Quantum Computing Software Market

Stuff of Science Fiction, yet a Reality

All computers today, whether for industrial, commercial, personal or any other applications, depend on binary logic. Irrespective of how large or complex a computer is, it depends on transistor gates to implement this binary logic. As integration technology has steadily improved, the transistors have become smaller, allowing greater processing density, better efficiency, and faster, more powerful machines.

Instead of using bits to represent data, quantum computing uses qubits. These are represented through quantum particles such as electrons and photos. These particles have specific properties that can be used to represent data (either a 0 or a 1). Capable of moving both backwards and forwards in time, quantum particles can exist in two places at the same time and even ‘teleport’. Quantum computers are aiming to utilise these capabilities to become highly efficient, as they use quantum bits or qubits instead of the simple manipulation of ones and zeros. Qubits, or quantum bits, are a unit of quantum information and a two-state quantum-mechanical system.

Quantum computing is gaining traction in the banking, financial services, and insurance (BFSI) industry, where companies are focusing heavily on increasing the speed of trade activities, transactions, and data processing by orders of magnitude. Simulation is one of the potential applications of quantum computing. Quantum computing aids in the identification of effective and efficient methods of managing financial risks. If conventional computers are used in financial institutions, the processing time and costs of high-quality solutions can increase exponentially, whereas quantum computers can carry out operations faster and at lower costs, resulting in cost savings and the creation of new revenue-generating opportunities.

Financial institutions that can leverage quantum computing software are likely to benefit significantly. They will be able to analyse large or unstructured data sets more effectively, which could help banks and other related domains make better decisions and provide better customer service. The potential benefit of quantum computing in the financial services sector includes providing relevant and required cybersecurity solutions to safeguard consumers' financial data using next-generation cryptography. Furthermore, with the help of quantum computing technology, the detection of fraudulent activities by recognising consumer behaviour patterns is increasing, leading to proactive fraud risk management. Combining quantum computing and artificial intelligence allows for the optimization of portfolio management of assets with interdependencies as well as predictive analytics in customer behaviour. In addition, a combination of quantum computing and blockchain technology is expected to lead to the development of the most hack-proof technology in this era of IoT. The combination is also expected to significantly increase the transaction speed and reduce processing costs in the BFSI vertical, thereby reducing infrastructure downtime.

Quantum Computing Technology in Healthcare and Other Sectors

Biopharmaceutical research and development, from drug discovery to production, is costly, time-consuming, and risky. A new drug typically takes 10–15 years from discovery to launch, and the capital associated with it exceeds USD 2.0 billion. From the time a new drug enters clinical development to the time it is released, the success rate is less than 10%. Biopharmaceutical companies rely on a few blockbuster drugs to recoup the more than USD 180.0 billion spent each year on research and development activities related to new drugs.

Lockheed Martin plans to use its D-Wave quantum computer to test autopilot software that is currently too complex for classical computers, and Google is using a quantum computer to design software that can distinguish cars from landmarks. Volkswagen is working towards preventing traffic jams through a predictive system that could inform drivers up to 45 minutes in advance.

Technical and Implementation Challenges

The development of quantum computing is still in its early stages. Furthermore, the implementation of quantum computing solutions in real-time applications presents a number of technical challenges. Because any interaction with the environment can collapse the state function, quantum computers are vulnerable to interaction with the environment. The development of universal computers for real-time applications is only theoretically proven, and the precise contribution of quantum computing solutions to existing computing methods is not yet clear. These factors have created a schism between research labs, investment firms, and the enterprise ecosystem, which is expected to stymie global growth.

Security Issues

Quantum computing also has the potential to disrupt online security and cryptography applications. These depend on large, encrypted key numbers that cannot be decrypted by traditional computers trying every possible combination, because the process would take an unfeasibly long time. However, quantum’s simultaneous processing capabilities could remove that protection, so new, ‘quantum-resistant’ encryption methods will become necessary.

National Institute of Standards and Technology (NIST) of the United States is already working in one of the most troublesome aspects of quantum computing – security. Since the computational power brought by these computers would be immense, our current encryption technologies would be rendered obsolete in no time. That’s why the NIST is already working in post-quantum cryptography to ensure that the transition doesn’t produce unexpected results in sensible areas like data management and storage.

Scarcity of Qualified Professionals

Quantum computing is a relatively new and exciting technology. The implementation of this technology necessitates the availability of a pool of technically skilled professionals. As a result, finding professionals with the necessary skill set is a significant challenge for industry participants. Governments from various countries, as well as manufacturers of quantum computers, are planning to begin training sessions related to the technology in order to combat this challenge. For instance, D-Wave Systems is providing training modules to its customers to make them aware of the functioning of quantum computers. However, the high cost associated with these modules is a challenge for businesses aiming to train their employees. Moreover, as these modules are complex, understanding them is a time-consuming and difficult process. As a result, manufacturers of quantum computers have to reduce their profit margins by additionally investing in different post-sales activities.

Regional Analysis and Competitive Landscape

In our preliminary study, the market is expected to grow at a CAGR of ~50%. North America is one of the most important regions in the market for quantum computing software. The growth of the North American quantum computing software market can be attributed to the fact that the region is home to the market's leading players; quantum computing solutions and services are also seeing increased adoption in the aerospace & defence, chemical, and BFSI industries of the region.

The United States and Canada are the leading contributors to the growth of the North American quantum computing software market. Because it is home to a number of key players such as D-Wave Systems, 1QB Information Technologies, IBM, and Amazon, this region is a key market for quantum computing software and services. Furthermore, the US government is actively supporting advances in quantum computing.

• In December 2018, the Government of the US passed a bill that was aimed to invest ~USD 1.2 billion in the development of quantum technology. The government of the country is expected to leverage quantum computing for solving significant and complex problems and challenges related to molecular modeling, machine learning, physics, material sciences, chemical simulations, data discovery, etc.
  
  
• In June 2021, Honeywell announced that Honeywell Quantum Solutions (HQS) and Cambridge Quantum Computing (CQC) will combine to form what the companies said will be the largest, most advanced standalone quantum computing company in the world, setting the pace for what is projected to become a USD 1 trillion quantum computing industry over the next 3 decades.

Key Elements Included In The Study: Global Quantum Computing Software Market

• Quantum Computing Software Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2021
• Market Value at Regional and Country Level, 2022 - 2029
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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Disclaimer:

• The segmentation/company profiles/countries depicted above may vary in the actual report.