Press release
Global Quantum Information Processing Industry Outlook 2025-2029: Market Set to Cross $5.28 Billion Milestone
Quantum Information Processing
What Will the Quantum Information Processing Industry Market Size Be by 2025?
In recent times, there has been an unprecedented surge in the market size of quantum information processing. Expected to escalate from a worth of $1.68 billion in 2024 to approximately $2.12 billion in 2025, it boasts a compound annual growth rate (CAGR) of 26.0%. This substantial growth in the past period can be attributed to factors like the escalating need for robust computational capacity, a rising demand for improved cybersecurity measures, advancements in quantum communication technologies, government aid and backing for quantum investigations, increased reliance on data to make informed decisions, and innovation in the realm of quantum error correction.
What's the Long-Term Growth Forecast for the Quantum Information Processing Market Size Through 2029?
Expectations are high for substantial escalation in the quantum information processing market over the next several years, anticipated to reach $5.28 billion in 2029, reflecting a compound annual growth rate (CAGR) of 25.7%. This projected expansion during the forecast period can be credited to the surge in quantum research investment, burgeoning demand for quantum computing applications, advances in quantum machine learning, the necessity for improved drug discovery processes, the proliferation of quantum computing services, and growing intrigue towards quantum-based optimization issues. Other notable trends within the forecast period encompass enhancements in quantum hardware production, the emergence of fault-tolerant quantum computers, the integration of classical systems with quantum computing, the advent of quantum machine learning algorithms, advancements in quantum encryption and cryptographic protocols, improvements in quantum communication networks, and the innovation of quantum software frameworks.
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What Are the Key Growth Drivers Fueling the Quantum Information Processing Market Expansion?
The anticipated surge in demand for cybersecurity solutions is predicted to spur the expansion of the quantum information processing market. Such solutions incorporate technologies, measures, and practices aimed at safeguarding digital structures, networks, and data from unauthorized intrusions, attacks, or theft. The proliferation of quantum-enabled cyber threats is driving an increased need for cybersecurity as these quantum computers can traditional encryption methods, putting global data security at risk. The way quantum information processing heightens cybersecurity is by creating ultra-secure communication channels like quantum key distribution that are hack-proof. It employs quantum principles to fortify sensitive data, ensuring robust defense against emerging cyber threats. For example, a report from the Department for Science, Innovation & Technology, a UK government organization, in April 2024 stated a surge in the usage of current malware protection within the US government departments, and business rose from 76% in 2023 to 83% in 2024. Consequently, the escalating demand for cybersecurity solutions is bolstering the quantum information processing market's growth.
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What Are the Key Trends Driving Quantum Information Processing Market Growth?
Key players in the quantum information processing market are strategizing to lead the competition by initiating the development of groundbreaking products such as quantum processors. These processors use quantum bits, also known as qubits, to solve complex problems by harnessing the power of quantum phenomena like superposition and entanglement. For example, in February 2025, Microsoft Corporation, a renowned US technology firm, unveiled Majorana 1. This quantum processing unit (QPU), backed by a topological core, is engineered to house up to a million qubits within a single chip. It employs a zero-energy mode at the terminal points of a topological superconductor and acts as its own antiparticle, allowing non-local encoding of qubits. This offers robust resistance to decoherence and fosters fault-tolerant quantum computing.
How Is the Quantum Information Processing Market Segmented?
The quantum information processingmarket covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Technology: Quantum Computing, Quantum Cryptography, Quantum Communication, Quantum Sensing, Quantum Simulation
3) By Deployment: On-Premise, Cloud Based
4) By End-User: Banking, Financial Services And Insurance, Healthcare, Information Technology And Telecommunications, Government, Other End Users
Subsegments:
1) By Hardware: Quantum Processors, Quantum Sensors, Quantum Chips, Quantum Memory Devices, Quantum Communication Devices
2) By Software : Quantum Algorithms, Quantum Simulation Software, Quantum Programming Languages, Quantum Development Kits, Quantum Software Frameworks
3) By Services: Quantum Computing Services, Quantum Cloud Services, Quantum Consulting, Quantum Training and Education, Quantum Integration And Support Services
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Which Companies Are Leading the Charge in Quantum Information Processing Market Innovation?
Major companies operating in the quantum information processing market are Google LLC, Microsoft Corporation, Intel Corporation, IBM Corporation, Toshiba Corporation, NEC Corporation, D-Wave Systems Inc., Xanadu Quantum Technologies Inc., Quantum Machines Ltd., ColdQuanta Inc., IonQ Inc., 1QBit Information Technologies Inc., ID Quantique SA, Quantum Circuits Inc., Q-CTRL Pty Ltd, Rigetti Computing Inc., MagiQ Technologies Inc., QuintessenceLabs Pty Ltd, Atom Computing Inc., Origin Quantum Computing Technology Co. Ltd., Alpine Quantum Technologies GmbH, Strangeworks Inc.
Which Regions Are Leading the Global Quantum Information Processing Market in Revenue?
North America was the largest region in the quantum information processing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the quantum information processing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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