InfotechLead.com research found that some of the large enterprises are in the process of stepping up their investment for the deployment of quantum computing solutions.
Omdia has put a size for the global quantum computing market. Omdia analysts say the global quantum computing revenue will grow from $1.1 billion in 2023 to $28.2 billion by 2033 at CAGR of 37.7 percent over the next decade.
Deployments
The quantum computing industry has captured the attention of major technology companies like Alphabet, IBM, Intel, and Microsoft.
One notable milestone in this progression is Japanese telecom giant NTT DoCoMo’s announcement of the operational use of quantum annealing for optimizing mobile infrastructure, set to begin in July 2024. This marks a significant step toward the practical application of quantum technologies in real-world scenarios.
Google Cloud
Q-CTRL, headquartered in Sydney, Australia, has tied up with Google Cloud to provide a dynamic, cost-effective, highly available infrastructure to support customers who aim to build products and services based on new-generation quantum technology.
Microsoft
Microsoft says Quantinuum has achieved reliable quantum computing by applying an innovative qubit-virtualization system to ion-trap hardware. Microsoft and Quantinuum were able to create four highly reliable logical qubits from only 30 physical qubits, while demonstrating an 800x improvement in error rate.
Fidelity Center for Applied Technology (FCAT) has teamed with the Amazon Quantum Solutions Lab and Amazon Braket to explore asset management with cloud-based quantum computers.
Automotive major Volkswagen has used Amazon Braket to evaluate the performance of their quantum algorithm for the binary paint shop problem. This algorithm can also be used for optimized scheduling or fraud detection.
IBM
IBM, the leader in the quantum computing industry, has shared several case studies about its clients and their deployment of quantum computing solutions.
JSR Corporation, based in Japan, is working with IBM Quantum. “As quantum computers get more powerful, we want to… use them to support our work,” Hiroaki TokuhisaChief Technology Officer at JSR, said.
Boeing has partnered with IBM to chart a streamlined quantum approach to one of the biggest challenges in aerospace engineering.
“We’ve parsed a very large optimization problem that is core to the design of our products, and shown that quantum computers can address a fraction of that optimization problem but do it well,” said Jay LowellChief Scientist for Boeing’s Disruptive Computing and Networks team.
Mercedes-Benz is working with IBM for using quantum computing to design batteries. “Developing and perfecting these hypothetical batteries could unlock a billion-dollar opportunity,” says Benjamin Boeser, Director of Innovation Management, Silicon Valley at Mercedes-Benz R&D North America.
Energy major Exxon Mobil is working with IBM Quantum Computing. Teams at IBM and ExxonMobil collaborated to model maritime inventory routing on quantum devices. “We will be analyzing the strengths and trade-offs of different strategies for vehicle and inventory routing, and laying the foundation for constructing practical solutions for their operations,” Vijay Swarup, ExxonMobil Vice President of Research and Development, said.
Investment
Several start-ups are trying to make innovations in the quantum computing business with the support of investors. For instance, PsiQuantum has raised $617 million. Riverlane has raised $75 million in a VC funding round.
Isabel Al-Dhahir, Thematic Intelligence Principal Analyst at GlobalData, says venture capital funding in quantum computing has surpassed $1 billion in 2023.
Sam Lucero, Chief Analyst for Quantum Computing at Omdia, said: “Achieving fault-tolerant scaled quantum computing would help humanity solve key challenges related to climate change, the development of new pharmaceuticals and materials, and bring important advances to artificial intelligence.”
Quantum computing challenges
Availability of employees with skills for running Quantum Computing business is a major challenge for CIOs. McKinsey & Company, in its Quantum Technology Monitor, said 367,000 people graduated with QT-relevant degrees in 2023. The number of universities with QT programs increased 8.3 percent, to 195, while those offering master’s degrees in QT increased by 10.0 percent, to 55.
Quantum computing’s potential to disrupt industries and its implications for encryption technologies have propelled it onto national agendas. Countries around the world are crafting national quantum strategies, with the U.S. National Quantum Initiative standing out as particularly influential in its efforts to stay ahead of China in the technology race, GlobalData said.
China has made significant progress in closing the gap with the U.S. in quantum computing. By 2024, the two countries are nearly on par, though with different strategies. In the U.S., private companies are at the forefront, while in China, expertise is increasingly centralized within state institutions. Major Chinese companies like Alibaba and Baidu have even pulled back from the market, dedicating their advanced equipment to national projects.
Quantum computing companies face unique challenges. Many lack a clear path to profitability, and while inflation is decreasing in major economies, high interest rates continue to make funding difficult. Venture capitalists are increasingly cautious, favoring lower-risk investments with quicker returns.
Analysts say quantum computing is more than a decade away from full maturity. Engineering challenges, coupled with the current phase of excess hype and the pre-revenue status of many quantum companies, suggest that a prolonged period of slow progress.
Baburajan Kizhakedath
