Cloud-Based Quantum Machine Learning Market Size (2023 – 2030)

The Global Cloud Quantum Machine Learning Market was valued at USD 360 million and is projected to reach a market size of USD 2145.77 million by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 25%. 

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Cloud-based quantum computing software is a new and innovative way for businesses to take advantage of quantum computing's massive processing power. Because quantum computers can handle enormous volumes of data very fast, they are ideal for sophisticated mathematical computations and data processing. This notion has already been investigated, and the proof of algorithms based on quantum machine learning was concluded. Currently, piqued curiosity and extensive research work towards experimentation have been helping the market progress. In future, this will be very beneficial towards understanding new concepts of various end-user industries which include climate modelling, material discovery, traffic analysis, etc.

Key Market Insights:

• Investments in cloud-based quantum machine learning systems and technology businesses set a new high limit in 2021, topping around $1.5 billion in capital.

• According to industry surveys in 2021, around 25% of big firms were actively researching or experimenting with quantum computing technology.

• Government funding in cloud-based quantum machine learning applications technology have surpassed $10 billion by 2021, to enhance quantum computing, communication, and applications.

• A recent report estimates that quantum computing technology will reach $1 trillion in global market value by 2030.

• One major restraint is error correction which is faced by most of the end user industries with the main being BFSI and pharmaceutical. To tackle this, research and developmental activities related to correction codes, quantum approaches, and the development of cloud-based quantum machine learning software are being given priority.

Cloud-Based Quantum Machine Learning Market Drivers:

The rising adoption of cloud-based quantum machine learning technology is fueling the market expansion

CQML usage is extremely beneficial for many reasons. They are used for testing algorithms. The results obtained are very accurate and efficient. Secondly, they offer solutions to solve complex problems as well as derivations in subjects like mathematics, physics, and computer science. This is not possible with a normal computer. They reduce the time taken by significant amounts. They are extremely beneficial for data analysis, simulation problems, optimization problems, and other machine learning-related tasks. This makes them a very popular choice to be used in various end-user industries which include information technology, banking & finance, pharmaceutical, retail, and for research purposes. Companies are ready to invest in new technology to aid human life and accelerate the time process.

Advancements in the technology help in boosting the market growth

More than 40% of the population is interested in pursuing a career in the computer science field. With so many plethora of options and diversity, the 21^st century has seen some remarkable milestones in this field. Extensive research is carried out to broaden human facts and make lives easier. Google said in 2019 that its 53-qubit quantum computer could do a computation that would take traditional computers 10,000 years. The researchers reported in the journal Nature that they solved a random number sampling challenge by performing a predetermined sequence of procedures that entangles 53 qubits into a quantum state. Top multinational companies like IBM and Amazon are in the process of building quantum computers and cloud-based quantum machine learning software to increase computational power. Moreover, there have been tremendous improvements in error correction building reliable and precise cloud-based quantum machine learning systems.

Cloud-Based Quantum Machine Learning Market Restraints and Challenges:

Technical challenges, investments, data privacy, and environmental problems are the major issues which are currently being faced by the market

Technical complexity is one of the biggest barriers in this market. Algorithms errors, limited qubit counts, maintaining the quantum state, and qubit stability are the top concerns. Secondly, the investments are very expensive since this is an emerging technology. Along with the initial costs, maintenance and repair require a lot of funding which can be a hindrance for companies. Thirdly, data security can be mishandled and misused causing a lot of threats to the organization and the country. Furthermore, cooling systems consume a lot of energy creating deficits and therefore an environmental issue.

Cloud-Based Quantum Machine Learning Market Opportunities:

Cryogenic engineering is providing the market with an ample number of opportunities. Scientists can minimize thermal noise by storing qubits in cryogenic chambers, allowing for longer coherence durations and more precise computations. Aside from that, certain types of qubits are highly sensitive to cryogenic temperatures. Secondly, the integration of computer-aided techniques and ML has revolutionized the field of drug discovery, making it more efficient and cost-effective. Advancements in quantum networking have been a boon to the market. Quantum networks allow information in the form of quantum bits, also known as qubits, to be sent between physically distant quantum computers. Furthermore, many MNCs are undertaking research projects on cloud-based quantum machine learning systems, cloud-based quantum machine learning services, and cloud-based quantum machine learning solutions.

