Quantum Computing Market to Surpass $2B by 2027: Trends, Drivers, Strategies

 

​Securing the Future: How Quantum Cryptography is Changing the Game

Quantum computing is a rapidly growing field that is changing the way we think about computing and data security. One of the most exciting applications of quantum computing is in the area of quantum cryptography. This is a method of encrypting data that is believed to be completely secure, even against attacks from a quantum computer.

Quantum cryptography uses the properties of subatomic particles, such as the spin or polarization of a photon, to encrypt data. This creates a code that is virtually impossible to crack, even with the advanced computing power of a quantum computer.

III. Drivers of Quantum Computing Market Growth

​The quantum computing market is driven by several key factors, including the increasing demand for advanced computing power, the focus on cybersecurity, and the potential for breakthroughs in various industries.

One of the major drivers of the quantum computing market is the need for more powerful computing capabilities to solve complex problems. With the increasing amount of data being generated, traditional computing methods are no longer sufficient to analyze and process it efficiently. Quantum computing offers a new way of processing data that can provide solutions to problems that are currently unsolvable.

Another major driver of the quantum computing market is the increasing focus on cybersecurity. As the world becomes more connected, the threat of cyber attacks is also increasing. Quantum computing offers new methods of encryption that are believed to be completely secure, even against attacks from a quantum computer. This makes it a promising technology for securing data and protecting against cyber attacks.

Additionally, quantum computing has the potential to revolutionize various industries such as healthcare, finance, and transportation. For example, in healthcare, quantum computing is being used to develop new drugs and therapies. In finance, quantum computing is being used to analyze financial data and make predictions. In transportation, quantum computing is being used to optimize logistics and routes.

Furthermore, the growing investments by governments and private companies in quantum computing research and development is also driving the market growth.IV. Challenges Facing the Quantum Computing Industry

V. Key Players in the Quantum Computing Industry

​The quantum computing industry is a rapidly growing field, with several key players making significant contributions to its development. Some of the most notable companies in the industry include Google, IBM, and Rigetti Computing. Google has made significant strides in the field with its "Bristlecone" quantum processor, which has 72 qubits, while IBM has developed a 50-qubit processor and is working on a new quantum computer that could have as many as 1,000 qubits. Rigetti Computing, a startup company, is also making progress in the field, with its 19-qubit processor and a cloud-based quantum computing platform. Other notable companies in the industry include D-Wave Systems, IonQ, and Alibaba. These companies are all working on developing practical applications for quantum computing and are making significant investments in research and development to advance the technology.

VI. Strategic Considerations for New Entrants

​When entering the quantum computing industry as a new entrant, there are several strategic considerations that must be taken into account. One of the most important considerations is the level of investment required to develop and manufacture a competitive quantum computer. Developing a quantum computer requires a significant investment in research and development, as well as the infrastructure needed to build and operate the computer.

Another important consideration is the level of expertise required to successfully develop and market a quantum computer. The field of quantum computing is highly specialized, and new entrants will need to have a deep understanding of the technology and its potential applications in order to be successful.

It's also crucial to have an understanding of the existing market and the players in it, including the competition, the customers, and the partners that are necessary to bring a product to market. Knowing the regulatory environment and the potential barriers to entry, such as patents held by existing players, is also important.

Finally, new entrants must also consider the potential for partnerships and collaborations with other companies and research institutions in order to access the resources and expertise necessary to develop and commercialize a quantum computer. By taking these strategic considerations into account, new entrants can position themselves for success in the rapidly growing field of quantum computing.

Quantum Computing Market

​Quantum computing is an area of computer science that explores the use of quantum-mechanical phenomena, such as superposition and entanglement, to perform calculations. These quantum computers are different in many ways from the computers that are in use today. For example, a quantum computer can be in multiple states simultaneously, whereas a classical computer can only be in one state at a time. This allows quantum computers to perform several calculations at once.

The first quantum computers were built in the early 1980s, but they were very limited in capacity and power. In the past decade, there has been significant progress in the development of quantum computing hardware and software, and several commercial companies have been founded to develop and sell quantum computers.

The global quantum computing market is still in its early stages of development, but it is expected to grow rapidly in the coming years. According to a report by MarketsandMarkets, the quantum computing market is expected to reach $1.67 billion by 2023, at a CAGR of 16.6%.

There are several factors driving the growth of the quantum computing market, including the increasing need for speed and accuracy in various industries, such as aerospace and defense, automotive, financial services, healthcare, and others. In addition, government initiatives and investments are playing a key role in the development of the market. For instance, the European Commission has invested €1 billion in quantum technologies over the next 10 years through its Quantum Flagship initiative.

