The global Quantum Computing-as-a-Service (QCaaS) market is expected to reach $4 billion by 2025 and $26 billion by 2030 according to research done by The Quantum Insider team, a subsidiary of The Quantum Daily.
The figures represent an ~80% CAGR 2021-2030, driven by the realisation of useful applications starting to emerge midway through this decade. Investors appear to agree with the huge potential of the wider quantum technology market. Total disclosed capital flows (including SPAC funding) have totalled ~$1.9 billion so far this year (to the end of July 2021), compared to ~$1.0 billion in 2020.
Focus on the quantum technology market has increased rapidly over the last few years, driven by progress in the public and private sectors. Quantum technology, which uses the principles of quantum mechanics to process information and make extremely precise measurements, includes new types of computers, sensors, and approaches to security and communications.
In a recent survey, ~80% of quantum technology stakeholders reported that their resources to understand market sizing are not good enough. The Quantum Insider team looked to address this by using a mixture of open-source data, expert calls, and surveys to provide a full assessment of the quantum technology market.
Quantum Computing-as-a-Service (QCaas) – a subset of the total quantum technology market – was chosen as their first published analysis because of the emergence of early pricing information from the likes of Amazon Web Services and Microsoft Azure. Rather than purchasing physical quantum computers, which may be hard to maintain and operate for many businesses, most customers are expected to access quantum computers in the cloud – often through these services or directly through the underlying hardware providers.
The market for QCaaS is currently small (the report estimates <$50m in 2020) and is currently comprised of research and consulting projects (as well as free experimental access to platforms such as IBM Quantum). Nonetheless, there has been a rapid acceleration of interest from potential end-users of quantum computing, even over the last 18 months.
“We have triangulated some reasonable estimates based on several approaches, underpinned by real price and volume data we are seeing in the market” said Alex Challans, CEO of The Quantum Daily. “We recognise that sizing the market for quantum technology is a challenging endeavour, but we believe we have pulled together the most accurate assessment of the QCaaS market based on the information available.”
The Quantum Daily has released a more detailed article covering the technical approach to this endeavour. Check it out here.
The full report can be purchased by emailing the team at [email protected].