Quantum Computing Market

Key data points: Market size in 2027 = $2.4 billion and 2035 = $9.8 billion, growth forecast = 19.3% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in quantum computing market to 2035 by deployment (on-premises and cloud), technology (trapped ions, quantum annealing, superconducting qubits, and others), application (optimization, simulation, machine learning, and others), end use (space & defense, transportation & logistics, healthcare & pharmaceuticals, chemicals, banking & finance, energy & power, academia, government, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Quantum Computing Market The future of the global quantum computing market looks promising with opportunities in the space & defense, transportation & logistic, healthcare & pharmaceutical, chemical, banking & finance, energy & power, academia, and government markets. The global quantum computing market is expected to reach an estimated $9.8 billion by 2035 from $2.4 billion in 2027 with a CAGR of 19.3% from 2027 to 2035. The major drivers for this market are the rising demand for advanced computing in research fields, the growing adoption in financial modeling & risk analysis, and the increasing demand for high speed data processing. • Lucintel forecasts that, within the deployment category, cloud is expected to witness higher growth over the forecast period due to the easy access to scalable quantum computing resources. • Within the end use category, banking & finance is expected to witness the highest growth over the forecast period due to the rising demand for advanced financial risk modeling. • In terms of regions, APAC will remain the largest region over the forecast period due to the increasing investment in quantum research and infrastructure. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Quantum Computing Market The quantum computing market is expected to transition from the research lab to the marketplace during the 2025-2027 timeframe. More effective error correction and larger government investments have resulted in more companies pursuing quantum computing. Meanwhile, clients are only able to justify the significant cost of quantum computers if there are clear business advantages over traditional computers. According to Lucintel, in addition to traditional market research to help establish advantages, the first potential markets for quantum computers are the financial market, the pharmaceutical market, the logistics market and material science. • Error Correction: There are two main rivals, Google and IBM, who both have stated that they will have Quantum Computers that are large enough and effective enough at error correction to be useful in the marketplace by 2025. Google has additionally claimed that they achieved error correction in 2024 with their Quantum Computer Willow. The market has shifted to logical qubits to determine supremacy. • The Cloud: The main competitors in the quantum computing market have been aggressively pursuing cloud computing with IBM, Microsoft and Amazon all releasing quantum computers over the internet for a subscription. The European Union has additionally committed large sums to the research and development of quantum computers. Due to the costs and specialized nature of quantum computers, subscriptions will remain the main market for quantum computing. • Hybrid Computing: As demonstrated in IBM’s and NVIDIA’s 2025 software roadmaps, it is expected that companies will combine quantum processors with classical computers, and use quantum processors for parts of simulations or other tasks that require less classification. In the next few years, it is expected that the majority of quantum computing applications will use a combination of classical computers and quantum computers, and this is largely because of the economic constraints of data centers. • Application-led Investment: Recently, a greater focus has been placed on the development of applications in molecular simulation and other related fields by banks and chemical companies, rather than the purchase of quantum computers. McKinsey estimates that quantum technologies may impact the global economy to the tune of $2 trillion by 2035. It is expected that the first commercially viable applications of quantum computing will be developed primarily for use in simulations. • Supply-chain Localization: The US (National Quantum Initiative of 2018, $1.2 billion), China, Japan and the EU are all investing in local quantum technologies. In the near term, diversification will likely be focused on the supply of components and services, as well as export controls and market access. It is expected that the first commercially viable applications of quantum computing will primarily be simulations. The focus should be on the development of these applications. Providers of quantum computing services should have a clear roadmap and estimate costs. The first movers in this industry will be the largest beneficiaries, primarily because of their position to attract funding, employees and partners. Recent Developments in the Quantum Computing Market A convergence of activities in the quantum computing market occurred during the 2020-2025-time frame. These include the release of hardware roadmaps, the launch of quantum computing services in the cloud and the funding of quantum computing programs by various governments. Quantum computing systems are evolving from laboratory systems to larger systems capable of correcting