Quantum Computing Market By Offering (Hardware, Software, and Services), By Deployment (On-Premises and Cloud), By Technology (Superconducting Qubits, Trapped Ions, Quantum Dots, Topological Qubits, Photonic Quantum, and Neutral Atom), By Application (Optimization, Simulation, Machine Learning & AI, Cryptography, Quantum Communications, and  Others), and By End-user (Aerospace & Defense, Automotive, BFSI, Healthcare, IT & Telecommunications, Government & Research, and Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Quantum Computing market accounted for USD 1.13 Billion in 2024 and is expected to reach USD 18.12 Billion by 2035, growing at a CAGR of around 28.7% between 2025 and 2035. The quantum computing market is the industry focused on developing and commercializing quantum computers and related technologies.

Quantum computers are designed based on principles of quantum mechanics, such as superposition and entanglement, which enable them to solve problems that classical computers have a hard time solving. It involves hardware, software, and services, including quantum processors, algorithms, and cloud-based quantum platforms. This is one rapidly growing market where start-ups and tech giants heavily invest in research and development. Increasing interest and investment are made into this field as its potential to revolutionize computing power and problem-solving increases.

Report Scope:

Market Dynamics

Rising Cybersecurity Threats Drive a Global Shift towards Quantum Cryptography for Enhanced Data Protection

The main reason the demand for quantum cryptography in the quantum computing market is on the rise is growing concerns over data privacy and security threats. Governments and organizations have realized that classical encryption methods are limited, particularly with advanced cyber threats.

Quantum cryptography becomes a possible answer, as it bases encryption methods on the principles of quantum mechanics, thus significantly increasing security. Governments worldwide are investing significantly in quantum technologies to protect sensitive data and maintain national security.

With industries in sectors as varied as healthcare and finance being data-driven, the need for good encryption methods to protect intellectual property and confidential information is on the rise. This speed of technological advancement continues to hasten the pace for quantum cryptography to stay ahead of changing cyber threats.

Cloud Adoption Drives Access to Quantum Computing & Enabling Businesses to Leverage Advanced Technology

Key factors propelling growth in quantum computing involve the increase in cloud adoption as the business can now reach for quantum resources without any high infrastructure investment in heavy platforms. Governments are fostering cloud quantum computing services, as they want to increase cutting-edge technology availability in wider industries.

Businesses can utilize cloud services to tap into quantum computing power for complex problem-solving, data analysis, and simulations without the exorbitant costs of owning and maintaining quantum hardware. Such democratization of quantum resources is most beneficial to small companies, startups, and research institutions. With cloud-based platforms, enterprises can scale their quantum computing capabilities on demand, foster innovation, and accelerate the adoption of quantum technologies across sectors.

Complexity in Quantum Algorithm Development Hinders Progress and Limits Practical Applications

This complexity in developing effective quantum algorithms represents a significant restraint within the quantum computing market. The uniqueness of quantum mechanics needs to be leveraged to improve quantum algorithms over classical systems, which is a great challenge. These algorithms demand very deep expertise in quantum theory and computational problem-solving skills, even minor errors could degrade the performance substantially. This complexity slows the pace of practical quantum computing applications.

Moreover, many quantum algorithms are still theoretical or unoptimized for real-world use, limiting their deployment in industries. As quantum hardware improves, so does the bottleneck of the lack of suitable algorithms to fully exploit these advancements. Researchers are working on overcoming this barrier, but the need for efficient quantum algorithms remains a crucial hurdle for the adoption of widespread quantum computing.

Quantum Computing Revolutionizes Drug Discovery and Molecular Modeling in the Pharmaceutical Industry.

Quantum computing provides a massive opportunity for the pharmaceutical industry, particularly with regard to drug discovery and molecular modeling. The present traditional approach to simulating molecular structures is constrained by computational power, and this slows the process of discovering new drugs.

Complex molecules can be modeled better and faster in quantum computers due to their processing capacity to handle vast data simultaneously. This can lead to better insight into molecular interactions so that new drugs can be discovered quickly. Quantum computers can simulate the folding of proteins, drug binding, and other such key biochemical processes to identify possible candidates for drug discovery, which otherwise might not have come to notice.

Therefore, quantum computing might significantly reduce the time needed to discover treatment for diseases, decrease the cost of R&D, and cut down time-to-market for new drugs. This opportunity has started to attract huge investments and research in the pharmaceutical industry.

Quantum Computing Enhances Blockchain Security with Quantum-Resistant Protocols

Quantum computing represents a promising chance to increase the security and quantum hack resistance of blockchain technology. Blockchain is one of the technologies that are mostly known for their robust security, but as quantum computing develops, traditional cryptographic methods may eventually become vulnerable to quantum attacks. Quantum computers can eventually break the current encryption, which will place the integrity of blockchain systems in danger.

By introducing quantum algorithms into blockchain networks, one has the potential to obtain encryption techniques that are resistant even to the best-known classical or quantum attack. This integration would ensure the long-term viability of blockchain applications in sectors like finance, supply chain management, and digital assets. Because quantum-enhanced security needs arise with the adoption of blockchain, the market comes forward with a massive potential for demand.

