Abstract
Summary
The global cloud-based quantum computing market is projected to grow from USD 798 million in 2023 to USD 4,063 million by 2028 at a CAGR of 38.5%.
Some factors driving the market growth include the growing adoption of cloud technology with increasing digitalization and the increasing use of quantum computing software and services across various verticals. However, stability and error correction issues and limited skilled expertise for deploying and using cloud-based quantum computing solutions are expected to hinder the market growth.
“BFSI to grow at highest CAGR during the forecast period.”
Quantum computing is gaining interest in financial services, which aims to increase manifold, trade speed, transactions, and data processing. Some use cases of quantum computing in financial services include targeting and prediction, trading optimization, and risk profiling. Several partnerships and collaborations are taking place in the cloud-based quantum computing market in the BFSI industry. In 2018, MUFG Bank and Mizuho Financial Group joined as members of the IBM Q Hub at Keio University. Keio University worked with IBM to help organizations explore quantum applications important to business and science.
“Managed Services to grow with significant CAGR during the forecast period.”
Managed services are when the organization outsources its day-to-day operations to focus on its core business. Managed services include daily maintenance, troubleshooting, security, administration, data backup, unified communications, onboarding, and network monitoring. Quantum computing service providers cater to industries’ requirements such as healthcare, pharmaceutical, and aerospace & defense by providing them with quantum computing as a service (QCaaS). Quantum computing as a service (QCaaS) is a cloud computing service that provides access to quantum computers and its associated technologies. QCaaS allows users to access quantum computers via a web browser or an application programming interface (API). The QCaaS enables businesses and researchers to access quantum computing power without purchasing and maintaining their quantum computers. For instance, Amazon Braket is a fully managed quantum computing service designed to help speed up scientific research and software development for quantum computing. Its use cases include researching quantum computing algorithms, testing different quantum hardware, building quantum software faster, and developing open-source software.
“Asia Pacific to grow at highest CAGR during the forecast period.”
The Asia Pacific is expected to be one of the most significant contributors to the cloud-based quantum computing market size. In 2021, IBM and the University of Tokyo unveiled Japan’s most powerful quantum computer as a collaboration to advance Japan’s exploration of quantum science, business, and education. The IBM Quantum System One provides users access to repeatable and predictable performance from high-quality qubits and high-precision control electronics, with quantum resources tightly controlled with classical processing. In India, the Union Budget 2020-21 proposed to spend USD 1.2 billion on the newly launched National Mission on Quantum Technologies and Applications (NMQTA). It would focus on the five domains of quantum technology: communication, simulation, computation, sensing, and metrology. Additionally, several initiatives and partnerships are being taken up by the regional governments and organizations, which has driven the cloud-based quantum computing market in the region.
Breakdown of Primaries
The primary sources from the supply side include various industry experts, including Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the cloud-based quantum computing market.
• By Company Type: Tier 1: 35%, Tier 2: 45%, and Tier 3: 20%
• By Designation: C-level: 40%, Managerial and Other levels: 60%
• By Region: Asia Pacific: 45%, Europe: 35%, and North America: 20%
The major vendors in cloud-based quantum computing include IBM (US), Microsoft (US), Google (US), AWS (US), Baidu (China), Rigetti Computing (US), Xanadu (Canada), Oxford Quantum Circuits (UK), IonQ (US), and Zapata Computing (US).
Research Coverage
The report segments the cloud-based quantum computing market. It forecasts its size by offering (software, services), technology (trapped ions, quantum annealing, superconducting qubits, other technologies), applications (optimization, simulation, modeling, sampling, encryption, other applications), verticals (BFSI, healthcare and pharmaceuticals, aerospace & defense, research and academia, manufacturing, transportation and logistics, chemicals, and other verticals), and region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The study also includes an in-depth competitive analysis of the key players in the market, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying Report
The report is expected to help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the cloud-based quantum computing market and sub-segments. It will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report will also help stakeholders understand the pulse of the market and will provide them with information on key market drivers, restraints, opportunities, and challenges.
