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The global quantum computing market generated a revenue of $89.6 million in 2019, and is projected to reach $1,866.8 million by 2030, progressing at a CAGR of 33.1% during the forecast period (2020–2030). Increasing funding by government and private firms is driving the growth of the market across the globe. Among all regions, Europe is expected to record the fastest growth in the market during the forecast period. Economic development, robust research & development (R&D) activities, massive IT spending, growing inclination toward advanced technologies, along with surging manufacturing and aerospace & defense industries are some of the key factors driving the European market growth.
Factors Governing Quantum Computing Market
Increasing funding by government and private firms is steering the market growth. Rising number of government programs supporting quantum information processing have been noted over last few years, particularly after 2014. The government is the major augmenting force behind the increasing investments on quantum computing R&D activities, fiercely competing for this promising technology.
The market is witnessing huge strategic developments across the globe, majorly in North America. Private companies are also investing heavily in the technology, since they expect to gain benefits of attaining foothold in a future potential market. For instance, North American firms, such as Google LLC, International Business Machines (IBM) Corporation, and Microsoft Corporation, are vigorously working on the development and commercialization of the technology. The Chinese government is working on a $10 billion national lab for quantum research in Hefei, planned to be opened by 2020, and the Chinese e-commerce giant Alibaba Group Holding Limited is building a lab of its own.
Simulation work is gaining momentum in the market. The market players are intensely working on developing numerical simulation of quantum systems, since it is crucial for further comprehension of natural phenomena. However, the development of such systems requires more processing power. Many systems of key interest and importance, in areas such as superconducting materials and quantum chemistry, are described by models that cannot be solved with sufficient accuracy, neither analytically nor numerically with classical computers.
Using a quantum computer to simulate such quantum systems has been viewed as a key application of quantum computation. Moreover, useful results beyond the reach of classical computation are expected to be accessible with fewer than a hundred qubits, making quantum simulation potentially one of the earliest practical applications of quantum computers.
Quantum Computing Market Segmentation Analysis
The hardware category under the offering segment generated the largest revenue in the quantum computing market in 2019. This is due to the fact that the market is still at a nascent stage, where players are majorly investing for the development of robust hardware equipment.
The consulting services category under the service segment is expected to record the fastest growth during the forecast period in the quantum computing market. This can be primarily attributed to the intensity of difficulty in the development of technology due to the requirement of significant expertise in the field.
The optimization category under the application segment held the largest share in the quantum computing market in 2019. This is due to the fact that most of the organizational problems revolve around streamlining business processes, for which optimization solution is of utmost importance. Hence, market players are focusing on developing the solution that can be applied for optimization purposes.
Geographical Analysis of Quantum Computing Market
In the quantum computing market, North America recorded the largest revenue in 2019, owing to heavy investments by government and private firms in the technology development. In January 2019, the U.S. Congress passed the National Quantum Initiative, authorizing more than $1.2 billion investment in quantum science and technology over the next 5 to 10 years. All such initiatives lead to an increasing presence of the technology in academic, government, and industrial facilities.
Furthermore, D-Wave Systems Inc., a Canadian company that develops quantum computing systems was the first to commercialize quantum computers, with the introduction of D-Wave One system. D-Wave Systems Inc. has developed fourth generation quantum systems and doubled the number of qubits in successive generations, with its current system (D-Wave 2000Q) having 2,000 qubits. Moreover, large IT spending, technological advancement, and early adoption of emerging technologies are some other factors that support the growth of the market in the region.
Competitive Landscape of Quantum Computing Market
The market is at a nascent stage, where the market players are competing intensely for commercializing quantum computing systems that would be exponentially powerful than the classical computers in terms of accuracy and speed. In near future, it has been forecasted that the technology would coexist with the classical computers. Some of the prominent market players include IBM Corporation, Telstra Corporation Limited, IonQ Inc., Silicon Quantum Computing, Huawei Investment & Holding Co. Ltd., Alphabet Inc., Rigetti & Co Inc., Microsoft Corporation, D-Wave Systems Inc., Zapata Computing Inc., and Intel Corporation.
Recent Strategic Developments of Major Quantum Computing Market Players
In recent years, major players in the market have taken several strategic measures to ensure their foothold. For instance, in December 2019, D-Wave Systems Inc. announced an agreement with NEC Corporation to collaborate in the areas of hybrid services, application development, and sales & marketing. In addition, under this agreement, NEC Corporation would invest $10 million into D-Wave Systems Inc.
Furthermore, in November 2019, IBM Corporation and Alpine Quantum Technologies created a new version of Qiskit (version 0.13) that support ion trap devices. Qiskit comes with a wide range of algorithms and applications, and is now available via cloud on the Innsbruck quantum devices.
Market Size Breakdown by Segment
The quantum computing market report offers comprehensive market segmentation analysis along with market estimates for the period 2014–2030.
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