The major players in the quantum computing market include IBM Corporation (US), Google LLC (US), Microsoft Corporation (US), Rigetti Computing (US), Honeywell International Inc. (US), D-Wave Systems Inc. (Canada), Intel Corporation (US), QCWare Corp. (US), Cambridge Quantum Computing Limited (UK), QCI Inc. (US), QuintessenceLabs Pty Ltd. (Australia), IonQ Inc. (US), startup 1QBit Information Technologies Inc.( Canada), Magiq Technologies LLC ( US) , Strangeworks( US) , Accenture( Ireland).

II. Key Trends, Drivers and Strategies Shaping the Market

​Quantum computing startups are springing up all over the world as businesses and governments scramble to be the first to master this new technology. But what is quantum computing and why is it so important?

In simple terms, quantum computers are able to perform calculations that are orders of magnitude faster than classical computers. This is because they exploit the strange properties of quantum mechanics to perform multiple calculations simultaneously.

This has the potential to revolutionize almost every field that relies on computation, from drug discovery and financial modeling to artificial intelligence and weather forecasting.

There are already a few quantum computers in existence, but they are very limited in scope and only capable of performing very specific tasks. The race is now on to build a practical, general-purpose quantum computer that can outperform classical computers on a wide range of tasks.

The most promising candidate for this is the superconducting qubit, which is why many of the leading quantum computing startups are focusing on this approach. However, there are several other approaches being pursued, including ion traps, optical lattices, and topological qubits.

Whichever team manages to build a working general-purpose quantum computer first will have a major advantage over their rivals. That’s why there’s so much excitement—and so much investment—in the quantum computing race right now.

III. Evolution of Quantum Computing Technologies

​Quantum computing is still in its early developmental stages, which has spurred a variety of research and development approaches. The most common technologies used for quantum computing are superconducting qubits, trapped ions, and photonic chips. However, there are other, more exotic approaches being explored as well, including topological qubits and quantum spin liquids.

Superconducting qubits are the most widely-used type of qubit in commercial quantum computers. They rely on the fact that electrons can flow freely through a superconductor without resistance. This allows for the creation of Josephson junctions, which are key to creating a qubit. A Josephson junction is essentially a superconducting tunnel junction, and it can be used to create a current that can flow in one direction or the other depending on the applied voltage.

Trapped ion qubits are another popular choice for quantum computing. They use individual atoms or ions that are confined in an electromagnetic trap. The ions are then manipulated using lasers to encode information into their quantum states. The advantage of this approach is that it offers very high levels of control and stability over the qubits.

Photonic chips are another type of quantum computer that is beginning to gain traction. They use photons—particles of light—to store and process information. The advantage of this approach is that photons do not interact with each other, meaning that information can be processed without errors due to crosstalk between different qubits.

There are also more exotic approaches being explored, such as topological qubits and quantum spin liquids. Topological qubits are based on anyonic excitations in topological phases of matter—essentially, they exploit the fact that certain particles can only exist in certain dimensions. Quantum spin liquids, on the other hand, are based on spins that fluctuate even in the presence of an applied magnetic field. Both of these approaches are still very much in the research and development stage, but they hold promise for future quantum computers.

IV. Increasing Investments in the Industry

​The global quantum computing industry is expected to grow at a CAGR of over 35% during the period 2019–2024.

The industry is driven by various factors such as the increasing investments in the industry, government support, and the need for enhanced computing power. The industry is also restrained by factors such as lack of skilled workforce, and high initial investment.

Government support is one of the key drivers for the growth of the quantum computing industry. Various governments are investing in this technology to maintain their position in the global market. For instance, in June 2019, the United States government invested USD 1.2 billion in quantum information science research across multiple federal agencies. This investment will help to create a National Quantum Initiative Program to accelerate quantum research and development in the country.

Apart from government support, another driver for the industry is the increasing investments made by major companies. These companies are investing in order to gain a competitive edge over their rivals. For instance, IBM has invested over USD 1 billion in its IBM Q business unit, which focuses on developing quantum systems and applications. Moreover, Google has also announced an investment of USD 10 million in its Quantum Artificial Intelligence Lab to promote research in quantum machine learning algorithms.

With the advancement of technology, there is a growing need for enhanced computing power that can solve complex problems quickly. Quantum computers are capable of providing this enhanced computing power as they can perform calculations at a much faster rate than classical computers. As a result of this need, various organizations are investing in quantum computing research and development so as to be able to provide solutions that can address various complex problems.

However, even though there are various drivers for this industry, there are also some restraints that are hampering its growth. One of the key restraints is the lack of skilled workforce who are aware of how to develop and operate these computers. In order to develop a product or application using quantum computers, it is important to have trained personnel who can understand and implement these technologies. However, at present, there is a lack of such trained personnel which is acting as a restraint on the industry's growth.