a subset of errors. In the near term, buyers are expected to prefer systems with fault-tolerant architectures as opposed to larger systems with a greater number of qubits. • Technology Launch: The first quarter of 2025 was busy with a number of important announcements. Microsoft disclosed that it had built a quantum computer with topological qubits and announced the release of a new quantum computing service. Announcements by Microsoft and other vendors to build fault-tolerant systems are expected to foster competition in the industry. • Strategic Collaboration: In March 2025, DARPA announced that it had awarded contracts to 11 companies to develop quantum computers to perform large scale calculations. Other governments are expected to award similar contracts in the next few years. • Investment Announcement: A few months later (September 2025) Quantinuum raised $600M. The combination of new capital with the acquisition of other companies focused on the development of quantum computing hardware is expected to enable Quantinuum to become one of the first vendors to sell large scale fault-tolerant quantum computers. • Tech Launch: In February 2025, Amazon Web Services (AWS) released information about Ocelot, a prototype quantum computer using cat-qubit technology. AWS stated that error correction requires less overhead with Ocelot, thus reducing the complexity of quantum computing systems and making them more economical. • Funding: The U.S. Department of Energy (DOE) awarded over $600 million in June 2025, to five national laboratories and university teams, to fund research in quantum information science. Long-term public funding of science and research projects, like those funded by the DOE, sustain technological supply and help develop the workforce and components needed to commercialize quantum computing. It is expected that companies will focus on improving error correction, software, and other economics in quantum computing, rather than increasing qubit counts. Quantum computing has the potential to revolutionize areas like drug discovery and other scientific simulations. It is likely that within the next five to seven years, the first quantum computing systems will be deployed and control systems will be the first quantum computing hardware to achieve long-term, large-scale production. Strategic Growth Opportunities in the Quantum Computing Market The market for quantum computing is evolving. From 2024 to 2026, a number of trends will enhance the market and expand the customer base. These trends include improvements in error correction, more funding and more customer demand for quantum computers for national security reasons, as well as more companies offering cloud quantum computing services. Lucintel expects the market to expand to software and services, in addition to hardware. The market will be based on the availability of workloads that quantum computers can solve, rather than the number of qubits. • Cloud Quantum Services: Cloud quantum computing services will allow companies to postpone their investments in quantum computers and use IBM’s or some other cloud quantum computing service. According to IBM, over 250 companies were members of its quantum computing network as of January 2025. • Error Correction: Companies that provide cloud-based quantum computers will also need to invest in more advanced control systems, as well as cryogenic systems, to develop quantum computers that can compute more reliably. • Drug Discovery: Pharmaceutical companies will integrate quantum computing workflows with molecular simulation to augment their high-performance computing. The U.S. National Academies estimated in February 2025, that the average cost to bring a single drug to market would exceed two billion dollars. Quantum computing services will facilitate this process and aid in the discovery of additional drugs. The development of these computing services could enable premium access, consulting, and longer-term business relationships. • Financial Services: Banks and insurance companies will purchase quantum computing services to analyze fraud, price derivatives and/or maximize portfolio holdings. The improved efficiencies could provide a competitive edge and justify the costs of a pilot program. In February 2025, JPMorgan Chase indicated that its quantum computing research effort had grown to include over two hundred employees. • Defense and Other Government Agencies: A primary market in the short term for quantum computers will be to secure government communications and to build advanced sensing technologies. In Fiscal Year 2025, the U.S. Department of Energy increased its quantum information science budget to approximately 625 million dollars. Increased federal funding to develop quantum technologies, along with other public-private partnerships, will more quickly bring advanced computing systems to the marketplace. While the amount of hardware available will increase, so will the types of workloads for which quantum computing is well suited. Early users of quantum computing services will be government, finance, and the energy and chemicals industries. Quantum Computing Market Drivers and Challenges Factors such as technology, finance, policy, and market trends shape the quantum computing market. The main constraints, including high costs and long time-to-market, may be addressed through continued research and development. Funding is typically granted based on competitiveness and may be influenced