The quantum computing market focuses on the development and commercialization of computing systems that use quantum bits (qubits) to perform computations exponentially faster than classical computers for specific tasks. Quantum computing is poised to transform sectors such as pharmaceuticals, finance, cybersecurity, logistics, artificial intelligence (AI), materials science, and climate modelling.
The market is driven by the growing investment in quantum research, the partnerships between technology companies and research organizations, and the increasing high-performance computing (HPC) demand for complex problem-solving.
In 2025, the quantum computing market is projected to reach approximately USD 1,195.7 million, with expectations to grow to around USD 9,554.9 million by 2035, reflecting a Compound Annual Growth Rate (CAGR) of 23.1% during the forecast period.
The CAGR is fueled by developments in superconducting qubits, trapped ions, and photonics, cloud-based quantum platforms, the emergence of quantum-as-a-service (QaaS), and government-sponsored quantum initiatives in key economies.
Key Market Metrics
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 1,195.7 Million |
| Projected Market Size in 2035 | USD 9,554.9 Million |
| CAGR (2025-2035) | 23.1% |
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North America has a significant presence in the quantum computing market, driven by the USA government on quantum research & development, growing private investment, and many of the industry giants like IBM, Google, Microsoft, and Amazon. The region is buoyed by NSF and DARPA-funded research, and robust VC funding. The main applications are quantum cryptography and pharmaceutical simulations and optimizing portfolios.
Germany, the Netherlands, France, and the UK have all made major investments in national quantum initiatives, creating a strong and collaborative quantum ecosystem in Europe. The European Quantum Flagship initiative is promoting cross-border R&D. Quantum encryption, transportation logistics and drug discovery are just a few of the areas of interest, with universities breeding hardware and algorithm development.
The Asia-Pacific region is forecasted to experience the highest growth rate led by China, Japan, South Korea and Australia, all committing significant investment to national quantum computing initiatives. China is especially active in quantum communications and supremacy tests Japan and South Korea are focused on quantum hardware miniaturization. Increasing collaboration between government laboratories and semiconductor companies is boosting commercialization in the region.
Hardware Limitations and Talent Shortage
The technological immaturity of the major enabling technologies underlying quantum computing-especially the scalability of quantum bits (qubits), error correction, and quantum coherence times-the Quantum Computing Industry faces serious challenges.
Current systems require extremely low temperatures, advanced isolation environments and very specialized materials-factors that limit scalability and affordability. There is also an acute shortage of experienced quantum physicists, engineers, and software developers, which curtails the speed of innovation and commercialisation.
Growth in Quantum-as-a-Service (QaaS), Cryptography, and Material Discovery
Despite early-stage challenges, quantum computing has a potential technology upending, delivering ground-breaking impact on optimization problems, cryptography, drug discovery, material science, financial modelling, machine learning, and other fields.
The development is driven by Quantum-as-a-Service platforms (via cloud), hybrid quantum-classical algorithms, and funding from the government and big tech additionally, the threats to classical cryptography are constantly growing, making quantum-safe encryption more crucial for future-proofing.
From 2020 to 2024 we see explosive growth of R&D in this market, with a huge amount of funding from governments (e.g. USA National Quantum Initiative, EU Quantum Flagship) and tech giants such as IBM, Google, Microsoft, Amazon, and Intel. However, use cases remained limited by hardware constraints and unclear ROI for most sectors.
By 2025 to 2035, the industry will transition to commercial deployment of mid-size quantum processors, error-resilient architectures, and domain-specific quantum software. Integrating quantum APIs in classical IT infrastructure and developing of vertical-specific quantum solutions (finance, pharma, logistics, and cybersecurity) will drive adoption and market maturation.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Government-funded R&D and academic-industry collaborations |
| Technology Innovations | 5-100 qubit devices, NISQ (Noisy Intermediate-Scale Quantum) systems |
| Market Adoption | Early-stage pilots in finance, pharma, and optimization |
| Sustainability Trends | High energy use due to cryogenic cooling and superconductors |
| Market Competition | Led by IBM, Google, IonQ , Rigetti , D-Wave, Honeywell, Microsoft, Xanadu |
| Consumer Trends | Curiosity-driven experimentation via IBM Quantum, AWS Braket |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Stricter standards for quantum encryption, IP protection, and export controls |
| Technology Innovations | Rise of fault-tolerant, 1000+ qubit systems, topological and photonic qubits |
| Market Adoption | Expansion into telecom, AI, aerospace, national security, and logistics |
| Sustainability Trends | Innovations in room-temperature quantum computing and energy-efficient hardware |
| Market Competition | Emergence of quantum software startups , cloud-based QaaS providers, and hybrid quantum-classical solutions |
| Consumer Trends | Demand for quantum-enhanced SaaS, domain-specific quantum platforms, and post-quantum encryption services |
The USA quantum computing market is rapidly expanding, driven by billions in investment from the technology companies, government agencies and venture capitalists. The United States is at the cutting edge in quantum hardware development, quantum cloud platforms and quantum algorithm research, especially in fields like defense, pharmaceuticals and financial modelling.
