Quantum Computing Market Size & Forecasts 2026-2035, By Segments (Offering, Deployment, Application, End-user), Growth Opportunities, Innovation Landscape, Regulatory Shifts, Strategic Regional Insights (U.S., Japan, China, South Korea, UK, Germany, France), and Competitive Dynamics (IBM, Google, Microsoft, D-Wave Systems, Rigetti Computing)

Market Outlook

Quantum Computing Market size is predicted to expand from USD 1.68 billion in 2025 to USD 10.49 billion by 2035, with growth underpinned by a CAGR above 20.1% between 2026 and 2035. The industry revenue outlook for 2026 is USD 1.98 billion.

• Base Year Value (2025): USD 1.68 Billion
• CAGR (2026-2035): 20.1%
• Forecast Year Value (2035): USD 10.49 Billion
• Historical Data Period: 2021-2025
• Largest Region: North America
• Forecast Period: 2026-2035

Key Takeaways

• North America region acquired over 58.6% revenue share in 2025, supported by robust R&D and government funding.
• Asia Pacific region will record more than 22% CAGR during the forecast period, attributed to rapid tech adoption and investments.
• The market share of system segment stood at 62.72% in 2025, propelled by high investment in quantum hardware drives dominance.
• With a share of 58.8% in 2025, on-premises segment’s dominance was secured by need for secure, localized quantum infrastructure fuels adoption.
• Achieving 42.23% quantum computing market share in 2025, the growth of optimization segment was underpinned by wide use in logistics and finance ensures market leadership.
• The leading players in the quantum computing market include IBM (USA), Google (USA), Microsoft (USA), D-Wave Systems (Canada), Rigetti Computing (USA), IonQ (USA), Xanadu (Canada), Pasqal (France), Toshiba (Japan), Quantum Circuits (USA).

Market Dynamics

Increased Investment from Governments and Tech Giants

The surge in investment from both governments and technology giants is a pivotal growth driver in the quantum computing market. Governments worldwide, recognizing the strategic importance of quantum technologies, have initiated funding programs aimed at fostering research and development. For instance, the U.S. National Quantum Initiative Act allocates significant resources to advance quantum research, while the European Union's Quantum Flagship program supports collaborative projects across member states. This influx of capital not only accelerates innovation but also attracts private sector interest, as major players like IBM and Google ramp up their quantum computing initiatives. The resulting competitive landscape creates strategic opportunities for established companies to enhance their offerings while enabling new entrants to carve niches in specialized applications, such as cryptography and optimization, thereby enriching the market ecosystem.

Development of Quantum Algorithms for Industry-Specific Problems

The advancement of quantum algorithms tailored for specific industry challenges is reshaping the quantum computing market by enhancing its practical applicability. Companies such as D-Wave and Rigetti Computing are developing algorithms that target sectors like pharmaceuticals and logistics, enabling faster drug discovery and optimized supply chain management. This focus on industry-specific solutions not only demonstrates the tangible benefits of quantum technology but also encourages broader adoption among traditional industries seeking competitive advantages. As these algorithms mature, they open avenues for partnerships between quantum startups and established firms, creating a collaborative environment that enhances innovation and accelerates market penetration. The ongoing refinement of these algorithms positions the quantum computing market as a crucial player in the digital transformation of multiple sectors.

Expansion of Quantum Cloud Services Accessibility

The growing accessibility of quantum cloud services represents a significant growth driver in the quantum computing market, democratizing access to advanced quantum resources. Providers like Amazon Web Services and Microsoft Azure are offering quantum computing platforms that allow businesses of all sizes to experiment with quantum algorithms without the need for extensive infrastructure investments. This trend not only lowers entry barriers but also fosters a culture of experimentation and innovation among startups and SMEs, enabling them to leverage quantum capabilities for unique applications. As more organizations recognize the potential of quantum technologies, the market is likely to see increased collaboration across sectors, driving further advancements and integration into existing workflows. This expansion of cloud-based quantum services is set to redefine how businesses approach complex problem-solving, positioning the quantum computing market at the forefront of technological evolution.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Increased investment from governments and tech giants	4.00%	Short term (≤ 2 yrs)	North America, Asia Pacific (spillover: Europe)	Medium	Fast
Development of quantum algorithms for industry-specific problems	3.00%	Medium term (2–5 yrs)	Europe, North America (spillover: Asia Pacific)	Low	Moderate
Expansion of quantum cloud services accessibility	2.00%	Long term (5+ yrs)	North America, Europe (spillover: Asia Pacific)	Medium	Moderate

