What’s Driving the Quantum Computing Market?
According to a new report, the global quantum computing market is projected to surge to $9.01 billion by 2027.
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[Image source: Krishna Prasad/MITSMR Middle East]
The future is quantum computing. It represents a paradigm shift in computational power, promising unprecedented capabilities in various industries. Driven by a convergence of factors such as technological advancements, increased funding, and a growing ecosystem of quantum technology startups, the global quantum computing market is projected to surge to $9.01 billion by 2027, according to Technavio.
The growing use of quantum cryptography is driving market growth. With quantum cryptography, critical data can be transmitted with high security. Quantum computers have high processing speeds and efficiently process vast amounts of encrypted data.
Governments of many countries have invested significant amounts in developing highly secure quantum computers.
North America is estimated to account for 38% of the growth of the global market, the report stated. This is driven by a multitude of factors, primarily the presence of a substantial number of US-based customers and firms that have access to quantum computers on immediate release.
According to the report, the cloud segment will also account for a significant market growth share. Firms can access quantum computing systems through a cloud network, which lowers the need for hardware and software. The growth of this segment is attributed to factors such as the low cost of entry. Buyers do not have to invest in hardware.
Moreover, the speed of setup and implementation is high.
Speed also plays a vital role in the attractiveness of cloud-based quantum computing. Rapid deployment and implementation offer an edge that conventional setups find hard to match. The cloud segment’s ascent is bolstered by major software giants who’ve invested substantially in providing PC-on-the-cloud as a service, forging a novel revenue avenue based on subscription models.
Moreover, enterprises are embracing quantum computing-as-a-service via the cloud. This approach empowers them to leverage data analytics for data-driven decision-making, further propelling the market’s growth trajectory.
AI and machine learning are expected to be some of the biggest applications of quantum computers. Quantum computing processor chips will be used in AI applications to efficiently compute data at high speeds. The use of AI will help solve issues related to optimization and sampling. These factors will support the growth of the market.
Quantum computing has transformative potential in areas such as cybersecurity solutions and fraudulent activity detection. In the pharmaceuticals sector, it holds promise for accelerating drug discovery processes. By harnessing its immense computational power, researchers can simulate molecular interactions more accurately, potentially leading to medical breakthroughs.
In banking and finance services, it has the potential to revolutionize portfolio management and financial risk analysis, attracting significant attention from established institutions and emerging quantum technology startups.
However, the market is full of challenges. The talent shortage is a pressing issue, with demand for skilled professionals in quantum mechanics and AI outpacing supply.
Keen to know how emerging technologies will impact your industry? MIT SMR Middle East will be hosting the second edition of NextTech Summit.
