PUBLISHER: KBV Research | PRODUCT CODE: 1555859
PUBLISHER: KBV Research | PRODUCT CODE: 1555859
The Global Quantum AI Market size is expected to reach $2.1 billion by 2031, rising at a market growth of 35.1% CAGR during the forecast period.
Europe has made significant strides in quantum research, supported by large-scale initiatives such as the European Union's Quantum Flagship program, which aims to position Europe as a leader in quantum technologies. Consequently, the European region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in September, 2024, Toshiba Digital Solutions Corporation formed a collaboration with SpeQtral, a prominent quantum communications technology firm, and ST Engineering, a global technology, defense, and engineering group. This agreement formalizes their strategic alliance and aims to enhance their go-to-market strategy for quantum-secure communications solutions across Singapore and Southeast Asia. The collaboration will focus on advancing quantum security solutions through joint market and business development, creating customized product and solution offerings, and exploring opportunities within the government sector. Moreover, in August, 2024, Fujitsu Limited joined hands with Center for Quantum Information and Quantum Biology at Osaka University (QIQB) on two innovative technologies designed for the space-time efficient analog rotation quantum computing architecture. These advancements are set to significantly advance the development of practical quantum computing. Fujitsu and QIQB have utilized these new technologies-one enhancing phase angle accuracy during phase rotation, and the other automating the generation of efficient qubit operation procedures-to demonstrate that a quantum computer could theoretically complete a calculation in ten hours that would take a classical computer five years.
Market Growth Factors
Governments across the globe are allocating significant resources to fund quantum research initiatives, aiming to position their countries at the forefront of this emerging field. On the private sector side, tech giants like IBM, Google, and Microsoft are in charge of developing quantum computers and these AI solutions. Hence, these concerted efforts are driving market growth.
Quantum AI has the potential to dramatically enhance the accuracy of molecular simulations, which is critical for understanding the intricate structures and behaviors of biological molecules. One of the most promising applications of this AI in healthcare is in the area of drug discovery. The pharmaceutical industry is renowned for its extensive and costly drug development cycles, which frequently require over a decade and billions of dollars to market a new drug. Thus, the growing applications of this AI in healthcare and drug discovery are driving significant advancements in medical research and, in turn, market growth.
Market Restraining Factors
Developing and maintaining quantum computers requires expensive specialized infrastructure, such as cryogenic systems and vacuum chambers, essential for maintaining the delicate quantum states of qubits. Moreover, the ongoing costs of maintaining and upgrading quantum systems add to the financial burden, with companies needing to invest continuously in new hardware and software to remain competitive. Hence, the high costs of quantum technology pose a substantial obstacle to the widespread adoption and growth of this AI, limiting its potential impact across various industries.
Deployment Mode Outlook
Based on deployment mode, the market is bifurcated into on-premises and cloud based. The cloud based segment procured 42% revenue share in the market in 2023. Cloud-based AI solutions are gaining traction due to their flexibility, scalability, and accessibility. They enable organizations to capitalize on quantum computing capabilities without making considerable initial investments in hardware and infrastructure.
Application Outlook
On the basis of application, the market is segmented into machine learning & optimization, cryptography & security, and simulation & modeling. The cryptography & security segment procured 19% revenue share in the market in 2023. Quantum computing's potential to revolutionize cryptography is a major driver of this segment's growth.
Component Outlook
By component, the market is segmented into hardware, software, and services. The software segment procured 35% revenue share in the market in 2023. As quantum hardware continues to evolve, there is a growing need for specialized software to effectively leverage quantum computing's capabilities for AI applications.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered 44% revenue share in the market in 2023. This dominance is due to the region's robust technological infrastructure, significant investment in quantum research, and the leadership of major technology corporations in the development of this AI.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Quantum AI Market Report Segmentation
By Deployment Mode
By Application
By Component
By Geography