Abstract
Summary
The quantum photonics market is valued at USD 0.4 billion in 2023 and is anticipated to be USD 3.3 billion by 2030, growing at a CAGR of 32.2% from 2023 to 2030. Factors such as rising demand for secure communication and growing investment in quantum photonics computing are driving the growth of the market during the forecast period.
Growing investment in quantum photonics
In recent years, several businesses and academic organizations have made large investments in quantum photonics. Growing investment in quantum photonics is a major driver for its advancement and adoption. Companies and organizations are recognizing the immense potential of quantum photonics technology in revolutionizing various industries, including computing, communications, and sensing. The increasing investment is fueling research and development efforts, leading to hardware, algorithms, and applications breakthroughs. Funding from governments, venture capitalists, and technology giants areproviding the necessary resources to accelerate the progress of quantum photonics. The increased investment in quantum photonics fosters innovation, attracts highly skilled professionals, and expands the ecosystem. This surge in funding is propelling the growth of quantum photonics and creating opportunities for transformative solutions in various industries.
PsiQuantum, a California-based firm, is working to create a viable, fault-tolerant quantum computer utilizing photonic qubits quantum computer. In a fundraising round that was headed by BlackRock and included Baillie Gifford and M12 (Microsoft's startup fund), the business raised USD 215 million in 2020. With this funding, PsiQuantum will be able to expand its business and quicken the development of its quantum photonics technology.
Xanadu, a Canadian quantum computing startup that raised USD 100 million in a funding round in 2021, and QuTech, a Dutch research institute that is working to develop a photonic-based quantum computer in cooperation with several industrial partners, are two other notable players in the quantum photonics market in addition to PsiQuantum.
Potential for quantum supremacy
Quantum photonics is an exciting technology that has the potential to transform computing by utilizing photons' unique features to conduct sophisticated computations. The capacity of quantum computers to do tasks that are beyond the capability of classical computers is referred to as quantum supremacy. While there has been considerable success in showing quantum supremacy with superconducting qubits, quantum supremacy with photonic qubits has yet to be shown. However, major research is being conducted in the field of photonic quantum computing, and quantum photonics computing may attain quantum supremacy in the future.
In June 2022, Xanadu announced the launch of Borealis, the company's newest quantum computer, for public use through the cloud. Borealis is the biggest photonic quantum computer ever developed and the first to be made available to the public, with 216 squeezed-state qubits.
Asia Pacific is the fastest-growing region in the quantum photonics market
There is an significant market for quantum photonics in Asia Pacific, specifically in countries like Japan, South Korea, and China. The significant growth of the Asia Pacific quantum photonics market can be attributed to the increasing demand for quantum photonics systems and services from emerging economies such as China and Japan for use in different applications in the space & defense, healthcare & pharmaceutical, and energy & power industries in the coming years.
The breakup of primaries conducted during the study is depicted below:
• By Company Type: Tier 1 – 18 %, Tier 2 – 22%, and Tier 3 –60%
