Cloud-based Quantum Computing Market Size, Share & Trends Analysis Report By Solution (Software, Services), By Technology, By Application, By Verticals, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global cloud-based quantum computing market size was estimated at USD 610.4 million in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 20.5% from 2024 to 2030. As technology advances, cloud-based quantum computing is likely to become widely available in the near future, making it easier and more cost-effective for enterprises to utilize this powerful technology. Cloud-based quantum computing refers to the delivery of quantum computing resources and services over the Internet using existing cloud computing technology.

Users can access and use diverse hardware and applications without purchasing or leasing any infrastructure. The environment is comparable to ideas such as online banking and social media content generation. The cloud quantum computing focus combines principles of mathematics, physics, and computer science to solve problems using mechanics. The time required to solve complex problems is shorter than that of traditional computers. Machine learning, optimization, and simulation of physical systems are some of the applications where quantum computers improve speed. Users can connect directly to quantum processors, emulators, and simulators via quantum cloud computing.

Different vendors offer programming languages and documentation for creating quantum computing applications. One of the applications of cloud-based quantum computing is in research and education. Quantum algorithms are developed on conventional computers before being evaluated on real quantum computers via the cloud. Quantum computing is expensive and technically difficult to implement; hence, its use is limited. Developing, deploying, and maintaining the systems is expensive and time-consuming. Organizations that already use quantum computing technologies use cloud-based quantum computing through their development platforms.

Identification of trends in the global market of cloud-based quantum computing is critical in this digital era when company activities are progressively shifting to cloud-based solutions. This market is predicted to grow rapidly in the next years as a result of factors such as cloud technology adoption with increased digitalization and the numerous applications of quantum computing software and services across multiple sectors.

Market Concentration & Characteristics

The quantum computing ecosystem is expanding, with an increasing number of startups entering the market. These startups are focusing on various aspects of quantum technology, from hardware and software to applications. Significant innovations by key players are augmenting the cloud-based quantum computing market growth. For instance, Microsoft Azure quantum cloud computing enables researchers to investigate and plan for scaled quantum computing. The company also provides cutting-edge cloud tools and learning resources to assist in the development and refinement of quantum algorithms, as well as access to a comprehensive array of today's quantum hardware.

Significant M&A activities by key players in the market are fueling the market growth. For instance, In March 2023, the Cleveland Clinic, collaborating with IBM, introduced the inaugural installation of an IBM-managed quantum computer on-site in the U.S. within the private sector, primarily for healthcare research.

Furthermore, the quantum computing market was witnessing a surge in investments from both governments and private sectors. Governments were allocating substantial funds to quantum research and development to maintain a competitive edge in emerging technologies.

Solution Insights

The software segment dominated the market with a revenue share of 51.9% in 2023. Prominent initiatives by key players in the market are fueling the market growth. For instance, in December 2023, according to NVIDIA's technical blog, version 23.10 of its software development kit (SDK) cuQuantum, represents a considerable increase in quantum computing capabilities. This toolkit, which was created to enhance libraries and tools for quantum computing processes, now interacts more fluidly with NVIDIA Tensor Core GPUs, significantly increasing the speed of quantum circuit simulations. Similarly, in July 2023, Cirq v1.2.0 was released by Google Quantum AI. This Cirq publication focuses on several high-level enhancements that make building and implementing resource estimations for Fault-Tolerant Quantum Algorithms easier.

Services segment is expected to register the fastest CAGR over the forecast period. Quantum computing technology is used in cloud-based quantum computing services to handle activities such as analytics, optimization, and simulation. Cloud-based providers with access to quantum computing skills and resources provide these services. AWS, IBM, Huawei, Google, Microsoft, Baidu, and others are among the leading providers of cloud-based quantum computing services. In order to simplify the effective deployment of their solutions, businesses are using cloud-based quantum computing services. Demand grew in tandem with the number of firms offering quantum computing based on cloud services. In the cloud-based quantum computing market, for example, IBM offers the Qiskit Runtime product. It is a quantum computing service and programming model for creating, optimizing, and running large-scale applications.