Industry Restraints:

Regulatory Compliance Challenges

The quantum computing market faces significant hurdles due to regulatory compliance challenges that impede its advancement. As government entities and international organizations work to establish frameworks governing data privacy, security, and technology transfer, companies must navigate a complex landscape of compliance requirements. For instance, the European Union's General Data Protection Regulation (GDPR) poses stringent rules on data handling, which can be particularly burdensome for quantum computing firms that rely on vast amounts of sensitive data. This regulatory landscape not only creates operational inefficiencies but also fosters consumer hesitation, as potential clients remain wary of adopting quantum solutions that may not align with evolving compliance standards. As highlighted by the World Economic Forum, the lack of clear regulatory guidelines can stifle innovation, making it difficult for both established companies and new entrants to invest confidently in quantum technologies.

Supply Chain Constraints

Supply chain constraints represent another critical restraint that shapes the quantum computing market, affecting the availability and affordability of essential components. The intricate nature of quantum systems requires specialized materials and technologies, often sourced from a limited number of suppliers. For instance, the reliance on rare materials for qubit fabrication can lead to production delays and increased costs, as noted by the U.S. Department of Commerce in its analysis of emerging technologies. This situation poses challenges for market participants, particularly startups that may lack the resources to secure reliable supply chains. Furthermore, geopolitical tensions and global trade uncertainties exacerbate these constraints, potentially leading to increased competition among firms for access to critical components. As the market evolves, addressing these supply chain vulnerabilities will be imperative for fostering innovation and ensuring that quantum computing can achieve its transformative potential.

Regional Forecast

North America Market Statistics:

The North America region has captured over 58.6% of the global quantum computing market in 2025, establishing itself as the largest player in this rapidly evolving sector. This dominance is primarily driven by robust R&D initiatives and substantial government funding, which have fostered an environment ripe for innovation and technological advancement. The U.S. government, through agencies like the National Quantum Initiative, has committed significant resources to quantum research, thereby enhancing the region's competitive edge. As consumer preferences shift towards advanced computational solutions and organizations prioritize digital transformation, North America is well-positioned to leverage these trends, creating substantial opportunities for growth in the quantum computing market.

The United States anchors the North American market, serving as a pivotal force in the quantum computing landscape. With a strong emphasis on R&D, U.S. technology firms are at the forefront of developing cutting-edge quantum solutions that cater to various sectors, including finance, healthcare, and logistics. Companies like IBM and Google are not only advancing their quantum technologies but also actively collaborating with academic institutions to foster talent and innovation. This collaborative approach is crucial as it aligns with the increasing demand for efficient computing solutions and the need for regulatory frameworks that support technological advancements. As the U.S. continues to attract investment and talent, its leadership in the quantum computing market reinforces North America's overall position as a growth leader in this field.

Canada complements the U.S. by emerging as a significant player in the quantum computing market, particularly through its supportive regulatory environment and investment in education. The Canadian government has implemented initiatives such as the Quantum Strategy, which aims to enhance the country’s capabilities in quantum technologies. This commitment is reflected in partnerships between universities and tech companies, fostering a culture of innovation that drives consumer demand for quantum solutions. As Canadian firms like Xanadu Quantum Technologies push the boundaries of quantum computing applications, the synergies between Canada and the U.S. create a robust ecosystem that enhances North America's competitive advantage. Together, these dynamics position the region for continued leadership and growth in the quantum computing market.

Asia Pacific Market Analysis:

Asia Pacific emerged as the fastest-growing region in the quantum computing market, registering rapid growth with a CAGR of 22%. This remarkable expansion is driven by rapid tech adoption and investments, positioning the region as a leader in innovation and technology. Countries within Asia Pacific are increasingly prioritizing quantum computing research and development, propelled by significant government initiatives and funding. For instance, the Japanese government has committed substantial resources to enhance its quantum technology capabilities, which reflects a broader trend of increasing public and private sector collaboration in the region. The growing focus on digital transformation across various industries, coupled with a robust talent pool and a thriving startup ecosystem, further underscores the region's potential in this domain. As organizations pivot towards integrating quantum solutions, the Asia Pacific market is poised to become a hub for breakthroughs in computing capabilities and applications, making it a critical area for investment and strategic focus.

