According to Fortune Business Insights, the global quantum computing market size was valued at USD 1.39 billion in 2025 and is projected to grow from USD 1.82 billion in 2026 to USD 17.89 billion by 2034, exhibiting a CAGR of 33.0% during the forecast period. The market is witnessing significant growth as governments and enterprises increase investments in advanced computing capabilities and explore quantum technologies for solving highly complex computational problems.
Quantum computing is an advanced computing technology that uses principles of quantum mechanics, including superposition and entanglement, to process complex calculations. Unlike conventional computers, quantum systems can address certain highly complex problems more efficiently and have potential applications across optimization, machine learning, cryptography, biomedical simulation, financial modeling, and electronic material discovery.
The growing focus on quantum technology commercialization, increasing government funding, and rising enterprise investments are supporting the expansion of the global quantum computing market. Major technology companies are also developing quantum processors, software platforms, cloud-based quantum services, and quantum-as-a-service solutions to accelerate commercial adoption.
Increasing government funding is a major factor supporting quantum computing market growth. Governments and national research institutions are investing in quantum hardware, software, research infrastructure, workforce development, and error-correction technologies.
Public funding also helps reduce the financial burden associated with developing quantum processors and supporting infrastructure. For instance, in November 2025, the U.S. Department of Energy announced USD 625 million in funding to renew five National Quantum Information Science Research Centers. Such initiatives are expected to strengthen national quantum ecosystems and accelerate technological development.
Enterprises across BFSI, healthcare, automotive, energy, chemicals, manufacturing, and logistics are increasingly investigating quantum computing to solve optimization and simulation challenges. Companies are exploring hybrid quantum-classical computing approaches to complement existing high-performance computing infrastructure.
The technology is particularly attractive for complex optimization, financial modeling, drug discovery, materials research, and other applications where conventional computing can face scalability limitations.
Quantum cloud access is emerging as an important market trend because it allows organizations, researchers, universities, and developers to access quantum processors without building expensive quantum infrastructure.
Cloud-based quantum computing enables users to experiment with quantum algorithms, develop applications, and test commercial use cases remotely. The cloud-based segment held the largest market share in 2025 and is expected to register the highest growth, with a CAGR of 36.3% during the forecast period.
The expansion of Quantum-as-a-Service (QaaS) platforms is expected to make quantum computing more accessible to enterprises that lack specialized quantum hardware and technical infrastructure.
Quantum error correction is becoming increasingly important as technology developers work to improve processor reliability and move toward fault-tolerant quantum computing.
In November 2025, IBM launched new quantum processors, software, and algorithmic developments, including progress related to IBM Quantum Loon and quantum error-correction decoding. The company reported a 10x improvement in decoding speed.
Generative AI is creating new opportunities for quantum computing by supporting quantum algorithm design, circuit optimization, simulation workflows, and error correction. The combination of AI and quantum computing can help organizations identify potential applications in areas such as drug discovery, financial modeling, logistics, and materials science.
In February 2025, Quantinuum announced its Generative Quantum AI framework, Gen QAI, which uses quantum-generated data for applications including medicine development, financial market modeling, and logistics optimization.
Based on component, the market is divided into hardware and software.
The hardware segment accounted for the largest market share and is expected to continue its dominance, growing at a CAGR of 15.1%. High development costs associated with cryogenic systems, processor control electronics, interconnects, and supporting infrastructure contribute to the segment's leading position.
Meanwhile, the software segment is expected to record the highest CAGR of 34.3%. Increasing demand for quantum algorithms, development tools, middleware, simulators, and cloud-based platforms is supporting software growth.
Based on deployment, the market is segmented into on-premise and cloud-based.
The cloud-based segment held the largest market share in 2025 and is projected to grow at the highest CAGR of 36.3%. Cloud-based platforms allow organizations to access quantum processors without making significant investments in specialized infrastructure.
The on-premise segment is expected to grow at a CAGR of 31.8%, supported by demand from government agencies, defense organizations, national laboratories, and large enterprises requiring dedicated infrastructure and greater data control.
Based on application, the market is classified into machine learning, optimization, biomedical simulations, financial services, cryptography, electronic material discovery, and others.
The optimization segment held the largest market share in 2025. Quantum optimization can support applications involving logistics, supply chains, portfolio management, manufacturing schedules, and energy grids.
The machine learning segment is projected to grow at the highest CAGR of 35.3% as enterprises explore quantum-enhanced machine learning for pattern recognition, data processing, model optimization, and AI applications.
