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Quantum Computing Market: Influential Factors Determining the Trajectory of the Market

Quantum computing make use of significant subatomic particle capability to be present in more than one state at any given point of time. Due to the peculiar behavior of these particles, processing can be done in a faster manner and with minimal power requirement than traditional computers. Traditional computers encode information in bits with the values 1 or 0.

These values act as on/off switches that eventually drive computer functions. On the other hand, quantum computing uses quantum bits i.e. qubit. However, they can store more information than 1s or 0s. It works on the two very important principles of quantum physics i.e. entanglement and superposition. When each qubit can represent both a 1 and a 0 at the same time, it is known as superposition.

Furthermore, if the state of one bit (whether it is a 0 or a 1) can depend on the state of another bit, it is known as entanglement. Quantum computers are significantly powerful and processes information in a novel way.

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Increasing cybercrimes across the globe and growing implementation of quantum computing technology across the banking & finance, defense, pharmaceuticals, chemicals, and healthcare markets is expected to drive the global quantum computing market. Governments of various countries are investing in quantum computing technology to expand their knowledge base related to quantum computing technologies.

The increasing government investment to develop quantum computing solutions is projected to support the growth of the global quantum computing market. For instance, the European Commission plans to launch a US$ 1.1 billion initiative in 2018 on quantum technologies. This will help Europe to be at the forefront of the second quantum revolution.

Furthermore, in 2017, Chinese e-commerce giant Alibaba disclosed that it is planning a US$ 15 billion investment in R&D projects. This investment is part of the company’s DAMO (Discovery, Adventure, Momentum, and Outlook) Academy, and will include the opening of new labs, to be located in different places such as Singapore, Moscow, Seattle, China, and California.

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Shortage of desired skillsets for quantum computing can hamper the growth of this market globally. However, with rising government investment and intervention, quantum computing is expected to overcome this restraint. For instance, the New South Wales (NSW) government announced funds of US$ 26 million for the development of quantum computing and this is anticipated to help NSW become a global hub for innovative training in the field of quantum computing.

The quantum computing market can be segmented based on components, end-use industry, and regions. On the basis of component, the market can be segmented into hardware, software, and services. In terms of end-use industry, the market can be segmented into banking & finance, defense, pharmaceuticals, chemicals, and others.

Geographically, the quantum computing market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America and Europe are expected to lead due to the growing government investment in the field of quantum computing. However, the market in Asia Pacific is expected to expand at a significant pace due to the increasing research and development activities across emerging economies such as China, India, and Japan.

Some of the key players in the quantum computing market are IBM Corporation, D-Wave Systems Inc., Booz Allen Hamilton Inc., Hewlett Packard Enterprise Development LP, Toshiba Research Europe Ltd., QbitLogic, Alibaba Group Holding Limited, SPARROW QUANTUM, Qubitekk, Inc., Tokyo Quantum Computing, Cambridge Quantum Computing Ltd, Anyon Systems Inc., 1QB Information Technologies Inc., Rigetti & Co, Inc., and more

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