Industry Experts Opinion

“The acquisition of our first full-stack superconducting quantum computer marks a key step for Taiwan in the global quantum computing race. It aims to assist Taiwan in making progress in quantum computing technology and to demonstrate how Taiwan can leverage its leading position in semiconductor industry to enter this emerging field. The collaboration will strengthen the link between academia and industry, laying a solid foundation for cultivating domestic quantum computing talents,”

• Prof. Tuo-Hung Hou, Director General of Taiwan Semiconductor Research Institute’s (TSRI)

“Having our on-site first quantum computer in South Korea and second in the APAC region is a significant achievement for us and has several benefits for Chungbuk National University.”

• Dr. Mikko Välimäki, Co-CEO at IQM Quantum Computers

Segment Analysis

Based on the offering, the Quantum Computing market has been classified into hardware, software, and services. Hardware is currently leading in the market, as it forms the fundamental basis for all advancements in quantum computing. Development and scaling of quantum processors, including superconducting qubits, trapped ions, and photonic systems, will be crucial in enabling practical quantum computing applications. Improving the quality of quantum hardware fuels advancements in software and services, and hence these pieces of hardware are among the things that companies target to achieve functional and scalable quantum systems. 

Based on the deployment, the Quantum Computing market has been classified into on-premises and cloud. Cloud is currently the leader in market share for deployment, as it offers a flexible and scalable access model to quantum resources without requiring significant investment in infrastructure. The overall access to quantum resources creates a conducive environment for an increased number of users to experiment with and deploy applications of quantum computing, making this the preferred model for deployment over on-premises solutions that require special hardware and expensive maintenance.

Regional Analysis

North America is the largest region in the quantum computing market, with substantial investments made by private companies and government agencies. The United States leads development in quantum technologies. Large-scale tech companies like IBM, Google, and Microsoft are fully engaged in research and commercialization efforts. Government initiatives such as the National Quantum Initiative Act are also hastening advances in quantum computing. The region experiences a well-built ecosystem for universities, research institutions, and access to venture funding, ensuring continuous innovation and fueling growth in the marketplace. This combination of government aid and private investing and, lastly, academic-based research has pushed North America ahead as a leader in the quantum computing marketplace.  

The Asia-Pacific is going very fast ahead in the world of quantum computing and China, Japan, and India are leading regions. China, in particular, has achieved great strides forward by strong research and development investments made as well as by gaining worldwide leadership in this area. Japan and India are also stepping up their game with government-backed initiatives and partnerships between academic institutions and industry players. The region is growing rapidly due to support from the government, quantum research investments, and the increasing presence of quantum computing startups. As the Asia-Pacific nations realize the strategic importance of quantum technologies, demand for quantum computing solutions is going to increase further, putting the region at the forefront of the global market.

Competitive Landscape

The competitive landscape of the quantum computing market is highly dynamic, with several key players making quite significant strides in both hardware and software development. IBM, Google, Microsoft, and Honeywell lead the pack, investing heavily in quantum research and infrastructure. IBM introduced its IBM Quantum System Two, a modular quantum computing platform aimed at scaling quantum processors.

Furthermore, newer startups, such as IonQ and Rigetti Computing, are increasingly being launched, and one major milestone just achieved is that of IonQ's quantum system deployed in Europe. Companies like D-Wave are improving the quantum annealing technology they offer, while Xanadu is moving photonic quantum computing forward. It is because of this intense competition that innovation is so rapid with players competing to win quantum advantage in different areas, whether it be in finance, healthcare, or logistics.

Quantum Computing Market, Company Shares Analysis, 2024

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Recent Developments:

• In December 2024, the Leader in quantum computing and networking IonQ announced it delivered IonQ Forte Enterprise to its first European Innovation Center, Switzerland. Under collaboration with QuantumBasel, the significant milestone is described to be the first datacenter-ready quantum computer from IonQ operating outside of the United States as well as the first for commercial usage in Switzerland.
• In September 2024, D-Wave Quantum Inc., the leader in quantum computing systems, software, and services, and the world's first commercial supplier of quantum computers, and Staque, a leading consulting and development practice in AI, blockchain, and quantum computing, have announced a new strategic partnership to accelerate the commercial adoption of annealing quantum computing across the Middle East.

Report Coverage:

By Offering

• Hardware
• Software
• Services

By Deployment

• On-Premises
• Cloud

By Technology

• Superconducting Qubits
• Trapped Ions
• Quantum Dots
• Topological Qubits
• Photonic Quantum
• Neutral Atom

By Application

• Optimization
• Simulation
• Machine Learning & AI
• Cryptography
• Quantum Communications
• Others

By End-user

• Aerospace & Defense
• Automotive
• BFSI
• Healthcare
• IT & Telecommunications
• Government & Research
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• IBM
• Google
• Microsoft
• Intel
• Honeywell
• D-Wave Systems
• Rigetti Computing
• IonQ
• Xanadu Quantum Technologies
• PsiQuantum
• Quantum Circuits Inc.
• Strangeworks
• Toshiba Corporation
• Qutech
• Atos

Frequently Asked Questions (FAQs)