CLOUD-BASED QUANTUM MACHINE LEARNING MARKET REPORT COVERAGE:

Cloud-Based Quantum Machine Learning Market Segmentation: By Deployment Mode

• Public Cloud

• Private Cloud

• Hybrid Cloud

Based on deployment mode, the public cloud was the largest and the fastest growing segment in this market. This is due to a broader reach, accessibility, cost-effectiveness, security, reliability, scalability, and availability of software development kits, algorithms, and other development tools essential for functioning. These reasons make it a popular choice to be used amongst large companies and firms. They hold a total share of around 65% in this market.

Cloud-Based Quantum Machine Learning Market Segmentation: By Organization Size

• Large scale enterprise

• Small and Medium-scale enterprises (SMEs)

Based on organization size, large-scale enterprises were the largest growing in this market. This is due to their development, enormous investments, contacts, dedicated teams, technology, space, strategies, and partnerships. They hold a total share of around 65%. However, small and medium-scale enterprises are the fastest growing with a share of approximately 35%. This is due to the rising involvement of the Government, cost-effective options, easier accessibility, niche applications, flexibility, rapid development, and tie-ups or collaborations with well-known organizations.

Cloud-Based Quantum Machine Learning Market Segmentation: By End-User

• Banking, Financial Services and Insurance (BFSI)

• Healthcare

• Energy

• Information Technology

• Academic and Research Institutes

• Defence

• Aerospace

• Others

Based on end-users, Banking, Financial Services and Insurance (BFSI) is the largest growing segment in this market. This is because Quantum computers will allow banks to enhance their loan underwriting models, quantify loan prepayment and default risks more precisely, and analyze more data inputs in their marketing models. Applications of data and risk analysis, fraud detection, portfolio optimization, etc. Furthermore, it is used for market research purposes as well. They hold a share of around 27%. The healthcare sector is the fastest growing with a share of around 18%. Cloud-based quantum machine learning applications include drug discovery, medical research, and healthcare analytics. Quantum computing technology is beneficial in healthcare to detect the early onset of cancer, improve surgical accuracy, and diagnose certain illnesses.

Cloud-Based Quantum Machine Learning Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Based on region, North America is the largest growing. They control almost 40% of the market. The United States and Canada are the two most powerful countries. Interest, the existence of key players, R&D expertise, a developed economy, funds, and an advanced quantum ecosystem are some of the factors contributing to the market success.  Asia Pacific region is one of the fastest growing, accounting for around 21% of the total market share. This is because of the developing economy, technical improvements, the presence of major companies, increased research activities, investments, and Governmental schemes. China, Japan, Australia, and India are at the forefront of this trend.

COVID-19 Impact Analysis on the Global Cloud-Based Quantum Machine Learning Market:

The outbreak of the virus had a positive impact on the market. With the immense need for vaccines, an upsurge in R&D activities was seen especially in the healthcare sector. Despite the economic slowdown, Governmental bodies and top personalities were investing to advance in this technology. With data, being the new oil, protection and security became very important. Quantum-safe encryption solutions were vital for this reason. A shift was observed by going digital. Remote working helped in advancements of cloud-based quantum machine learning applications such as epidemiological modelling and drug science. Virtual workshops, meetings, and conferences helped many scientists and enthusiasts to participate and come up with innovative ideas for progress in this field. Due to an increased interest during the pandemic, experts have estimated that quantum computing could exceed USD 1 billion by 2025.

Latest Trends/ Developments:

Companies in this industry are motivated to increase their market share by various tactics such as acquisitions, partnerships, and investments. Companies are also investing a lot of money in developing cutting-edge technologies and tools while keeping competitive pricing. This has led to increasing government involvement and subsequent expansion.

Recent trends include the implementation of more cloud-based quantum machine learning solutions, offerings, and algorithms, and the development of quantum libraries for human advancement. End-user industries like IT, life sciences, corporate banking, and other sectors have increased their R&D activities as well as investments. Prestigious universities are offering educational services for younger minds. Companies are creating online platforms to spread knowledge and providing certification courses to uplift this technology.

Key Players:

1. IBM

2. Google

3. Amazon Web Services (AWS)

4. Microsoft

5. Honeywell

6. Rigetti Computing

7. IonQ

8. D-Wave Systems

9. Alibaba Cloud

10. Intel

In April 2023, Moderna and IBM announced a partnership to leverage novel technologies, such as artificial intelligence (AI) and quantum computing, to accelerate messenger RNA (mRNA) research.

In June 2022, Atos and OVHcloud, the European leader in cloud computing, announced a partnership in the field of quantum computing to make Atos’ quantum emulator available as a service through OVHcloud offers. This European premiere will make quantum emulation technologies more accessible, thereby expanding the quantum technologies’ ecosystem.