Quantum-AI Market 2030 By Component (Hardware, Software, Services), Deployment Model (On-Premises, Cloud-Based), Application (Machine Learning and Optimization, Cryptography and Security, Simulation and Modeling), End-User Industry (Finance, Healthcare, Logistics and Supply Chain, Others) and Region - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits

Industry : Information Technology | Pages : 194 Pages | Published On : Feb 2024

Quantum-AI Market was valued USD 242.4 Million in 2023 and projected to reach USD 1.8 Billion by 2030, growing at a CAGR of 34.1% during the forecast period of 2023-2030.

 Major vendors in the global Quantum-AI Market: Alibaba Group, Alice & Bob, Alpine Quantum Technologies (AQT), Amazon Braket, Anyon Systems, Atlantic Quantum, Atom Computing, Atos, Bleximo, C12 Quantum Electronics, Diraq, D-Wave, EeroQ, Google Quantum AI., IBM, Intel, Microsoft, Quantinuum, Rigetti, Zapata and Others.

Market Overview

The Quantum AI market represents a cutting-edge intersection of quantum computing and artificial intelligence, poised to revolutionize how complex computational problems are addressed. As of now, the market is witnessing a dynamic phase of growth driven by advancements in quantum computing technology. Quantum AI leverages the principles of quantum mechanics, such as superposition and entanglement, to perform complex calculations and analyze vast datasets more efficiently than classical computers. As quantum processors and qubits continue to evolve, the Quantum AI market benefits from the expanding capabilities of quantum hardware and the development of quantum algorithms that hold the promise of solving intricate problems in machine learning, optimization, and data analysis. Key players in the tech industry, including IBM, Google, and Rigetti Computing, are actively contributing to the advancement of quantum computing technology, stimulating competition and innovation in the Quantum AI market.

Furthermore, the market is witnessing increased adoption across diverse sectors driven by the optimization potential of quantum machine learning algorithms. Quantum AI's ability to enhance the accuracy and efficiency of machine learning models positions it as a transformative force in industries such as finance, healthcare, logistics, and more. Organizations are exploring Quantum AI applications for tasks such as optimization, pattern recognition, and simulation, seeking to gain a competitive edge through advanced data analytics. As the market matures, Quantum AI is expected to become integral to addressing complex problems that were previously considered computationally infeasible, ushering in a new era of innovation and efficiency in artificial intelligence. The convergence of quantum computing and AI not only opens up novel possibilities for solving real-world challenges but also fosters a competitive landscape where technological advancements continue to drive the market's growth and evolution.

Increasing Need for Quantum-Safe AI Security

The rising concern over cybersecurity and the need for quantum-safe AI security mechanisms constitute another crucial driver for the Quantum AI market. With the anticipated advent of large-scale quantum computers, traditional cryptographic methods become vulnerable to quantum attacks that could compromise sensitive data. Quantum AI offers the potential for developing quantum-resistant encryption and security protocols, ensuring the confidentiality and integrity of AI-driven applications in a post-quantum computing era. As businesses and governments recognize the importance of quantum-safe security measures, the Quantum AI market experiences a surge in demand for solutions that can protect AI systems from emerging quantum threats, fostering a secure and resilient AI environment.

Market Dynamics

Drivers:

  • Global Embrace of Quantum-Safe Security Measures
  • Collaboration Between Quantum Computing and AI Research Communities
  • Integration of Quantum Computing in Cloud Services

Opportunities:

  • Advancements in Quantum Hardware and Qubit Stability:
  • Exploration of Quantum Machine Learning Algorithms
  • Rise in Quantum Cloud Services and Quantum as a Service (QaaS)

Advancements in Quantum Computing Technology

Quantum AI, the convergence of quantum computing and artificial intelligence, is driven significantly by advancements in quantum computing technology. As quantum computing capabilities progress, the potential for solving complex problems in AI applications increases exponentially. Quantum computers can handle vast and intricate datasets with unprecedented efficiency, enabling more sophisticated machine learning algorithms, optimization processes, and data analysis. The ability of quantum processors to perform parallel computations, thanks to quantum bits or qubits, positions them as powerful tools for addressing complex AI challenges that classical computers struggle with. As the quantum computing landscape matures, the Quantum AI market benefits from the continuous enhancement of hardware and software components, unlocking new possibilities for advanced AI applications.

Moreover, Quantum AI thrives on the optimization of machine learning algorithms, which represents a key driver for its market growth. Quantum algorithms exhibit the potential to outperform classical algorithms in certain optimization tasks, offering solutions to complex problems that are practically insurmountable for classical computers. Quantum machine learning leverages quantum principles to process and analyze data more efficiently, enabling the development of more accurate models and predictions. The Quantum AI market is propelled by the promise of enhanced optimization across various industries, including finance, healthcare, and logistics. As organizations seek to improve the efficiency of their AI applications, the integration of quantum algorithms becomes a compelling avenue, driving the demand for Quantum AI solutions.

Hardware segment is expected to dominate the global Quantum AI market.

Based on Component, the hardware segment is a dominated the global Quantum AI market and it holds the highest market share, due to quantum hardware constitutes the physical infrastructure essential for quantum computing, encompassing quantum processors, qubits, quantum gates, and associated components. The dominance of hardware is primarily attributed to the foundational nature of quantum processors and their critical role in executing quantum computations. Companies like IBM, Google, and Rigetti Computing have made substantial investments and breakthroughs in developing powerful quantum processors, pushing the boundaries of qubit stability, coherence, and scalability. These advancements in hardware have enabled the execution of more complex quantum algorithms, significantly influencing the overall performance and capabilities of Quantum AI systems.

The importance of hardware dominance is underscored by the fact that quantum computing's power and potential lie in the manipulation and exploitation of quantum bits. As quantum processors continue to evolve, their ability to handle larger and more intricate datasets grows, unlocking new possibilities for Quantum AI applications. Additionally, the hardware segment is experiencing intense competition and innovation, with companies striving to achieve quantum supremacy and improve the error rates and coherence times of qubits. These advancements in hardware capabilities directly translate into enhanced computational power, enabling more sophisticated quantum algorithms for machine learning, optimization, and other AI tasks. While software and services are integral components, the dominance of hardware in the current Quantum AI market is a reflection of the foundational importance of quantum processors and their pivotal role in driving the industry's capabilities and advancements. As quantum hardware continues to mature, it sets the stage for a broader and more impactful utilization of Quantum AI across various industries and applications.

The market for Quantum AI market is dominated by North America.

North America dominates the Quantum AI market due to a confluence of factors that position the region at the forefront of advancements in quantum computing and artificial intelligence. The United States, in particular, is home to some of the world's leading technology companies and research institutions that are spearheading innovation in quantum computing. Quantum AI's dominance in North America is underscored by the significant investments made by major technology players like IBM, Google, and Microsoft in developing and commercializing quantum computing technologies. These companies have established quantum computing research labs, collaborated with academia, and rolled out cloud-based quantum computing services, fostering an environment of innovation and experimentation. The concentration of top-tier universities and research institutions in North America further contributes to the region's dominance. Research initiatives in quantum computing and AI are prolific, attracting talent and expertise to the region. The collaboration between academia and industry accelerates the pace of breakthroughs, driving North America's leadership in Quantum AI.

Moreover, the robust venture capital ecosystem in North America fuels the growth of emerging startups specializing in Quantum AI. These startups benefit from the region's dynamic investment landscape, gaining the financial support needed to develop and commercialize their quantum technologies. The presence of a thriving startup ecosystem contributes to the overall vibrancy and competitiveness of the Quantum AI market in North America.

On-Premises segment hold the highest market share in the Quantum AI market

Based on deployment mode, the quantum AI market is segmented into on-premises and cloud based. The on-premises segment holds the highest market share in the Quantum AI market due to several key factors that emphasize the strategic advantages of implementing quantum computing capabilities within an organization's physical infrastructure. On-premises deployment involves establishing and operating quantum computing resources directly within the organization's facilities, providing a level of control, security, and customization that appeals to many enterprises.  The dominance of the on-premises segment is the heightened sensitivity of certain industries, such as finance, healthcare, and government, to data security and privacy concerns. By having quantum computing resources on-premises, organizations can exert greater control over their data, ensuring that sensitive information does not traverse external networks. This aspect is crucial, especially when dealing with quantum algorithms that may involve proprietary or confidential datasets.

Moreover, on-premises deployment addresses latency concerns, allowing organizations to optimize the performance of quantum algorithms by minimizing the time taken for data to travel between external cloud servers and the quantum processors. This is particularly significant in real-time applications and scenarios where low latency is critical, such as financial modeling or simulation in healthcare. The on-premises approach also aligns with regulatory requirements and compliance standards in certain industries where strict governance and oversight are essential. Organizations subject to regulatory frameworks often prefer the direct management and supervision afforded by on-premises quantum computing solutions, ensuring adherence to industry-specific guidelines and protocols.

Furthermore, on-premises deployment provides a level of flexibility and customization, allowing organizations to tailor their quantum computing environments to specific applications and workloads. This adaptability is particularly beneficial as industries explore diverse Quantum AI use cases and seek to integrate quantum capabilities seamlessly into their existing computational workflows.

Global Quantum AI Market Report Scope:

Report

Details

Market size value in 2023

USD 242.4 Million

Market size value in 2030

USD 1.8 Billion

CAGR (2023-2030)

34.1%

Forecast Period

2023–2030

Historic Data

2019

Forecast Units

Value (USD Million/USD Billion)

Segments Covered

Deployment Model, Component, Application, End User and Region

Geographies Covered

North America, Europe, Asia Pacific, and RoW

Segmentations Analysis of Quantum AI Market: -

  • By Component
    • Hardware
    • Software
    • Services
  • By Deployment Model
    • On-Premises
    • Cloud-Based
  • By Application
    • Machine Learning and Optimization
    • Cryptography and Security
    • Simulation and Modeling
  • By End-User Industry
    • Finance
    • Healthcare
    • Logistics and Supply Chain
    • Others
  • By Region
    • North America
      • US
      • Canada
    • Latin America
      • Brazil
      • Mexico
      • Argentina
      • Colombia
      • Chile
      • Peru
      • Rest of Latin America
    • Europe
      • Germany
      • France
      • Italy
      • Spain
      • U.K.
      • BENELUX
      • CIS & Russia
      • Nordics
      • Austria
      • Poland
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Thailand
      • Indonesia
      • Malaysia
      • Vietnam
      • Australia & New Zealand
      • Rest of Asia Pacific
    • Middle East & Africa
      • Saudi Arabia
      • UAE
      • South Africa
      • Nigeria
      • Egypt
      • Israel
      • Turkey
      • Rest of MEA

Recent Developments

  • June 2023, Beyond Limits, an enterprise AI software company, has entered an industry-first Memorandum of Understanding (MOU) with IQM Quantum Computers, a leading European quantum computing builder. The collaboration aims to advance quantum AI technology in the Asia Pacific (APAC) region. Focusing on breakthroughs, the partnership will develop hybrid quantum AI algorithms, recognized as a top-five future technology by the Infocomm Media Development Authority of Singapore (IMDA).
  • November 2022, Tata Consultancy Services has inaugurated a TCS Quantum Computing Lab in the virtual realm using Amazon Web Services (AWS). The primary objectives of this initiative are to formulate and assess enterprise business solutions, as well as expedite the integration of quantum computing. TCS aims to utilize the lab for crafting cutting-edge solutions, establishing performance benchmarks tailored to specific domains, and fostering hackathons to drive innovation.

Answers to Following Key Questions:

  • What will be the Quantum AI market’s trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers of Quantum AI market?
  • What are the main forces behind worldwide Quantum AI market? Which companies dominate Quantum AI market?
  • Which companies dominate Quantum AI market? Which business possibilities, dangers, and tactics did they embrace in the market?
  • What are the Quantum AI industry's suppliers' opportunities and dangers in Quantum AI market?
  • What is the Quantum AI industry's regional sales, income, and pricing analysis? In the Quantum AI market, who are the distributors, traders, and resellers?
  • What are the main geographic areas for various trades that are anticipated to have astounding expansion over the Quantum AI market?
  • What are the main geographical areas for various industries that are anticipated to observe astounding expansion for Quantum AI market?
  • What are the dominant revenue-generating regions for Quantum AI market, as well as regional growth trends?
  • By the end of the forecast period, what will the market size and growth rate be?
  • What are the main Quantum AI market trends that are influencing the market's expansion?
  • Which key product categories dominate Quantum AI market? What is Quantum AI market’s main applications?
  • In the coming years, which Quantum AI market technology will dominate the market?

Reason to purchase this Quantum AI market Report:

  • Determine prospective investment areas based on a detailed trend analysis of the global Quantum AI market over the next years.
  • Gain an in-depth understanding of the underlying factors driving demand for different Quantum AI market segments in the top spending countries across the world and identify the opportunities each offers.
  • Strengthen your understanding of the market in terms of demand drivers, industry trends, and the latest technological developments, among others.
  • Identify the major channels that are driving the global Quantum AI Market, providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channelize resources by focusing on the ongoing programs that are being undertaken by the different countries within the global Quantum AI Market.
  • Make correct business decisions based on a thorough analysis of the total competitive landscape of the sector with detailed profiles of the top Quantum AI market providers worldwide, including information about their products, alliances, recent contract wins, and financial analysis wherever available.

TOC

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Furthermore, our methodology incorporates technology-based research techniques, such as data mining, text analytics, and predictive modelling, to uncover hidden patterns, correlations, and trends within the data. This data-driven approach enhances the accuracy and reliability of our analysis, enabling us to make informed and actionable recommendations.

In addition, our analysts bring their industry expertise and domain knowledge to bear on the research process. Their deep understanding of market dynamics, emerging trends, and future prospects allows for insightful interpretation of the data and identification of strategic opportunities.

To ensure the highest level of quality and reliability, our research process undergoes rigorous validation and verification. This includes cross-referencing and triangulation of data from multiple sources, as well as peer reviews and expert consultations.

The result of our 360° Research Methodology is a comprehensive and robust research report that empowers you to make well-informed business decisions. It provides a panoramic view of the industry landscape, helping you navigate challenges, seize opportunities, and stay ahead of the competition.

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