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Quantum Computing Market by Offering (Systems and Consulting Solutions) Global Forecast to 2024


The overall quantum computing market is expected to grow from USD 93 million by 2019 to USD 283 million by 2024 at a CAGR of 24.9%. The QCaaS market is expected to grow from USD 4 million by 2019 to USD 13 million by 2024 at a CAGR of 26.8%. Material simulation application is expected to register high growth in the overall quantum computing market during the forecast period. Automotive companies such as Volkswagen AG (Germany) are using material simulation applications to simulate the chemical structure of batteries on quantum computers. This is important for the development of high-performance electric vehicle batteries. Moreover, various end-user industries are using quantum computers as well as adopting QCaaS to simulate material structures.

The key applications used in quantum computing for consulting solution are optimization, machine learning, and material simulation. Of these, optimization is the largest contributor to the overall quantum computing market, accounting for the largest share of the market in 2018. The demand for optimization and material simulation applications on quantum computers is likely to increase rapidly in the coming years. The demand to solve complex problems with simultaneous operations as well as to simulate molecules and materials to gain an accurate output is helping these applications to find opportunities in industries such as automotive, chemicals, energy and power, and healthcare.

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Among the end-user industries considered, space and defense is the largest contributor to the overall quantum computing market, and it is expected to account for the largest share of the market by 2019. The need for secure communications and data transfer, with the demand in faster data operations, is expected to boost the demand for quantum computing consulting solutions for this industry. The market for the automotive industry is expected to grow at the highest CAGR from 2019 to 2024.

The quantum computing market, by geography, has been broadly classified into North America, Europe, and APAC. North America accounted for the largest share, followed by APAC, in 2018 in the quantum computing market for consulting solutions. In the quantum computing as a service market, North America accounted for the largest share, followed by Europe, in 2018.
North America is an early adopter of quantum computing solutions as well as QCaaS due to the presence of large corporations with a technological edge and abundant capital in the region. Various government initiatives have also greatly contributed to the development of the quantum computing market in this region.

Among the 3 major regions, the quantum computing consulting solution market in APAC is expected to grow at the highest CAGR during the forecast period. Also, the quantum computing as a service market in APAC is expected to grow at the highest CAGR during the forecast period. APAC is a leading hub for several industries, including healthcare, banking, automotive, and chemicals. This region is the largest automobile producer in the world. Also, countries such as China, Japan, and South Korea are leading manufacturers of consumer electronics devices, including smartphones, laptops, and gaming consoles, in this region. There is a need to solve various complications related to application such as optimization, material simulation, and machine learning across these industries. Thus, to cater to these complex problems, key players in the market are conducting extensive R&D for the development of the quantum system and applications/algorithms that could help these industries to work efficiently.

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