aerospace & defense sectors for space exploration verification, critical modeling, and aerodynamic performance simulation.
North America is the Largest Regional Segment
By region, the market is bifurcated into the Americas (US, Canada, Mexico, Rest-of-North America) and South America, Europe (the UK, Germany, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World. Among these, North America accounts for the largest market share, followed by Europe and the APAC region, respectively.
North America to Maintain its Leading Position
North America leads the global quantum computing market and would continue to maintain its market position throughout the assessment period. Factors such as the presence of key technology providers such as IBM Corporation, Intel, Google, and several others and well-established technology development centers in the region act as key driving forces for the market.
Increasing R&D investments in developing quantum computers, quantum computing applications, and quantum computing maths boost the market size. Additionally, the vast uptake of the technology by government agencies and aerospace & defense sectors for machine learning drives the quantum computing market growth. The US accounts for the largest quantum computing market share in the region due to huge technological advances.
Europe Holds Second Highest Market Share
Europe accounts for the second-largest share in the global quantum computing market. Substantial investments by market players, alongside the rising initiatives and funding by governments in various countries in this region, positively impact the growth of the quantum computing industry. Moreover, the presence of major players such as Cambridge Quantum Computing Ltd. influences the development of quantum technology in the region.
APAC Derives a Considerable Share in the Global Market
The APAC quantum computing market is propelled by the vast adoption of quantum computers and rapid growth in manufacturing sectors. Furthermore, significant advances in quantum computing technology in countries such as China and South Korea boost the adoption of quantum computers in the BFSI sector, influencing the regional market growth.
Players Focus on Product Development & Expansions
The quantum computing market appears extremely competitive due to the strong presence of well-established industry players. Global technology providers are increasingly facing fierce competition from each other and local firms, who have mastered industry regulations and suppliers. Therefore, eminent players seek opportunities to integrate across the extended value chain while focusing on the expansion of production facilities, R&D investments, and M&A activities to gain impetus.
Intel Corporation, Atos SE, Cambridge Quantum Computing Ltd., IBM Corporation, Rigetti & Co, Inc., D-Wave Systems Inc., QRA Corp, Google, QxBranch, Inc., and QC Ware Corp. are some of the affluent contenders holding sizeable quantum computing market share.
January 21, 2021 – The University of Glasgow announced its partnership with Oxford Instruments NanoScience on Quantum Computing. The university is a pioneering institution in quantum technology development. Under the partnership, the Glasgow University would use Oxford Instruments' next-generation Cryofree refrigerator, Proteox, as part of its research to accelerate quantum computing commercialization in the UK.
January 21, 2021 – Atos, a global leader in digital transformation, announced that it welcomes the French government's initiative in developing the national strategy on quantum technologies. The national quantum strategy offers Atos the opportunity to accelerate its Quantum Learning Machine (Atos QLM) expertise to offer the French quantum ecosystem with the benefits of quantum computing in the NISQ (Noisy Intermediate-Scale Quantum) era as soon as possible.
January 21, 2021 – PlanQK (Platform and Ecosystem for Quantum-Assisted Artificial Intelligence), a major project in Germany, announced using quantum computing techniques to develop quantum AI algorithms. The project worth €19m is funded by the German Federal Ministry of the Economy.
January 07, 2021 – Indian multinational corporation Wipro signed a Memorandum of Understanding with Tel Aviv University, Israel, for research and analysis in quantum science and technology, strengthening the India-Israel scientific collaboration. Tel Aviv University's Center for Quantum Science & Technology faculty members would work with Wipro to analyze its customer's use cases and potential quantum computing applications.
January 19, 2021 – Amazon Web Services (AWS) announce that The Ministry of Electronics & Information Technology (MeitY) India has chosen its Bracket cloud-based quantum computing service to establish a Quantum Computing Applications Lab in the country. Quantum computing developments are at a very nascent stage in the country. The move would give researchers, and scientists access to Amazon's technology & services, whether in educational institutions, research labs or in the startup environment.
The quantum computing market analysis features unique and relevant factors expected to significantly impact the market growth during the forecast period. The detailed quantum computing market statistics provided in the report would help industry players better understand the market. MRFR's quantum computing market forecast report elaborates on the historical and current trends boosting the growth of the market.
The analysis of COVID-19 impact on the quantum computing market revenue is also included in the report. Regional assessment in this report unlocks a plethora of untapped opportunities in regional and domestic markets. Detailed company profiling in the report enables users to evaluate company shares analysis, existing & emerging product lines, pricing strategies, innovation possibilities, the scope of the product in new markets, and much more.
Frequently Asked Questions (FAQ) :
An extraordinary CAGR of 34% is predicted to motivate the market in the coming years.
A valuation of USD 2.82 billion is foreseen to achieved by the market in the coming period.
The North American region is expected to spearhead the growth of the market on a global level.
A 31.3% CAGR is expected to motivate the market to the leading position in the forecast period.
Rigetti& Co, Inc., QRA Corp, IBM Corporation, Cambridge Quantum Computing Ltd., QxBranch, Inc., Google, D-Wave Systems Inc., and QC Ware Corp are estimated to participate in the growth of the market.
The issues related to implementation and operation are expected to slow down the growth in the coming period.
The escalated investment level being directed from the governments is expected to have a broad effect on the global market.