• By Designation: C-Level Executives – 21%, Directors – 35%, and Others – 44%
• By Region: North America– 45%, Europe – 38%, Asia Pacific – 12%, Rest of world– 5%
Research Coverage
The report segments the quantum photonics market and forecasts its size, by value, based on region (North America, Europe, Asia Pacific, and RoW), offering (systems, and services), application (quantum communication, quantum computing, quantum sensing & metrology), and vertical (Space & Defense, Banking & Finance, Healthcare & Pharmaceutical, Transportation & Logistics, Government, Agriculture & Environment, Others(include academia, retail, telecom, media, energy & power, chemical, industrial, and oil & gas sectors). The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the quantum photonics market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Reason to buy Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall quantum photonics market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
• Analysis of key drivers (rising demand for secure communication ,growing investment in quantum photonics, and potential for quantum supremacy), restraints (lack of standardization in quantum photonics, and regulatory challenges can hinder quantum photonics adoption and commercialization), opportunities (Advancements in quantum communications, Growing R&D and investments in quantum photonics computing), and challenges (Experimental constraints in quantum photonics computing) influencing the growth of the quantum photonics market
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the quantum photonics market
• Market Development: Comprehensive information about lucrative markets – the report analyses the quantum photonics market across varied regions
• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the quantum photonics market
• Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Toshiba (Japan), Xanadu (Canada), Quandela (France), ID Quantique (Switzerland), and PsiQuantum (US), among others in the quantum photonics market
Table of Contents
1 INTRODUCTION 26
1.1 STUDY OBJECTIVES 26
1.2 MARKET DEFINITION 26
1.3 INCLUSIONS AND EXCLUSIONS 27
1.4 STUDY SCOPE 28
1.4.1 MARKETS COVERED 28
1.4.2 REGIONAL SCOPE 28
1.4.3 YEARS CONSIDERED 29
1.5 CURRENCY CONSIDERED 29
1.6 LIMITATIONS 29
1.7 STAKEHOLDERS 30
1.8 RECESSION IMPACT 30
2 RESEARCH METHODOLOGY 31
2.1 RESEARCH DATA 31
2.1.1 SECONDARY AND PRIMARY RESEARCH 32
2.1.2 SECONDARY DATA 32
- 2.1.2.1 Key secondary sources 33
- 2.1.2.2 Key data from secondary sources 33
2.1.3 PRIMARY DATA 34
- 2.1.3.1 List of key primary interview participants 34
- 2.1.3.2 Key data from primary sources 34
- 2.1.3.3 Breakdown of primaries 35
- 2.1.3.4 Key industry insights 35
2.2 MARKET SIZE ESTIMATION 36
2.2.1 BOTTOM-UP APPROACH 37
2.2.2 TOP-DOWN APPROACH 37
2.3 MARKET BREAKDOWN AND DATA TRIANGULATION 38
2.4 RESEARCH ASSUMPTIONS 39
2.5 PARAMETERS CONSIDERED TO ANALYZE RECESSION IMPACT ON QUANTUM PHOTONICS MARKET 39
2.6 RESEARCH LIMITATIONS 40
2.7 RISK ASSESSMENT 40
3 EXECUTIVE SUMMARY 41
4 PREMIUM INSIGHTS 45
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN QUANTUM PHOTONICS MARKET 45
4.2 QUANTUM PHOTONICS MARKET, BY OFFERING 45
4.3 QUANTUM PHOTONICS MARKET, BY APPLICATION 46
4.4 NORTH AMERICA QUANTUM PHOTONICS MARKET, BY APPLICATION AND COUNTRY 46
4.5 QUANTUM PHOTONICS MARKET, BY VERTICAL 47
4.6 QUANTUM PHOTONICS MARKET, BY REGION 47
5 MARKET OVERVIEW 48
5.1 INTRODUCTION 48
5.2 MARKET DYNAMICS 48
5.2.1 DRIVERS 49
- 5.2.1.1 Rising demand for secure communication 49
- 5.2.1.2 Potential for quantum supremacy 50
- 5.2.1.3 Growing investment in quantum photonics 50
- 5.2.1.4 Integration with existing technologies 50
5.2.2 RESTRAINTS 51
- 5.2.2.1 Lack of standardization in quantum photonics 51