Japan plays a pivotal role in the quantum computing landscape, characterized by its strong emphasis on technological innovation and research. The country's commitment to rapid tech adoption is evident in its significant investments in quantum research initiatives, such as the establishment of the Quantum Computing Research Center at the University of Tokyo. This center aims to foster collaboration between academia and industry, enhancing Japan's competitive position in the global quantum market. Additionally, Japanese firms like Fujitsu are actively developing quantum-inspired algorithms, demonstrating a proactive approach to harnessing quantum capabilities. The regulatory environment in Japan is also supportive, with policies designed to promote advanced technologies, thereby creating a conducive atmosphere for quantum computing advancements. This strategic focus positions Japan as a key player in the Asia Pacific quantum computing market, aligning with regional growth opportunities.

China stands out as a major force in the quantum computing sector, leveraging its rapid tech adoption to spearhead advancements in the field. The Chinese government has made quantum technology a national priority, with initiatives such as the Quantum Communication Satellite launched by the China Academy of Sciences, showcasing the country's commitment to leading in quantum research and applications. This governmental backing has spurred significant investments from both public and private sectors, driving innovation and fostering a competitive landscape. Furthermore, consumer demand for cutting-edge technologies is rising, as industries seek to integrate quantum solutions to enhance operational efficiencies and capabilities. Chinese tech giants like Alibaba and Baidu are investing heavily in quantum research, which not only strengthens their market position but also contributes to the overall growth of the quantum computing ecosystem in Asia Pacific. As China continues to advance its quantum computing initiatives, it reinforces the region's leadership and presents substantial opportunities for growth and collaboration within the market.

Europe Market Trends:

Europe has held a commanding share in the quantum computing market, driven by robust investments and a collaborative ecosystem that includes government initiatives and private sector innovation. The region's significance stems from its advanced technological infrastructure, a highly skilled workforce, and a strong emphasis on sustainability, which aligns with global trends towards greener technologies. Notably, the European Union's Quantum Technologies Flagship program, spearheaded by the European Commission, has allocated substantial funding to accelerate research and development, indicating a solid commitment to becoming a leader in this transformative field. This strategic focus, coupled with increasing demand for quantum solutions across various industries, positions Europe as a fertile ground for growth and innovation in quantum computing.

Germany emerges as a pivotal player in the European quantum computing market, characterized by significant investments from both public and private sectors. The country has seen a surge in demand for quantum technologies, particularly in sectors such as automotive and manufacturing, where companies like Volkswagen are exploring quantum computing for optimization processes. The German Federal Ministry of Education and Research has committed to funding initiatives aimed at fostering quantum technology research, reinforcing the country’s competitive edge. This environment of innovation and collaboration not only enhances Germany's role in the regional quantum computing landscape but also creates strategic opportunities for cross-border partnerships and technological advancements.

France is also a key contributor to the quantum computing market in Europe, maintaining a notable presence through its strong academic institutions and research initiatives. The French government has launched a national quantum strategy, investing over €1.8 billion to support research and development in quantum technologies, with institutions like the CEA (French Alternative Energies and Atomic Energy Commission) leading the charge. This strategic investment is fostering a vibrant ecosystem that encourages startups and established companies alike to innovate in quantum applications. As France continues to prioritize technological advancement and collaboration, its role in the European quantum computing market is set to expand, providing significant opportunities for regional growth and leadership.

Regional Market Attractiveness & Strategic Fit Matrix
Parameter	North America	Asia Pacific	Europe	Latin America	MEA
Innovation Hub	Advanced	Developing	Advanced	Nascent	Nascent
Cost-Sensitive Region	Low	Medium	Medium	High	High
Regulatory Environment	Supportive	Neutral	Supportive	Neutral	Neutral
Demand Drivers	Moderate	Moderate	Moderate	Weak	Weak
Development Stage	Developed	Developing	Developed	Emerging	Emerging
Adoption Rate	Medium	Low	Medium	Low	Low
New Entrants / Startups	Dense	Moderate	Dense	Sparse	Sparse
Macro Indicators	Strong	Stable	Strong	Weak	Weak

Segmentation Analysis

 

Analysis by Offering

The quantum computing market in the Offering segment is dominated by the System sub-segment, which is projected to hold a commanding 62.7% share in 2025. This leadership is primarily driven by high investment in quantum hardware, as companies increasingly recognize the potential of quantum systems to solve complex problems more efficiently than classical counterparts. The rising demand for advanced computational capabilities is reflected in the strategic initiatives of organizations like IBM and Google, which are pioneering the development of robust quantum systems. This segment not only caters to established players seeking to enhance their technological portfolios but also presents significant opportunities for startups focused on innovative quantum hardware solutions. Given the rapid advancements in quantum technology and increasing funding from both public and private sectors, the System sub-segment is expected to remain a focal point for investment and innovation in the near to medium term.

