6.5 Billion → 46.5 Billion! Global Quantum Computing Market for the next five years ......

The global market scope is categorized into five regions, namely, North America, Asia Pacific, Europe, Middle East and Africa, and South America. North America quantum computing market share has expanded significantly and dominated the market owing to early adoption of advanced technologies and highly competitive market.

The expansion of the North America market is positively influenced by the willingness of end-users to develop advanced services and the willingness of countries to adopt cloud computing. Europe is expected to witness significant growth due to increasing number of startups using the technology in the region. Moreover, the digital government regulatory environment and initiatives and the use of cloud-based technologies in the region are expected to drive market growth and technological advancements. In Europe, the use of cloud computing rises by 5% in 2021 as compared to 2020. Owing to these reasons, the region is expected to witness healthy market growth in the coming years.

Moreover, the high demand for quantum services and systems in Asia Pacific is positively impacting the market expansion. Healthcare, chemicals, banking and finance are the major industries in Asia Pacific.

South Korea, China, and Japan are the producers of electronic products such as gaming consoles, cell phones, and laptops in the region. Simulation, machine learning and optimization applications must be addressed in these industries. The rapid expansion of Asia-Pacific economies and the increased use of new technologies in the industrial sector provide opportunities for medium and large companies in the region.

Major industry players, including IBM Corporation, D-Wave Systems, Microsoft Corporation, and Intel Corporation are providing these computing services. They are focusing on expanding their business sectors in developing countries. For example, in June 2022, Xanadu launched Borealis, which outperforms the most promising classical supercomputers on different tasks and is available to users around the world through Amazon Torrent and Xanadu Cloud. It is a programmable photonic quantum computer with a quantum computing edge of 216 compressed state quantum bits.

In addition to this, these major players in the quantum technology industry are also gaining momentum in terms of patent filings, the number of which has been increasing rapidly in recent years, thereby driving the market. The expanding quantum ecosystem can be realized by reviewing the number of patent applications filed by different companies across the globe. Patents and investments are shaping the future by developing enhanced technologies. For instance, AMD filed a patent in September 2021 for an invisible transfer state that powers quantum computing. By reducing the number of quantum bits required for precise computation, the patented model aims to address stability and scalability. Today, China holds more than half of all quantum technology patents, compared to about 11% in the EU and 10% in the US.

Still, quantum computing is a nascent concept with a growing talent shortage around the world. According to a McKinsey report, by 2025, the demand for quantum technology workers could be around 10,000, but the supply is less than 5,000 people. This factor is expected to hamper market growth in the coming years.

However, to mitigate these risks, a growing number of schools and training programs, such as the University of Chicago, have established quantum PhD programs.

The market is segmented on the basis of component into software, hardware, and services.

The hardware segment holds the dominant market share in 2022 as it is the major ecosystem bottleneck. Several hardware platforms for quantum computing are currently under development. Commercially available quantum computers are based on state-of-the-art captured ion and superconducting circuits. Neutral atoms, spin quantum bits and photonic networks are promising platforms.

The software and services sector is expected to grow in the near future due to an increase in the number of startups globally as well as significant investments in research and development activities related to computing technologies. This information technology can be used for deep learning, optimization and simulation applications, thereby improving operational efficiency and reducing operational costs in various industries.

The market is segmented by deployment type into cloud and local deployment. The cloud segment is expected to lead the market during the forecast period. The demand for cloud-based services and solutions is likely to rise as more powerful systems are developed. Google is expected to launch improved cloud computing services in the coming years and the company is investing heavily and researching on quantum technologies. The cloud offers a number of alternatives to the use of quantum computers, in addition to more comprehensive solutions offered by major market players. The freedom of access offered to users is another factor driving the popularity of cloud-based services and systems.

Currently, the known market applications are segmented into biomedical simulation, optimization, machine learning, electronic material discovery, financial services, and others (traffic optimization, weather forecasting, etc.). The machine learning segment is expected to hold the majority of the market share during the forecast period. Quantum error correcting codes, creation of new quantum algorithms, and estimation of quantum system characteristics are implemented by it. The financial services segment is expected to grow at a significant rate during the forecast period. With increasing competition for more consumers, startups in the healthcare and BFSI sectors are focusing on adopting these services to enhance their offerings through the cloud channel.

Healthcare, automotive, BFSI, chemical, manufacturing, energy & utilities, and others (transportation, logistics, etc.) are the end users of this market. The BFSI segment is expected to hold the largest market share during the forecast period. Further, the medical futurist claims that quantum computing can help in forming virtual environments where experts can check variables such as skin temperature, electrolytes, circulation, body fluids, and metabolism on a digital replica of the human body. This is one of the reasons why quantum computing is gaining popularity in the healthcare industry. The healthcare and research sector is expected to witness significant revenue growth in the coming years. Computing services are deployed in the healthcare and research industry to manage various applications such as processing large healthcare data and rapid DNA sequencing. The industry is particularly interested in quantum-enhanced machine learning methods.
 
Overall, losing control of quantum computing could result in losing the future voice of the information society.
 
The development of quantum computing technology has "four highs" - high threshold, high investment, high risk and high return - and is a comprehensive test of a country's high-level talent pool, science and technology and economic development level and strength. Moreover, the return that quantum computing can bring to human beings is huge: in principle, if the exponential acceleration effect of quantum computing is realized, the arithmetic power of a quantum computer with 100 fault-tolerant quantum bits can surpass the sum of the arithmetic power of all the computers in the world at present. The application and industrialization of quantum computing has already begun, and has become a new battlefield for international large enterprises and companies to show their strength and layout the future. At the same time, industrialization has injected new vitality into quantum computing research and accelerated the development of quantum computing.
 
If we make an outlook for the future, it is optimistically estimated that ten to twenty years later, the number of high-quality preparation and manipulation of quantum bits will reach tens of thousands, and on this basis, through the continuous error correction of a large number of quantum bits, it is expected to prepare an error-tolerant logic quantum bits; in another ten to twenty years, it is hoped to realize the coherent manipulation of multiple logic quantum bits and pervasive logic gates and, on such a basis, to create a pervasive quantum bit. In another ten to twenty years, it is hoped to realize the coherent manipulation of multiple logic quantum bits and universal logic gates, and on the basis of this, to build a universal quantum computer.

At that time, quantum information technology and application will enter a stage of comprehensive and high-speed development, and will become a new milestone for human beings to conquer nature!