 Moreover, another factor that is impeding the industry's growth is the high initial investment required for developing quantum computers. These computers are extremely costly and require specialized infrastructure which further adds to their cost. Thus, due to these high costs, many organizations are hesitant to invest in them which is restraining the growth of this industry

V. Potential Applications for Quantum Computing

​The potential applications for quantum computing are endless. With the ability to process information at a much faster rate than classical computers, quantum computers have the potential to revolutionize industries ranging from financial services to healthcare.

Here are just a few of the potential applications for quantum computing:
1. Machine learning: Quantum computers can be used to train machine learning algorithms much faster than classical computers. This could enable new and more powerful Artificial Intelligence (AI) applications such as real-time facial recognition and autonomous vehicles.

2. Drug discovery: Quantum computers can be used to screen large numbers of chemicals more quickly in the search for new drugs and treatments. This could lead to major breakthroughs in medical research and the development of personalized medicine.

3. Financial modeling: Quantum computers can be used to develop more sophisticated financial models for risk management and investment planning. This could help banks and other financial institutions make better decisions and avoid potential financial crises.

4. Climate modeling: Quantum computers can be used to simulate complex climate scenarios with greater accuracy than classical computers. This could help us better understand and predict climate change and develop strategies for mitigating its impact.

5. Cybersecurity: Quantum computers can be used to break existing encryption schemes and develop new ones that are secure against quantum attacks. This could help protect our critical data and infrastructure from hackers and cyber criminals

VI. Regional Development of the Market

​The global quantum computing market is expected to grow from USD 626.3 million in 2020 to USD 8,134.7 million by 2025, at a CAGR of 52.5% during the forecast period. North America is expected to hold the largest market share in 2020, while Asia Pacific is projected to grow at the highest CAGR between 2020 and 2025.

The quantum computing industry is still in its early stages of development with only a few commercialized products available in the market. Currently, IBM, Hewlett Packard Enterprise (HPE), Google, Rigetti Computing, and IonQ are some of the major players in the market that offer quantum computers. North America is currently the leading region for these companies as they have well-established their presence in this region. However, with rapid advancements in technology and an increasing number of government initiatives for developing this technology further, Asia Pacific is expected to emerge as a key region for quantum computing companies over the next few years.

Some of the key players operating in the global quantum computing market are IBM (US), Google (US), Microsoft (US), Honeywell International Inc. (US), Intel Corporation (US), Rigetti Computing (US), D-Wave Systems Inc. (Canada), QCI (UK), QC Ware Corp. (US), Atos SE (France), 1QB Information Technologies Inc.(Canada), Toshiba Corporation (Japan), Fujitsu Limited (Japan). These players have adopted various growth strategies such as partnerships, agreements, and new product launches to expand their presence in the global quantum computing market.

Partnership was the key strategy adopted by most of the leading players between 2018 and 2020. For instance, in December 2018, IBM launched its first 53-qubit quantum computer named 'IBM Q System One' at CES 2019 held in Las Vegas, US. The company also partnered with Honda Motor Company Ltd., JSR Corporation, Oak Ridge National Laboratory, University of Tokyo and Keio University to explore new applications of quantum computing in various industry verticals such as automotive and healthcare among others. 

Similarly, in September 2018, D-Wave Systems Inc., provider of Quantum Computers and software announced a partnership with Volkswagen Group Electronics Research Lab - Silicon Valley Lab (VWERL-SVL) to jointly explore how Volkswagen might use D-Wave's 2000Q(TM) system to solve problems requiring massive computational power that are difficult or impossible for classical computers. 

These partnerships helped these companies expand their customer base and increase their foothold in the global quantum computing market.

VII. Leading Companies in the Quantum Computing Space

​There are a few leading companies in the Quantum Computing Space which are driving this industry and technology forward. They are:

1. IBM: IBM is one of the oldest and most well-established tech companies in the world. 

They have been working on Quantum Computing for many years and have made some great strides in the field. In 2017, they launched their first commercial Quantum Computer, called IBM Q, which is available for anyone to use.

2. Google: Google is another giant tech company that has been investing heavily in Quantum Computing. In 2015, they hired a team of leading Quantum Scientists from Oxford University to work on their own Quantum Computer. Since then, they have made great progress and are now one of the leaders in this field.

3. Microsoft: Microsoft is also a major player in the Quantum Computing Space. They have been working on their own Quantum Computer for several years now and are making good progress. In 2018, they announced that they had achieved “quantum supremacy”, meaning that their quantum computer can perform certain calculations much faster than any classical computer.

4. Intel: Intel is another big name in the quantum computing industry. They have been working on various quantum technologies for many years now and are making good progress. In 2017, they launched their first commercial quantum computer, called “Tangle Lake”.

5. Rigetti: Rigetti is a relatively new player in the quantum computing space, but they are making big waves. In 2016, they launched their first commercial quantum computer, called “Forest”. Since then, they have made great progress and are now one of the leaders in this field.