Analysis by Deployment

In the quantum computing market, the Deployment segment is led by the On-Premises sub-segment, which captured over 58.8% share in 2025. The need for secure, localized quantum infrastructure is a key factor driving this segment's growth, as organizations prioritize data privacy and control over sensitive information. Companies like Microsoft and D-Wave have emphasized the importance of on-premises solutions to meet the compliance and security demands of industries such as finance and healthcare. This focus on localized systems not only aligns with customer preferences for data sovereignty but also supports the growing trend of digital transformation across various sectors. As industries continue to invest in secure quantum technologies, the On-Premises sub-segment is positioned to thrive, particularly as regulatory frameworks evolve to support such infrastructure.

Analysis by Application

The quantum computing market's Application segment is significantly influenced by the Optimization sub-segment, which represented more than 42.2% of the market in 2025. The wide use of quantum optimization techniques in logistics and finance underscores its market leadership, as organizations seek to enhance operational efficiencies and decision-making processes. Major players like Volkswagen and JPMorgan Chase are actively exploring quantum optimization to solve complex logistical challenges and optimize financial portfolios, respectively. This sub-segment not only meets the growing demand for sophisticated analytical tools but also reflects a broader trend toward leveraging cutting-edge technology for competitive advantage. With continuous advancements in quantum algorithms and increasing collaboration between academia and industry, the Optimization sub-segment is expected to maintain its relevance and drive significant value creation in the coming years.

Report Segmentation
Segment	Sub-Segment
Offering	System, Services
Deployment	On-Premises, Cloud
Application	Optimization, Simulation, Machine Learning, Others
End-user	Aerospace & Defense, BFSI, Healthcare, Automotive, Energy & Power, Chemical, Government, Others

Competitive Landscape

Key players in the quantum computing market include IBM, Google, Microsoft, D-Wave Systems, Rigetti Computing, IonQ, Xanadu, Pasqal, Toshiba, and Quantum Circuits. Each of these organizations holds a significant position, contributing to the rapid evolution of quantum technologies. IBM stands out with its robust quantum ecosystem, integrating hardware and software solutions, while Google is renowned for its groundbreaking advancements in quantum supremacy. Microsoft leverages its Azure cloud platform to enhance accessibility to quantum computing resources. D-Wave Systems and Rigetti Computing are recognized for their pioneering approaches to quantum annealing and superconducting qubits, respectively. IonQ and Xanadu are making strides in trapped-ion and photonic quantum computing, while Pasqal and Toshiba focus on innovative architectures and applications. Quantum Circuits is also emerging with unique strategies, enhancing the competitive landscape of this dynamic market.

The competitive environment in the quantum computing sector is characterized by a flurry of strategic initiatives aimed at enhancing technological capabilities and market reach. Collaborations among these top players are increasingly common, fostering innovation and accelerating development timelines. For instance, partnerships between established firms and startups are yielding novel solutions that push the boundaries of quantum applications. The emphasis on R&D investments is evident as companies explore new algorithms and hardware improvements, positioning themselves as leaders in this transformative field. New product launches are frequent, reflecting a commitment to not only respond to market demands but also to anticipate future needs, thereby shaping the competitive dynamics within the industry.

Strategic / Actionable Recommendations for Regional Players

In North America, fostering partnerships with academic institutions and technology hubs can enhance innovation and drive the development of next-generation quantum solutions. By engaging in collaborative research initiatives, companies can leverage cutting-edge discoveries and accelerate their market readiness. In Asia Pacific, tapping into the region's burgeoning tech ecosystem presents opportunities for regional players to capitalize on emerging technologies, particularly in sectors like finance and telecommunications where quantum applications are gaining traction. Lastly, in Europe, aligning with regulatory bodies and participating in government-funded initiatives can provide a platform for players to influence policy while expanding their technological capabilities, ensuring they remain competitive in a rapidly evolving landscape.