Quantum Computing Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)

Quantum Computing Market Emerging Trends

Increasing Usage in Simulation Applications Is Key Trend

• Simulation work is gaining momentum in the global quantum computing market.
• The market players are intensely working on developing numerical simulation of quantum systems, since it is crucial for further comprehension of natural phenomena.
• However, the development of such systems requires more processing power.
• Many systems of key interest and importance, in areas such as superconducting materials and quantum chemistry, are described by models that cannot be solved with sufficient accuracy, neither analytically nor numerically with classical computers.
• Using a quantum computer to simulate such quantum systems has been viewed as a key application of quantum computation.
• Moreover, useful results beyond the reach of classical computation are expected to be accessible with fewer than a hundred qubits, making quantum simulation potentially one of the earliest practical applications of quantum computers.

Rising Government Funding Drives Market

• A rising number of government programs supporting quantum information processing are being noted since last few years, particularly after 2014.
• The European Union (EU)’s Quantum Technologies Flagship brings together research institutions, industries, and public funders, and integrating and expanding European scientific expertise in quantum computing.
• In addition, China has a substantial effort, along with England, Finland, Sweden, Canada, Singapore, Australia, and many others.
• The U.S.’s National Quantum Initiative authorized more than USD 1.2 billion investment in quantum science and technology over the next 5 to 10 years.
• The bill, the National Quantum Initiative Act, has passed by the House and is awaiting a full vote in the Senate.
• Private companies are also heavily investing in the technology, since they expect to gain benefits of attaining foothold in a future potential market.
• For instance, North American firms, such as Google LLC, IBM Corporation, and Microsoft Corporation, are vigorously working on the development and commercialization of the technology.
• The government is the major augmenting force behind the increasing investments on quantum computing research and development (R&D), fiercely competing for this promising technology of the 21st century. The world’s largest government IT/defense contractors follow the government suit.
• The U.S.’s Quantum Computing Research Act has created a central coordination and research entity to support the development of QIS.
• Access to the quantum processor, either physical or simulated, via cloud has created market potential for new participants, encouraging further development of quantum computing ecosystem.
• Several startups engaged in quantum technology development booming in different regions.
• Intel Corporation is capable of producing full silicon wafers of quantum computing chips, greatly expanding the number of quantum devices in existence.

Quantum Computing Market Segmentation and Category Analysis

Offering Analysis

The hardware category held the largest share, of 55%, in 2024. Market players are extensively investing in the development of robust hardware equipment, to support such powerful software.

The hardware for a gate-based or analog quantum computer can be conceptualized in terms of abstract layers that choose the sequence of operations and measurements that the algorithm requires, possibly using memristors. This host processor connects to the control processor over a high bandwidth and runs a traditional operating system and user interface, thus facilitating user interactions.

The hardware category is expected to grow as various types of hardware for quantum computing are being developed. All commercially available computing systems are based on superconducting circuits, trapped ions, photonic networks, spin qubits, and neutral atoms.

During the forecast period, the services category is projected to advance at the highest CAGR. This can be attributed to the massive requirement for consulting and other associated quantum computing support services in the coming years. Due to the increase in the count of startups globally and significant investments in computer technology R&D, the software and services divisions would expand over the coming years. Applications for deep learning, optimization, and simulation leverage this technology for more-effective operations and lower operating costs across a range of industries.

These offerings have been studied:

• Hardware (Largest Category)
• Software
• Services (Fastest-Growing Category)
  • Consulting services
  • Training & education
  • Support & maintenance

Application Analysis

The optimization category held the largest share in 2024. This is primarily attributed to the fact that most organizational problems revolve around streamlining business processes, for which optimization solutions are of the utmost importance. Finding the optimal solution to a problem, given its restrictions and desired results, constitutes the process of optimization. Several critical decisions in business are based on variables including cost, quality, and manufacturing time, all of which can be optimized.

Inflation detection, portfolio risk optimization, trade trajectory optimization, risk modeling, instability detection, trading techniques, and asset price optimization are just a few of the complex problems that quantum computers can optimize with unparalleled speed.

This technology allows for the development of novel, ground-breaking procedures for uncertainty and constrained optimization in financial problems. In contrast to the present classical binary computing methodologies, such computers can work on multiple answers at once and provide new ways to model financial data. In a number of fields, including the simulation of quantum systems, factorization, optimization issues, machine learning, and big data processing, these solutions are predicted to perform better than traditional binary systems.

The machine learning category will witness the fastest growth during the forecast period, with 35% CAGR. This is attributed to the growing usage of ML in a host of industries, from healthcare and BFSI to manufacturing and cybersecurity. Moreover, the rising demand for autoML processes will drive the market as quantum computing can significantly enhance the automated machine learning technology. Quantum computing is being increasingly leveraged to quicken up the process of result optimization and make the complex autoML algorithms more precise.

