Quantum AI Market Outlook:
Quantum AI Market size was USD 622.1 million in 2024 and is estimated to reach USD 19.9 billion by the end of 2037, expanding at a CAGR of 30.1% during the forecast period, i.e., 2025-2037. In 2025, the industry size of quantum AI is estimated at USD 821.5 million.
The market operates through a complex supply chain from raw material procurement to final system integration. The developed countries, including the U.S., Germany, Japan, and Canada, are expected to lead the upstream manufacturing of quantum hardware components. On the other hand, the downstream integration and software development are expected to remain centered in Western Europe. Furthermore, the U.S. Census Bureau reveals that in 2024, the imports of specialized scientific instruments registered 12.3% growth. During the same period, the exports of electronic computer components grew by 7.6%. This highlights the positive global trade of quantum AI technologies. Also, the U.S. Bureau of Economic Analysis (BEA) reported a USD 2.4 billion investment inflow toward R&D in quantum-related technologies in 2023. This was mainly due to cross-sector public-private partnerships under federal funding streams.
Quantum AI Market - Growth Drivers and Challenges
Growth Drivers
- Rising demand for high-performance predictive analytics in pharma: The pharma companies are swiftly investing in digital technologies, including quantum AI, owing to their efficiency in optimization, simulation, and machine learning for drug discovery and risk assessment. Big pharma companies in the U.S. and Japan are leading the adoption of quantum AI technologies, due to in these countries, pharma R&D and algorithmic trading are core industries. Quantum AI is expected to offer USD 50.5 billion in annual value in the pharma sector by 2035. Pharma businesses are estimated to invest in hybrid classical-quantum architectures and collaborate with startups offering quantum cloud access to accelerate the time-to-market for innovations. Thus, the pharmaceutical sector is anticipated to lead the sales of quantum AI solutions during the foreseeable period.
- Government-led quantum technology investments: The rising government spending is set to positively influence the market growth in the coming years. The U.S. National Quantum Initiative invests more than USD 1.3 billion across research hubs and private partnerships, while the EU’s Quantum Flagship program has a budget surpassing €1.1 billion through 2030. These initiatives are expected to boost applications of quantum solutions for AI-optimized weather modeling, logistics, and secure communication. Furthermore, Germany and China are estimated to create state-subsidized innovation hubs where startups gain access to cryogenic facilities and qubit development resources. Thus, to capitalize on this trend, businesses are set to align with national research agendas and co-develop technologies with government institutes.
Technological Innovations in the Quantum AI Market
The technological advancements are set to double the revenues of quantum AI manufacturers during the projected period. The swift integration of digital technologies is estimated to propel the demand for quantum AI technologies in large-scale enterprises. The advanced technologies are set to enhance the operational efficiency of quantum AI, contributing to high sales. The table below reveals the current technological trends and their outcomes.
|
Technology Trend |
Industry |
Adoption Example |
Impact/Statistic |
|
Quantum Machine Learning (QML) |
Finance |
Goldman Sachs – Quantum risk models |
Decreased Monte Carlo simulation time by 50.4% |
|
Hybrid Quantum-Classical Models |
Automotive |
Volkswagen – Logistics optimization |
Minimized delivery delay by 25.5% |
|
Quantum Cloud Computing |
Telecom |
Ericsson – Quantum RAN modeling |
Enhanced network efficiency by 14.3% in testbeds |
Sustainability Trends in the Quantum AI Market
The strict regulatory mandates are set to boost the adoption of quantum AI technologies. The sustainable initiatives, including renewable energy and circular economy, are also projected to fuel the demand for quantum AI technologies. The carbon-neutral strategies are further accelerating the sales of quantum AI technologies. The table below reveals the current sustainability strategies and their business impacts.
|
Company |
Sustainability Initiatives |
Goals & Vision (2030) |
Impact on Business |
|
IBM |
39.4% CO₂ emission reduction in 2023; 64.6% of energy from renewables |
Net-zero GHG emissions; 90.4% renewables by 2030 |
Decreased operating costs by 12.3% in 2023 |
|
Google (Sandbox) |
100% renewable energy use since 2017 (wind, solar); zero carbon cooling |
Operate on carbon-free energy 24/7 globally by 2030 |
Energy cost savings of 18.4%, ranked top in the green tech procurement index |
|
D-Wave |
27.9% waste reduction via circular cooling systems |
75.6% waste reuse target by 2030 |
Enhanced investor funding by 16.8% in 2024 |
Challenges
- Data protection and cross-border transfer regulations: The strict data protection regulations are expected to hamper the sales of quantum AI technologies in the years ahead. The regulations, such as the EU’s GDPR and India’s DPDP Act (2023), restrict cross-border data transfers, which are essential for quantum AI. For instance, IBM Corporation states that its quantum AI solution deployment was delayed by 6 months due to compliance issues surrounding data residency in India in 2o22. Thus, such complex regulatory processes add compliance costs and delay time-to-market.
