Quantum Computing Software Market Size, Share & Trends Analysis Report By Component, By Deployment, By Technology, By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Quantum Computing Software Market Trends

The global quantum computing software market size was estimated at USD 779.2 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 18.5% from 2024 to 2030. The development of tailored quantum software for applications is booming throughout industries. For drug discovery, quantum chemistry software allows for precise simulations of molecule structures, and optimization algorithms focus on supply chain and logistics issues. Furthermore, libraries for quantum machine learning are being created to take advantage of the potential of quantum computing to improve AI models. These customized solutions are designed to tackle industry-specific issues and yield more accurate and efficient results than conventional computer techniques.

Quantum computing technology enables scientists to create ultra-precise and ultra-personalized medicinal and diagnostic instruments. Furthermore, ultra-precise measurements can be made with quantum sensors in magnetic resonance imaging (MRI) equipment. The quality of healthcare services may be improved by these advancements. Optimizing radiation therapy, building protein models, developing tailored cancer medication regimens, and DNA analysis are just a few of the healthcare-related uses of quantum computing.

With this trend, cloud ecosystems are seeing tech giants and vendors of quantum technology take a more expansive approach and expand their quantum offerings. Their goal is to incorporate software tools, APIs, and quantum development kits into already-existing cloud platforms. By making quantum computing resources more approachable and user-friendly for developers, researchers, and businesses, the trend aims to democratize access to these resources. This extension encourages a variety of applications and speeds up progress in the field by facilitating cooperative creation and testing inside quantum ecosystems.

Market Concentration & Characteristics

The software market for quantum computing is characterized by an unparalleled degree of innovation. This breakthrough is the result of ongoing developments in quantum programming languages, quantum algorithms, and infrastructure for quantum computing. This kind of innovation encourages ground-breaking applications that push the boundaries of conventional computational paradigms and propel the sector toward revolutionary advances in quantum software capabilities.

Key competitors in the quantum computing software industry are increasingly engaging in merger and acquisition (M&A) transactions. Pursuits of advanced quantum technologies, talent acquisition, industry expansion, and the growing strategic significance of quantum applications are driving this trend. These M&A activities are tactical moves meant to strengthen positions and take advantage of openings in the changing field of quantum computing software.

The quantum computing software industry exhibits a tendency of end-user concentration. The need for quantum computing solutions is being driven by a few businesses, which is resulting in a concentrated concentration within particular sectors. This trend presents obstacles for new entrants looking to compete in an increasingly concentrated market environment, but it also presents an opportunity for specialized enterprises creating customized quantum software for certain industries.

Component Insights

The services components led the market and accounted for 63.6% of the global revenue in 2023. Cloud-based quantum computing services are rapidly expanding, giving customers remote access to quantum resources and algorithms. Businesses are providing platforms that lower the entry barrier for the use of quantum technology by enabling researchers and developers to experiment with quantum algorithms. This movement seeks to accelerate the development of quantum algorithms, promote creativity, and democratize access to quantum computers.

Collaborations between well-established technology firms such as Dell-IonQ and quantum computing providers play a crucial role in confirming the practicality and promise of hybrid classical-quantum solutions. These joint efforts serve as experimental grounds for the improvement and implementation of integrated classical and quantum systems. For instance, in November 2021, Dell collaborated with IonQ to experiment with hybrid classical-quantum solutions, enhancing their feasibility. This partnership enables on-premises execution of both classical and quantum simulation workloads through the platform. Additionally, complex quantum tasks like modeling larger molecules for pharmaceutical research can be conducted remotely on IonQ's Quantum Processing Units (QPUs).

