Quantum Computing Hardware Leads Market Share, While Services Segment Exhibits Highest Growth

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Nov 03, 2023, 19:15 ET

DUBLIN, Nov. 3, 2023 /PRNewswire/ -- The "Global Quantum Computing Market (by Component, Application, Technology, End-user, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.

The global quantum computing market is poised for remarkable growth, with a projected value of US$856.33 million by 2023, reflecting an impressive compound annual growth rate (CAGR) of 40.07% during the forecast period from 2022 to 2027.

Quantum computing, an emerging and innovative technology, leverages the laws of quantum mechanics to solve complex problems that are beyond the capabilities of classical computers. Quantum computers utilize "qubits" as fundamental units of quantum information, allowing for unprecedented computational power.

The adoption of quantum computing is being driven by the increasing demand for high-speed computing, the growing utilization of quantum mechanics in encryption, the expanding applications of quantum computing in drug discovery, and other factors.

Segment Coverage

By Component: The global quantum computing market is categorized into three primary segments by component: Hardware, Software, and Services. The hardware segment currently holds the largest share in the quantum computing market, while the services segment is anticipated to exhibit the highest CAGR. The growth in the services segment is attributed to the rising number of startups globally and substantial investments in research and development activities related to computing technology.
By Application: The market report segments the global quantum computing market into three application segments: Optimization, Machine Learning, and Material Simulation. The optimization segment holds the majority of the market share, with the machine learning segment expected to experience the fastest growth. Quantum computing plays a pivotal role in enhancing capacity, runtime, and learning efficiency, contributing to the rapid growth of machine learning applications.
By Technology: Further segmentation of the market is based on technology, including Quantum Annealing, Superconducting, Trapped Ion, Quantum Dot, and Others. The superconducting segment dominates the market due to its ability to facilitate faster quantum operations compared to other technologies.
By End-User: The global quantum computing market is divided into twelve end-user segments: Finance & Investment, Transportation & Logistics, Aerospace, Agriculture, Automotive, Energy, Healthcare, Information Technology, Life Sciences, Manufacturing, Oil, Gas, and Mining, and Others. The agriculture segment is poised to grow at the highest CAGR due to the adoption of data analytics and AI-backed crop intelligence solutions, which enhance farmers' decision-making processes and crop management practices.

Geographic Coverage

The global quantum computing market is analyzed across five major regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America, including the US, Canada, and Mexico, currently dominates the market due to well-established technology development centers, increased research and development activity, and early adoption of advanced technologies.

The Asia Pacific region is expected to lead the global quantum computing market during the forecast period, driven by the rapid expansion of the banking and finance industry, continuous advancements in the information technology sector, and growing utilization of emerging technologies in industrial manufacturing.

Top Impacting Factors

Growth Drivers:

Rising Investments in Quantum Technology: Increased investments in quantum technology have propelled innovation and development in the quantum computing market.
Increase in Quantum Computing Start-ups: The emergence of quantum computing startups is fostering competition, innovation, and growth in the market.
Growing Number of Strategic Partnerships & Collaborations: Partnerships and collaborations between companies and research institutions are accelerating the advancement of quantum computing technologies.
Surging Demand for High Performance Computing (HPC): The demand for quantum computing integration into high-performance computing environments is driven by the need to accelerate data processing and analytics.

Challenges:

High Cost of Quantum Computing Solutions: Quantum computers require specialized components, operate at extremely low temperatures, and involve significant costs, which may limit their accessibility.
Stability and Error-correction Issues: Ensuring the stability and accuracy of quantum computing systems, including error correction, remains a technical challenge.

Trends:

Increasing Adoption of Cloud-Based Quantum Computing: Cloud-based quantum computing solutions are gaining popularity, making quantum computing more accessible to a broader range of users.
Integration of Quantum Computing with IoT (Internet of Things): The integration of quantum computing with IoT is enhancing the efficiency and security of existing systems.
Popularity of Quantum Mechanics in Cryptography Proteomics: Quantum mechanics is gaining prominence in cryptography and proteomics, further driving the adoption of quantum computing.
Technological Advancement in Quantum Computing: Ongoing advancements in quantum computing technology are leading to improved performance, scalability, and reliability.

The COVID-19 Impact

The COVID-19 pandemic underscored the importance of rapid data processing and analysis. Quantum computing technologies found applications in addressing pandemic-related challenges, and the demand for quantum solutions increased as organizations sought more efficient computational methods.

Analysis of Key Players

The global quantum computing market is characterized by a diverse range of players, including major tech companies, special-purpose acquisition companies (SPACs), and startups operating on a global scale. Key players in the market include:

Alphabet Inc. (Google Cloud Platform)
Microsoft Corp. (Microsoft Azure)
Amazon.Com, Inc. (Amazon Web Services, Inc.)
IBM
Intel Corporation
Alibaba Group (Alibaba Cloud)
Nvidia Corporation
Toshiba Corporation
Rigetti Computing
Quantum Computing Inc.
QC Ware Corp.
Ion Q
Zapata Computing
Xanadu Quantum Technologies Inc.
D-Wave Systems Inc.

For more information about this report visit https://www.researchandmarkets.com/r/9n9w2f

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