Table of Contents
1 INTRODUCTION 27
1.1 STUDY OBJECTIVES 27
1.2 MARKET DEFINITION 27
1.2.1 INCLUSIONS AND EXCLUSIONS 27
1.3 MARKET SCOPE 29
1.3.1 MARKET SEGMENTATION 29
1.3.2 REGIONS 29
1.3.3 YEARS CONSIDERED 30
1.4 CURRENCY CONSIDERED 30
1.5 STAKEHOLDERS 31
2 RESEARCH METHODOLOGY 32
2.1 RESEARCH DATA 32
2.1.1 SECONDARY DATA 33
2.1.2 PRIMARY DATA 33
- 2.1.2.1 Breakup of primaries 33
- 2.1.2.2 Key industry insights 34
2.2 DATA TRIANGULATION 35
2.3 MARKET SIZE ESTIMATION 35
2.3.1 TOP-DOWN APPROACH 36
2.3.2 BOTTOM-UP APPROACH 36
2.4 MARKET FORECAST 38
2.5 COMPANY EVALUATION QUADRANT METHODOLOGY 39
2.6 COMPANY EVALUATION QUADRANT METHODOLOGY (STARTUPS) 40
2.7 ASSUMPTIONS 40
2.8 LIMITATIONS 41
3 EXECUTIVE SUMMARY 42
4 PREMIUM INSIGHTS 46
4.1 ATTRACTIVE OPPORTUNITIES FOR KEY MARKET PLAYERS 46
4.2 CLOUD-BASED QUANTUM COMPUTING MARKET, BY OFFERING 46
4.3 CLOUD-BASED QUANTUM COMPUTING MARKET, BY SERVICE 47
4.4 CLOUD-BASED QUANTUM COMPUTING MARKET, BY VERTICAL 47
4.5 MARKET INVESTMENT SCENARIO 48
5 MARKET OVERVIEW AND INDUSTRY TRENDS 49
5.1 INTRODUCTION 49
5.2 MARKET DYNAMICS 49
5.2.1 DRIVERS 50
- 5.2.1.1 Accessibility of quantum computers using cloud technology 50
- 5.2.1.2 Rapid digitalization to increase use of cloud-based quantum computing 50
5.2.2 RESTRAINTS 50
- 5.2.2.1 Stability and error correction issues 50
- 5.2.2.2 Limited skilled expertise for deployment and usage of cloud-based quantum computing solutions 51
5.2.3 OPPORTUNITIES 51
- 5.2.3.1 Growing adoption of quantum computing solutions across several verticals 51
- 5.2.3.2 Emergence of startups to provide cloud-based quantum computing solutions 52
5.2.4 CHALLENGES 52
- 5.2.4.1 Lack of standardization 52
5.3 ECOSYSTEM 53
5.4 TECHNOLOGY ANALYSIS 54
5.4.1 HIGH-PERFORMANCE COMPUTING (HPC) 54
5.4.2 HYBRID QUANTUM COMPUTING 54
5.4.3 AI/ML 54
5.4.4 CRYPTOGRAPHY 55
5.5 REGULATORY IMPLICATIONS 55
5.5.1 P1913- SOFTWARE-DEFINED QUANTUM COMMUNICATION 55
5.5.2 P7130- STANDARD FOR QUANTUM TECHNOLOGIES DEFINITIONS 55
5.5.3 P7131- STANDARD FOR QUANTUM COMPUTING PERFORMANCE METRICS AND BENCHMARKING 55
5.5.4 NATIONAL QUANTUM INITIATIVE ACT 55
5.5.5 OPENQKD 56
5.5.6 QUANTUM COMPUTING GOVERNANCE PRINCIPLES 56
5.5.7 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 56
5.6 PATENT ANALYSIS 57
5.7 USE CASES 57
5.7.1 USE CASE 1: OTI LUMIONICS TO ACCELERATE MATERIAL DESIGN USING MICROSOFT AZURE QUANTUM 57
5.7.2 USE CASE 2: CERN PARTNERS WITH IBM QUANTUM TO SEEK NEW WAYS OF PATTERNS IN LHC DATA 58
5.7.3 USE CASE 3: MICROSOFT COLLABORATES WITH WILLIS TOWERS WATSON TO TRANSFORM RISK-MANAGEMENT SOLUTIONS 59
5.8 PRICING ANALYSIS 59
5.9 VALUE CHAIN 60
5.9.1 QUANTUM COMPUTING HARDWARE MANUFACTURERS 60
5.9.2 QUANTUM COMPUTING SOFTWARE VENDORS 60
5.9.3 CLOUD INFRASTRUCTURE VENDORS 61
5.9.4 INDEPENDENT SOFTWARE VENDORS 61
5.9.5 SYSTEM INTEGRATORS 61
5.9.6 END USERS 61
5.10 PORTER'S FIVE FORCES ANALYSIS 62
5.10.1 THREAT OF NEW ENTRANTS 63
5.10.2 THREAT OF SUBSTITUTES 63
5.10.3 BARGAINING POWER OF SUPPLIERS 63
5.10.4 BARGAINING POWER OF BUYERS 63
5.10.5 INTENSITY OF COMPETITIVE RIVALRY 64
5.11 TRENDS AND DISRUPTIONS IMPACTING CUSTOMERS 64