Deployment Insights

The cloud segment accounted for the largest market revenue share in 2023. Quantum computing providers are increasingly offering cloud-based platforms, like D-Wave's Leap, allowing users to access quantum computers, simulators, and development tools remotely. This trend aims to democratize access to quantum computing resources, reducing barriers to entry, and enabling a broader range of users to experiment, develop, and deploy quantum applications. For instance, in February 2021, D-Wave Systems unveiled the launch of its Leap quantum cloud service in Singapore, granting researchers, developers, and companies in the region immediate access to D-Wave's Advantage quantum computer, hybrid quantum/classical solvers, and the Quantum Annealing Emulator (QAE). This initiative enables real-time utilization of these resources through Leap, aimed at accelerating the creation of business-critical hybrid applications already in use or development.

On-premises is expected to register the fastest CAGR during the forecast period. A prevalent trend could have been to increase security mechanisms inside On-Premises quantum computing technologies. Developers may have placed a strong emphasis on multi-factor authentication, strict access controls designed for on-premises deployments, and strong encryption standards since companies are becoming more and more worried about data privacy and security. These steps are intended to protect sensitive businesses including finance, healthcare, and defense against potential vulnerabilities and to maintain data confidentiality.

Technology Insights

The superconducting qubits technology accounted for the largest market revenue share in 2023. Quantum computing efforts may have centered on increasing qubit counts while simultaneously addressing error rates and improving stability. The number of superconducting qubits in quantum computers may have increased due to developments in fabrication processes, materials, and control mechanisms, possibly surpassing the "noisy intermediate-scale quantum" (NISQ) period. Error-correction strategies, like surface codes or code-based methods, could have been investigated further to reduce errors and boost computation accuracy.

Trapped Ions technology is expected to register the fastest CAGR during the forecast period. The increasing demand for scalable quantum computing may encourage the development of modular trapped ion devices. Scholars may concentrate on constructing connected quantum modules and investigating effective entanglement techniques between several ion traps. By integrating smaller entangled qubit modules, this technique seeks to develop fault-tolerant and scalable quantum computation, paving the way for larger-scale quantum processors.

Application Insights

The optimization application accounted for the largest market revenue share in 2023. The optimization segment within the quantum computing landscape is experiencing a significant surge due to the prevalent occurrence of optimization problems across industries and business operations. Traditional computing methods often struggle to solve these problems within reasonable timeframes efficiently, prompting the adoption of quantum computing technology as an optimal solution. Particularly, quantum computing, specifically employing quantum annealing techniques, demonstrates a remarkable advantage in swiftly addressing optimization problems that demand obtaining global minimal point solutions. This trend signifies the growing reliance on quantum annealing to resolve complex optimization challenges more expediently compared to the capabilities of conventional supercomputers, fostering the adoption of quantum computing across various sectors for enhanced efficiency and problem-solving.

The machine learning segment is expected to register the fastest CAGR during the forecast period. The development of quantum-inspired neural networks designed for medical image analysis may have contributed to this trend. These networks might have been created to resemble quantum principles, which would have allowed for the processing of image data more effectively and possibly revealed fine patterns that traditional machine-learning methods would have missed. In March 2023, QC Ware, a prominent provider of quantum software and services, unveiled findings from a collaborative research initiative with a top biotechnology firm, resulting in advancements in medical imaging analysis and diagnostics. This collaborative effort utilized quantum computing to enhance the detection accuracy and classification of diabetic retinopathy.

End-use Insights

The BFSI end-use led the market in 2023. Quantum computing is becoming increasingly popular in the banking, financial services, and insurance (BFSI) sector, with a strong emphasis on significantly enhancing the speed of trade activities, transactions, and data processing. Simulation stands out as a promising application of quantum computing, particularly in efficiently managing financial risks. Traditional computers used in financial institutions may incur exponential increases in processing time and expenses when handling high-quality solutions, whereas quantum computers can execute operations much faster and at optimized costs. This efficiency not only leads to cost reductions but also unlocks new prospects for generating revenue.

