A new report from Astute Analytica reveals that the global market for quantum technologies will reach $21.38 billion by 2031. (2023)

It has been publishedMay 10, 2023od GoPhotonicsEditorial office

Smart analyticsrecently published a report on“Global Quantum Technologies Market: By Applications. End user? Region – Market Size, Industry Dynamics, Opportunity Analysis and Forecast 2023 – 2031.”. According to the report,GLocal market of quantum technologiesarrival is expected21.38 billion US dollars by 2031, up from US$3.87 billion in 2022, growing by aCAGR 21,47%during the forecast period 2023-2031.

The market for quantum technologies is developing rapidly due to advances in quantum computing, quantum communications and quantum sensing technologies. The market is expected to continue to expand as more companies invest in the development of these technologies.

North America is the largest region with higher investments in quantum technologies due to the presence of major players and investments by governments and private organizations. The US government has invested heavily in quantum research and development, with a budget of USD 1.2 billion over five years, and Canada has invested CAD 1.2 billion over five years in its pan-Canadian quantum strategy.

Government investments in quantum technology have had a significant impact on the market. The Chinese government, for example, has made quantum technology a priority in its five-year plan, investing $10 billion in the National Laboratory for Quantum Information Science. TheEuropean Unionit has also invested heavily in quantum technology through its Quantum Flagship program, with a budget of €1 billion over ten years.

The breakthrough to the quantum technology market was achieved in 2019, whenGooglepublished her quantum supremacy experiment. The company claimed that its quantum computer made a calculation that would take the world's most powerful supercomputer 10,000 years to complete. This breakthrough had a major impact on the market, with increased interest and investment in quantum computing technologies.

The future market landscape is expected to continue to expand as more companies invest in quantum R&D. Quantum computing is expected to have a significant impact on a range of industries, including finance, healthcare and energy. Quantum communication is also expected to play an important role in secure communication networks, especially in the defense and government sectors. Quantum sensing technologies are also expected to find applications in a range of industries, including aerospace, defense and healthcare.

Aerospace and defense contribute more than 28% of revenue to the global quantum technology market

The aerospace and defense industries continue to be major consumers of quantum technologies due to various factors contributing to its growth and development. For example, quantum computing enables faster and more accurate simulations and modeling, which are crucial for testing and evaluating new products and technologies in the field. Consequently, companies can accelerate innovation and improve efficiency in their operations.

In addition, the industry's reliance on secure communication and data transfer highlights the importance of quantum cryptography, which has a higher level of security compared to classical copy. This enhanced protection is particularly attractive to businesses that need to protect sensitive data and communications. In addition, quantum machine learning can optimize logistics and supply chain management in aerospace and defense, leading to cost savings and increased efficiency in the quantum technology market.

Industry's need for high-performance sensors in areas such as navigation, surveillance and communication has led to a growing interest in quantum sensors. These sensors, which are based on quantum mechanics, offer greater sensitivity and accuracy compared to traditional sensors, making them a valuable asset in the aerospace and defense industries. In summary, the continued adoption of quantum technologies in aerospace and defense can be attributed to their advantages in simulation, modeling, cybersecurity, logistics optimization and sensor technology.

North America is the Quantum Technologies market leader with a revenue share of 34%.

North America, mainly led by the United States and Canada, is currently the largest and dominant market in the field of quantum technologies. Market leadership in the region is driven by significant investments in research and development, government funding, technological progress and a number of top projects. This analysis will explore the factors behind North America's dominance in quantum technologies, including recent projects, funding and development.

Recent projects in North America

• IBM Quantum: IBM is a world leader in quantum computing and has launched several quantum computers, including the Falcon 27 qubit and the Hummingbird 65 qubit, both available through the IBM Quantum Network. The network provides access to quantum computing resources for research, education and business purposes.
• Quantum Internet: Researchers fromUniversity of Chicago,Argonne National Laboratory,Fermilab, and other institutions are working together on the development of the quantum internet, the goal of which is to enable secure communication through quantum entanglement in the quantum technology market. The project successfully demonstrated the transmission of quantum information over a network of 52 miles of fiber optics.
• Google Quantum AI: Google's Quantum AI team has made major strides in quantum computing, with the announcement of Quantum Supremacy in 2019 using the 54-qubit Sycamore processor. They continue to develop quantum hardware and software solutions to solve complex computing problems.