5.12 KEY STAKEHOLDERS AND BUYING CRITERIA 65
5.12.1 KEY STAKEHOLDERS IN BUYING PROCESS 65
5.13 KEY CONFERENCES AND EVENTS IN 2023-2024 66
6 CLOUD-BASED QUANTUM COMPUTING MARKET, BY OFFERING 68
6.1 INTRODUCTION 69
6.2 SOFTWARE 70
6.2.1 INITIATIVES TO BE TAKEN BY ORGANIZATIONS 70
6.2.2 SOFTWARE: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 70
6.3 SERVICES 71
6.3.1 EFFICIENT DEPLOYMENT OF CLOUD-BASED QUANTUM COMPUTING SOFTWARE 71
6.3.2 SERVICES: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 71
6.3.3 PROFESSIONAL SERVICES 72
6.3.4 MANAGED SERVICES 73
7 CLOUD-BASED QUANTUM COMPUTING MARKET, BY TECHNOLOGY 74
7.1 INTRODUCTION 74
7.2 SUPERCONDUCTING QUBIT 74
7.2.1 UTILIZATION OF SUPERCONDUCTING QUBITS IN QUANTUM PROCESSORS DEVELOPMENT 74
7.3 TRAPPED ION 75
7.3.1 ADOPTION OF TRAPPED ION TECHNOLOGY IN CLOUD QUANTUM COMPUTING 75
7.4 QUANTUM ANNEALING 75
7.4.1 QUANTUM ANNEALING TO SOLVE OPTIMIZATION PROBLEMS IN LESSER TIME 75
7.5 OTHERS 76
8 CLOUD-BASED QUANTUM COMPUTING MARKET, BY APPLICATION 77
8.1 INTRODUCTION 77
8.2 OPTIMIZATION 78
8.2.1 GROWING USE OF QUANTUM ALGORITHMS TO TACKLE OPTIMIZATION PROBLEMS EFFECTIVELY 78
8.3 SIMULATION AND MODELING 79
8.3.1 INCREASING ADOPTION OF QUANTUM COMPUTING SIMULATION TO UNDERSTAND BEHAVIOR OF QUANTUM SYSTEMS AND DEVELOP QUANTUM ALGORITHMS 79
8.4 SAMPLING 80
8.4.1 EFFICIENT GENERATION OF RESULTS FROM DATASET 80
8.5 ENCRYPTION 80
8.5.1 INCREASING CYBERATTACKS AND RISING DEMAND FOR HYBRID AND FULLY REMOTE WORKING MODELS 80
8.6 OTHERS 81
9 CLOUD-BASED QUANTUM COMPUTING MARKET, BY VERTICAL 82
9.1 INTRODUCTION 83
9.2 RESEARCH AND ACADEMIA 84
9.2.1 GROWING INITIATIVES IN QUANTUM RESEARCH 84
9.2.2 RESEARCH AND ACADEMIA: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 84
9.3 BFSI 85
9.3.1 CLOUD-BASED QUANTUM COMPUTING TO ENHANCE PROCESS OF SAFEGUARDING CUSTOMER FINANCIAL DATA 85
9.3.2 BFSI: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 86
9.4 HEALTHCARE AND PHARMACEUTICALS 86
9.4.1 GROWING ADOPTION OF CLOUD TECHNOLOGY 86
9.4.2 HEALTHCARE AND PHARMACEUTICALS: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 87
9.5 AEROSPACE AND DEFENSE 88
9.5.1 CLOUD-BASED QUANTUM COMPUTING TO ENHANCE PROCESS OF SECURED COMMUNICATIONS 88
9.5.2 AEROSPACE AND DEFENSE: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 88
9.6 MANUFACTURING 89
9.6.1 MANUFACTURING TO ENABLE PROCESS OPTIMIZATION AND PRODUCT DEVELOPMENT 89
9.6.2 MANUFACTURING: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 89
9.7 TRANSPORTATION AND LOGISTICS 90
9.7.1 CLOUD-BASED QUANTUM COMPUTING TO OVERCOME CHALLENGES RELATED TO OPTIMIZATION OPERATIONS 90
9.7.2 TRANSPORTATION AND LOGISTICS: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 90
9.8 CHEMICALS 91
9.8.1 CLOUD-BASED QUANTUM COMPUTING TO ENABLE DESIGNING OF EFFICIENT MOLECULES, POLYMERS, AND SOLIDS 91
9.8.2 CHEMICALS: CLOUD-BASED QUANTUM COMPUTING MARKET DRIVERS 92
9.9 OTHER VERTICALS 93
10 CLOUD-BASED QUANTUM COMPUTING MARKET, BY REGION 94
10.1 INTRODUCTION 95
10.2 NORTH AMERICA 96
10.2.1 NORTH AMERICA: MARKET DRIVERS 96
10.2.2 NORTH AMERICA: REGULATORY LANDSCAPE 97