Federal initiatives such as the National Quantum Initiative Act, along with partnerships between academia, the private sector and national labs, are speeding up commercialization. Future demand is driven by quantum solutions for cybersecurity, logistics optimization and AI.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 23.6% |
The UK quantum computing market is surging as government funding is strong under the UK National Quantum Technologies Programme and there are also a number of startups active. Important applications include cryptography, supply chain optimization, and healthcare modelling.
Collaboration between academia (notably Oxford and Cambridge), industry and the public sector also drives innovation in quantum-as-a-service platforms. The UK is also becoming a centre for quantum software and middleware development.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 22.7% |
The European Union (EU) quantum computing market, buoyed by the €1 billion EU Quantum Flagship, is witnessing strong growth. These include quantum simulators, quantum communication, quantum sensors, and scalable quantum processors.
Germany, France and the Netherlands are leading regional contributors with strong industrial and academic ecosystems. European technologies, if interested, can range from securing quantum infrastructure to establish public-private quantum innovation networks.
| Country | CAGR (2025 to 2035) |
|---|---|
| EU | 22.5% |
Japan is experiencing steady growth in its quantum computing market, partially as a result of such government support, encouraged by the nation’s Quantum Technology Innovation Strategy, and the inclusion of tech industry leaders such as Toshiba, Fujitsu, and NTT.
Important use cases include drug discovery, financial modelling, and precision manufacturing. Japan's quantum strength comes in the form of quantum hardware and superconducting technologies as well as increasing interest in the production of quantum systems interfacing with AI and classical HPC infrastructure.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 23.1% |
South Korea’s quantum computing market is accelerating with influential support from the national government’s “Quantum Science and Technology Strategy,” investment by leading conglomerates such as Samsung and LG.
China also invests heavily in its quantum hardware manufacturing, quantum cryptography, and software framework to boot a more domestic quantum ecosystem within the country. Growth is being fueled by collaborative R&D efforts with international institutions and increasing demand for post-quantum cybersecurity.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 23.0% |
While quantum hardware is the largest part of the overall ecosystem this segment currently possesses the largest market share. While world leaders are in a mad rush to build scalable and fault-tolerant quantum computers, the battlefield of technology has become hardware development. Companies such as IBM, Google, Rigetti, IonQ and D-Wave are investing heavily in multiple hardware platforms including superconducting qubits, trapped ions, topological qubits and photonic systems.
One of the biggest trends in this market is to find the quantum volume holistically, with hundreds of companies looking to increase the number of stable and fault-tolerant qubits. Once again, successful innovation in overcoming challenges, such decoherence, gate fidelity, or even cryogenic infrastructure limitations, still drives investment in materials science, nanofabrication, and cryogenics.
In addition, government spending and defense projects in countries including the USA, China and the EU are accelerating hardware innovation. For instance, the USA National Quantum Initiative and Europe’s quantum flagship are pouring billions into hardware R&D. They are both driving quantum processor architecture as well as nurturing a startups culture around quantum accelerators and hybrid designs.
Despite promising advancements, hardware scalability and error correction remain significant challenges. Commercial-strength fault-tolerant quantum computers remain years in the future, but research in qubit design and error mitigation continues to bring us closer to that day.
As hardware remains in focus, quantum software is emerging as the main engine for unlocking the computational power of quantum machines. As quantum computing evolves, it will be software that will determine how these devices are used and how accessible they are in the real world, as well as what type of impact they have overall. This sector includes quantum programming languages, compilers, error-correction software, middleware, and quantum simulators.
Artificial intelligence techniques are also used to aid in the design of circuits themselves and optimization of their parameters, and players such as Zapata, Cambridge Quantum, Xanadu and Classiq are building quantum-native platforms for this quantum design, optimization, simulation, etc.
Interest in hybrid models of computing- in which traditional computing might be brought together with quantum computing-is also accelerating demand for orchestration software and integration layers. These platforms enable classical systems to run quantum workloads transparently, essentially picking up the transition from quantum benefits in the near term as opposed to the longer-terms benefits of quantum systems.
Quantum software companies are also prioritizing vertical applications for specific industries and end users-especially drug discovery, material science, and logistics optimization, financial modelling, and cryptography. As quantum algorithms are more domain specific, this will become an enterprise differentiator in this sector.
The quantum software market, however, is currently limited by expertise and a common platform. But, here as well is an opportunity- the pioneers of the software space can shape the next generation computing architecture.
