Quantum Computing Industry Overview

The global quantum computing market size was estimated at USD 1.21 billion in 2023 and is expected to grow at a CAGR of 20.1% from 2024 to 2030. The quantum computing ecosystem is expanding, with an increasing number of startups entering the market. These startups were focusing on various aspects of quantum technology, from hardware and software to applications. Furthermore, the market has been witnessing a surge in investments from both governments and private sectors. Governments were allocating substantial funds to quantum research and development to maintain a competitive edge in emerging technologies.

Quantum computing is still considered an emerging technology with significant potential. Unlike classical computers that use bits, quantum computers use quantum bits or qubits, which can represent both 0 and 1 simultaneously due to the principles of quantum mechanics. This makes quantum computers well-suited for specific types of complex calculations.

Gather more insights about the market drivers, restrains and growth of the Quantum Computing Market

Detailed Segmentation:

Offering Insights

The system segment dominated the market with a revenue share of over 64.2% in 2023. The system segment involves the development and deployment of quantum computing hardware and associated systems. Quantum hardware, including quantum processors, qubit architectures, and quantum interconnects, was experiencing rapid development. Companies were working on increasing the number of qubits, improving qubit quality, and enhancing error correction techniques. Advancements in hardware were crucial for achieving quantum supremacy and tackling practical problems.

End-user Insights

The BFSI segment dominated the market with the highest revenue share in 2023. The rising demand for quantum computing stems from its rapid data processing capabilities, which provide substantial advantages to the BFSI sector. It equips the financial industry to conduct faster data analysis, specifically for tasks such as fraud detection, understanding customer behavior, and facilitating decision-making. This prevalent tendency revolves around harnessing the swiftness of quantum computing to extract invaluable insights from extensive datasets, ultimately amplifying the efficiency of diverse financial procedures.

Deployment Insights

The on-premises segment dominated the market with the highest revenue share in 2023. Some enterprises and research institutions were opting for on-premises quantum computing solutions, where they maintained and operated their own quantum hardware. This approach provided greater control and security for sensitive applications. Quantum software deployment was becoming more common as organizations sought to integrate quantum algorithms into their existing software infrastructure. This involved the development and deployment of quantum software solutions for specific tasks or industries.

Application Insights

The optimization segment dominated the market with the highest revenue share in 2023. The optimization segment is one of the key application areas where quantum computing holds significant promise and is expected to have a substantial impact. Quantum computing's ability to solve complex optimization problems more efficiently than classical computers has led to various growth trends in this segment. Quantum computing is being applied to optimize supply chain and logistics operations. It can help businesses find more efficient routes for transportation, reduce shipping costs, minimize inventory holding costs, and improve overall supply chain efficiency. This is particularly valuable in industries with complex distribution networks.

Regional Insights

North America, spearheaded by the U.S. and Canada, dominates the quantum computing landscape. A robust ecosystem of leading companies and research institutions thrives here, fueled by substantial public and private investments. This has positioned North America at the forefront of quantum hardware, software, and cloud solutions. The well-developed North America market for quantum computing prioritizes applications in cryptography, optimization, and scientific research.

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Key Quantum Computing Companies:

The following are the leading companies in the quantum computing market. These companies collectively hold the largest market share and dictate industry trends.

• Accenture Plc.
• D-WaveSystem Inc.
• Google LLC
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Quantinuum Ltd.
• Rigetti Co, Inc.
• Riverlane
• Zapata Computing

Quantum Computing Market Segmentation

Grand View Research has segmented the global quantum computing market based on offering, deployment, application, end-user, and region:

Quantum Computing Offering Outlook (Revenue, USD Million, 2017 - 2030)

• System
• Services

Quantum Computing Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• On-Premises
• Cloud

Quantum Computing Application Outlook (Revenue, USD Million, 2017 - 2030)

• Optimization
• Simulation
• Machine Learning
• Others

Quantum Computing End-user Outlook (Revenue, USD Million, 2017 - 2030)

• Aerospace Defense
• BFSI
• Healthcare
• Automotive
• Energy Power
• Chemical
• Government
• Others

Quantum Computing Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East Africa
  • KSA
  • UAE
  • South Africa

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Recent Developments

• In February 2024, D-Wave released their latest prototype, the Advantage2, boasting over 1,200 qubits, through their Leap quantum cloud service. This enables current Leap subscribers to access the new hardware instantly, while newcomers can register for Leap and enjoy up to one minute of free usage of the Advantage2 prototype, alongside other quantum processing units (QPUs) and solvers available on the platform.
• In December 2023, IBM announced a collaboration with Keio University, The University of Tokyo, Yonsei University, Seoul National University, and The University of Chicago to enhance quantum education initiatives across Japan, Korea, and the United States. Through this partnership, IBM aims to provide educational programs, alongside inputs from each participating university, with the goal of training up to 40,000 students over the next decade. This effort seeks to equip students with the necessary skills for the emerging quantum workforce and foster the development of a thriving quantum computing ecosystem.
• In December 2023, as outlined in NVIDIA's technical blog, the release of version 23.10 of its software development kit (SDK) cuQuantum marked a noteworthy advancement in quantum computing capabilities. Designed to augment libraries and tools for quantum computing tasks, this toolkit now demonstrates improved compatibility with NVIDIA Tensor Core GPUs, resulting in notable speed enhancements for quantum circuit simulations.
• In November 2023, Rigetti Computing successfully obtained Phase 2 funding from DARPA (Defense Advanced Research Projects Agency). This funding, potentially totaling USD 1.5 million, aims to assist Rigetti in the creation of benchmarks designed to gauge the efficacy of large-scale quantum computers in practical, real-world scenarios.