Based on end user, the market is categorized into healthcare, banking, financial services and insurance (BFSI), automotive, energy and utilities, chemical, manufacturing, and others.
The BFSI segment dominated the market in 2025. Financial organizations are exploring quantum algorithms for portfolio optimization, fraud detection, risk modeling, derivative pricing, and financial simulations.
The healthcare segment is expected to record the highest CAGR of 34.9% during the forecast period. Increasing use of quantum computing for drug discovery, molecular modeling, protein modeling, genomic analysis, and complex clinical data optimization is supporting growth in this segment.
North America dominated the global quantum computing market with a 43.88% share in 2025. The region generated USD 0.61 billion in 2025 and benefits from the presence of major quantum technology companies, cloud service providers, universities, laboratories, and government-supported research programs.
The U.S. is a major contributor to regional growth due to substantial investments in quantum processors, software platforms, commercial pilot projects, and research infrastructure.
Asia Pacific is projected to be the fastest-growing regional market, with a CAGR of 36.5% during the forecast period. The regional market is estimated to reach USD 0.35 billion in 2026.
Growth is supported by government-backed quantum initiatives and private investments across China, Japan, South Korea, India, and Australia. Increasing collaboration among universities, national laboratories, cloud providers, and quantum hardware manufacturers is further supporting regional development.
The European quantum computing market is projected to grow at a CAGR of 31.0% during the forecast period. Government initiatives, regulations, research programs, and technological advancements are contributing to the region's growing quantum ecosystem.
Japan's quantum computing market is estimated to reach approximately USD 0.06 billion in 2026. Japan is strengthening its quantum computing capabilities through collaboration between technology companies, research institutions, and government-backed initiatives.
The global quantum computing market features several prominent technology companies, including:
IBM Corporation
D-Wave Systems Inc.
Microsoft Corporation
Intel Corporation
Rigetti & Co., Inc.
Alphabet, Inc. (Google LLC)
QC Ware
Quantinuum Ltd.
Riverlane
IonQ
These companies are focusing on quantum processors, quantum cloud platforms, software development kits, error correction, hybrid quantum-classical computing, and quantum-as-a-service solutions. Strategic partnerships with enterprises, cloud providers, governments, and research institutions are also helping accelerate commercialization.
June 2026: IBM announced plans to invest more than USD 10 billion in quantum computing over five years, covering research and development, manufacturing scale-up, ecosystem partnerships, mergers and acquisitions, and its roadmap toward fault-tolerant quantum computers.
November 2025: Quantinuum commercially launched Helios, a general-purpose commercial quantum computer available through cloud and on-premise offerings.
May 2025: D-Wave announced the general availability of its Advantage2 quantum computer for commercial applications across optimization, AI, research, life sciences, and national security.
February 2025: Riverlane, IQM Quantum Computers, and Zurich Instruments launched the SurgeonQ project to develop a quantum error-correction platform capable of supporting real-time QEC operations.
February 2025: Microsoft unveiled Majorana 1, a quantum processing unit based on topological qubits and designed around Microsoft's long-term fault-tolerant quantum computing roadmap.
The global quantum computing market is expected to experience rapid expansion as technological advances improve quantum processors, error correction, software development, and cloud accessibility. The market is projected to increase from USD 1.82 billion in 2026 to USD 17.89 billion by 2034, representing a CAGR of 33.0%.
Future opportunities are expected to emerge from quantum-enhanced AI, quantum drug discovery, financial optimization, materials science, logistics, cybersecurity, and hybrid quantum-classical computing. The growing demand for post-quantum security solutions is also creating an adjacent opportunity as governments and enterprises prepare for potential future threats to conventional encryption systems.
According to Fortune Business Insights, the global quantum computing market was valued at USD 1.39 billion in 2025 and is projected to reach USD 17.89 billion by 2034.
The global quantum computing market is projected to grow at a CAGR of 33.0% during the forecast period of 2026-2034.
North America dominated the global quantum computing market in 2025, accounting for a 43.88% market share.
By end user, the banking, financial services, and insurance (BFSI) segment dominated the market in 2025. By deployment, the cloud-based segment held the largest market share during the same year.
The key players include IBM Corporation, D-Wave Systems Inc., Microsoft Corporation, Intel Corporation, and Rigetti & Co., Inc., along with Alphabet, QC Ware, Quantinuum, Riverlane, and IonQ.
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