Technology Insights

The trapped Ions segment accounted for significant revenue share in 2023. Trapped ions are the preferred method for creating qubits because of their excellent connection between qubits and low error rate, which translates to high gate fidelity. Significant R&D is boosting the segment's growth. For instance, The Quantinuum System Model H2, an astounding new trapped-ion quantum computer, is described by researchers at Quantinuum in Colorado. With this computer, they were able to increase the number of qubits from 20 to 32 without raising the error rate. Through comprehensive component-level testing, a set of industry-standard benchmark tests, and a variety of applications, the researchers have thoroughly tested this system.

Superconducting Qubits segment is expected to register the fastest CAGR over a forecast period. Leading the charge in the quantum computing growth, Fujitsu Limited and the RIKEN Center for Quantum Computing have joined forces to take on the bold goal of creating superconducting quantum computers. Due to their outstanding adaptability and stability, superconducting qubits have emerged as one of the most viable choices for constructing usable quantum computers. The collaboration between RIKEN and Fujitsu aims to improve the error correction and scalability of superconducting qubit technology. Error correction is critical in quantum computing because qubits are extremely sensitive to errors and noise in the environment, which can reduce calculation accuracy.

Application Insights

The optimization segment held the largest revenue share in 2023. The optimization segment is one of the key application areas where quantum computing holds significant promise and is expected to have a substantial impact. Quantum computing's ability to solve complex optimization problems more efficiently than classical computers has led to various growth trends in this segment of the quantum computing market. Quantum computing is being applied to optimize supply chain and logistics operations. It can help businesses find more efficient routes for transportation, reduce shipping costs, minimize inventory holding costs, and improve overall supply chain efficiency. This is particularly valuable in industries with complex distribution networks.

Simulation and modelling segment is expected to register a significant CAGR over a forecast period. Cloud-based quantum computing has revolutionized the landscape of simulation and modeling, offering unprecedented computational power and scalability for tackling complex problems in diverse fields. Leveraging the principles of quantum mechanics, these systems harness the unique properties of qubits to perform computations at speeds unattainable by classical computers. In the realm of simulation and modeling, quantum computing in the cloud opens up new frontiers by enabling researchers and businesses to simulate quantum systems, optimize complex processes, and model intricate phenomena with unparalleled accuracy. The cloud-based approach further democratizes access to quantum resources, allowing users to run simulations without the need for substantial local infrastructure.

Vertical Insights

The BFSI segment accounted for a significant revenue share in 2023. The rising demand for cloud-based quantum computing stems from its rapid data processing capabilities, which provide substantial advantages to the BFSI sector. It equips the financial industry to conduct faster data analysis, specifically for tasks such as fraud detection, understanding customer behavior, and facilitating decision-making. This prevalent tendency revolves around harnessing the swiftness of quantum computing to extract invaluable insights from extensive datasets, ultimately amplifying the efficiency of diverse financial procedures.

Healthcare sector is expected to witness fastest CAGR over the forecast period. Cloud-based quantum computing is especially well-suited to many compute-intensive healthcare applications in the current highly connected IoT digital healthcare pattern, which includes interconnected medical devices (such as medical sensors) that may be connected to the Internet or the cloud. The Internet of Things in the healthcare sector benefits greatly from the enormous increase in processing power, but quantum computing also opens up new avenues for important developments in this area.

The prominent increase in processing power is very beneficial to the Internet of Things in the healthcare industry, but quantum computing also creates new opportunities for significant advancements in this field. Pharmaceutical research in the healthcare sector could advance with the shift from bits to qubits. This include studying protein folding, accelerating clinical trial processes, figuring out how drugs and enzymes fit into molecular structures, assessing the strength of binding interactions between a single biomolecule (such as a protein or DNA) and its ligand/binding partner (such as an inhibitor or drug).

