Quantum Computing Market
The market for Quantum Computing was estimated at $1.9 billion in 2024; it is anticipated to increase to $12.7 billion by 2030, with projections indicating growth to around $61.8 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Quantum Computing Market Outlook
Revenue, 2024
$1.9B
Forecast, 2034
$45.0B
CAGR, 2025 - 2034
37.3%
The Quantum Computing industry revenue is expected to be around $2.6 billion in 2025 and expected to showcase growth with 37.3% CAGR between 2025 and 2034. The remarkable expansion of the Quantum Computing industry can mostly be credited to a range of reasons; heightened funding in quantum research and technology from both public and private sectors; a persistent need for increased computing capacity to tackle intricate issues; and the continuous push for advancing ML capabilities are all crucial factors propelling this growth forward. The emergence of cryptography and the necessity for highly secure communication, in our ever growing digital realm further solidify the sectors significance within today's technological world. The outlook for quantum computing seems bright as technological progress and robust market trends set the stage for its enduring significance, in the years ahead.
Quantum computing harnesses the principles of mechanics to carry out calculations and boasts characteristics like superposition and entanglement that provide immense computational capabilities. Its significant uses span, from uncovering drugs and predicting climate patterns to financial analysis and safeguarding information. Furthermore its ability to tackle problems well beyond what conventional computing can handle has garnered global industries interest.
Market Key Insights
- The Quantum Computing market is projected to grow from $1.9 billion in 2024 to $45.0 billion in 2034. This represents a CAGR of 37.3%, reflecting rising demand across Quantum Simulation, Machine Learning and Optimization.
- IBM, Google Quantum AI, Microsoft Quantum are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Quantum Computing market and are expected to observe the growth CAGR of 35.8% to 52.2% between 2024 and 2030.
- Emerging markets including India, Brazil and Singapore are expected to observe highest growth with CAGR ranging between 28.0% to 38.8%.
- Transition like Infiltration into Pharmaceutical Industry is expected to add $895 million to the Quantum Computing market growth by 2030.
- The Quantum Computing market is set to add $43.1 billion between 2024 and 2034, with manufacturer targeting Data Analytics & Simulation Applications projected to gain a larger market share.
- With Surging demand for secure communication systems, and Increasing use of quantum computing in drug discovery, Quantum Computing market to expand 2281% between 2024 and 2034.
Opportunities in the Quantum Computing
In the field of healthcare lies an area where Quantum Computing could also drive significant progress forward that benefits all involved parties tremendously.
Growth Opportunities in North America and Asia-Pacific
The North American market is steadily advancing in Quantum Computing. The regions rich landscape of technology firms and vast academic/research institutions provide an encouraging environment for the growth of this innovative technology. Escalating competition among the major players, such as IBM and Google, accelerates the pace of advancement in quantum technology, fostering a fertile breeding ground for Quantum Computing to flourish. Intriguingly, the swift race towards Quantum Supremacy in this region acts as a crucial driver, stimulating major tech giants to invest heavily and explore more in Quantum Computing technologies. The increasing demand for advanced AI and ML technologies, which use Quantum Computing for complex calculations and predictions, opens up lucrative opportunities in this region.
In the Asia-Pacific realm, nations like China, Japan, and South Korea are progressively mounting their research and development activities in Quantum Computing. Here, quantum technology is viewed as a key component for securing a competitive edge in the future global technology race. Chinas quantum satellite project and Japans plan for quantum computer development are clear examples of determination and investment driving Quantum Computing in this region. Furthermore, the burgeoning digital transformation across various industries such as finance, healthcare, and logistics in the region enhances the demand for Quantum Computing. This emerging technology presents an unprecedented opportunity to revolutionize the current computational capacity and speed, thereby showing a promising growth trajectory
Market Dynamics and Supply Chain
01
Driver: Surging Demand for Secure Communication Systems
The increasing occurrences of data breaches on a scale have also led to a rise in the need for reliable communication systems to enhance security measures significantly. Quantum computing introduces encryption technologies that offer a novel way to establish highly secure systems that are also nearly impossible to breach. Its utilization in cybersecurity is also expected to experience expansion due, to its capacity to combat threats and protect confidential data more effectively compared to conventional techniques.
Quantum computing presents computational power that proves valuable in expediting the process of discovering new drugs. This innovative technology has also the capability to examine an array of combinations and potential outcomes to assist scientists and researchers, in pinpoint drug targeting mechanisms. Its efficient predictive ability can also spark progress in the field of pharmaceuticals by promoting the growth of quantum computing applications.
02
Restraint: High Initial Investment
The vast potential of Quantum Computing spans across sectors such as healthcare and cryptography; however its experimental essence and reliance on cutting edge technology and infrastructure entail a substantial initial financial commitment This financial aspect plays a key role in hindering market expansion by confining Quantum Computing accessibility and usage primarily to large multinational corporations and research facilities This limitation obstructs widespread commercial integration of Quantum Computing especially in emerging economies and within smaller businesses where access, to ample funding may be lacking Consequently Quantum Computing adoption encounters notable hurdles in such scenarios.
