Quantum Computing Market - Global Industry Size, Share, Trends, Opportunities, and Forecast Segmented By Component (Hardware, Software, Services), By Deployment (On-premises and Cloud-based), By Application (Machine Learning, Optimization, Biomedical Simulations, Financial Services, Electronic Material Discovery, and Others), By End User (Healthcare, BFSI, Automotive, Researchers, Energy & utilities, Chemical, Manufacturing and Others (Transportation, Logistics, etc.)), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.65 Billion
CAGR (2026-2031)	34.25%
Fastest Growing Segment	Cloud-based
Largest Market	North America
Market Size (2031)	USD 21.37 Billion

Market Overview

The Global Quantum Computing Market will grow from USD 3.65 Billion in 2025 to USD 21.37 Billion by 2031 at a 34.25% CAGR. Quantum computing utilizes the principles of quantum mechanics, specifically superposition and entanglement, to execute complex calculations that exceed the processing capabilities of classical supercomputers. The market is primarily driven by substantial government funding aimed at national security and scientific sovereignty, alongside rising demand for optimization in the pharmaceutical and financial sectors. According to the Quantum Economic Development Consortium, in 2024, the global quantum computing segment generated $1.07 billion in revenue. This capital influx underscores the steady transition of the technology from academic research to viable commercial applications.

However, the industry faces a significant challenge regarding error correction and qubit stability. The phenomenon of decoherence causes high error rates that currently compromise the reliability required for widespread enterprise adoption. Consequently, the engineering complexity involved in developing fault-tolerant systems remains a primary obstacle impeding the rapid scalability of quantum processors for broader market expansion.

Key Market Drivers

Rising strategic government investments in national quantum initiatives are acting as the primary catalyst for the Global Quantum Computing Market, as nations race to establish technological sovereignty. Governments are aggressively funding domestic ecosystems to de-risk the development of fault-tolerant systems and secure critical infrastructure against future cryptanalytic threats. This public sector capitalization provides the necessary runway for long-term hardware research that private equity alone cannot sustain, ensuring that essential supply chains remain robust during the lengthy development capability phase. For instance, according to techUK, December 2025, in the 'UKRI announces £1 billion+ for quantum technologies in budget allocation', the UK Research and Innovation agency committed over £1 billion to support the sector through 2030, emphasizing the critical role of state-backed funding in driving commercialization and market stability.

Concurrently, a surge in R&D funding and capital allocation by global technology giants and specialized startups is accelerating the transition from experimental physics to utility-scale solutions. Private investors and corporations are increasingly financing the scaling of qubit modalities and the development of quantum networking infrastructure required for distributed computing. This momentum is evident in recent high-value fundraising rounds; according to Nu Quantum, December 2025, in the 'Nu Quantum Raises $60M Series A in Largest Financing Round for Quantum Computer Networking', the company secured $60 million to advance its entanglement technology. However, the market remains in a burgeoning phase where revenue generation is just beginning to materialize alongside these investments. According to Rigetti Computing, March 2025, in the 'Rigetti Computing Reports Fourth Quarter and Full-Year 2024 Results', the company reported revenues of $2.3 million for the fourth quarter, highlighting the gradual but tangible shift towards revenue-generating commercial operations.

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Key Market Challenges

The primary obstacle hampering the Global Quantum Computing Market is the persistent technical challenge of error correction and qubit stability. The phenomenon of decoherence causes qubits to lose their quantum state when exposed to environmental noise, resulting in high error rates that undermine computational reliability. In sectors such as pharmaceuticals and finance, where data precision is critical, this instability makes current processors unsuitable for large-scale, commercial operations. Consequently, the technology remains tethered to experimental research phases, preventing the mass deployment of quantum systems into standard enterprise IT infrastructures.

This lack of fault tolerance creates substantial market friction, causing potential buyers to delay investment in quantum hardware. Corporations are hesitant to integrate systems that cannot yet demonstrate sustained, error-free performance for complex problem-solving, which restricts the potential customer base. According to Quantum Industry Canada, in 2024, 20% of industry respondents cited the technology's lack of readiness as a leading barrier to adoption. This skepticism limits revenue streams primarily to government-backed projects and proof-of-concept trials, thereby slowing the industry's ability to achieve the scalability and profitability necessary for broader market expansion.

Key Market Trends

The Rapid Expansion of Quantum-as-a-Service (QaaS) Cloud Platforms is democratizing access to quantum capabilities, fundamentally altering the procurement strategies of global enterprises. By shifting from capital-intensive on-premise hardware to flexible cloud-based consumption models, organizations in the financial and logistics sectors can now leverage quantum processing power for optimization tasks without the prohibitive costs of infrastructure maintenance. This transition is fueling a surge in revenue for cloud-native providers who are successfully scaling their operational capacity to meet commercial demand. For instance, according to IonQ, November 2024, in the 'IonQ Announces Third Quarter 2024 Financial Results', the company reported revenue of $12.4 million, representing a 102% year-over-year increase driven by the accelerating adoption of its networked quantum computing systems.

