Global Quantum Computing Market Overview
The key driver impacting the quantum computing market is the rising investments in quantum computing technology. For instance, In August 2020, The U.S. government announced $1 billion in new funding for multidisciplinary AI and quantum computing research. Around $625 million of today’s this funding will lead to research involving quantum information sciences in five centers connected to the Department of Energy (DOE). The Indian Government, in its recent budget (2020-2021), declared its plans to spend $1.12 billion in quantum computing research in the next five years. Canada is considered the leading country in quantum research. It has invested more than $1b in quantum research over the past decade. In 2018, the German Federal Government declared a Framework Programme to bring quantum technologies to market. They also invested 650million euros in its quantum technologies Programme. Moreover, the increasing need for high-level computing performance contributes to the quantum computing market's growth in the coming years.
According to Value Market Research, the global quantum computing market size was valued at around USD 450 million in 2020 and is estimated to grow at a CAGR of about 30% during the forecast period 2021 to 2027.
The rise in the number of strategic partnerships and collaborations to carry out quantum computing technology advancements is estimated to augment quantum computing needs in the forecast period. For example, large research institutes like Princeton University, Massachusetts Institute of Technology, and the University of Waterloo are researching and working together on quantum computer prototypes. However, the stability and error correction issues may hamper the market in the long run. Also, the dearth of highly skilled professionals negatively impacts the market. The current industry trends, such as the technological advancements in quantum computing, and the surge in adoption of quantum computing technology for drug discovery, are likely to provide market players with new market opportunities.
The quantum computing market is vast, with many local and global players. The quantum computing market is extensive, with many international and regional players. The key market leaders follow several strategies to increase their market statuses, such as extending product portfolio, amalgamation, contracts, acquisitions, product upgrades to enlarge their market share across the globe. The important players studied in the report are D-Wave Systems International Business Machines, Microsoft, Honeywell International, Amazon, Google, Rigetti Computing Intel, Quantum Circuits, and QC Ware.
In this research report, the quantum computing market is segmented by offering, technology, end-user industry, and region.
Analysis by Offering
By offering, the report is categorized into on-premises, and cloud-based. Cloud-based together dominates the offering segment with over 55% share in 2020. It is due to the growing demand for cloud-based deployment of quantum computing systems and services with the development of highly powerful systems. Moreover, the limited lifespan of speedily advancing quantum computing systems greatly favors providers of cloud service contributing to the growth of cloud-based offerings in the forecast period.
Analysis by Technology
By technology, the report is categorized into trapped ions, quantum annealing, superconducting qubits, and others (topological and photonic). Superconducting qubits dominate the technology segment with over 30% share in 2020. It is due to the faster operations of quantum computers based on superconducting qubits technology than the computers equipped with other technologies. Moreover, technology companies such as IBM, Google, and Intel are expected to launch their quantum computing services with superconducting qubits in the coming years.
Analysis by End-User:
By end-user, the report is categorized into banking & finance, space and defense, banking and finance, healthcare and pharmaceuticals, chemicals, energy and power, transportation and logistics, academia, and government. Banking & Finance dominate the end-user segment with over 20% share in 2020. It is due to the high focus on increasing the speed of trade activities, transactions, and data processing manifolds. Moreover, it helps identify an improved and efficient way to manage financial risks in the coming years and contributes to the increased market demand from the banking sector in the forecast period.
Analysis by Region:
In the regional outlook of the global Quantum computing market, the North America region dominates globally with a 30% market share in the forecast period. It is because of the high adoption of quantum computing technology in this region due to the presence of a large number of US-based users and significant players in the quantum computing market. Moreover, the technological advancements and rising investment in research and development of quantum computing by the U.S. government contribute to market growth across North America.
Market Segmentation covered in the Report:
- Trapped Ions
- Quantum Annealing
- Superconducting Qubits
- Others (Topological and Photonic)
- Banking & Finance
- Space and Defense
- Banking and Finance
- Healthcare and Pharmaceuticals
- Energy and Power
- Transportation and Logistics
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.