by policy and market trends. Long-term, Lucintel anticipates quantum computing to benefit a range of sectors including finance, health, transport and logistics, energy, defense, and science. In order to achieve broad market growth and impact, Quantum Computing providers must improve reliability, simplify architectural complexity, and standardize the technology. The factors responsible for driving this market include: • Customer Demand: Classical computers are often insufficient to handle certain types of computations, and many organizations are turning to quantum computers. Financial services companies are a good example. They have actively researched the use cases of quantum computing for optimizing portfolio holdings and assessing associated risks. This market interest means that vendors will shift their focus to creating quantum computing solutions for various industry verticals as opposed to solely producing quantum computing hardware. It is anticipated that customer interest will stimulate the quantum computing market during the next 3 to 5 years. Similar to other computing technologies, organizations will adopt quantum computing solutions if there is a compelling business case supporting the investment. • Technology Improvements: There are multiple methods to approach quantum computing, and each year more advanced quantum computing systems are produced. In 2025, several quantum computing vendors announced that they had produced quantum computing systems with more than 1000 physical qubits. Other advances in quantum computing hardware and software have improved the usefulness of quantum computers. In the next 3 to 5 years, the market will shift from rewarding vendors for simply releasing a quantum computing product to rewarding vendors for releasing a quantum computing product that is able to perform relevant computations in an industry vertical. • Government Support: Public funds generally help support efforts to reduce financial risk during lengthy development cycles for quantum technologies. Some nations established national quantum programs, and in 2025, continued to provide funding for quantum research and development, workforce, infrastructure, and quantum secure communications. In addition, some governments purchased quantum technologies and awarded grants, creating opportunities for academic and small companies to develop quantum technologies. Increased investment will likely happen during the forecast period in defense and other markets. Restrictive export controls may impact the quantum industry and fragment global supply chains. • Product Innovation: In 2025, most quantum computing vendors sold integrated products, including processors, control systems, software, and middleware. Additionally, some vendors offered cloud services for quantum computing. Cloud services provide customers the opportunity to evaluate different quantum computing architectures. In the next 3 to 5 years, quantum computing vendors will focus on improving products and services and help their customers better evaluate and design more complex quantum computing solutions. Products that improve deployment and simplify use will gain more customers. • Quantum Computing Infrastructure: Key aspects of Quantum Computing infrastructure include but are not limited to: cryogenic systems, lasers, fabrication facilities, data centers, and power Systems. In addition, it relies on sophisticated software and plays a role in the development and commercialization of new technologies. Significant public and private investments made in 2025 promoted the establishment of quantum research centers and test beds. These investments benefitted the creation of infrastructure, systems and other resources that enabled the further development and commercialization of Quantum Computing technologies. In the next three to five years, this infrastructure will benefit the further development of Quantum Computing technologies and shorten the time required to demonstrate various computing applications. Revenue potential of these facilities will determine the pace of the market. The challenges facing this market include: • Complexity of Quantum Science and Technology: 2025 quantum computers required thousands of physical qubits to implement a small number of logical qubits. Many of the quantum algorithms that have commercial potential are too large to be implemented on existing quantum computers. Error correction and other design and engineering trade-offs will challenge the industry during the next 3-5 years, and could result in significant delays in the time frame over which useful quantum computing services can be offered to the public. • High Costs and Limited Resources: Quantum systems and components are extremely expensive and require extremely low temperatures, which can only be achieved using expensive and complex equipment, and the fabrication of specialized components. The sheer variety of disciplines that will be needed to develop commercially viable quantum systems creates significant challenges in hiring and coordinating researchers. Small companies are unable to fund their own quantum research and rely on cloud-based computing and alliances. Limited skilled personnel and suppliers will restrict the market during the next 3-5 years. • Legal and National Security Issues: The development of quantum technologies creates numerous policy and national security challenges including protection of intellectual property and data, and controls