Quantum AI Market Size, Share, Opportunities, And Trends By Offerings (Hardware, Software, Services), By Deployment (Cloud, On-Premise), By End-User (Finance, Healthcare, Energy & Renewables, Others) - Forecasts From 2024 To 2029

The Quantum AI market is anticipated to grow significantly over the forecast period.

Quantum AI is the intersection of quantum computing and artificial intelligence (AI). Quantum computing utilizes the principles of quantum mechanics to perform computations using quantum bits, or qubits. This can represent multiple states simultaneously, enabling exponentially faster processing than classical computers for certain types of problems.

Quantum AI seeks to leverage the computational power and unique properties of quantum computers to enhance AI algorithms, solve complex optimization problems, and accelerate machine learning tasks.

Some of the key features of quantum AI are algorithm optimization, machine learning acceleration, dimensionality reduction, and quantum neural networks. quantum algorithms, which are developed to optimize AI algorithms, may effectively solve optimization issues, execute matrix operations, and explore enormous solution spaces, outperforming traditional computers.

Quantum AI uses quantum computing to speed up machine learning activities such as neural network training, pattern recognition, and data analysis, hence increasing efficiency, model correctness, and generating new insights.

Quantum AI research focuses on the development of quantum neural networks and quantum-inspired algorithms for AI optimization and inference, with the potential to provide novel pattern recognition, optimization, and decision-making capabilities.

Quantum AI is an emerging field with the potential to transform artificial intelligence and computational science by enabling new capabilities beyond traditional computing.

Market Drivers

• Advancements in Quantum computing technology are fueling the Quantum AI market growth

Advancements in quantum computing hardware, such as the development of qubit scalability, error correction methods, and longer coherence durations, help to drive the Quantum AI business. As quantum computers increase in power and reliability, more advanced Quantum AI algorithms and applications may be implemented.

Among various quantum technology systems available in the market, Qiskit is one such system. The open-source software development kit includes tools for generating and altering quantum programs, as well as running them on prototype quantum devices on the IBM Quantum Platform or local computer emulator.

Another quantum AI-based product is QpiAI Sense is a scalable and flexible control hardware and software solution that provides intuitive control over qubits and quantum key distribution systems. It communicates with Qpi Explorer software via a graphical user interface, enabling the simple implementation of algorithms at ambient temperature.

As quantum computing capabilities continue to advance, Quantum AI is poised to play an increasingly significant role in shaping the future of computation and AI.

• Increasing investment in quantum computing research is contributing to the Quantum AI market growth

Growing investment from governments, private companies, and research institutions in quantum computing research accelerates the development of quantum hardware, software, and algorithms. Increased funding and collaboration support innovation in Quantum AI and drive commercialization efforts, fueling market growth.

According to the press release, IBM is collaborating with Keio University, Yonsei University, Seoul National University, and the University of Chicago to advance quantum education in Japan, Korea, and the United States. The cooperation intends to teach up to 40,000 students over the next decade, preparing them for the quantum workforce and fostering the development of a worldwide quantum ecosystem.

Investment in quantum computing research drives innovation, cooperation, and commercialization in the Quantum AI sector. It promotes quantum hardware, algorithms, software tools, and workforce development, opening up new avenues for tackling complicated challenges in research, engineering, and manufacturing.

Market Restraints

• Limited quantum hardware availability hampers the market growth

Quantum hardware remains in the early stages of development, with limited availability and accessibility to researchers and developers. The scarcity of quantum computing resources, such as quantum processors and qubit access, can impede progress in Quantum AI research and hinder the commercialization of Quantum AI solutions.

The Quantum AI market is segmented based on its deployment models-

The Quantum AI development platform market is segmented based on its deployment models. On-premises deployment refers to organizations using Quantum AI technologies within their facilities, which provides better control, security, and customization choices while requiring a considerable upfront investment in hardware, infrastructure, and experience.

Cloud-based deployment provides Quantum AI solutions as a service via cloud computing platforms, allowing organizations to access resources such as processors, simulators, and development tools on a pay-per-use or subscription basis, resulting in scalability, flexibility, and cost-effectiveness without a significant upfront investment.

North America is anticipated to hold a significant share of the Quantum AI market.

The North American region is anticipated to hold a significant share of the Quantum AI market. North America, particularly the United States, serves as a hotspot for quantum computing research and investment, drawing top talent and driving technical improvements.

The region is a hotbed of quantum computing invention and commercialization, with a thriving ecosystem of startups, IT behemoths, and academic institutions that stimulate collaboration and information exchange. US Government support in North America, including financing from the National Quantum Initiative and DARPA, is propelling the region's quantum computing growth and acceptance.

IBM, Microsoft, Google, and Rigetti Computing are paving the way for Quantum AI research, innovation, and commercialization, therefore defining the worldwide market. North America's market need for Quantum AI is fueled by a strong research environment, government backing, industrial knowledge, and mature technology. As these technologies evolve, North America is projected to remain a major participant in the worldwide market.

Key Developments

• December 2023 - IBM introduced IBM Quantum Heron, the first in a new line of utility-scale quantum processors with an architecture designed over four years to give IBM's greatest performance metrics and lowest error rates of any IBM Quantum processor yet.

IBM also announced IBM Quantum System Two, the company's first modular quantum computer and the foundation for IBM's quantum-centric supercomputing architecture. The first IBM Quantum System Two, based in Yorktown Heights, New York, had commenced operation with three IBM Heron processors and associated controlled circuits.

• July 2023 – IBM and Trust Financial Corp announced that the bank would join the IBM Quantum accelerator program while also inviting IBM to the bank's Innovator in Residence program. This cooperation would help to drive technological innovation in banking while also researching prospects for the use of quantum computing in the banking industry.

Company Products

• Azure Quantum cloud service – Azure Quantum cloud service provides access to a varied portfolio of current quantum hardware, paving the way for the creation of fault-tolerant quantum systems. It also assists in navigating complexity and developing new abilities using world-class onboarding and education tools like Microsoft Learn, Quantum Katas lessons, industry case studies, and a university curriculum.
• Amazon Braket– Amazon Braket is a fully managed quantum computing service aimed at accelerating scientific research and software development in quantum computing. It can readily interact with various types of quantum computers and circuit simulators by utilizing a consistent set of development tools. It also has reserved dedicated device access and can communicate directly with quantum computing professionals via Bracket Direct.

Market Segmentation-

• By Offerings
  • Hardware
  • Software
  • Services
• By Deployment
  • Cloud
  • On-Premise
• By End-User
  • Finance
  • Healthcare
  • Energy & renewables
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others