Regional Insights

North America dominated the market in 2023. When it comes to the uptake and infrastructure of security technologies, North America is among the most developed. The regional market is also governed by a number of norms and laws. The use of cloud-based quantum computing systems by enterprises has been encouraged by the implementation of private laws. Furthermore, in recent years, the area has seen a number of collaborations and projects involving governments and organizations related to cloud-based quantum computing.

One such policy initiative is the National Quantum Initiative. Its goal is to guarantee that the US will remain at the forefront of QIS and its technological applications. In 2018, the National Quantum Initiative Act was passed, establishing the National Quantum Initiative. In order to expedite quantum research and development for the U.S. economy and national security, the act was passed into law. Solution providers are expanding their efforts and collaborations in the space.

Asia Pacific is the fastest growing region accounting for a significant CAGR over the forecast period. The Asia Pacific region has been actively involved in the development and adoption of quantum computing technologies. Several countries in the region, including China, Japan, Australia, and Singapore, have made significant investments in quantum research and development. Governments in the Asia Pacific region have launched initiatives to support quantum research and development. These initiatives often include funding for quantum computing research, education, and infrastructure.

Key Companies & Market Share Insights

Some of the key players operating in the market include Google LLC; IBM Corporation; and Amazon Web Services Inc. (AWS)

• Microsoft Corporation is a multinational technology company. The corporation provides Microsoft azure quantum services worldwide. The competency to effortlessly amalgamate quantum and classical compute in the cloud is possible owing to Azure Quantum's Integrated Hybrid feature, a remarkable progression toward quantum at scale.
• Amazon Web Services Inc. (AWS) has begun providing organizations access to critical infrastructure services in the form of web services, which are currently termed as cloud computing. AWS offers various services to help in navigating the potential effects of quantum computing on users. This varies from forming experiments on quantum hardware that is entirely incorporated with the AWS cloud to working with specialists on research that is applicable to end-users.

QpiCloud, Spinq, andTerra Quantum are some of the emerging market participants in the artificial intelligence market.

• Workflow automation across workplaces is empowering collaborations on QpiCloud's hybrid Classical-Quantum cloud computing architecture. Moreover, QpiCloud is creating new opportunities for the upcoming generation of cloud computing, which will be created on extreme compute utilizing QpiAI hybrid classical-quantum computers and extreme automation of process utilizing artificial intelligence.

• Terra Quantum provides comprehensive competences in the areas of quantum computing, quantum security, and quantum algorithm design. The company provides a special blend of operational and strategic expertise along with a strong technological foundation, and most skilled teams devoted towards quantum technology.

Recent Developments

• In November 2023, Amazon Braket has launched Braket Direct, a program for learning more about quantum computing. Amazon Braket introduces Braket Direct, a new tool that expands how you can investigate quantum computing on AWS, thereby boosting research and innovation. You may now reserve dedicated capacity on multiple quantum devices, interact directly with quantum computing experts, and gain early access to next-generation capabilities, such as IonQ's latest trapped-ion device, Forte, which is now publicly available on AWS for the first time.

• In April 2023, Moderna announced a merger with IBM to examine the usage of quantum computing and artificial intelligence for the purpose of advancing and speeding up mRNA research and scientific progress.

Cloud-based Quantum Computing Market Report Scope

Global Cloud-based Quantum Computing Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global cloud-based quantum computing market report based on solution, technology, application, vertical, and region.

• Solution Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Services

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Trapped Ions

  • Quantum Annealing

  • Superconducting Qubits

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Optimization

  • Simulation and modelling

  • Sampling

  • Others

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • Aerospace & Defense

  • BFSI

  • Healthcare

  • Automotive

  • Energy & Power

  • Chemical

  • Government

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Mexico

    • Brazil

  • Middle East and Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa