Global Quantum Computing as a Service (QCaaS) Market Report 2024

The quantum computing as a service (QCaaS) market size has grown exponentially in recent years. It will grow from $2.01 billion in 2023 to $3 billion in 2024 at a compound annual growth rate (CAGR) of 49.1%. The growth observed in the historic period can be ascribed to various factors including heightened demand for quantum computing capabilities, expansion of cloud computing infrastructure, increased investment in quantum computing research, growing awareness of the potential benefits of quantum computing, and a heightened focus on quantum computing security.

The quantum computing as a service (QCaaS) market size is expected to see exponential growth in the next few years. It will grow to $14.85 billion in 2028 at a compound annual growth rate (CAGR) of 49.2%. The anticipated growth can be attributed to the increasing emphasis on quantum computing for drug discovery, a rising demand for cloud-based quantum computing services, increased investment in digital transformation initiatives, growing demand for data centers, and an upsurge in the number of startups entering the field. Key trends expected in the forecast period encompass the adoption of cloud-based solutions, ongoing technological advancements, the development of quantum security solutions, cybersecurity solutions, and the emergence of hybrid quantum-classical algorithms.

The increasing adoption of cloud computing is poised to drive the growth of quantum computing as a service (QCaaS) in the foreseeable future. Cloud computing involves the delivery of computing resources over the internet, offering on-demand access to shared pools of configurable resources such as servers, storage, databases, and software, which can be rapidly provisioned and scaled with minimal administrative effort. Several factors contribute to the rising adoption of cloud computing, including heightened security emphasis, the need for improved accessibility, and the proliferation of remote work dynamics. QCaaS reduces entry barriers, enhances scalability and cost-effectiveness, and fosters experimentation and innovation in quantum computing applications. This leads to heightened adoption of cloud services as businesses seek to harness quantum capabilities for competitive advantage. For example, findings from the Flexera 2022 State of the Cloud report revealed a substantial increase in year-over-year spending on cloud services, with 53% of respondents allocating $1.2 million for cloud expenditures in 2022, compared to 38% in 2021. Hence, the surge in cloud adoption is fueling the growth of the QCaaS market.

Key players in the QCaaS market are concentrating on introducing solutions leveraging advanced technologies such as digital fabric interconnect technology to facilitate the effective deployment of quantum computing resources. Digital fabric interconnect technology enhances the infrastructure for QCaaS by enabling the secure and seamless integration of quantum computing resources within commercial data centers. For instance, in November 2023, Oxford Quantum Circuits Ltd. unveiled OQC Toshiko, a platform tailored for commercial quantum computing. OQC Toshiko offers a powerful quantum computing solution designed to meet the needs of companies and organizations across various industries. With its upgradeable 32-qubit platform, OQC Toshiko enables companies to seamlessly integrate quantum computing into their operations, providing secure and convenient access to cutting-edge technology from any location.

In March 2024, China Telecom Quantum Information Technology Group Co., acquired a 23.1% stake in QuantumCTek for $265 million, aiming to bolster its position in the quantum communication sector and enhance the development and promotion of quantum communication products. QuantumCTek Co. Ltd. offers quantum communication as a service, aligning with China Telecom's strategic objectives in advancing quantum technologies and services.

Major companies operating in the quantum computing as a service (QCaaS) market are Google LLC, Microsoft Corporation, Amazon Web Services Inc., Intel Corporation, International Business Machines Corporation, Fujitsu Limited, Toshiba Corporation, Rigetti Computing Inc., Quantinuum, Pasqal SAS, Multiverse Computing S.L., Riverlane Research Limited, Zapata Computing Inc., Atom Computing Inc., Cambridge Quantum Computing Limited, Seeqc US LLC, IonQ Inc., Quantum Motion Technologies Inc., QCI Quantum Computing Inc., D-Wave Systems Inc., Oxford Quantum Circuits Limited, Classiq Technologies Inc., QC Ware Corp., Quantum Circuits Inc., Strangeworks Inc., ColdQuanta Inc.

Asia-Pacific was the largest region in the quantum computing as a service (QCaaS) market in 2023. The regions covered in the quantum computing as a service (QCaaS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the quantum computing as a service (QCaaS) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Quantum computing as a service (QCaaS) serves an essential function in the technology sector, providing an innovative approach to computing capabilities. It offers cloud-based access to quantum computing resources and functionalities, altering the landscape of computational power for enterprises. QCaaS vendors provide a variety of services, from quantum algorithm development to execution, allowing businesses to capitalize on the power of quantum computing without requiring considerable in-house equipment.

The main types of quantum computing as a service (QCaaS) are gate-based quantum computing and annealing-based quantum computing. Gate-based quantum computing involves using quantum gates to manipulate qubits, the basic units of quantum information, to perform computations. These are used by various enterprise sizes such as small and medium enterprises, and large enterprises. These are also used in various applications such as data optimization and analysis, design verification, object recognition, pattern recognition, simulation, and others, and also by various industry verticals such as healthcare and life sciences, banking, financial services, and insurance, information technology and telecommunication, retail and e-commerce, energy and utilities, transportation and logistics, government, others.

The quantum computing as a service market research report is one of a series of new reports that provides quantum computing as a service market statistics, including quantum computing as a service industry global market size, regional shares, competitors with quantum computing as a service market share, detailed quantum computing as a service market segment, market trends, and opportunities, and any further data you may need to thrive in the quantum computing as a service industry. This quantum computing as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The quantum computing as a service (QCaaS) market consists of revenues earned by entities providing services such as benchmarking and performance analysis, security, and quantum cloud access services. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum computing as a service (QCaaS) market also includes sales of quantum simulators, quantum software development kits, and quantum cloud platforms. values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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