- Infrastructure gaps in emerging markets: The unavailability of advanced infrastructure such as cryogenic cooling, high-speed optical networking, and quantum-safe cloud computing is estimated to lower the profits of key players. According to the International Telecommunication Union’s (ITU) ICT Infrastructure Index, less than 20.3% of ICT facilities in Africa and Southeast Asia met the above-mentioned prerequisites in 2023. The small-scale companies are expected to witness market entries due to low capital investments. Also, limited to no government co-funding incentives are set to led to poor ROI potential in these regions.
Quantum AI Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
30.1% |
|
Base Year Market Size (2024) |
USD 622.1 million |
|
Forecast Year Market Size (2037) |
USD 19.9 billion |
|
Regional Scope |
|
Quantum AI Market Segmentation:
Deployment Segment Analysis
The cloud-based segment is projected to capture 60.1% of the global market share from 2025 to 2037. Scalable infrastructure, reduced upfront investment, and global accessibility are primarily boosting the sales of cloud-based quantum AI solutions. North America and Europe are investing heavily in cloud-integrated quantum systems. The U.S. Department of Energy (DOE) revealed it funded USD 625.5 million through the National Quantum Initiative for public-private R&D cloud collaboration. The government offices are expected to lead the adoption of cloud-based quantum AI solutions.
Application Segment Analysis
The machine learning optimization segment is expected to hold 39.5% of the global market share by 2037. The integration of ML with quantum algorithms offers high performance in financial modeling, logistics, and drug discovery. According to the European High-Performance Computing Joint Undertaking (EuroHPC), the EU invested €1.4 billion in quantum AI initiatives for real-time ML optimization in the aerospace and banking sectors. Furthermore, according to the analysis by the European High-Performance Computing Joint Undertaking (EuroHPC), the EU invested €1 billion in quantum AI initiatives for real-time ML optimization in the aerospace and banking sectors. These initiatives are expected to reduce ML model training times by up to 70.4% and are set to attract large-scale deployments across data-intensive industries.
Our in-depth analysis of the global market includes the following segments:
|
Segment |
Subsegment |
|
Deployment |
|
|
Application |
|
|
Industry Vertical |
|
Vishnu Nair
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Quantum AI Market - Regional Analysis
North America Market Insights
The North America quantum AI market is estimated to account for 40.1% of the global market share through 2037. Massive government spending on ICT and growing demand for AI-enhanced quantum computing are set to propel the market growth. The expansion of secure digital infrastructure is also expected to accelerate the production and commercialization of quantum AI technologies. The ongoing developments in the wireless communication networks are further opening lucrative earning doors for quantum AI producers. Fintech, national defense, pharmaceuticals, and clean energy sectors are expected to lead the sales of quantum AI technologies in the years ahead.
The U.S. is expected to lead the sales of quantum AI solutions owing to the increasing national strategies and defense-sector applications. The Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA) are heavily investing in ICT infrastructure, which is expected to drive innovations in quantum AI technologies. NTIA’s Broadband Equity Access and Deployment Program allocated USD 42.5 billion to boost broadband, which supports the cloud-based Quantum AI ecosystem. Such developments, coupled with public-private investment strategies, are likely to boost the overall market growth in the coming years.
The academic-industry collaboration and clean technology integration are projected to fuel the sales of quantum AI in Canada. The Innovation, Science and Economic Development (ISED) introduced the National Quantum Strategy in 2023, with CAD 360.4 million allocated to accelerate domestic quantum R&D and commercialization. The supportive government policies and schemes are likely to boost the revenues of key players in the years ahead. The quantum AI solutions are also expected to exhibit high application in energy grid optimization and climate prediction models, contributing to the market growth.
Europe Market Insights
The Europe quantum AI market is projected to hold 26.3% of global revenue share by 2037. The strong public-private collaboration and EU-wide digital investment strategies are estimated to fuel the production of quantum AI technologies in the region. The government-led initiatives, including the European Quantum Communication Infrastructure (EuroQCI) and funding under the Horizon Europe program, are also boosting the deployment of quantum AI solutions in defense, healthcare, and automotive sectors. Also, the European Commission allocated more than €1.5 billion between 2023 and 2027 for Quantum AI R&D. Such initiatives are expected to attract international players to invest in the Europe market.
Germany is poised to capture 11.2% of the Europe quantum AI market share throughout the study period. The consistent investments in quantum research, robust digital infrastructure, and a strong industrial base are creating a high-earning environment for quantum AI solution manufacturers. In 2024, the country invested around 8.4% of its ICT budget in quantum AI, representing more than €2.0 billion in funding. Positive spending programs are likely to boost the revenues of quantum AI companies.
The Sweden quantum AI market is projected to expand at a CAGR of 28.9% from 2025 to 2037. The robust digital transformation policies and strategic government support are expected to boost the sales of quantum AI technologies. The Ministry of Enterprise and Innovation invested 6.9% of the country’s ICT budget in quantum AI in 2023. This boosted the adoption of these technologies in healthcare, transport, and defense sectors. Also, the rising public-private partnerships are estimated to propel the innovations in real-time AI-quantum processing systems in the years ahead.