- 5.2.2.2 Regulatory challenges hinder quantum photonics adoption and commercialization 52
- 5.2.2.3 Difficulty in quantum photonics scaling 52
5.2.3 OPPORTUNITIES 52
- 5.2.3.1 Advancements in quantum communications 53
- 5.2.3.2 Growing R&D and investments in quantum photonics computing 53
- 5.2.3.3 Opportunities for hardware and software in quantum photonics computing market 54
5.2.4 CHALLENGES 54
- 5.2.4.1 Experimental constraints in quantum photonics computing 54
5.3 VALUE CHAIN ANALYSIS 54
5.3.1 RESEARCH, DESIGN, AND DEVELOPMENT 55
5.3.2 MANUFACTURERS 55
5.3.3 SOFTWARE PROVIDERS 55
5.3.4 SYSTEM INTEGRATORS 55
5.3.5 END-USER INDUSTRIES 56
5.4 ECOSYSTEM ANALYSIS 56
5.5 PORTER’S FIVE FORCES ANALYSIS 58
5.5.1 THREAT OF NEW ENTRANTS 58
5.5.2 BARGAINING POWER OF SUPPLIERS 58
5.5.3 BARGAINING POWER OF BUYERS 59
5.5.4 THREAT OF SUBSTITUTES 59
5.5.5 INTENSITY OF COMPETITIVE RIVALRY 59
5.6 PRICING ANALYSIS 59
5.7 CASE STUDY ANALYSIS 61
5.8 TRADE ANALYSIS 63
5.9 TARIFF ANALYSIS 64
5.10 REGULATIONS 65
5.10.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 66
5.10.2 REGULATORY STANDARDS 68
- 5.10.2.1 P1913 - Software-defined quantum communication 68
- 5.10.2.2 P7130 - Standard for quantum technologies definitions 68
- 5.10.2.3 P7131 - Standard for quantum computing performance metrics and benchmarking 68
5.11 TECHNOLOGY ANALYSIS 68
5.11.1 QUANTUM IMAGING 68
5.11.2 QUANTUM CRYPTOGRAPHY 68
5.11.3 QUANTUM SIMULATION 68
5.11.4 QUANTUM NANOPHOTONICS 69
5.11.5 QUANTUM ERROR CORRECTION 69
5.11.6 PROCESSORS & CHIPS 69
5.11.7 DEVELOPMENT TOOLS 70
5.11.8 MACHINE LEARNING 70
5.12 PATENT ANALYSIS 70
5.13 KEY CONFERENCES AND EVENTS, 2023-2024 77
5.14 REVENUE SHIFT AND NEW REVENUE POCKETS FOR CUSTOMERS’ BUSINESSES 79
5.15 KEY STAKEHOLDERS AND BUYING PROCESS 80
5.15.1 KEY STAKEHOLDERS IN BUYING PROCESS 80
5.15.2 BUYING CRITERIA 81
6 QUANTUM PHOTONICS MARKET, BY OFFERING 82
6.1 INTRODUCTION 83
6.2 SYSTEMS 84
6.2.1 INCREASING DEVELOPMENT OF QUANTUM PHOTONICS COMPUTING SYSTEMS TO DRIVE MARKET 84
6.3 SERVICES 85
6.3.1 QUANTUM COMPUTING AS A SERVICE (QCAAS) 87
- 6.3.1.1 Accessing power of quantum photonics through cloud-based platforms to fuel market 87
6.3.2 CONSULTING SERVICES 88
- 6.3.2.1 Increase in awareness of advantages of quantum photonics to drive market 88
7 QUANTUM PHOTONICS MARKET, BY APPLICATION 89
7.1 INTRODUCTION 90
7.2 QUANTUM COMMUNICATIONS 91
7.2.1 QUANTUM RANDOM GENERATORS 94
- 7.2.1.1 Generation of random numbers for advanced level of security to boost market 94
7.2.2 QUANTUM KEY DISTRIBUTION 95
- 7.2.2.1 Secure data transfer provided by quantum key distribution to drive market 95
7.3 QUANTUM SENSING & METROLOGY 95
7.3.1 ATOMIC CLOCKS 96
- 7.3.1.1 Precise measurement of time provided by atomic clocks to fuel market growth 96
7.3.2 QUANTUM DOT PHOTODETECTORS 97
- 7.3.2.1 Ability of quantum dot photodetectors to make precise measurements to fuel market growth 97
7.3.3 PAR (PHOTOSYNTHETICALLY ACTIVE RADIATION) QUANTUM SENSORS 97
- 7.3.3.1 Use of PAR to monitor plant growth to drive market 97
7.3.4 QUANTUM LIDAR 98
- 7.3.4.1 Precise and detailed images even in challenging conditions to drive market 98
7.4 QUANTUM COMPUTING 100
7.4.1 ON-PREMISES 101
- 7.4.1.1 On-premises photonic quantum computer to offer enhanced security and low latency 101
7.4.2 CLOUD 102
- 7.4.2.1 Growing adoption of cloud-based quantum computing for research and development 102
8 QUANTUM PHOTONICS MARKET, BY VERTICAL 106
8.1 INTRODUCTION 107
8.2 SPACE & DEFENSE 108
8.2.1 RISE IN USE OF QUANTUM PHOTONICS FOR CONCURRENT EXECUTION OF PROCESSES TO BOOST MARKET 108
8.3 BANKING & FINANCE 110
8.3.1 INCREASE IN USE OF QUANTUM PHOTONICS IN BANKING & FINANCE SECTORS TO FUEL MARKET 110
8.4 HEALTHCARE & PHARMACEUTICAL 112
