GLOBAL QUANTUM COMPUTING MARKET INSIGHTS AND FORECAST
Quantum computing is a new way of processing information. Unlike classical computing which uses binary to process information, it uses quantum bits called qubits which reduces the timeline of quantum computing. Qubits are an induced property of a subatomic particle that can represent a one, zero, both and any value in between at the same time. This ability for qubits to have multiple states simultaneously is called superposition. Qubits are created by changing the state of certain atoms and other quantum-scale particles such as electrons, the nucleus, or even the photons.
Currently, quantum computers being manufactured are called Noisy Intermediate-Scale Quantum (NISQ) devices, which are error prone.
What are the drivers impelling the quantum computing market?
1. Healthcare Research: Classical computers are inadequate to simulate and relate large size and complexity of molecules. In comparison, quantum computers can model and simulate interactions between drugs and all 20,000+ proteins encoded in the human genome, leading to greater advancements in pharmacology
2. Finance: The future technology is poised to be used for algorithmic trading – the use of complex algorithms to automatically trigger share dealings based on a wide variety of market variables
3. Meteorology: Machine learning using application of quantum computing will result in improved pattern recognition, making it easier to predict extreme weather events
4. Military & Aerospace: Air Force works alongside IBM to investigate Air Force problems on actual hardware that may yield a ‘quantum advantage’ over conventional computing
What is the valuation of the market by 2023?
The valuation of the global quantum computing market by 2023 will be $235.75 million. The global market is analyzed to grow from $90 million in 2018 to $355.21 million in 2025 at a CAGR of 22.1%. The high CAGR percentage suggests a good option for investment in quantum computing stocks. Global competitiveness to achieve quantum supremacy is driving the investments for the development of the industry. With the start of 2020, private investors have funded more than 50 quantum technology start-ups, the majority of these companies are spin-outs from the University department.
Among the globe US, Canada, and China are the leading countries in terms of funds being raised via private investments.
Who are the participants in the quantum computing market?
Given the growth of the market, quantum computing companies are forming strategic partnerships among industry peers. Among the leaders, Psi Quantum is one of the top companies. In August 2019, Rigetti Computing, a California-based start-up, acquired QxBranch, a Washington D.C.-based company, to expand their full-stack capabilities.