Quantum Computing in the Oil & Gas Industry

Quantum Computing in the Oil & Gas Industry

The quantum computing market is an emerging technology market that is expected to revolutionize computing. Quantum computers use quantum bits or qubits to perform calculations that are significantly faster than classical computers. This technology has the potential to solve complex problems that are currently unsolvable, such as cryptography, drug discovery, and optimization. The growth of this market is attributed to the increasing investments in quantum computing research and development, rising demand for quantum computing in the healthcare and financial sectors, and growing awareness about the benefits of quantum computing.

The Quantum Computing Market is expected to grow at a strong CAGR of 32% during the forecast period owing to the rising need for high-performance computing. The worldwide quantum computing market is expanding as a result of reasons such as rising demand for SaaS business models, rising data center workloads, and complicated processor designs in traditional binary computing systems. In a traditional binary computer system, data is kept in small transistors, each of which can store a only "bit" of data, such as a 0 or 1. 1 and 0 are simultaneously stored and processed via the superposition phenomenon, which makes quantum computing significantly more potent than a classical-quantum computing system.

• Based on component, the market is segmented into hardware, software, and services. The hardware segment of the quantum computing market is expected to dominate the market in the coming years, as it is the most important component of a quantum computer. Moreover, the rapid investment in this segment is also proliferating its growth. For instance, in 2021, PsiQuantum raised USD 450 million in Series D funding to build the world’s first commercially viable quantum computer. The funding round was led by funds and accounts managed by BlackRock, along with participation from insiders including Baillie Gifford and M12 Microsoft’s venture fund, and new investors including Blackbird Ventures and Temasek.
• By deployment, the market is bifurcated into on-premise and cloud. The on-premise segment is expected to grow with a significant CAGR during the forecast period. The on-premise segment in the quantum computing market refers to the deployment of quantum computing resources within the premises of an organization or enterprise. This approach allows companies to have more control over their computing resources and data and potentially reduce latency in data transfer. Companies are actively investing in this segment, which is also boosting the demand. For instance, in 2021, 021, IBM announced that it had partnered with German industrial conglomerate Siemens to advance the use of quantum computing in the field of chemistry.
• On the basis of application, the market is segmented into machine learning, optimization, biomedical simulations, financial services, electronic material discovery, and others. The optimization segment in the quantum computing market has been gaining significant attention and investment in recent years. Quantum computing has the potential to revolutionize optimization problems by allowing for the exploration of an exponential number of solutions simultaneously, which is not possible with classical computers. Several companies have made significant investments in this segment, both in terms of funding and strategic partnerships. In 2020, D-Wave announced a new quantum annealing system, Advantage, with 5,000 qubits, which is the largest and most powerful quantum computer currently available for commercial use.
• On the basis of end user, the market is segmented into healthcare, BFSI, automotive, energy and utilities, chemical, manufacturing, and others. The BFSI held a dominant share of the market in 2021. This surge can be attributed to the banking and financial sector's early adoption of quantum computing technologies and their potential processing power. In the banking industry, quantum computing is crucial for tackling urgent problems like cybersecurity to safeguard customers' financial information. Compared to the current state of digital security, quantum cryptography provides substantially greater levels of protection for client financial information. This component is expected to aid the market's expansion throughout the course of the forecast year.
• For a better understanding of the market adoption of the quantum computing industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. APAC is expected to witness high CAGR growth during the forecast period. Due to the rapidly increasing presence of many consumers with an Asia Pacific base and exceptional enterprises in this industry, quantum computing technology is being actively adopted in this region. Since governments have started to commit to and pay for the development of the technology, China has become the region's top investor in quantum computing. For instance, China created national plans in 2016 to achieve quantum computing technology self-sufficiency. The Chinese government invested more than US$ 13 billion in the construction of a quantum computing research facility, which is slated to open in 2021. The local market will also profit from the investment portfolio in R&D and strategic collaborations. For instance, in December 2019, D-Wave Systems joined up with Japan's NEC to create quantum applications and hybrid HPC to explore the potential of both D-quantum Wave's systems and NEC's high-performance computers. Such alliances could accelerate market expansion during the study period.
• Some of the major players operating in the market include IBM Corporation; D-Wave Systems Inc.; Cambridge Quantum Computing Ltd.; Intel Corporation; Rigetti & Co, Inc.; Google LLC; Quantica Computacao; Zapata Computing; XANADU; and Accenture Plc.