PUBLISHER: KBV Research | PRODUCT CODE: 1661749
PUBLISHER: KBV Research | PRODUCT CODE: 1661749
The Global Quantum Computing Market size is expected to reach $4.58 billion by 2031, rising at a market growth of 19.6% CAGR during the forecast period.
In the chemical industry, quantum computing is used for molecular modelling and material discovery, enabling researchers to simulate chemical reactions at an atomic level. This accelerates the development of new materials and chemicals with specific properties, which is crucial for industries such as pharmaceuticals, petrochemicals, and advanced materials manufacturing. Thus, the chemical segment held 7% revenue share in the market in 2023.
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 February, 2025, Intel Corporation and the National Institute of Advanced Industrial Science and Technology (AIST) signed an MOU to strengthen their collaboration in industrializing silicon quantum computers. By combining AIST's G-QuAT research center capabilities with Intel's semiconductor processes, the partnership aims to develop systems with tens of thousands of qubits by the early 2030s. Additionally, In December, 2024, SpinQ Technology Co., Ltd. partnered with the Technology Innovation Institute (TII), a leading research center under Abu Dhabi's Advanced Technology Research Council, to integrate SpinQ's superconducting quantum processing units (QPUs) into TII's quantum research framework. The partnership addresses key quantum hardware challenges like scarcity and high costs, offering modular, customizable QPUs with high fidelity and coherence times.
Based on the Analysis presented in the KBV Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the Quantum Computing Market. Companies such as Amazon Web Services, Inc., Huawei Technologies Co., Ltd. and IBM Corporation are some of the key innovators in Quantum Computing Market. In November, 2024, Google LLC joined hands with NVIDIA Corporation, a U.S.-based semiconductor company, to enhance quantum computer development using the CUDA-Q platform and the NVIDIA Eos supercomputer. This collaboration aims to simulate quantum processor physics, mitigating noise challenges in quantum hardware. By leveraging GPU-accelerated computing, Google can now conduct quantum device simulations in minutes instead of weeks.
Market Growth Factors
In the healthcare and pharmaceutical sectors, quantum computing accelerates drug discovery by simulating molecular interactions at an atomic level. Traditional drug development is time-consuming and costly, requiring years of computational simulations and physical testing. Quantum computing allows for rapid simulations of molecular structures, leading to the discovery of new drugs and treatments in significantly less time. Therefore, organizations worldwide invest in quantum-resistant encryption protocols to ensure future-proof security, further driving demand for quantum technologies.
Additionally, Cloud-based quantum computing also facilitates hybrid models, where classical and quantum systems work together to solve complex problems. Since quantum computing is still in its early stages and cannot fully replace classical computing, hybrid models allow businesses to leverage both technologies' strengths. For example, financial institutions use quantum cloud services for risk modelling, while pharmaceutical companies integrate quantum simulations into their drug discovery pipelines. Therefore, quantum computing is expected to become a mainstream tool in various industries as cloud-based platforms evolve, driving market growth.
Market Restraining Factors
Quantum computers require highly specialized and costly hardware, making large-scale adoption challenging. Unlike classical computers, which rely on semiconductor-based transistors, quantum computers operate using qubits, which require extremely low temperatures (millikelvin levels) and sophisticated cryogenic cooling systems. Therefore, the high cost of quantum computing hardware and infrastructure development is hindering market growth.
Offering Outlook
Based on offering, the market is characterized into system and services. The services segment procured 36% revenue share in the market in 2023. The growing need for cloud-based quantum computing, consulting, and integration services has fueled this segment's expansion. Businesses are leveraging quantum computing as a service (QCaaS) to access quantum capabilities without significant upfront investments, accelerating adoption across various industries, including logistics, cybersecurity, and artificial intelligence.
Deployment Outlook
On the basis of deployment, the market is classified into on-premises and cloud. The on-premises segment acquired 56% revenue share in the market in 2023. Many enterprises, particularly in defense, healthcare, and finance, prefer on-premises deployment for quantum systems to maintain greater control over their sensitive data and critical operations. On-premises quantum computers allow for high security and faster processing, making them ideal for organizations with specific computational needs and substantial infrastructure investments.
Application Outlook
By application, the market is divided into optimization, simulation, machine learning, and others. The machine learning segment garnered 31% revenue share in the market in 2023. Quantum machine learning is becoming a key area of interest as it promises to accelerate data analysis and model training, enabling faster and more accurate predictions. With its ability to process vast amounts of data and identify patterns more effectively, quantum computing is enhancing machine learning techniques in natural language processing, image recognition, and predictive analytics, positioning it as a powerful tool for transforming industries like finance, healthcare, and marketing.
End User Outlook
Based on end-user, the market is segmented into aerospace & defense, BFSI, healthcare, automotive, energy & power, chemical, government, and others. The energy & power segment attained 11% revenue share in the market in 2023. Quantum computing is vital in solving complex optimization problems in energy systems, such as improving power grid efficiency, optimizing energy storage, and enhancing renewable energy integration.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment witnessed 32% revenue share in the market in 2023. North America, particularly the United States, has a strong quantum research foundation, with government initiatives and private-sector investments driving innovation.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Quantum Computing Market Report Segmentation
By Offering
By Deployment
By Application
By End-user
By Geography