Quantum Technologies Global Market is estimated to be worth $3,518.3 million by 2030
Quantum technologies work based on the principles of quantum mechanics such as quantum superposition, quantum interference, and quantum entanglement and exploits the unique properties of quantum physics to achieve functionality and performance that cannot be achieved using classical physics. There are three main domains such as computing, sensing, and communications, currently, implementing quantum principles in their workflow to outperform the capabilities of classical computing, sensing, and cryptographic solutions. Quantum computing harnesses the laws of quantum mechanics to solve problems too complex for classical computers. Quantum sensing involves the use of a quantum system, quantum properties, or quantum phenomena to perform a measurement of a physical quantity such as temperature, pressure, and others. Lastly, quantum communication involves the applications of laws of quantum physics to protect and transfer data. All three domains of quantum technologies have potential applications in various industries such as Healthcare, Banking, Financial Services and Insurance (BFSI), Energy, Oil and Gas, Chemicals, Logistics and Distribution, Aerospace, Defense, Automotive, and others. The quantum particles can be developed using different physical realizations such as trapped ions, superconducting, neutral atoms, cold atoms, photonic, electron spin, and topological. Each type has a specific method for the generation of quantum particles. The hardware (processor, system, controller, sensor, QKD systems, and others) and software are the main two components of quantum technologies products. Along with this, services related to quantum technologies are also available to explore their different applications in various industrial sectors. Globally, government agencies and private investors are heavily investing in quantum technologies with the objective to advance the technology’s ecosystem and industrialization, thereby ensuring digital sovereignty, security, and competitiveness.
The quantum technologies global market is expected to grow at a high double digit CAGR of from 2021 to 2030 to reach $3,518.3 million by 2030. The factors such as growing government and private venture funding for quantum technologies, increasing R&D expenditure of major technology companies to develop quantum technologies, strategic collaboration, partnerships, and mergers for the quantum technologies are driving the quantum technologies global market. Whereas, the emergence of mobile and convenient quantum processors and the development of advanced quantum technologies provides immense growth opportunities for the market. The lack of skilled professionals, high cost and complexity associated with the development of quantum technologies, and cryptographic risk associated with quantum communications are hindering the market growth.
The market for quantum technologies is segmented based on technology, products, end-user, and geography. Based on the technology, the market is segmented into Quantum Computing, Quantum Sensing, and Quantum Communication. Among these, the Quantum Sensing segment is accounted for the highest revenue in 2021 and is expected to grow at an early teen CAGR from 2021 to 2030. The Quantum Computing market is expected to grow at a high double digit CAGR from 2021 to 2030. Based on the types of sensors, the Quantum Sensing global market is further segmented into Atomic Clocks, Magnetic Sensors, PAR Sensors, and Others. Among the sensors, the Atomic Clock segment is accounted for the highest revenue in 2021 and is expected to grow at an early teen CAGR from 2021 to 2030. The magnetic sensors market is expected to grow at a mid teen CAGR from 2021 to 2030.
Quantum computing is further segmented based on application and deployment. Based On application, the quantum computing global market is segmented into Machine Learning, Optimization, and Simulations. Among these, the Optimization segment is accounted for the highest revenue in 2021 and is expected to grow at a high double digit CAGR from 2021 to 2030. The simulation segment is expected to grow at a high double digit CAGR from 2021 to 2030. Based on the deployment, the quantum computing global market is sub-segmented into on-premise and cloud-based. Among these, cloud-based deployment is accounted for the highest revenue in 2021 and is expected to grow at a high double digit CAGR from 2021 to 2030.
Based on product offerings, the quantum technologies global market is divided into hardware, software, and services. Among these, the Hardware segment is accounted for the highest revenue in 2021 and is expected to grow at a mid teen CAGR from 2021 to 2030. The services segment is expected to grow at a high double digit CAGR from 2021 to 2030 due to increasing collaborations for services in cloud-based deployment and industrial applications.
Based on end-users, the quantum technologies global market is segmented into Healthcare, Banking, Financial Services and Insurance (BFSI), Energy, Oil and Gas, Chemical & Material science, Logistics and Distribution, Aerospace, Defense, and Others. Among these, the Aerospace segment is accounted for the highest revenue in 2021 and is expected to grow at a high double digit CAGR from 2021 to 2030. The healthcare segment is expected to grow at a high double digit CAGR from 2021 to 2030.
Based on geography, the quantum technologies global market is segmented into North America (U.S. and Rest of North America), Europe (Germany, France, U.K., and Rest of Europe), Asia-Pacific (Japan, China, India, and Rest of APAC) and the Rest of the world. North America accounted for the largest revenue in 2021 and is expected to grow at a high double digit CAGR from 2021 to 2030. Europe is expected to grow at a high double digit CAGR from 2021 to 2030.
Countries around the world have recognized the advantages of quantum technologies over conventional technologies. Thus, major countries China, U.K., U.S., Germany, France, and others are heavily investing in quantum research to gain economic advantages. According to IQ4I analysis, the global public investment in quantum technology is close to $XX billion.
Along with governments, private investors are also interested in funding quantum technologies resulting in the emergence of many start-up companies in this field in recent years. Most of the start-up companies are active in quantum computing, field. Both Government and Private investors are funding quantum start-up companies to develop their hardware, software, and services platforms. According to IQ4I analysis, the government and private venture funding for quantum technology companies during the period of April 2020 – April 2022 is $XX million. According to IQ4I analysis, the companies from the U.S region received the highest funding of $XX million during April 2020 – April 2022 followed by other countries such as Canada, U.K., Finland, Israel, France, Germany, Switzerland, Australia, Spain, China, Japan, Singapore, and the Netherlands. Among the companies, PsiQuantum received the highest funding of $XX million funding during the period of (2020-2022) followed by Quantinuum (HONEY WELL Quantum solutions and Cambridge Quantum Computing) and other companies.
Considering high growth potential in the market, several companies are collaborating or partnering in the field of quantum technologies to explore the potential applications of quantum technologies in various industrial sectors such as Healthcare, Banking, Financial Services and Insurance (BFSI), Energy, Oil and Gas, Chemical, Logistics and Distribution, Aerospace, Defense, Automotive and others.
Apart from industries, universities & research institutions, and government collaboration, quantum technology companies are also collaborating to explore the potential application of quantum technologies in various industrial sectors. The companies are trying to build advanced generation (next-generation) quantum technology products to overcome the current issues.
The quantum technologies global market is fragmented; the top 6 player’s occupied XX% of the market share and the remaining XX% of the market are occupied by other players. Companies are adopting various organic and inorganic strategies to expand their market in a competitive environment. The companies are increasing their R&D expenditure particularly to invest in quantum computing technologies.
The major players in the quantum technologies global market are International Business Machines Corporation (U.S.), Ix-Blue (France), Alphabet Inc. (Google) (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Amazon.com, Inc (U.S.), D-Wave Systems Inc. (Canada), AOSense, Inc (U.S.), LI-COR Biosciences (U.S.), Toshiba Corporation (Japan), Honeywell International Inc (U.S.), Rigetti Computing (U.S.) and Baidu, Inc. (China).