Country-Specific Insights
|
Country |
2023 ICT Budget Allocation to Quantum AI |
2023 Quantum AI Spend (EUR) |
Growth from 2021 |
2037 Projected Share |
|
United Kingdom |
6.5% |
€1.5 billion |
+35.3% |
8.2% |
|
Germany |
8.5% |
€2.0 billion |
+48.5% |
11.2% |
|
France |
6.1% |
€1.4 billion |
+41.3% |
6.9% |
EU-Wide Funding
|
Initiative |
Funding (€ Billion) |
Coverage |
|
European Digital Innovation Hubs (EDIHs) |
€3.6 |
AI & Quantum Research Hubs |
|
Horizon Europe (Quantum Flagship Extension) |
€2.5 |
Member State Quantum R&D |
|
EU Digital Europe Programme |
€7.5 |
Quantum Applications & Testing |
APAC Market Insights
The Asia Pacific quantum AI market is foreseen to increase at a CAGR of 28.1% between 2025 to 2037. The swift rise in the digital transformation agendas is expected to fuel the trade of quantum AI technologies during the study period. The growing ICT budgets are drawing the attention of international players to earn fruitful gains. The public-private collaboration strategies are also fueling innovations in quantum AI technologies. Japan, China, India, and South Korea are some of the most profitable markets for quantum AI producers.
China is expected to lead the sales of quantum AI solutions by capturing more than 42.1% of the Asia Pacific market share. The positive government spending on ICT and the digital sectors is set to accelerate the sales of quantum AI technologies. The country invested more than 25.5 billion in cumulative investments since 2015 under the National Quantum Information Science Research Plan. Around 9.4 million enterprises integrated quantum AI solutions in 2023, fueling the overall market growth. The growing demand for advanced wireless connectivity solutions is also expected to propel the sales of quantum AI technologies in the years ahead.
The India quantum AI market is estimated to register a CAGR of 29.9% throughout the assessed period. The smart city initiatives and digital transformation are expected to fuel the sales of quantum AI technologies. The government, through the National Quantum Mission (NQM) allocated USD 730.3 million over 5 years to support quantum computing, communication, and sensor systems in 2023. In addition, the expanding demand for robust wireless connectivity networks in the metro cities is set to propel the sales of quantum AI technologies in the years ahead.
Country-Specific Insights
|
Country |
2024 Govt Spending on Quantum AI |
% of ICT Budget |
Key Adoption Statistics |
|
Japan |
$1.8 billion (METI, AMED) |
8.3% |
230+ institutions funded for quantum projects |
|
Malaysia |
$410.5 million (MDEC, KKD) |
5.9% |
Adoption doubled from 2013 to 2023 |
|
S. Korea |
$920.3 million (MSIT, NIPA) |
6.5% |
431,000 companies involved in Quantum R&D |
Key Quantum AI Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The key players in the market are employing various organic and inorganic strategies to boost their revenue and reach. Industry giants are mainly focusing on research and development activities to introduce innovative solutions. they are also entering into strategic partnerships with other players to increase their audience base. Collaborations with raw material suppliers are expected to offer positive production and sales growth to the key players. Gigantic companies are targeting emerging markets to earn high gains from untapped opportunities.
Here is a list of key players operating in the global market:
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
IBM Corporation |
USA |
14.5% |
|
Google LLC (Alphabet Inc.) |
USA |
13.8% |
|
Microsoft Corporation |
USA |
11.6% |
|
Intel Corporation |
USA |
8.9% |
|
Amazon Web Services (AWS) |
USA |
8.0% |
|
Honeywell Quantum Solutions |
USA |
xx% |
|
D-Wave Systems Inc. |
Canada |
xx% |
|
Alibaba Group (DAMO Academy) |
China |
xx% |
|
Baidu Inc. |
China |
xx% |
|
Atos SE |
France |
xx% |
|
Rigetti Computing |
USA |
xx% |
|
IQM Quantum Computers |
Finland |
xx% |
|
Xanadu Quantum Technologies Inc. |
Canada |
xx% |
|
Q-Ctrl |
Australia |
xx% |
|
Samsung Electronics Quantum Division |
South Korea |
xx% |
Below are the areas covered for each company in the market:
Recent Developments
- In April 2024, Google LLC launched OpenFermion 2.0, an upgraded open-source library for quantum simulation of molecules using AI-optimized quantum circuits. This introduction rose GitHub usage metrics by 150.3% within three weeks.
- In February 2024, IBM Corporation revealed the launch of its Quantum System Two, featuring the 133-qubit Heron processor. This product contributed to a 9.5% YoY revenue growth in Q1’24.
Author Credits: Abhishek Verma
- Report ID: 7828
- Published Date: Jun 27, 2025
- Report Format: PDF, PPT
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