on the transfer of technologies. In 2025, greater numbers of companies and governments-initiated processes to transition to technologies protected by post-quantum cryptography; however, large-scale quantum computers that are capable of breaking many of the world’s most-prevalent cryptographic systems were still several years from being commercially available. In the next 3-5 years, there will be a higher emphasis on regulations in the global marketplace. New standards and more trade embargoes will increase the cost of doing business globally. Businesses will need to trust their partners, and partners will need to trust industry regulators. New, or unclear regulations will likely slow new investments and may even fracture the global markets. List of Quantum Computing Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies quantum computing market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the quantum computing market companies profiled in this report include- • IBM • D-Wave Quantum • Microsoft • Amazon Web Services • Rigetti Computing • Fujitsu • Hitachi Quantum Computing Market by Segment The study includes a forecast for the global quantum computing market by deployment, technology, application, end use, and region. Quantum Computing Market by Deployment [Value ($M) from 2019 to 2035]: • On-Premises • Cloud Quantum Computing Market by Technology [Value ($M) from 2019 to 2035]: • Trapped Ions • Quantum Annealing • Superconducting Qubits • Others Quantum Computing Market by Application [Value ($M) from 2019 to 2035]: • Optimization • Simulation • Machine Learning • Others Quantum Computing Market by End Use [Value ($M) from 2019 to 2035]: • Space & Defense • Transportation & Logistics • Healthcare & Pharmaceuticals • Chemicals • Banking & Finance • Energy & Power • Academia • Government • Others Quantum Computing Market by Region [Value ($M) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Quantum Computing Market Public and private investments are accelerating the development of quantum computers and moving the technology beyond the laboratory. Through 2027, various governments will support development of quantum computers in their region and quantum computing companies will enhance classical computing through the integration of quantum processors. In the next 2 to 3 years, key industry competitors will be shaped by these new alliances and architecture will not be fully established. • United States: The U.S. government and Microsoft continued their investments in the commercial and security related quantum computing fields (Microsoft announced its 1 million qubit goal processor, Majorana 1, in February 2025). The existence of this processor, along with others in the field, will encourage greater industry competition and alter the focus of research to be primarily on the error correction of qubits, fabrication, and access of quantum computing resources via the cloud. • China: China's state-owned Quantum computing company, Origin Quantum, has continued advances in hardware and software (Chinese Academy of Sciences announced advances in superconducting quantum computing, Zuchongzhi-3, with 105 qubits, in March 2025). Additional state initiatives will improve China’s self-reliance in quantum technologies. • Germany: IBM and the Fraunhofer-Gesellschaft, in partnership, run Europe’s first IBM Quantum System One in Ehningen. Meanwhile, IBM announced plans to build additional quantum data centers and systems across Europe (June 2025). With Germany’s existing research-based industries, they could potentially focus on building quantum computers and/or operating quantum systems, anchoring that work on the continent. • India: The government’s ₹6,003.65-crore National Quantum Mission is now underway. The Directorate of Science and Technology has launched four research centers and a program to create domestic quantum computers by 2025. The collaborative initiatives will help create a local market for quantum computers, thereby increasing demand for quantum-related products. • Japan: A collaboration between Fujitsu and RIKEN produced a superconducting quantum computer prototype with 256 qubits (April 2025). Japan can potentially leadership roles in quantum computing by focusing on hardware. With its national labs partnering with industry, Japan can potentially dominate quantum computing hardware and related advanced manufacturing. Features of the Global Quantum Computing Market Market Size Estimates: quantum computing market size estimation in terms of value ($M). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: quantum computing market size by various segments, such as by deployment, technology, application, end use, and region in terms of value ($M). Regional Analysis: quantum computing market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different deployment, technology, application, end use, and regions for the quantum computing market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the quantum computing market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the quantum computing market by deployment (on-premises and cloud), technology (trapped ions, quantum annealing, superconducting qubits, and others), application (optimization, simulation, machine learning, and others), end use (space & defense, transportation & logistics, healthcare & pharmaceuticals, chemicals, banking & finance, energy & power, academia, government, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?