The global revenue for quantum computing (QC) vendors is expected to rise from $1.1 billion in 2023 to $28.2 billion in 2033. This reflects a compound annual growth rate of over 37%. North America and Europe are projected to be the leading regional markets.
Asia & Oceania will closely follow them. The largest share of revenue will come from cloud-based access services. Hardware, consulting, and software will also contribute significantly.
Investment in QC vendors is growing again in 2024 after declines in 2022 and 2023. R&D in deep-tech sectors like QC requires significant funding. Mainstream revenue is still years away.
In 2024, large funding events signal strong investment growth. PsiQuantum raised $617 million. Riverlane raised $75 million.
This provides the industry with the resources needed to make QCs commercially useful. The past year has shown progress in scaling qubit volumes. It has also shown progress in implementing key aspects of the quantum error correction cycle.
This boosts confidence that QCs will start to deliver economic benefits in the near term. For instance, Japanese operator NTT DoCoMo announced the operational use of quantum annealing for mobile infrastructure optimization starting in July 2024. Sam Lucero is the Chief Analyst for Quantum Computing.
He said, “Achieving fault-tolerant scaled quantum computing would help humanity solve key challenges. These challenges relate to climate change, developing new pharmaceuticals and materials, and bringing important advances to artificial intelligence. But the industry has a long road ahead to fully achieving this goal.”
The quantum computing market is set to grow from $1.1 billion in 2023 to $28.2 billion in 2033 at a compound annual growth rate of 37.7%.
This is according to a new Omdia report. The report highlights that the current quantum landscape is still in its early stages. Most deployments are experimental rather than operational.
Quantum computers will not entirely replace classical computers.
Quantum computing market trends and growth
But they are expected to significantly accelerate certain computational tasks.
Key application areas include drug discovery, materials science, combinatorial optimization, and quantum machine learning. Omdia’s survey pinpointed the most promising sectors for quantum computing. They are the chemicals and materials, financial services, and life sciences sectors.
In chemicals and life sciences, quantum algorithms could vastly improve the simulation of quantum mechanical systems. Financial services are exploring use cases like portfolio optimization, fraud detection, and synthetic data generation. However, the report warns that fault-tolerant quantum computers are still five to seven years away.
Despite this, quantum computing is anticipated to bring economic benefits. It can solve problems more quickly and deliver superior results. For example, quantum machine learning could offer greater accuracy and training efficiencies compared to classical methods.
Adopters are encouraged to recognize non-speedup advantages for certain quantum machine learning applications, such as improved quality of results. Omdia forecasts a significant surge in quantum computing (QC) revenues. It predicts that global revenue for QC vendors will rise from $1.1 billion in 2023 to $28.2 billion by 2033.
This represents a compound annual growth rate (CAGR) of 37.7%. North America and Europe are expected to lead in market share. Asia & Oceania will closely follow.
The largest share of this revenue is anticipated to come from cloud-based access services. This will be followed by hardware, consulting, and software. Investment in QC vendors is experiencing a resurgence in 2024 after declines in the previous two years.
Notable funding events this year include PsiQuantum raising $617 million and Riverlane securing $75 million. Over the past year, there has been notable progress in the scaling of qubit volumes. There has also been progress in the practical implementation of key aspects of the quantum error correction cycle, albeit on a small scale.
These advancements increase confidence that QCs will start to provide economic benefits in the near term. An example of real-world application is NTT DoCoMo’s announcement of the operational use of quantum annealing for mobile infrastructure optimization starting in July 2024. Omdia published its latest quantum computing market report in August 2024.
