The global Quantum Computing Market size is likely to be valued at USD 784 million in 2023. FMI foresees that the market revenue could soar to unparalleled heights, reaching an incredible USD 6.5 billion by 2033. Between 2023 and 2033, the market is estimated to exhibit an exceptional CAGR of 23.5%.
Key Drivers Boosting the Demand for Quantum Computing:
Challenges for Market Players in the Quantum Computing Industry:
Key Trends in the Quantum Computing Market
Attributes | Details |
---|---|
Current Year Value (2023) | USD 784 million |
Expected Forecast Value (2033) | USD 6.5 billion |
Projected CAGR (2023 to 2033) | 23.5% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
In 2022, the quantum computing market share reached a size of USD 600 million, demonstrating a noteworthy CAGR of 21.3%. Between 2018 and 2022, the market has expanded primarily because of the increasing demand for SaaS business models and growing workloads in data centers. Complex processor designs in traditional binary computing systems have also fueled market expansion. Market participants are actively involved in creating numerical simulations of quantum systems.
Quantum computing technology has the potential to reshape the dynamics of the strategic balance of military affairs. The potential for quantum computing to greatly enhance the capabilities of space and defense systems is also significant. Many governments are planning to enhance exploratory research efforts to build and advance quantum computing systems. Therefore, government initiatives and funding for quantum information science are projected to create growth potential.
Between 2023 and 2033, the market is poised to unlock substantial opportunities, with projections indicating an impressive growth of 8.3X its current size. The demand for high-performance computing is primarily driving the market growth. Moreover, Quantum computing applications in financial modeling and risk analysis are widespread.
Optimizing complex supply chains and logistics networks can be achieved through the application of quantum computing. The evolution of quantum cloud computing systems for remote access to quantum resources is also prevalent. There is also an increase in the adoption of quantum computing applications for weather forecasting, traffic optimization, and energy optimization. These factors are likely to drive the adoption of quantum computing systems.
Quantum Computing Market Key Opportunities
Countries | Forecasted CAGR (2023 to 2033) |
---|---|
United States | 22.2% |
United Kingdom | 22.6% |
China | 24.7% |
Japan | 22.9% |
South Korea | 24.0% |
The United States is at the forefront of technological advancements, and quantum computing is no exception. It is dominating the global quantum computing industry. The United States quantum computing market is experiencing a surge in investments from both the public and private sectors.
Country | United States |
---|---|
Projected Market Value (2033) | USD 2.1 billion |
The United States Department of Energy's Office of Science's Advanced Scientific Computing Research Program has allocated USD 42 million in funding to support significant advancements in quantum computing technology. In December 2022, an act was approved by United States senators. It enables the development of cyber security infrastructure to focus on cyber-attacks that specifically target quantum computing. Leading technology companies are investing in research and development to advance quantum computing technologies. In January 2023, IonQ, Inc. announced the establishment of the first dedicated quantum computing manufacturing plant in the United States. The research and development as well as manufacturing teams of IonQ are going to be based in this newly opened facility.
China has emerged as the leading investor in quantum computing within the Asia Pacific region. The China quantum computing market has witnessed significant growth lately. The government has made significant investments in this emerging technology by constructing the National Laboratory for Quantum Information Sciences in Hefei. The laboratory was inaugurated in 2020. Furthermore, substantial funding of over USD 13 billion was allocated by the government to establish a dedicated research center for quantum computing.
Country | China |
---|---|
Projected Market Value (2033) | USD 554.7 million |
With the emergence of Origin Quantum Computing Technology Co in China, the country has now become the third nation capable of producing a fully domestic quantum computer. The inaugural domestically developed superconducting quantum computer, named Wuyuan, was unveiled in 2020. China now provides cloud-based quantum computing services to users worldwide. Moreover, Alibaba Group Holding Limited, China's leading online retailer, is establishing its quantum computing center.
Japan is known for its technological advancements. It has been actively investing in the development of quantum computing. Japan has a strong academic and research infrastructure in the field of quantum computing. Industries like manufacturing, finance, and logistics are exploring the integration of quantum computing into their operations.
Country | Japan |
---|---|
Projected Market Value (2033) | USD 468.6 million |
Research institutes and key players are contributing to the advancement of quantum computing technology in Japan quantum computing market. For example, in March 2023, a consortium of research partners, including RIKEN, the National Institute of Advanced Industrial Science and Technology, the National Institute of Information and Communications Technology, Osaka University, Fujitsu Limited, and Nippon Telegraph & Telephone Corporation developed Japan's first superconducting quantum computer.
The United Kingdom’s quantum computing market is likely to witness significant expansion during the forecast period. The government has been actively investing in quantum computing research and development. It launched the National Quantum Technologies Programme to advance quantum research and technologies.
Country | United Kingdom |
---|---|
Projected Market Value (2033) | USD 326 million |
Market players are forming commercial partnerships to drive innovation and adoption. For instance, HSBC and IBM formed a three-year partnership in April 2022. The partnership aims to explore the potential of quantum computing in the banking industry. HSBC plans to investigate the utilization of quantum computing to detect and prevent fraud. They also aim to optimize pricing and portfolios through quantum computing. Additionally, HSBC intends to leverage quantum computing to advance its net zero goals.
