Market Research Report
|Published by||Global Industry Analysts, Inc.||Product code||913964|
|Published||Content info||493 Pages
Delivery time: 1-2 business days
|Published: August 1, 2020||Content info: 493 Pages||
Abilities of Classical Computing are Reaching Saturation. A Projected $513.3 Million Opportunity by 2027 Ushers in Quantum Computing as the Future
The global market for Quantum Computing is projected to reach US$513.3million by the year 2027, trailing a CAGR of 24.2% over the analysis period 2020 through 2027. Moore's Law is ending and will no longer be able to support & fuel chip innovation. Need for computing power continues to grow exponentially as automation, AI and machine learning take flight. Quantum computing offers a fundamentally different way of processing information effectively by exploiting the unique ability of subatomic particles to exist in more than one state at any one time. The technology is humanity's only hope for unlocking unimaginable computational power. Quantum computers can operate at breakneck speeds; juggle multiple computations & solve problems with game changing benefits for markets & industries. Classically intractable problems will be solvable i.e. drugs will be developed faster; predictive analytics will be accurate; AI will become more human; cryptography & son line security will become virtually breakable; stock markets will witness high frequency trading.
The market is set to scale new heights owing to its sheer processing power and intriguing ramifications for swathes of industries. The market is primarily steered by increasing government and private funding on research programs intended to leverage quantum computing for information processing and other applications. The market is being significantly influenced by major strategic developments, most notably in North America. On the other hand, private players are investing heavily in quantum computing to attain foothold in the promising market. Factors such as increasing incidents of cybercrime coupled with growing adoption of emerging technologies such as machine learning, smart manufacturing, cloud computing and molecular structure research are anticipated to set a perfect stage for growth of the quantum computing market. While increasing application in sectors like defense, healthcare, chemicals and banking are favoring the market, availability of fault-tolerance systems and efforts to leverage quantum computing for realistic programs are expected to fuel the market growth. Quantum computing is anticipated to hold a critical role in supporting new applications and technologies such as artificial intelligence, edge computing, big data analytics, IoT and smart city projects. The technology is also used in cryptography for quantum-encrypted, secure communications, creating strong prospects for the market expansion. On the flip side, lack of sufficient expertise and knowledge regarding quantum computing techniques is expected to hinder the market growth.
The United States accounts for the largest revenue share, and is estimated to maintain its strong position in the coming years supported by increasing focus of government agencies and the defense and aerospace sectors on quantum computing to leverage machine learning and AI. The region is witnessing massive investments and efforts to develop resources and infrastructure to support quantum computing. Leading companies such as IBM, Microsoft and Google are making efforts to develop and commercialize the technology. The US is investing around $420 million per year for dominating the space, and has passed the National Quantum Initiative Act (NQI Act) in 2019 to authorize an investment of over $1.2 billion in quantum technology and science over the next 5-10 years. On the other hand, D-Wave Systems Inc., a Canada-based developer of quantum computing systems, commercialized quantum computers by launching D-Wave One system. Fueled by these developments, the quantum computing market in North America is projected to register phenomenal CAGRs over 2020-2027 analysis period. Europe is likely to emerge as a major force in the global quantum computing market due to increasing number of companies targeting the technology. The EU and the UK have announced various national programs to expedite R&D related to quantum computing. Among the developing regions, Asia-Pacific is estimated to witness a notable expansion owing to increasing adoption of the technology in the BFSI sector. These computers are finding increasing implementation in countries such as Japan and China for optimizing business tasks. In addition, rising applications across sectors like energy, defense, pharmaceuticals, healthcare and chemicals in various countries, mainly Japan and South Korea, are anticipated to further augment the regional market. Asia-Pacific is likely to receive a significant impetus from China that is estimated to occupy the second-leading share of the global market. China is working on an ambitious quantum information science research project and channelizing efforts to develop quantum computing and communications. The country has invested US$10 billion to establish the National Laboratory for Quantum Information Sciences in Hefei.
Competitors identified in this market include, among others,