10.2.3 US 100
- 10.2.3.1 Presence of many cloud-based quantum computing solution vendors 100
10.2.4 CANADA 102
- 10.2.4.1 Increasing investments by government in quantum computing 102
10.3 EUROPE 104
10.3.1 EUROPE: MARKET DRIVERS 104
10.3.2 EUROPE: REGULATORY LANDSCAPE 105
10.3.3 UK 107
- 10.3.3.1 Organizations to take initiative toward cloud-based quantum computing 107
10.3.4 GERMANY 109
- 10.3.4.1 Investments by federal ministry for economic affairs and energy to develop quantum technology 109
10.3.5 FRANCE 111
- 10.3.5.1 Growing partnerships among cloud-based quantum computing solution provider organizations 111
10.3.6 REST OF EUROPE 112
10.4 ASIA PACIFIC 114
10.4.1 ASIA PACIFIC: MARKET DRIVERS 114
10.4.2 ASIA PACIFIC: REGULATORY LANDSCAPE 115
10.4.3 CHINA 118
- 10.4.3.1 Growing use of cloud technology 118
10.4.4 JAPAN 120
- 10.4.4.1 Collaboration between universities and organizations for research and development in cloud-based quantum computing 120
10.4.5 INDIA 122
- 10.4.5.1 Partnership between government and cloud service providers to develop quantum computing applications lab 122
10.4.6 REST OF ASIA PACIFIC 123
10.5 ROW 125
10.5.1 ROW: MARKET DRIVERS 125
10.5.2 MIDDLE EAST AND AFRICA 126
- 10.5.2.1 Collaboration between tech-giants and academic institutions to drive growth 126
10.5.3 LATIN AMERICA 127
- 10.5.3.1 Rising investment in education sector by quantum computing companies to drive growth 127
11 COMPETITIVE LANDSCAPE 128
11.1 OVERVIEW 128
11.2 HISTORICAL REVENUE ANALYSIS 128
11.3 CLOUD-BASED QUANTUM COMPUTING MARKET: RANKING OF KEY PLAYERS 129
11.4 MARKET SHARE ANALYSIS 129
11.5 COMPANY EVALUATION QUADRANT 130
11.5.1 STARS 130
11.5.2 EMERGING LEADERS 130
11.5.3 PERVASIVE PLAYERS 131
11.5.4 PARTICIPANTS 131
11.6 COMPETITIVE BENCHMARKING 132
11.6.1 COMPANY FOOTPRINT: OFFERING 132
11.6.2 COMPANY FOOTPRINT: REGION 132
11.6.3 OVERALL COMPANY FOOTPRINT 133
11.7 STARTUPS/SMES EVALUATION QUADRANT 133
11.7.1 PROGRESSIVE COMPANIES 133
11.7.2 RESPONSIVE COMPANIES 133
11.7.3 DYNAMIC COMPANIES 133
11.7.4 STARTING BLOCKS 134
11.7.5 COMPETITIVE BENCHMARKING FOR STARTUPS 135
11.8 COMPETITIVE SCENARIOS AND TRENDS 136
11.8.1 PRODUCT LAUNCHES & ENHANCEMENTS 136
11.8.2 DEALS 137
12 COMPANY PROFILES 139
12.1 KEY PLAYERS 139
12.1.1 IBM 139
12.1.2 MICROSOFT 143
12.1.3 GOOGLE 146
12.1.4 AWS 149
12.1.5 BAIDU 152
12.1.6 HUAWEI 154
12.2 OTHER PLAYERS 156
12.2.1 RIGETTI COMPUTING 156
12.2.2 XANADU 156
12.2.3 D-WAVE SYSTEMS 157
12.2.4 OXFORD QUANTUM CIRCUITS 157
12.2.5 IONQ 158
12.2.6 PASQAL 159
12.2.7 ZAPATA COMPUTING 160
12.2.8 QUANDELA 160
12.2.9 QPICLOUD 161
12.2.10 COLDQUANTA 161
12.2.11 SPINQ 162
12.2.12 QILIMANJARO 162
12.2.13 ARQIT 163
12.2.14 TERRA QUANTUM 163
12.2.15 QUANTUM COMPUTING INC 164
13 ADJACENT MARKETS AND APPENDIX 165
13.1 ADJACENT MARKETS 165
13.2 LIMITATIONS 165
13.2.1 QUANTUM COMPUTING MARKET 165
13.2.2 QUANTUM COMPUTING SOFTWARE MARKET 168
13.3 DISCUSSION GUIDE 173
13.4 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 177
13.5 CUSTOMIZATION OPTIONS 179
13.6 RELATED REPORTS 179
13.7 AUTHOR DETAILS 180