Simultaneously, the Convergence of Quantum Computing with Artificial Intelligence is emerging as a transformative force, particularly in the development of high-fidelity simulation and predictive modeling. This synergy allows for the creation of Large Quantitative Models (LQMs) that utilize quantum mechanics to process complex datasets more efficiently than classical neural networks, unlocking new frontiers in material science and drug discovery. The high potential of this technological intersection is attracting significant venture capital, validating the commercial viability of hybrid quantum-AI applications. According to SandboxAQ, December 2024, in the 'SandboxAQ Announces More Than $300 Million of Funding to Drive Next Era of AI', the company secured over $300 million to advance its AI and quantum simulation technologies, underscoring the market's strong confidence in this integrated approach.

Segmental Insights

The cloud-based segment is anticipated to witness the fastest growth in the global quantum computing market due to the substantial capital and operational costs associated with on-premise hardware. Developing and maintaining physical quantum systems requires specialized infrastructure and strictly controlled environments, which limits direct ownership for most organizations. Consequently, businesses and academic institutions increasingly rely on cloud platforms to access quantum processing power for algorithm testing and development. This service-oriented model eliminates the need for significant infrastructure investment, thereby enabling broader accessibility and driving the rapid expansion of the cloud-based segment.

Regional Insights

North America maintains a leading position in the global quantum computing market due to extensive investment in research and development infrastructure. The region benefits from a high concentration of major technology firms and a strategic legislative framework, specifically the National Quantum Initiative Act in the United States. This initiative coordinates resources among federal agencies, such as the Department of Energy and the National Institute of Standards and Technology, to foster technological progress. These coordinated efforts between government bodies and private enterprises establish a stable foundation for the continuous development of the regional market.

Recent Developments

• In March 2025, D-Wave Quantum Inc. announced a research breakthrough by demonstrating quantum supremacy on a practical, real-world problem involving material simulation. The company revealed that its annealing quantum computer successfully simulated complex magnetic materials in minutes, a process that would require approximately one million years for a classical supercomputer. This achievement highlighted the specific advantage of quantum annealing technology for solving intricate optimization and simulation challenges. The demonstration underscored the growing potential of quantum systems to address material science problems that remain intractable for traditional computing methods.
• In December 2024, Google Quantum AI unveiled its new "Willow" quantum computing chip, announcing a significant milestone in error correction and computational power. The company reported that the Willow chip completed a complex benchmark computation in under five minutes, a task that would theoretically take a leading classical supercomputer septillions of years to finish. This development demonstrated the ability to reduce errors exponentially as the system scaled, a critical requirement for practical quantum computing. The breakthrough was positioned as a key advancement for future applications in areas such as battery design, fusion energy, and drug discovery.
• In November 2024, IBM launched its most advanced quantum processor, the IBM Quantum Heron, during its inaugural Quantum Developer Conference. The new processor was engineered to deliver record metrics in scale, speed, and accuracy, enabling the execution of complex algorithms with up to 5,000 two-qubit gate operations. IBM highlighted that the Heron chip, now available in its global data centers, offered a substantial reduction in error rates compared to previous generations. Alongside the hardware launch, the company introduced new software tools designed to assist researchers in running utility-scale quantum circuits for scientific discovery.
• In April 2024, Microsoft and Quantinuum achieved a major breakthrough in quantum error correction by creating the most reliable logical qubits on record. The collaboration utilized Quantinuum’s H2 trapped-ion processor and Microsoft’s qubit-virtualization system to generate four logical qubits from 30 physical qubits. This system successfully ran 14,000 individual experiments without a single error, demonstrating a circuit error rate 800 times lower than that of physical qubits. The companies described this advancement as a transition to the "Level 2 Resilient" phase of quantum computing, marking a significant step toward fault-tolerant systems.

Key Market Players

• International Business Machines Corporation
• D-Wave Systems Inc.
• Amazon.com, Inc.
• Rigetti Computing Inc.
• Google LLC
• Intel Corporation
• Toshiba Corporation
• Honeywell International Inc.
• QC Ware Corporation
• 1QB Information Technologies, Inc.

By Component	By Deployment	By Application	By End User	By Region
Hardware Software Services	On-premises and Cloud-based	Machine Learning Optimization Biomedical Simulations Financial Services Electronic Material Discovery and Others	Healthcare BFSI Automotive Researchers Energy & utilities Chemical Manufacturing and Others (Transportation, Logistics, etc.)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Quantum Computing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Quantum Computing Market, By Component:

• Hardware
• Software
• Services

• Quantum Computing Market, By Deployment:

• On-premises and Cloud-based

• Quantum Computing Market, By Application:

• Machine Learning
• Optimization
• Biomedical Simulations
• Financial Services
• Electronic Material Discovery
• and Others

• Quantum Computing Market, By End User:

• Healthcare
• BFSI
• Automotive
• Researchers
• Energy & utilities
• Chemical
• Manufacturing and Others (Transportation, Logistics, etc.)

• Quantum Computing Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE