IDC Forecasts Worldwide Quantum Computing Market to Grow to $7.6 Billion in 2027
August 21, 2023 | IDCEstimated reading time: 2 minutes
International Data Corporation (IDC) today published its second forecast for the worldwide quantum computing market, projecting customer spend for quantum computing to grow from $1.1 billion in 2022 to $7.6 billion in 2027. This represents a five-year compound annual growth rate (CAGR) of 48.1%. The forecast includes base quantum computing as a service as well as enabling and adjacent quantum computing as a service.
The new forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021. In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on investment; the emergence of other technologies such as generative AI, which are expected to offer greater near-term value for end users; and an array of macroeconomic factors, such as higher interest and inflation rates and the prospect of an economic recession.
IDC expects the quantum computing market will continue to experience slower growth until a major quantum hardware development that leads to a quantum advantage is announced. Until then, most of the growth will be driven by maturation in quantum computing as a service infrastructure and platforms and the growth of performance intensive computing workloads suitable for quantum technology.
IDC also expects investments in the quantum computing market will grow at a CAGR of 11.5% over the 2023-2027 forecast period, reaching nearly $16.4 billion by the end of 2027. This includes investments made by public and privately funded institutions, internal allocation (R&D spend) from technology and services vendors, and external funding from venture capitalists and private equity firms. Of particular note is the growing interest in quantum computing by global government agencies of which 14 (13 countries plus the European Union) have announced quantum initiatives that span multiple years and will generate billions of dollars for quantum computing research.
The billions of dollars being allocated to the research and development of quantum computing have led to recent advancements in quantum computing hardware and software, as well as new error mitigation and suppression techniques. These advancements fuel speculation that achieving a near-term quantum advantage may be possible using today's noisy intermediate-scale quantum (NISQ) systems. Over the long term, these investments are expected to result in the delivery of large-scale quantum systems capable of solving some of the most complex problems that challenge today’s scientists and engineers, causing a surge in customer spend towards the end of the forecast period.
IDC sees 2022 as an eventful year in the quantum computing industry. Strategic approaches implemented to reach a near-term quantum advantage using NISQ systems became more defined as vendors published quantum computing road maps emphasizing methods for improving qubit scaling, as well as new techniques for error mitigation and suppression. To improve the accessibility and usability of quantum systems, previously inaccessible quantum modalities became accessible for end-user experimentation, while other quantum hardware vendors announced partnerships for on-premises quantum deployments and quantum software vendors provided frictionless software offerings for nonquantum specialists. Finally, quantum hardware and software vendors announced the anticipated launch of new scientific accelerator platforms that will help with the integration of quantum, AI, and HPC.
"There has been much hype around quantum computing and when quantum computing will be able to deliver a quantum advantage, for which use cases, and when," said Heather West, Ph.D., research manager, research manager within IDC's Enterprise Infrastructure Practice. "Today's quantum computing systems may only be suitable for small-scale experimentation, but advances continue to be made like a drumbeat over time. Organizations should not be deterred from investing in quantum initiatives now to be quantum ready in the future."
Suggested Items
Industrial PC Market Size to Record $1.75 Billion Growth from 2023-2027
05/03/2024 | PRNewswireThe global industrial pc market size is estimated to grow by USD 1.75 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of almost 6.29% during the forecast period.
Real Time with… IPC APEX EXPO 2024: Sigma Engineering's Recycling and Regeneration Systems for PCB Etching
05/02/2024 | Real Time with...IPC APEX EXPOEvan Howard of Schmoll America interviews Kristoffer Bjorklund, Sigma Engineering's supply chain manager. We learn about Sigma's recycling and regeneration systems for PCB industry etching and the benefits and challenges of implementing these systems in existing factories.
QinetiQ Achieves UK’s First Jet-to-Jet Teaming Between Aircraft and Autonomous Drone
04/29/2024 | QinetiQQinetiQ has successfully trialled the UK’s first Crewed-Uncrewed-Teaming demonstration between a crewed aircraft and an autonomous jet drone.
Lockheed Martin Successfully Transitions Long Range Discrimination Radar To The Missile Defense Agency
04/23/2024 | Lockheed MartinThe Long Range Discrimination Radar (LRDR) at Clear Space Force Station in Clear, Alaska, completed DD250 final acceptance and was officially handed over to the Missile Defense Agency in preparation for an Operational Capability Baseline (OCB) decision and final transition to the Warfighter. In addition, prior to this transition, the system has started Space Domain Awareness data collects for the United States Space Force.
Real Time with... IPC APEX EXPO 2024: AI Implementation at Omron
04/18/2024 | Real Time with...IPC APEX EXPOEditor Nolan Johnson and Omron Product Manager Nick Fieldhouse discuss the company's focus on AI implementation to enhance customer experience and results. They address programming challenges and how AI can help customers achieve better outcomes with less experience. Omron's AI is compatible with existing systems, facilitating easy upgrades.