Market Introduction

The global quantum computing market was valued at USD 1.42 billion in 2024 and grew at a CAGR of 30% from 2025 to 2034. The market is expected to reach USD 19.57 billion by 2034. The rapid advancements and innovations in quantum computing will drive the growth of the global quantum computing market.

Quantum computing uses quantum mechanics to handle information in an entirely new and possibly stronger way compared to regular computers. Unlike the standard computers where data is bits and can only be 0 or 1, quantum computers use quantum bits or qubits. The ability of qubits to have superposition enables them to be 0 and 1 all at once. Therefore, quantum computers can review a lot of different options at the same time, helping them handle some tough problems better than other types of computers. One more important aspect of quantum computing is entanglement, during which two qubits interact with each other and affect each other’s states, no matter how far away they are. Working together helps quantum computers multiply their computational powers as additional qubits are included. New advances in cryptography, optimization, finding drugs, and materials science may soon come from the development of quantum computing. As an example, quantum algorithms can factor large numbers at a much faster rate than classical algorithms, making both the good and bad possible in cybersecurity. Quantum computers find answers more quickly and efficiently because of their ability to look at many possibilities at the same time. Besides, running calculations on quantum computers makes it easier to design new drugs and substances, something traditional computers cannot do as well. However, qubits are easily disrupted by common noise and need advanced error correction techniques along with very stable quantum equipment, which is usually used at temperatures very close to zero. Although there are difficulties, fast progress made by various groups worldwide keeps raising the limits of quantum computing.

Get an overview of this study by requesting a free sample

Recent Development

• According to its roadmap, Oxford Quantum Circuits (OQC), a company that specialises in quantum computing, plans to have 200 logical qubits by 2028 and 50,000 by 2034.  According to the UK-based company, it is on track to develop practical quantum computers in three years. The latter target is expected to find use in national security, defence, cybersecurity, fraud detection, and drug discovery.  According to OQC, the roadmap is predicated on quantum computing moving from the so-called physical era to the logical era, in which the number of logical qubits—rather than the number of noisy and flawed physical qubits before they are corrected for errors—defines the capabilities of quantum systems.

Market Dynamics

Drivers

Advancements in quantum hardware and software – Many companies are increasing their demand for quantum computing due to advances in technology. Advancements in both quantum hardware and software are the most important points. Quantum systems are now more advanced and prove to be more useful to businesses and researchers because SQD combines the greatest features of high-performance quantum computers with high-performance classical computers to solve intriguing simulation challenges. With the advancement of hardware and related quantum software, more users, small or big, are eager to use quantum computing tools. The developments simplify the way people can use quantum technology and open more opportunities for others, generating more demand. The investment of more funds in research and development by technology companies, startups, and academic institutions is another key force that helps quantum computing advance and support progress. Many corporations are actively including quantum computing in their plans to use it for better operations, resolving complicated issues, and staying ahead of their rivals. Basically, a mix of new technologies, expanding communities for developers, more R&D spending, and corporate planning is what gives rise to the demand for quantum computing in organizations.

Restraints

High costs associated with acquiring, operating and maintaining quantum computing – There is a significant challenge when it comes to the high expenses of making, maintaining, and running quantum devices. One of the problems is that because of the special equipment, very low temperatures, and advanced hardware needed, quantum systems are not accessible and too expensive for small firms and startups. Quantum computing technology is in its early years and regularly deals with problems like qubits not being stable, a lot of errors, and difficulties increasing the number of qubits. Moreover, only a few skilled workers understand quantum mechanics, quantum algorithms, and quantum programming languages. Additionally, blending quantum computing and traditional IT systems takes a lot of effort and costs, which is slowing the process of using it. All these problems make the environment a bit uncertain regarding investments in quantum computing, and this limits its use in a broad range of industries.

Opportunities

Rapid automation, digitization and advent of big data across industries – Many outside factors, linked to changes in the industry and markets, are having a big impact on the demand for quantum computers. One of the most important external factors is that computational problems in the pharmaceutical, financial, logistics, and cybersecurity industries are getting more complex. Quantum computing is considered a helpful option because traditional computers have trouble providing fast answers to challenges in these sectors. Across the globe, support from the government is playing a big part in increasing demand. A lot of nations are offering considerable funds, detailed policies, and even setting up large quantum hubs, which encourages wider acceptance in the market. Besides, as digital transformation and Industry 4.0 develop, dependence on modern AI, machine learning, and big data analytics is growing, which suits quantum computing because it offers distinct advantages here. Additionally, the increasing awareness and knowledge about quantum computing among business leaders and professionals in the tech sector is encouraging early tests and experimental spending, which is increasing demand from outside the industry.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global quantum computing market, with a 35% market revenue share in 2024.

In North America, a strong technology system, significant investments, and a large collection of major firms and research centres are behind its strong position in quantum computing market. The nation, mainly the United States, has a solid base for advanced research and development built on leading universities, national organizations, and government bodies like NIST and the Department of Energy. These institutions bring about new technologies and important investments in the field of quantum hardware, software, and applications. Some leading tech companies such as IBM, Google, Microsoft, and Honeywell in North America also augment the market by investing in research and development in quantum computing. For example, their attention to building quantum computers, quantum cloud services, and their quantum community have formed an active quantum industry cluster. Additionally, the area’s strong position comes from the existence of many startups that focus on quantum software, algorithms, and specialized quantum applications. Through the introduction of the National Quantum Initiative Act, the government has supported and continued to drive research and relationships with industries.

