Quantum computing is an advanced computer technology based on quantum theory and quantum mechanics. It deploys 0 and 1 bits but utilizes every state between 0 and 1, thereby providing excellent speeds. Its increasing applications in algorithms, cryptography, quantum parallelism, quantum simulation, and machine learning are expected to boost its sales. Furthermore, incorporating AI and ML technologies is expected to boost demand. These factors may propel the market growth during the upcoming years.
The quantum computing market size was USD 392.5 million in 2020. The market is projected to grow from USD 486.1 million in 2021 to USD 3,180.9 million in 2028 at a CAGR of 30.8% during the 2021-2028 period.
Drivers and Restraints
Rising Government Investments and Strategic Alliances to Drive Industry Growth
Governments make extensive investments in quantum computing technologies to boost its adoption. For example, the German Federal Ministry of Education and Research provided USD 50.3 million to fund the Ion Trap Computer development in December 2021. This factor may boost the adoption of the computing solution. Furthermore, increasing strategic alliances may fuel the development of better-quality computing solutions. Moreover, rapid digitization and reliance on the Internet of Things (IoT) may boost its sales. These factors may drive the quantum computing market growth.
USD 171.4 Million
North America has seen rapid growth in the market trend owing to the early adoption of advanced technologies and a highly competitive landscape. The penetration of computing services in the region is due to key market players. The readiness of end-users to adopt emerging technologies has also encouraged key providers to develop advanced services.
Europe is expecting to have significant growth as start-ups are on the rise. Further, digital government initiatives and regulatory environments and increase usage of cloud-based technology, are also rising in the region that is anticipating to drive the growth of the market and technology. Also, industry leaders focus on expanding their business in the region. For instance, in December 2021, IQM Quantum Computer’s European development continues, with a new French subsidiary focusing on IQM’s co-design customers in the aviation, space, and cybersecurity. Similarly, in December 2021, QuTech collaborated with Fraunhofer to develop a Pan-European Quantum Network. The deployment of the projects will be a cross-border quantum key distribution (QKD) network linking hubs in Germany and the Netherlands.
Rising Digitization Amid Pandemic to Propel Growth
The COVID-19 pandemic has positively impacted the Quantum Computing Market growth due to rising digitization in several industries. Also, leading companies from various sectors have adopted recent technologies to simplify their business operations and ease the work process. Furthermore, the companies implemented recent technologies to adopt work from home/remote work culture. These factors bolstered the market growth and expansion during the pandemic.