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.
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.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations and Agreements.
The quantum computing market is characterized by intense competition driven by technological advancements and research breakthroughs. Key attributes include rapid innovation in quantum hardware and algorithms, growing investments from governments and private sectors, and expanding applications across industries such as finance, healthcare, and materials science. Challenges include scalability issues and the need for robust error correction methods. As the field evolves, collaborations between academia and industry are pivotal in shaping the future landscape of quantum computing.
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.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the 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.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations and Agreements.
Driving and Restraining Factors
Drivers
- Increasing Demand for High-Performance Computing Across Various Industries
- Emergence of Cloud-Based Quantum Computing Services for Wider Accessibility
- Rising Investments from Governments and Private Enterprises in Quantum R&D
Restraints
- High Cost of Quantum Computing Hardware and Infrastructure Development
- Challenges in Maintaining Quantum Coherence and Reducing Qubit Errors
Opportunities
- Integration of Quantum Computing with Artificial Intelligence and Machine Learning
- Development of Hybrid Quantum-Classical Computing Systems for Near-Term Practical Applications
Challenges
- Limited Availability of Skilled Workforce and Quantum Computing Experts
- Energy Consumption and Cooling Requirements for Quantum Systems
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.Market Competition and Attributes
The quantum computing market is characterized by intense competition driven by technological advancements and research breakthroughs. Key attributes include rapid innovation in quantum hardware and algorithms, growing investments from governments and private sectors, and expanding applications across industries such as finance, healthcare, and materials science. Challenges include scalability issues and the need for robust error correction methods. As the field evolves, collaborations between academia and industry are pivotal in shaping the future landscape of quantum computing.
By Regional Analysis
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
- Dec-2024: Google LLC unveiled its new quantum computing chip, Willow, which can reportedly solve problems in five minutes that would take the world's fastest supercomputers 10 septillion years. The chip integrates key breakthroughs aimed at advancing toward a large-scale, practical quantum computer.
- Nov-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.
- Sep-2024: D-Wave Systems Inc. teamed up with Staque, a leading consulting firm specializing in AI, blockchain, and quantum computing, to accelerate the adoption of annealing quantum computing across the Middle East. The collaboration will leverage D-Wave’s quantum computers and hybrid solvers via its Leap™ cloud service to address enterprise challenges in areas such as supply chain management and portfolio optimization. This collaboration aims to help organizations embrace quantum and AI technologies to drive business optimization and innovation in the region.
- Apr-2024: Huawei Technologies Co., Ltd. launched the HECS X cloud computing instance designed for small to medium-sized businesses (SMBs). This new instance, an upgrade from the HECS L, offers two times the performance at the same specifications and includes over 100 customizable options. With the support of AI optimization and live migration capabilities, the HECS X ensures efficient performance for applications.
- Apr-2024: SpinQ Technology Co., Ltd. launched the Novera™ QPU Partner Program, an ecosystem designed to support the development of high-performance, on-premises quantum computing. The program integrates quantum computing hardware, software, and service providers to ensure compatibility and quality.
- Jan-2024: IBM Corporation collaborated with Korea Quantum Computing (KQC), providing advanced AI, infrastructure, and quantum computing services. Through this collaboration, users access IBM's AI stack, including watsonx. KQC extends its quantum collaboration, offering access to IBM's global quantum systems. Additionally, plans entail deploying IBM Quantum System Two at KQC in Busan by 2028.
List of Key Companies Profiled
- Google LLC (Alphabet Inc.)
- Microsoft Corporation
- IBM Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- QC Ware Corp.
- SpinQ Technology Co., Ltd.
- Rigetti Computing, Inc.
- D-Wave Systems Inc.
- Intel Corporation
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
Market Report Segmentation
By Offering
- System
- Services
By Deployment
- On-premise
- Cloud
By Application
- Optimization
- Machine Learning
- Simulation
- Other Application
By End-user
- BFSI
- Healthcare
- Automotive
- Energy & Power
- Government
- Aerospace & Defense
- Chemical
- Other End-user
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Quantum Computing Market by Offering
Chapter 6. Global Quantum Computing Market by Deployment
Chapter 7. Global Quantum Computing Market by Application
Chapter 8. Global Quantum Computing Market by End-user
Chapter 9. Global Quantum Computing Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- Google LLC (Alphabet Inc.)
- Microsoft Corporation
- IBM Corporation
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- QC Ware Corp.
- SpinQ Technology Co., Ltd.
- Rigetti Computing, Inc.
- D-Wave Systems Inc.
- Intel Corporation
- Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
Methodology
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