Quantum Computing Market Size By Component (Software, Service), By Deployment Model (Cloud, On-premise), By Application (Optimization, Simulation, Machine Learning, Sampling), By End-user (BFSI, Aerospace & Defense, Automotive, Healthcare, Government, Ene

Quantum Computing Market Size By Component (Software, Service), By Deployment Model (Cloud, On-premise), By Application (Optimization, Simulation, Machine Learning, Sampling), By End-user (BFSI, Aerospace & Defense, Automotive, Healthcare, Government, Energy, Chemical) & Global Forecast, 2023-2032

The quantum computing market is set to expand at an appreciable CAGR from 2023 to 2032, led by the rapid adoption of quantum computing service (QCaaS) across defense, finance, healthcare, chemical, and pharmaceutical sectors.

Quantum computers are gaining significant traction, attributed to their ability to perform complex calculations within seconds. The technology is finding crucial applications in the field of agriculture, helping farmers boost agricultural productivity and yield. Additionally, modern quantum computing platforms are being used to produce chemicals needed to manufacture energy-efficient fertilizers. It can help decode complex molecular processes, enabling more efficient and carbon-neutral farming applications, including the production of fertilizers.

Over the past decade, the agriculture sector has turned to sustainable and zero-emission feed additives and agricultural solutions to curb the increasing impact of crop as well as animal farming on the planet. The advent of low-methane additives is accelerating R&D and innovation in the anti-methane vaccines space. Quantum computing is seen as a promising solution in vaccine development by identifying suitable antibodies via molecule stimulation, saving hefty costs from trials. As per the U.S. EPA, quantum computing could potentially help achieve carbon reduction of up to an additional 1 gigaton/year by 2035.

The quantum computing market is categorized based on component, deployment, application, end-user, and region.

Based on component, the market is bifurcated into service and software. Among these, the service segment was valued at over 350 million in 2022, owing to the rising demand for consulting services. Moreover, massive investments in the development of advanced computing technologies and an increasing number of SMEs across developed and developing economies will further stimulate industry revenue streams.

In terms of end-user, the industry is classified into healthcare and BFSI. The quantum computing market size from the healthcare segment will grow at over 35% CAGR from 2023 to 2032. Quantum computing is gaining popularity across healthcare owing to its effectiveness in developing life-saving drugs, early disease detection, and faster DNA sequencing. Ongoing digitization & automation across the healthcare sector will propel the adoption of quantum computing in R&D, thus, accelerating business growth.

By application, the demand for quantum computing in machine learning will increase significantly through 2032 due to the extensive use of the product in the hardware setup of ML systems. Quantum-enhanced machine learning helps accelerate tasks performed by conventional ML programs. It is used to create new ML algorithms, expedite processes and develop quantum neural networks with enhanced processing speed.

Regionally, the Asia Pacific quantum computing market was worth more than USD 300 million in 2022. The demand for quantum computing is set to surge across APAC countries due to rapid industrialization and the adoption of cutting-edge automated solutions to boost manufacturing output. Furthermore, the demand for computing solutions for ML, stimulation, and optimization will stimulate market growth.