Cloud quantum computing is the default entry point for most enterprises and researchers as its scalable, low barrier to entry, and highly flexible. Major cloud providers such as IBM (Quantum Experience), Amazon (Braket), Microsoft (Azure Quantum), and Google (Quantum AI) are providing access to quantum processors on a pay-per-use model as platform-as-a-service products.
Cloud platforms enable users to run experiments, create environments and quantum algorithm simulation without the need to buy costly hardware. This open access to quantum computing has led to exponential growth in quantum developers, students, and startups within the quantum ecosystem.
With a cloud-based deployment, hybrid workflows are also made easier since users can run their algorithms on simulators before moving to actual quantum processors as needed. This model is instrumental in accelerating quantum solutions prototyping, collaboration, and iteration at pace.
Cloud quantum computing, however, is not without latency, data privacy, and usage constraints that are particularly critical for workloads in sensitive sectors. Nonetheless, its pay-as-you-go model, global availability, and experimentation ease will be the dominant deployment model for years to come.
On-premises deployment, albeit limited use, is becoming increasingly relevant in government research facilities, defense organizations, and highly regulated industries, which is an area in which data sovereignty, ultra-low latency, and custom configurations are critical.
Organizations like Los Alamos National Laboratory, NASA, and the national quantum centers are building custom quantum installations to support classified research, material simulation, and algorithm benchmarking without the use of cloud infrastructure.
The high cost of acquiring and managing quantum hardware at scale is countered by the ability to customize, secure, and use all layers of the tech stack for specific and impactful applications. When applied properly, with miniaturized, module quantum processors, at some point qprocessors can be mixed with the other on-premises deployments in a defined enterprise context, economically.
On-premises implementations are hampered by the drawbacks of long installation times, increased demands for control of the environment, and lack of on-site expertise, but continued innovation around room-temperature quantum systems could alleviate those constraints in the future.
Quantum computers harness the principles of superposition and entanglement to perform complex calculations that are far beyond the ability of classical computers. The COVID-19 pandemic and the geopolitical landscape have acted as stimulants,pushing forward with a government investment-fed race, combined with strategic partnerships between technology behemoths and academics, quantum as a service in the form of cloud-accessed quantum, and rapid advances in qubit fidelity and quantum error correction.
Market Share Analysis by Key Players
| Company/Organization Name | Estimated Market Share (%) |
|---|---|
| IBM Corporation | 18-22% |
| Google LLC (Alphabet Inc.) | 14-18% |
| Rigetti Computing | 12-16% |
| IonQ , Inc. | 10-14% |
| D-Wave Quantum Inc. | 8-12% |
| Others | 26-32% |
| Company/Organization Name | Key Offerings/Activities |
|---|---|
| IBM Corporation | Offers IBM Quantum systems and Qiskit SDK, with cloud-based access and enterprise-grade quantum hardware. |
| Google LLC (Alphabet Inc.) | Operates Sycamore quantum processor, focusing on quantum supremacy and scaling fault-tolerant qubits. |
| Rigetti Computing | Provides hybrid quantum-classical computing via cloud, with Aspen series superconducting processors. |
| IonQ , Inc. | Develops trapped-ion quantum computers, emphasizing scalability and higher gate fidelities. |
| D-Wave Quantum Inc. | Specializes in quantum annealing systems for optimization problems and commercial applications. |
Key Market Insights
IBM Corporation (18-22%)
IBM leads the quantum computing market with its Qiskit ecosystem, roadmap toward 1000+ qubit systems, and global quantum research partnerships, enabling enterprises to experiment via IBM Quantum Cloud.
Google LLC (14-18%)
Google's Sycamore processor gained attention after achieving quantum supremacy, with continued investment in fault-tolerant quantum hardware and Tensor Flow Quantum development.
Rigetti Computing (12-16%)
Rigetti focuses on mid-scale, cloud-accessible superconducting quantum processors, offering integration with AWS Braket and hybrid quantum APIs.
IonQ, Inc. (10-14%)
IonQ's trapped-ion systems offer exceptional qubit coherence, positioning it as a leader in scalable and commercial-ready quantum computing.
D-Wave Quantum Inc. (8-12%)
D-Wave is commercializing quantum annealing, with customers in manufacturing, logistics, and financial services using its Leap™ quantum cloud platform.
Other Key Players (26-32% Combined)
Several emerging startups, university spin-offs, and regional leaders are innovating across the quantum hardware, software, and services stack, including:
The overall market size for quantum computing market was USD 1,195.7 million in 2025.
The quantum computing market is expected to reach USD 9,554.9 million in 2035.
Rising investments in advanced computing technologies, growing applications in cryptography, drug discovery, and optimization, and increasing collaboration between tech firms and research institutions will drive market growth.
The top 5 countries which drives the development of quantum computing market are USA, European Union, Japan, South Korea and UK.
Software segment expected to grow to command significant share over the assessment period.
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Quantum Computing Market
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