The South Korea quantum computing market is experiencing robust growth. The Center for Quantum Information and Quantum Computing has been established by the government at KAIST (Korea Advanced Institute of Science and Technology). The center serves as a dedicated facility for quantum information and quantum computing. In January 2023, Xanadu forged a partnership with the KAIST to advance quantum algorithms for optimizing quantum computing hardware.
Country | South Korea |
---|---|
Projected Market Value (2033) | USD 261.4 million |
The market is witnessing partnerships, research collaborations, and strategic investments to gain a competitive edge. For instance, in March 2023, Yonsei University and IBM Quantum revealed their joint efforts to establish South Korea's quantum ecosystem. This initiative entails building a strong foundation and network for quantum research, development, and applications within the country.
Segment | Hardware |
---|---|
Historical CAGR (2018 to 2022) | 20.8% |
Historical CAGR (2018 to 2022) | 23.3% |
Segment | Optimization |
---|---|
Historical CAGR (2018 to 2022) | 20.3% |
Historical CAGR (2018 to 2022) | 23.1% |
The growth of the hardware segment is anticipated to be substantial given its role as a significant bottleneck in the ecosystem. The progress in hardware technology is crucial for improving the computational power, stability, and scalability of quantum computers. Given the blossoming stage of the quantum computing industry, hardware development has received more attention and investment compared to other segments.
The hardware segment offers a unique selling proposition compared to other segments of the quantum computing sector. Quantum hardware providers focus on constructing specialized machines with exponential computational power. Currently, there are multiple quantum-computing hardware platforms under development. The highly advanced platforms include superconducting circuits and trapped ions. Additionally, there are other promising platforms like photonic networks, spin qubits, and neutral atoms.
The optimization sector is projected to hold a considerable portion of the market revenue throughout the forecast period. Quantum computing optimization entails employing quantum algorithms to solve optimization problems with greater speed and effectiveness compared to conventional approaches. Conventional methods experience exponential increases in computation time when tackling such problems. Quantum optimization algorithms have the potential to discover superior solutions without taking longer computation durations.
Quantum computing finds application in diverse domains such as finance, logistics, artificial intelligence, and operations research. Moreover, it enables the resolution of challenging optimization problems that prove excessively formidable for traditional methods. By harnessing the capabilities and swiftness of quantum computing, organizations can optimize their operations. They can also enhance decision-making processes and minimize expenses.
Key market players in the quantum computing industry are actively involved in developing quantum processors, improving qubit technologies, advancing quantum algorithms, and exploring applications. Collaboration, research, and software development are common focuses for these players.
Start-ups are also playing a crucial role in advancing the field and exploring new possibilities. While established companies heavily invest in quantum computing research, start-ups bring agility, innovation, and fresh perspectives to the table.
Top 3 Start-ups to Watch
Multiverse Computing: It operates in the field of quantum computing. It specializes in providing software and solutions for quantum algorithms, optimization, and quantum machine learning. It has also formed alliances with key companies including Amazon and Microsoft, as well as notable startups such as Rigetti, IonQ, and Pasqal.
Quandela: It focuses on providing high-quality single-photon sources and other photonics technologies for applications in quantum communication, quantum computing, and quantum sensing. Their applications can potentially be found in the telecommunications, sensing, and quantum computing industries.
Q-CTRL: It develops software solutions that help mitigate errors and enhance the performance of quantum systems. Its solutions are paving the way for significant advancements in quantum technology.
Top 3 Market Players to Pay Attention to
IBM: In terms of research and development, it has been at the forefront of quantum computing. It has made significant progress with its IBM Quantum Experience platform. This platform provides cloud-based access to their quantum computers.
Alphabet Inc.: It is a multinational conglomerate and the parent company of Google. With Google as its well-known subsidiary, Alphabet has a significant presence in the tech industry and continues to drive innovation in various sectors.
Silicon Quantum Computing: It is focused on advancing the field of quantum computing using silicon-based technologies. It is working toward the development of a practical quantum computer using silicon qubits.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Key Market Players
The quantum computing market CAGR for 2033 is 23.5%.
The market is estimated to reach USD 6.5 billion by 2033.
IBM, Google, and Microsoft are key market players.
The market is estimated to secure a valuation of USD 784 million in 2023.
Asia Pacific holds a significant share of the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2023 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Offering 5.1. Hardware 5.2. Software 5.3. Service 5.3.1. Consulting Services 5.3.2. Training & Education Services 5.3.3. Support & Maintenance Services 6. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Deployment Type 6.1. On-Premises 6.2. Cloud-Based 7. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Application 7.1. Optimization 7.2. Simulation and Data Problems 7.3. Sampling 7.4. Machine Learning 8. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Technology 8.1. Quantum Dots 8.2. Trapped Ions 8.3. Quantum Annealing 9. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Industry 9.1. Banking, Financial Services, and Insurance 9.2. Aerospace & Defense 9.3. Manufacturing 9.4. Healthcare 9.5. IT & Telecom 9.6. Energy & Utilities 10. Global Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. MEA 11. North America Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 14. Asia Pacific Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. IBM Corporation 18.2. Telstra Corporation Limited 18.3. IonQ Inc. 18.4. Silicon Quantum Computing 18.5. Huawei Technologies Co. Ltd. 18.6. Alphabet Inc. 18.7. Rigetti & Co Inc. 18.8. Microsoft Corporation 18.9. D-Wave Systems Inc. 18.10. Zapata Computing Inc. 19. Assumptions & Acronyms Used 20. Research Methodology
Explore Technology Insights
View Reports