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What Is The Leading Driver Behind Rising Investments In Quantum Computing Startups In Driving Growth In The Quantum Computing Market Market Expansion in 2025
Use code ONLINE20 to get 20% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Quantum Computing Market Size Growth Forecast: What to Expect by 2025?
In recent times, there has been an exponential expansion in the quantum computing market size. It is set to escalate from $2.57 billion in 2024 to $3.62 billion in 2025, marking a whopping compound annual growth rate (CAGR) of 40.8%. The spurt in growth over the historical period can be credited to the groundwork of quantum mechanics theory, innovative ideas in quantum information theory, along with funding and investment.
How Will the Quantum Computing Market Size Evolve and Grow by 2029?
The market size of quantum computing is predicted to exhibit a substantial rise in the coming years. The growth is projected to reach $12.78 billion by 2029, with a compound annual growth rate (CAGR) of 37.1%. Factors contributing to the predicted growth during this period include efforts in research, partnerships, educational and workforce development, regulatory measures and policies, and developments in quantum communication and networking. The forecast period also indicates significant trends such as an immense increase in qubit quantities, commercial application and industrial adoption, and the blend of quantum and classical computing.
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What Drivers Are Propelling the Growth of Quantum Computing Market Forward?
The quantum computing market's expansion is set to be driven by the increasing investments in quantum computing startups. These startups are focusing on the development and commercialization of quantum computing technology. The surge in investments in these startups is attributed to governmental support and the potential for groundbreaking innovation. The escalating investment in quantum computing startups is owing to its radical capacity to unleash new commercial prospects and foster economic value across a multitude of industries. For example, as per the US-based non-profit organization FINRA that supervises the financial sector in the United States, the investments in quantum computing startups (both hardware and software) saw a peak in 2022 with an amount of $2.35 billion, exhibiting a notable growth over the prior two years. As such, the climbing investments in quantum computing technology are fueling the advancement of the quantum computing market.
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Which Emerging Trends Are Transforming the Quantum Computing Market in 2025?
Leading corporations within the quantum computing market are heavily invested in the creation of quantum development kits like Azure Quantum Development Kit (QDK), as a measure to maintain their market edge. The Azure Quantum Development Kit (QDK) is a tool used for quantum computing development focused on equipping developers with the necessary tools to explore quantum algorithms, simulate quantum systems, and ultimately create applications for quantum computers. In January 2024, American technology corporation, Microsoft, released the 1.0 version of the Azure Quantum Development Kit (QDK), characterized by substantial enhancements for speed, simplicity, and browser compatibility. This version of the QDK, primarily reimagined in Rust, provides a 100x performance improvement and Azure Quantum Service compatibility. It also comes with a VS Code extension, complete with a Q editor, debugger, and resource estimator for quantum programming. The release is designed to assist developers in navigating the 'Noisy Intermediate Scale Quantum' phase, moving closer to Level 2 quantum computing capabilities.
What Are the Key Segments in the Quantum Computing Market?
The quantum computingmarket covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Deployment: On-Premises, Cloud
3) By Technology: Trapped Ions, Quantum Annealing, Superconducting Qubits, Other Technologies
4) By Application: Optimization, Simulation, Machine Learning, Other Applications
5) By End User: Healare, Banking, Financial Service And Insurance (BSFI), Automotive, Energy And Utilities, Chemical, Manufacturing, Others End Users
Subsegments:
1) By Hardware: Quantum Processors, Quantum Sensors, Quantum Memory, Quantum Controllers, Quantum Detectors
2) By Software: Quantum Programming Languages, Quantum Development Platforms, Quantum Algorithms, Quantum Simulation Software
3) By Services: Cloud-Based Quantum Computing Services, Quantum Consulting, Quantum Training And Support Services, Quantum Application Development Services
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Who Are the Key Players Shaping the Quantum Computing Market's Competitive Landscape?
Major companies operating in the quantum computing market are Google LLC, Intel Corporation, International Business Machines Corporation, Honeywell, Atos Quantum, PsiQuantum Corporation, Quantum Machines Technologies Ltd., Pasqal, Xanadu Quantum Technologies Inc., Quantum Brilliance Pty Ltd., Zapata Computing Inc., Riverlane Ltd., Quantum Circuits Inc., Quantum Motion Technologies Inc., IonQ Inc., Cambridge Quantum Computing Limited, Seeqc Inc., Q-CTRL, D-Wave Systems Inc., Rigetti Computing, QuEra Computing Inc., Qubitekk Inc., Bleximo Corporation, Anyon Systems Inc., Classiq Technologies Inc
What Geographic Markets Are Powering Growth in the Quantum Computing Market?
Asia-Pacific was the largest region in the quantum computing market in 2024. The regions covered in the quantum computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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