Quantum Computing Market to Reach $667.3 million by 2027 at a noteworthy CAGR of 30.0%Download Sample Reports Overview
The global quantum computing market is valued at $667.3 million by 2027, surging from $88.2 million in 2019 at a noteworthy CAGR of 30.0%.
Impact Analysis of COVID-19 on the Quantum Computing Market
The global market for quantum computing services is projected to experience considerable impact due to the emergence of the Coronavirus disease (COVID-19). In the fight against COVID-19, quantum computing platform has joined the force of disruptive technologies at the service to better control the global outbreak. The current coronavirus crisis provides a valuable stage for zooming in the real potential applications of quantum computing in highly-impacted and complex situations. The esteemed companies operating in global quantum computing market are trying their best to provide integrated platform amidst the shutdown. For instance, in September 2020, IBM, an American multinational technology and consulting company, announced to conduct ‘IBM Quantum Summit 2020’ to discover chemical compounds that could contribute to the fight against COVID-19 pandemic.
On the other hand, quantum computing is very helpful in the discovery of lot of drugs which is a computationally-intensive task. Quantum computing can analyze the the interaction between biomolecules, and this can be helpful in tackling infectious agents such as coronavirus and others. There can be no other better way than to model the problem on a computer and conduct extensive research on the same. For instance in March, D-Wave announced that they are offering quantum computers free to anyone working on the coronavirus crisis for research and other work related to covid19. Therefore, there are many companies expirenced upsurge in growth, throughout the pandemic period. These type of factors may lead lucrative opportunities for the investors in the forecast period.
Quantum Computing Market Analysis:
The enormous growth of the global quantum computing market is mainly attributed to the increasing integration of quantum computing platforms in healthcare. Companies such as 1QB Information Technologies Inc., QxBranch, LLC, D-Wave Systems Inc. are working in the field of material simulation to enhance the accessibility, availability, and usability of quantum computers in material simulation applications. In addition, these players are following strategic collaborations, business expansion and technological innovations to acquire the largest share in the global industry. For instance, in October 2020, Cambridge Quantum Computing announced that they are opening Ph.D. internships with multinational pharmaceutical companies for drug designing through quantum algorithms. These key factors may lead to a surge in the demand for quantum computing services in the global market.
Lack of knowledge and skills may create a negative impact on global quantum computing services throughout the analysis timeframe. This type of factors may hamper the quantum computing market growth during the analysis period.
The global quantum computing industry is growing extensively across various fields, but fastest growing adoption of quantum computing is in agriculture. Quantum computing offers software solutions for agriculture in large businesses and startups all over the world to develop innovative solutions in agriculture. For instance Quantum, a software and data science company launched a software named ‘’AgriTech”, ths software helps farmers to monitor crops, agricultural fields and it will respond quickly to all the issues related to agriculture. These factors may provide lucrative opportunities for the global quantum computing market, in the coming years.
The consulting solutions sub-segment of the quantum computing market will have the fastest growth and it is projected to surpass $354.0 million by 2027, with an increase from $37.1 million in 2019. This is mainly attributed to its application in blind quantum computing and quantum cryptography playing a major role to secure cloud computing services. Moreover, the consulting solutions segment for quantum computing technologies covers broad range of end-user industries including automotive, space & defense, chemicals, healthcare, and energy & power, and others.
Moreover systems offering sub-segment type will have a significant market share and is projected to grow at a CAGR of 26.7% by registering a revenue of $313.3 million by 2027. This growth is mainly attributed to many government authorities across the developed as well as developing economies that are heavily investing into quantum computing technologies. For instance, in February 2020, the Indian government announces that they are going to invest $1120 million in quantum computing research. This type of government support and scheme is expected to flourish the research for technology under the ‘National Mission of Quantum Technology and Application project’. Such government support may bolster the segmental growth, in the analysis period.
Machine learning sub-segment for the quantum computing industry shall have rapid growth and it is anticipated to generate a revenue of $236.9 million by 2027, during the forecast period. This growth is mainly attributed to higher applications of quantum computing in the broad range of areas such as drug discovery, multi-omics data integration, and many among others. These factors may offer lucrative opportunities for the segment, during the forecast timeframe.
The banking and finance sub-segment will be the fastest-growing segment and it is expected to register a revenue of $159.2 million by 2027, throughout the analysis timeframe. The enormously growing quantum computing in the finance sector across the globe has advanced with developments in smartphone technology and computer processing. In addition, the quantum computing platform helps speed up the transactional activities in cost-effective ways. Hence, the quantum computing platform is extensively attracting the interest of BFSI firms that are seeking to boost their data speed, trade, and transactions. Such factors are projected to upsurge the growth of the segment, during the projected timeframe.
The quantum computing market for the Asia-Pacific region will be a rapidly-growing market and it has generated a revenue of $18.1 million in 2019 and is further projected to reach up to $150.3 million by 2027. The demand for quantum computing services is surging in the Asia pacific region, specifically because of the strategic collaboration and development. For instance, in December 2019, D-Wave Systems came in a partnership with Japan's NEC for building of quantum apps and hybrid HPC for exploring the capabilities NEC's high-performance computers and D-Wave's quantum systems. Such partnerships may further surge the growth of market, during the analysis timeframe.
The Europe quantum computing market shall have a dominating market share and is anticipated to reach up to $ 221.2 million by the end of 2027 due to its higher application in fields such as development and discovery of new drugs, cryptography, cyber security, defense sector, among others. In addition, the use of quantum computing will also have positive consequences in development of AI as well as in machine learning. For instance, in July 2019, Utimaco GmbH, software & hardware provider came in partnership with ISARA to utilize post quantum cryptography; this partnership will help their users to have secured and encrypted communication that cannot be decrypted by other computers. These initiatives may create a positive impact on the Asia-pacific quantum computing market, during the forecast period.
Key Market Players
- QC Ware, Corp.
- Cambridge Quantum Computing Limited
- D-Wave Systems Inc.,
- International Business Machines Corporation
- Rigetti Computing
- 1QB Information Technologies
- River Lane Research
- StationQ – Microsoft
- Google Inc.
Porter’s Five Forces Analysis for Quantum Computing Market:
- Bargaining Power of Suppliers: The companies involved in the quantum computing business are high in number. Thus, the negotiation power of quantum computing service providers decreases. So, there will be a lower threat from the supplier side. Thus, the bargaining power of the supplier is Moderate
- Bargaining Power of Buyer: Buyers have high bargaining power, primarily because of the huge number of quantum computing service providers. Therefore, the buyer can choose the service that best fits its preferences. The bargaining power of the buyer is HIGH
- Threat of New Entrants: The startups entering this market are providing advanced solutions to the customers. Moreover, the switching cost of buyers is not prohibitively high. Thus, the bargaining power of the new entrant is Moderate
- Threat of Substitutes: Several substitutes are available in market such as normal commercial computers. But they are not offering the kind of service quantum computing offers. Therefore, the threat of substitute is Low
- Competitive Rivalry in the Market: The ventures operating in the global quantum computing services are opting for various businesses development strategies to stronghold position in the market. The key players of the market such as International Business Machines Corporation, Cambridge Quantum Computing Limited and 1QB Information Technologies are investing heavily to provide integrated services to the customers. Therefore, competitive rivalry in the market is High