With the usage of quantum computing in autoML, feature selection, model training, and hyperparameter training could be sped up, which would enable better predictions from larger sets of data in less time and minimal computing resources. Hence, with the global spending on autoML set to touch USD 15,499.3 million by 2030, the market will find numerous opportunities of growth in this category.

These applications are covered:

• Optimization (Largest Category)
• Simulation and Data Problems
• Sampling
• Machine Learning (Fastest-Growing Category)

Deployment Type Analysis

The on-premises category held the larger share in 2024, of 55%, owing to the large scale of research at the institutional or organizational level, for which users of this technology prefer to keep the information on their own servers.

An on-premises quantum computer is hosted on the organization's property. Hence, because of its centralized management, the system requires less remote access. In contrast, data from a hybrid computer is stored and shared on the cloud. A hybrid on-premises quantum computing arrangement combines on-premises and cloud-based implementations.
Moreover, in the healthcare sector, it can take a decade or longer to bring treatments to the market from the research lab. With regard to drug discovery, quantum computing, machine learning in particular, presents a future where this pace would be drastically quickened.

For instance, an on-premises system is being built by International Business Machines Corporation at the data center of the Cleveland Clinic. Its most-recent endeavor, a global center for pathogen research and human health, will be supported by this IBM technology. The new center, being developed with a USD 0.5-billion investment, will focus on research on viral infections, genetics, immunology, and immunotherapies.

The cloud-based bifurcation will witness the higher CAGR over the forecast period. For cloud deployment of quantum computing software, vendors provide software online, without physical deployment or requirement of any physical infrastructure. Additionally, an engineering team can keep updating software and fix bugs online at the backend.

These deployment types are covered:

• On-Premises (Larger Category)
• Cloud-Based (Faster-Growing Category)

Industry Analysis

The BFSI industry registered the highest value in 2024, owing to the fact that large banks are focusing on investing in this potential technology to streamline their business processes, along with gaining stronger security.

The market in the healthcare industry is expected to advance at the highest CAGR during the forecast period, of 34%. This will primarily be due to the increasing demand for advanced diagnosis and treatment procedures for chronic diseases. Moreover, these computing technologies play a pivotal role in drug discovery and development.

Hence, the players are focusing on the life sciences industry to increase their customer base. For instance, under an agreement with IBM Corporation, Algorithmiq Ltd. is exploring its quantum algorithms to manage several complicated issues in pharmaceutical R&D.

These industries have been studied:

• BFSI (Largest Category)
• Aerospace & Defense
• Manufacturing
• Healthcare (Fastest-Growing Category)
• IT & Telecom
• Energy & Utilities
• Others

Technology Analysis

The quantum annealing category held the largest share, of 45%, in 2024. This is because this technology exhibits high efficiency in solving complex problems and optimizing processes in several industries. Additionally, this technology is favored for its ability to recommend the best solution to a problem among the various available options. This technology is also accessible more widely and easer to implement than others.

Trapped ions is the fastest-growing technology due to its low error rate and high precision. It is also scalable and displays versatility across quantum computing applications. Trapped ions technology allows storage of information on individual atoms, enabling complex calculations and managing complex algorithms with more operations.

These technologies are covered:

• Quantum Dots
• Trapped Ions (Fastest-Growing Category)
• Quantum Annealing (Largest Category)
• Others

Quantum Computing Market Regional Growth Dynamics

The North American region generated the highest revenue in 2024, due to the hefty investments made by government and private firms for the development of the technology. For instance, in January 2019, the U.S. Congress passed the National Quantum Initiative, authorizing more than USD 1.2 billion in investments in quantum science and technology over the next 5–10 years. Such initiatives will result in the increasing adoption of this technology in government, academic, and industrial facilities.

Hence, the government is the major force behind the increasing usage of quantum computing, by investing in R&D. Furthermore, the high IT expenditure, continuous technological advancements, and early adoption of emerging technologies support the expansion of the market in this region.

The APAC region is expected to witness the highest CAGR, of 37%, during the forecast period. This is ascribed to the government initiatives to advance this technology and their investments in companies working on it, rapid advancements in technology, increasing collaboration between the industrial and corporate sectors, and growing interest in quantum computing as a strategically relevant technology. Further, the region has a favorable startup ecosystem with a large pool of talented professionals and a penchant for excellence in R&D. These and the well-established tech companies from the region are collaborating with European and North American IT giants with long-term goals.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K.
  • France (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Quantum Computing Market Competitive Landscape

• The market is fragmented as a variety of quantum computing models have been and continue to be developed to different applications.
• Additionally, the technology is still in its nascent development stage with no real standardization, which is why no single company generates massive revenue; most applications currently lie in research.
• Moreover, governments are promoting and funding in local companies, which further fragments the market.
• Moreover, quantum computing depends on high-performance hardware, cutting edge services, and comprehensive services.
• Since no company offers all three components of the technology, opportunities abound.