Check the geographical analysis of this market by requesting a free sample

Component Segment Analysis

The component segment is divided into quantum hardware, quantum software and quantum services. The quantum hardware segment dominated the market, with a market share of around 36% in 2024. In quantum computing, the functioning of qubits is mainly dictated by the unique hardware responsible for those tasks. Stable and scalable quantum hardware is important since it affects the success, smooth running, and varied uses of quantum computers. Both the top technology companies and startups are concentrating their investments on creating better hardware to lessen quantum computer faults and make them more powerful. As a result, the part of quantum computing supported by hardware gets the largest share of funding, skilled people, and strategic collaboration. Improvements in quantum hardware usually determine the development of software and service enhancements, since software used for complex tasks needs compatible hardware to work effectively. Quantum-focused companies such as IBM, Google, Rigetti, and IonQ are demonstrating quick strides in the field to boost their position and win in the emerging market. In conclusion, since quantum computation depends on quantum hardware and requires big investments, it holds the most important place in the quantum computing industry.

• According to a recent article from HBKU College of Science and Engineering, Qatar's first quantum computing laboratory has officially opened at Hamad Bin Khalifa University.  HBKU's College of Science and Engineering is home to the Qatar Centre for Quantum Computing, a nationwide research project that created the facility.  The Ministry of Defence in Qatar, which has designated sovereign quantum capabilities as a strategic priority for the nation, is funding the facility with a $10 million research grant.

Deployment model Segment Analysis

The deployment model segment is divided into on-premises and cloud-based. The cloud-based segment dominated the market, with a market share of around 53% in 2024. Most organizations worldwide prefer cloud-based quantum computing because it is accessible, affordable, and able to deal with increasing workloads. It is not easy for most businesses to use on-premises quantum computers because they are very expensive, intricate, and need certain infrastructure. Cloud offerings let people including researchers, startups, and big organizations benefit from quantum computing without the cost of buying expensive hardware. IBM, Google, Microsoft, and Amazon are among the top companies that have introduced cloud quantum services so that users can use quantum hardware and tools with flexible billing options. Also, cloud quantum computing helps experts in different places team up, encouraging progress in this field. Cloud platforms help businesses to grow or reduce their quantum operations, following the trends of digital transformation and Industry 4.0.

• Aqarios' goal of offering scalable, easily accessible quantum optimisation tools has reached a major milestone with the formal launch of version 1.0 of its Luna platform.  With significant performance enhancements, improved usability, and expanded support for real-world optimisation scenarios, the Munich-based quantum software business presented this release as a solid upgrade to its previous v0.9 edition.  The goal of Luna v1.0 is to make it possible for users, even those who are not familiar with quantum computing, to create, test, and implement optimisation models in a variety of sectors, including manufacturing, energy, logistics, and finance.  AqModels, a fully integrated modelling framework, and a revamped documentation portal are also included in the upgrade with the goal of streamlining end-to-end processes.

Technology type Segment Analysis

The technology type segment is divided into superconducting qubits, trapped ion qubits, photonic quantum computing, topological quantum computing and quantum annealing. The superconducting qubits segment dominated the market, with a market share of around 34% in 2024. Superconducting qubits are seen as the main quantum computing technology because they are more advanced, can be mass-produced, and use techniques common in semiconductor industry. Temperature controlled superconducting loops help qubits exhibit the features needed for quantum computation. The way leading technology companies such as IBM, Google, and Rigetti have invested in research and development of superconducting qubits is one reason they play a key role in the industry. By showing higher qubit numbers, longer coherence periods, and reduced errors, such companies have made superconducting qubits better for early use in quantum computing. There is a faster and more affordable way to scale them than with trapped ions or photonics because the semiconductor industry’s well-tested microfabrication techniques work for superconducting qubits. Another good thing about superconducting qubits is that they are very fast, which suits executing complicated quantum algorithms. Even though there are difficulties with maintaining super-cold temperatures and fixing errors in dilution refrigerators, the major progress in materials, designs, and electronics has encouraged scientists to rely more on superconducting qubits for large-scale quantum computing.

• Researchers from IBM Quantum and Lockheed Martin show how a quantum computer may assist in precisely modelling the electrical structure of certain molecules in a recent work that was published in The Journal of Chemical Theory and Computation. A significant turning point for quantum chemistry and its uses in materials design, sensing, and aerospace is the new study's first application of the sample-based quantum diagonalisation (SQD) technique to open-shell systems. IBM researchers think it is a strong contender for near-term demonstrations of quantum advantage because SQD combines the greatest features of high-performance quantum computers with high-performance classical computers to solve intriguing simulation challenges.

End-user industry Segment Analysis

The end-user industry segment is divided into banking & finance, healthcare & pharmaceuticals, aerospace & defence, manufacturing & automotive, energy & utilities and government & research institutes. The banking and finance segment dominated the market, with a share of around 35% in 2024. The finance and banking industry is the biggest user of quantum computing because it requires advanced processes to handle the difficult challenges in financial markets. With quantum computing, this industry can carry out risk analysis, boost portfolio optimization, prevent fraud, and algorithmic trading more efficiently since such tasks often have very complex challenges not handled well by regular computers. Since the financial environment is both highly competitive and closely monitored, institutions have to use new technologies like quantum computing to make decisions with ease and accuracy. In addition, the possibility of attacks using quantum computers on today’s cryptography has led banks and financial firms to use quantum-safe security methods and prepare for the move to updated security protocols. The benefits of relying on quantum computing to calculate complex simulations in relation to derivatives and financial testing fit the financial sector’s standards for accuracy and dependability.

Some of the Key Market Players

• Alibaba Group
• D-Wave Systems
• Google
• Honeywell Quantum Solutions
• IBM
• Intel Corporation
• IonQ
• Microsoft
• PsiQuantum
• Rigetti Computing
• Xanadu Quantum Technologies
• Zapata Computing

Report Description