03
Opportunity: Technological Innovations in Quantum Computing and Government and Industry Partnerships
The realm of Quantum Computing technology has seen advancements so far; however there is ample room for further innovation ahead particularly in the domains of Advanced Encryption and Quantum Key Distribution. These sectors offer promising opportunities for expansion given the escalating cyber threats. Harnessing data security effectively through Quantum Computing has the potential to bring about transformative changes in industries heavily dependent, on confidential data.
Collaborations between governments and Quantum Computing companies have the potential to fuel growth exponentially. This teamwork could result in enhancements to government infrastructure advancements in education. An uptick in funding, for technological research—ultimately expanding the use of Quantum Computing across diverse industries.
04
Challenge: Lack of Skilled Professionals
Quantum Computing is a complex, interdisciplinary field that demands an intricate understanding of quantum physics, computer science, and mathematics. Consequently, there is a significant skill gap in the market. The lack of skilled professionals proficient in Quantum Computing can lead to inefficient application and utilization of the technology, thereby posing a potential on the market growth.
Supply Chain Landscape
1
Research & Development
IBMGoogle
2
Component Fabrication
MicrosoftD-Wave Systems
3
System Assembly
IntelAtos Quantum
4
Sales & Services
Alibaba CloudAmazon Web Services
1
Research & Development
IBMGoogle
2
Component Fabrication
MicrosoftD-Wave Systems
3
System Assembly
IntelAtos Quantum
4
Sales & Services
Alibaba CloudAmazon Web Services
Use Cases of Quantum Computing in Simulation & Machine Learning
Quantum Simulation : Leveraging their computing power, quantum computers are capable of simulating intricate quantum systems that classical computers simply cannot manage. Quantum simulation applications primarily utilize gate-based quantum computing, which allows accurate modeling of complex quantum phenomena. Top players like IBM and D-Wave are continuously strengthening their quantum simulation algorithms, consolidating their market position.
Optimization : Quantum Computing is becoming increasingly valuable in resolving complex optimization problems in sectors like logistics, supply chain management, and financial services. Quantum annealing, a subset of Quantum Computing, is widely used in these cases for its ability to find the best solution among possible options. Companies like Fujitsu and Toshiba are at the forefront, delivering strong solutions for optimization problems, thereby sustaining their competitive edge.
Machine Learning : Quantum ML exploits the computational power of quantum computers to deliver more efficient and accurate ML algorithms. Hybrid Quantum-Classical Machines, an emerging form of Quantum Computing, are often deployed for this purpose, accelerating data processing and pattern recognition tasks. Tech behemoths like Google and Microsoft are becoming key market players, with strong capabilities in Quantum ML.
Cryptography : Quantum cryptography leverages the principles of Quantum Computing to secure sensitive data against unauthorized access. Post-Quantum Cryptography, an advanced cryptographic system resistant to quantum computer attacks, is gaining traction in this region.
Recent Developments
Quantum Computing, a burgeoning technology, has witnessed significant advancements in recent years. These developments are reflective of the escalating global interest in exploring its potential applications across various industry segments. Quantum technology, widely considered the future of computational power, involves the use of qubits instead of bits, leading to unparalleled processing speeds and efficiencies.
December 2024 : IBM unveiled its next-generation quantum system, further enhancing its Quantum Computing capacities
October 2024 : Google reached the milestone of Quantum Supremacy with its 128-qubit processor, overtaking competition in Quantum Computing
August 2024 : Microsoft collaborated with quantum technology startup Q-Tech, paving the way for advancements and innovation in the field of Quantum Computing.
Impact of Industry Transitions on the Quantum Computing Market
As a core segment of the S&E Technology industry,
the Quantum Computing market develops in line with broader industry shifts.
Over recent years, transitions such as Infiltration into Pharmaceutical Industry and Quantum Computing and Financial Services have redefined priorities
across the S&E Technology sector,
influencing how the Quantum Computing market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Infiltration into Pharmaceutical Industry
Quantum Computing has been steadily penetrating various industries, with pharmaceuticals being a key sector. This technology helps in the rapid development and screening of potential drug candidates, contributing to faster and more effective treatments. The complex computations required in the drug design process, including chemical compound simulations, can be significantly accelerated using quantum computing methodologies. This leads to overall reductions in Research & Development timelines, aiding in quicker responses to outbreaks and epidemics.
02
Quantum Computing and Financial Services
Financial sectors are particularly susceptible to the transformative impact of quantum computing. From portfolio optimization to risk analysis, the algorithms devised through quantum computing can calculate financial trajectories and pinpoint risks with unprecedented accuracy. Furthermore, quantum computing can facilitate the decoding of complex financial markets, offering calculable probabilities that aid in the decision-making processes of traders and investment managers. Thus, its integration within the finance industry can potentially create a seismic shift in how financial services operate, boosting efficiency and predictive insights.