The healthcare sector is projected to witness the highest growth rate over the forecast period. The growing need for quantum computing software offers powerful tools for thinking about complex systems, like the effects of medications on living things, human physiology, and biological systems. It is anticipated that this system will find usage in various pharmaceutical and research and development applications, primarily in the early stages of drug discovery and development. Medical research uses quantum computing in the healthcare industry. Treatment and diagnostics might be individualized, and costs could be optimized and speed up with quantum computing. New technologies in the healthcare sector are driving advancements in the quantum computing software market.

Regional Insights

North America dominated the market and accounted for the largest share in 2023. In the U.S., the government's commitment to quantum computing through measures such as the National Quantum Initiative Act has resulted in major financing for research and development. Large amounts of private investment in quantum computing have also been drawn to firms like Google, IBM, and startups in the U.S. Similarly, Canada has demonstrated its dedication to technological advancement by sponsoring quantum computing research significantly through the Strategic Innovation Fund and partnerships between federal agencies, provincial governments, and academic institutions.

Asia Pacific is anticipated to witness significant growth in the market. The Centre for Quantum Technologies and partnerships between Indian Institutes of Technology (IITs) and tech corporations are examples of the quantum research hubs that have emerged in India. Japan's R&D ecosystem includes partnerships between corporate companies like Toshiba and NTT and academic institutions like the University of Tokyo, which creates a vibrant atmosphere for quantum research. The foundation of research facilities such as the Hefei National Laboratory for Physical Sciences at the Microscale in China has supported a strong ecosystem for the advancement of quantum technologies.

Key Companies & Market Share Insights

Some of the key players operating in the market include Microsoft Corporation; IBM Corporation; QC Ware; and Google LLC (Alphabet Inc.).

• IBM Corporation presents a comprehensive range of quantum computing software solutions, highlighted by Qiskit, an open-source quantum software development kit (SDK) aiding in quantum program creation and execution. Moreover, IBM offers Quantum Composer and Quantum Lab, allowing users to design and simulate quantum circuits and promoting advancements in quantum algorithms research. These tools, coupled with IBM Quantum Experience, provide cloud-based access to quantum processors, fostering experimentation and innovation in quantum computing

• QC Ware offers and extensive array of quantum computing software products including quantum algorithms, optimization techniques, and quantum machine learning applications. With the ability to create quantum algorithms, its main product, Forge, enables customers to meet industrial demands for sophisticated computing solutions in a variety of areas and facilitates simulations

Rigetti Computing and Riverlane, Zapata Computing are some of the emerging market participants in the quantum computing software market.

• Riverlane has produced Deltaflow, a quantum operating system, and Deltaflow decode another product. The goal of this software package is to effectively optimize and control quantum hardware so that users can run intricate algorithms on different kinds of quantum computers

• Zapata Computing is one of the emerging players in the quantum computing software industry, providing a suite of solutions centered on quantum algorithms and software applications. Their product, Orquestra, gives users the ability to create and implement quantum applications in a variety of industries by offering a thorough framework for managing quantum workflows. The research and application of quantum algorithms is the focus of Zapata Computing, which meets industry demands for sophisticated computational simulations and solutions

Recent Developments

• In November 2022, Microsoft introduced the Azure Quantum Resource Estimator, a tool aimed at aiding quantum algorithms developers in crafting and refining algorithms intended for future quantum computing systems

• In September 2022, Intel unveiled the Intel Quantum SDK, empowering developers to create novel quantum algorithms capable of operating qubits through simulations and potentially on actual quantum hardware in future times

Quantum Computing Software Market Report Scope

Global Quantum Computing Software 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 2017 to 2030. For this study, Grand View Research has segmented the global quantum computing software market report based on component, deployment technology, application, end-use, and region.

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

  • Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-Premises

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Superconducting Qubits

  • Trapped Ions

  • Quantum Annealing

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Optimization

  • Machine Learning

  • Simulation

  • Others

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Aerospace & Defense

  • BFSI

  • Healthcare

  • Automotive

  • Energy & Power

  • Chemical

  • Government

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • KSA

    • UAE

    • South Africa