8.4.1 RISE IN REQUIREMENT FOR PERSONALIZED DIAGNOSTIC TOOLS AND TAILORED THERAPIES TO BOOST MARKET 112
8.5 TRANSPORTATION & LOGISTICS 113
8.5.1 INCREASE IN USE OF QUANTUM-BASED METHODS TO IMPROVE TRAFFIC FLOW TO DRIVE MARKET 113
8.6 GOVERNMENT 115
8.6.1 SPIKE IN INVESTMENTS FOR DEVELOPMENT OF QUANTUM PHOTONICS TECHNOLOGY TO DRIVE MARKET 115
8.7 AGRICULTURE & ENVIRONMENT 116
8.7.1 PRECISE DETECTION CAPABILITIES FOR MONITORING CRUCIAL PARAMETERS TO BOOST MARKET 116
8.8 OTHERS 118
9 QUANTUM PHOTONICS MARKET, BY REGION 120
9.1 INTRODUCTION 121
9.2 NORTH AMERICA 122
9.2.1 NORTH AMERICA: RECESSION IMPACT 123
9.2.2 US 126
- 9.2.2.1 Extensive investments in quantum photonics research & development to drive market 126
9.2.3 CANADA 127
- 9.2.3.1 Spike in government-led investments for development of new technologies to fuel market 127
9.2.4 MEXICO 127
- 9.2.4.1 Rise in quantum photonics developmental initiatives to boost market 127
9.3 EUROPE 127
9.3.1 EUROPE: RECESSION IMPACT 128
9.3.2 UK 132
- 9.3.2.1 Industrial developments and increase in adoption of quantum photonics to fuel market 132
9.3.3 GERMANY 132
- 9.3.3.1 Strong industrial and research presence in Germany to drive quantum photonics market 132
9.3.4 FRANCE 133
- 9.3.4.1 Surge in demand for advanced technologies for secure communications to fuel market 133
9.3.5 NETHERLANDS 134
- 9.3.5.1 Rise in initiatives to develop quantum photonics technology to drive market 134
9.3.6 REST OF EUROPE 135
9.4 ASIA PACIFIC 135
9.4.1 ASIA PACIFIC: RECESSION IMPACT 136
9.4.2 CHINA 139
- 9.4.2.1 Government-led initiatives and spike in funding for development of quantum computers to fuel market 139
9.4.3 JAPAN 140
- 9.4.3.1 Rise in focus on deployment of emerging technologies to boost market 140
9.4.4 SOUTH KOREA 140
- 9.4.4.1 Growing adoption of quantum photonics technology by key consumer electronics manufacturers to drive market 140
9.4.5 REST OF ASIA PACIFIC 140
9.5 REST OF THE WORLD 140
9.5.1 SOUTH AMERICA 142
- 9.5.1.1 Establishment of quantum communities to drive market 142
9.5.2 MIDDLE EAST & AFRICA 143
- 9.5.2.1 Rise in initiatives to increase awareness regarding quantum photonics to boost market 143
10 COMPETITIVE LANDSCAPE 144
10.1 INTRODUCTION 144
10.2 KEY STRATEGIES ADOPTED BY MAJOR COMPANIES 144
10.3 REVENUE ANALYSIS 145
10.4 MARKET SHARE ANALYSIS, 2022 145
10.5 COMPANY EVALUATION QUADRANT, 2022 148
10.5.1 STARS 148
10.5.2 EMERGING LEADERS 148
10.5.3 PERVASIVE PLAYERS 148
10.5.4 PARTICIPANTS 148
10.6 COMPETITIVE BENCHMARKING 150
10.6.1 COMPANY FOOTPRINT: OFFERING 150
10.6.2 COMPANY FOOTPRINT: REGION 151
10.6.3 COMPANY FOOTPRINT: APPLICATION 152
10.6.4 OVERALL COMPANY FOOTPRINT 153
10.7 STARTUP/SME EVALUATION QUADRANT, 2022 154
10.7.1 PROGRESSIVE COMPANIES 154
10.7.2 RESPONSIVE COMPANIES 154
10.7.3 DYNAMIC COMPANIES 154
10.7.4 STARTING BLOCKS 154
10.8 COMPETITIVE SITUATIONS AND TRENDS 157
11 COMPANY PROFILES 169
11.1 KEY PLAYERS 169
11.1.1 XANADU 169
11.1.2 PSI QUANTUM 174
11.1.3 QUANDELA 178
11.1.4 ID QUANTIQUE 182
11.1.5 TOSHIBA 187
11.1.6 ORCA COMPUTING 192
11.1.7 QUIX QUANTUM 194
11.1.8 TUNDRASYSTEMS GLOBAL 197
11.1.9 NORDIC QUANTUM COMPUTING GROUP (NQCG) 199
11.1.10 NU QUANTUM 201
11.2 OTHER KEY PLAYERS 204
11.2.1 SINGLE QUANTUM 204
11.2.2 AMAZON WEB SERVICES 205
11.2.3 NTT TECHNOLOGIES 206
11.2.4 M SQUARED 207
11.2.5 AOSENSE 208
11.2.6 NEC CORPORATION 209
11.2.7 QUANTUM XCHANGE 210
11.2.8 CRYPTA LABS 211
11.2.9 MICROCHIP TECHNOLOGY 212
11.2.10 MENLO SYSTEMS 213
11.2.11 THORLABS 213
11.2.12 QUINTESSENCE LABS 214
11.2.13 QUANTUM DICE 215
11.2.14 QUSIDE 216
11.2.15 QUBITEKK 216
12 APPENDIX 217
12.1 DISCUSSION GUIDE 217
12.2 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 220
12.3 CUSTOMIZATION OPTIONS 222
12.4 RELATED REPORTS 222
12.5 AUTHOR DETAILS 223