State funding

North America benefits from significant government funding in quantum technologies:

• United States'National Quantum Initiative(NQI): Launched in 2018, NQI aims to accelerate the development of quantum science and information technology. The initiative has allocated more than $1.2 billion to fund research, development and educational programs in quantum technologies.
• Canada's Quantum Valley: The Canadian government has invested more than CAD 1 billion in the Quantum Valley ecosystem, which includes the Institute for Quantum Computing at the University of Waterloo, the Perimeter Institute for Theoretical Physics and Quantum Valley Investments, a private venture capital firm focused on quantum technology startups in the quantum technology market.

The latest developments in the North American quantum technology market

• Quantum teleportation: In a groundbreaking experiment, researchers fromCaltech, Fermilab iNASA Jet Propulsion Laboratoryachieved quantum teleportation of a qubit over 27 miles, setting a new distance record and paving the way for future quantum networks.
• Quantum error correction: Researchers fromYale Universityhave developed a new error correction technique for quantum computing, called "tweezer code". This advance could help mitigate the effects of errors in quantum computing, bringing practical applications one step closer.
• Quantum sensor: Honeywell, a leader in quantum technologies, has developed a new quantum sensor technology called H1 that promises to revolutionize areas such as navigation, geophysics and medical imaging.

Competitive landscape: Top 6 players hold over 59% revenue share, IBM continues to lead

The market for quantum technologies is characterized by oligopolistic competition, where a few dominant players control a significant portion of the market. The six largest market players generate over 59.2% of revenue, indicating a highly concentrated market. IBM iMicrosoftare the two leading players in the market, together holding over 34% market share. IBM is the clear market leader with a market share of over 18%, closely followed by Microsoft with a revenue share of over 16%.

One of the main reasons for IBM's market dominance is its early entry into quantum computing. IBM began investing in quantum computing research in the 1980s and has been leading the development of quantum computing technology ever since. The company has also made significant investments in building a strong ecosystem around quantum computing, including developing its own quantum hardware, software and tools, as well as collaborating with other technology companies and academic institutions.

IBM's early investment in quantum computing allowed the company to develop a significant technological advantage over its competitors in the global quantum technology market. IBM's quantum computers are among the most powerful and advanced in the world, and the company has also developed a number of proprietary software and tools that make it easy for developers to build and run applications on its quantum hardware.

Today's market landscape is dominated by large technology companies such as IBM, Google, Microsoft andAli Baba, who invest heavily in quantum research and development. However, startups and smaller companies are also emerging in the market, focusing on specific areas such as quantum communication and sensors.

Top startups and their fundraising in the global quantum technology market

• PsiQuantum: This startup is focused on building a silicon-based photonic quantum computer. By 2021, PsiQuantum has raised over $215 million in funding.
• He rejects Calculus: Rigetti Computing develops quantum integrated circuits and deploys them on cloud-based quantum computers. As of 2021, the company has raised over $190 million in total funding.
• IonQ: IonQ develops trapped ion quantum computing technology. As of 2021, the company raised over $84 million in funding before going public through a SPAC merger, bringing its total value to $2 billion.
• Cage: Xanadu, one of the lucrative startups in the quantum technology market, is working on photonics-based quantum computing and has developed a unique approach using continuous variable quantum computing. As of 2021, the company has raised over $145 million in funding.
• Quantum motion technologies: This startup is developing silicon-based quantum computing technology using CMOS-compatible processes. As of 2021, the company has raised about $32 million in funding.
• Q-CTRL: Q-CTRL focuses on quantum control engineering and provides quantum control software solutions. As of 2021, the company has raised over $22 million in funding.

Some of the leading players on the market are:

• Amazon
• Alibaba Group
• Atos Quantum
• Cambridge Quantum Computing
• D-Wave Systems Inc.
• Fujitsu
• GEM systems
• Google
• Honeywell
• IBM Corporation
• Intel
• KETS Quantum Security
• Microsoft Corporation
• QRATE Quantum Communications
• Quantum blockchains
• Quantum X change
• He rejects Calculus
• One quantum
• Toshiba
• Cage
• Other famous players

Click here to read the research report titled “Global Quantum Technologies Market: By Application. End user? Region - market size, industry dynamics, opportunity analysis and forecast 2023 - 2031".