Quantum Computing Market (2023 to 2033)

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:

  • Advancements in quantum computing technology, quantum computation, and quantum information technologies
  • Industries such as healthcare, finance, and logistics are increasingly adopting quantum computing solutions for various applications
  • The utilization of quantum computing enables the rapid identification of fraudulent activities
  • Governments are actively supporting quantum computing initiatives through funding and policies
  • Hybrid solutions that integrate quantum computing with classical computing are gaining traction
  • Development of quantum simulators and quantum machine learning techniques to enhance quantum computing capabilities
  • Quantum networking and communication technologies are advancing
  • Continuous advancements in quantum algorithms and error correction techniques
  • Combining quantum computing with other technologies facilitates the optimization of portfolio management
  • Rising number of quantum computing companies and start-ups

Challenges for Market Players in the Quantum Computing Industry:

  • Building and scaling quantum computing systems face technical challenges
  • Technical challenges and limitations in developing stable and scalable quantum computing systems
  • High cost of development of quantum computers and infrastructure as well as limited availability of quantum computers
  • Programming and utilizing quantum computing resources are complex
  • Security concerns such as the need for robust encryption algorithms
  • A limited number of commercially viable quantum applications and quantum algorithms
  • Regulatory and ethical concerns surrounding quantum computing applications

Key Trends in the Quantum Computing Market

  • Simulation stands out as a prominent area where quantum computing shows growth opportunities
  • Cloud-based quantum computing services and platforms are emerging as a trend
  • The banking and finance services industry is increasingly embracing quantum computing
  • Integration of cloud and quantum computing for scalable and accessible quantum processing
  • The emergence of multiverse computing for parallel processing across multiple universes
  • Focus on applied quantum computing for practical applications in various industries
  • Patent filings for quantum technologies have been surging, reflecting the expanding quantum ecosystem
Attributes Details
Current Year Value (2023) USD 784 million
Expected Forecast Value (2033) USD 6.5 billion
Projected CAGR (2023 to 2033) 23.5%

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2023 to 2033 Quantum Computing Demand Outlook in Comparison to Sales Registered from 2018 to 2022

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

  • Development of universal quantum computers capable of solving a wide range of problems
  • Growing demand for Quantum computing as a service offerings
  • Quantum computing holds significant potential advantages for the financial services sector
  • Development of quantum annealing algorithms and hardware
  • Advancements in photonic quantum computing for improved qubit stability
  • Increasing demand for quantum processors with higher qubit counts
  • Development of quantum machine learning algorithms and increasing focus on quantum AI algorithms
  • Exploration of quantum computing applications in areas such as optimization, cryptography, and drug discovery
  • Technological advancements in quantum computing software and programming languages
  • Development of strong cryptography and data security solutions using quantum computing

Exploring the Regional Patterns of the Quantum Computing Market: An In-depth Examination at the Country Level

Countries Forecasted CAGR (2023 to 2033)
United States 22.2%
United Kingdom 22.6%
China 24.7%
Japan 22.9%
South Korea 24.0%

Quantum Computing Innovations Explode a Technological Renaissance in the United States

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 Emerges as a Quantum Computing Powerhouse, Shaping the Future of Technology

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.

Quantum Computing Innovations in Japan Accelerate toward Unprecedented Possibilities

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.

United Kingdom Embraces Quantum Computing as the Catalyst for Future Innovation

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.

Quantum Computing Industry Shakes Up Technological Landscape in South Korea

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.

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Sudip Saha

Principal Consultant

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Exploring the Quantum Computing Market: An In-depth Segment Analysis

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%

Hardware Offerings Triumph in the Computing Arena, Unveiling the Quantum Revolution

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.

Optimization Applications Surge Ahead, Redefining the Quantum Computing Industry

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.

Quantum Computing Market: Analyzing Key Players, Start-ups, Strategies, and Market Share in the Global Landscape

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.

  • In January 2023, Multiverse Computing announced a collaboration with PINQ2. The partnership aims to foster joint efforts in quantum and classical computing. The focus of this collaboration is on industrial projects. The alliance brings together expertise from academia and industry to drive advancements in the field.

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.

  • In March 2023, Quandela and CryptoNext Security joined forces to deliver an integrated solution specifically designed. The aim is to secure the implementation of post-quantum communication protocols. They seek to provide a comprehensive and robust solution to ensure secure communication in the era of quantum computing.

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.

  • In April 2023, Q-CTRL announced the introduction of a new feature called QAOA (Quantum Approximate Optimization Algorithm) Solver in their Fire Opal Error Mitigation software package. This Python-based software automates and significantly enhances the quality of answers obtained when executing a QAOA on real quantum computers. The QAOA Solver aims to improve the overall performance and efficiency of quantum computing applications.

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.

  • In May 2023, during the G7 Summit held in Japan, IBM unveiled a 10-year initiative. The initiative is a collaboration with the University of Tokyo and the University of Chicago. It involves a USD 100 million investment. The investment aims to develop a quantum-centric supercomputer. The supercomputer is going to be powered by 100,000 qubits.

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.

  • In February 2023, Alphabet Inc. achieved a significant breakthrough in the field of quantum computing, specifically in the area of quantum error correction. It announced the discovery of methods to tackle a key challenge in the field, which is accuracy. This advancement holds great promise for improving the reliability and precision of quantum computing systems.

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.

  • In September 2022, scientists at Silicon Quantum Computing achieved another notable milestone in their pursuit of general-purpose quantum computing. They introduced a novel method that significantly enhances the Readout stage of quantum calculations. This breakthrough not only accelerates the Readout process but also simplifies it and minimizes susceptibility to interference.

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How can Quantum Computing Market Players Grow Their Businesses?

  • Enhance quantum computing hardware capabilities for improved performance
  • Invest in research and development to advance quantum computing technology
  • Foster collaborations with research organizations and industry partners
  • Provide comprehensive quantum computing services to assist customers effectively
  • Partner with software developers to optimize quantum computing software
  • Customize quantum computing solutions for specific customer needs and use cases
  • Ensure compliance with security and privacy regulations to build trust

Key Market Players

  • IBM Corporation
  • Telstra Corporation Limited
  • IonQ Inc.
  • Silicon Quantum Computing
  • Huawei Technologies Co. Ltd.
  • Alphabet Inc.
  • Rigetti & Co Inc.
  • Microsoft Corporation
  • D-Wave Systems Inc.
  • Zapata Computing Inc

Quantum Computing Market Segmentation

By Offering:

  • Hardware
  • Software
  • Service
  • Consulting Services
  • Training & Education Services
  • Support & Maintenance Services

By Deployment Type:

  • On-premises
  • Cloud-based

By Application:

  • Optimization
  • Simulation and Data Problems
  • Sampling
  • Machine Learning

By Technology:

  • Quantum Dots
  • Trapped Ions
  • Quantum Annealing

By Industry:

  • Banking, Financial Services, and Insurance
  • Aerospace & Defense
  • Manufacturing
  • Healthcare
  • IT & Telecom
  • Energy & Utilities

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa(MEA)

Frequently Asked Questions

What is the Quantum Computing market CAGR for 2033?

The quantum computing market CAGR for 2033 is 23.5%.

How Big Will the Quantum Computing Market by 2033?

The market is estimated to reach USD 6.5 billion by 2033.

Who are the Key Quantum Computing Market Players?

IBM, Google, and Microsoft are key market players.

What is the Current Market Valuation of the Quantum Computing Market?

The market is estimated to secure a valuation of USD 784 million in 2023.

Which Region Holds a Significant Share of the Quantum Computing Market?

Asia Pacific holds a significant share of the market.

Table of Content
	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

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