The market for Quantum Optics was worth USD 710.2 billion in 2021 and is expected to reach USD 2.7 billion by the end of 2027 and is expected to grow with a CAGR of 16.3% over the forecast period. The global quantum optics market is being driven by an increase in demand for high-speed internet connectivity, the expansion of app-based solutions in personal and professional services, and the demand for a more effective and enhanced alternative to existing technology.
Besides computing, quantum technology substantially enhances digital communications, applications, and the commerce landscape. The quantum optics market is primarily driven by an exponential growth in the number of internet users in the past few years. This has resulted in creating a demand for high-speed internet connectivity as people are switching to application-based personal and professional solutions. Quantum technology is gaining pace in the banking and finance services business, which is focused on accelerating trade operations, transactions, and data processing. Simulation of operations is one of quantum computing's most promising applications. Quantum computing aids in the discovery of a more effective and economical method of managing activities. The processing time and the costs of high-quality solutions can be reduced significantly by the use of quantum technologies.
The quantum optics technologies will act as a major factor in the innovation and development of sensing and instrumentation devices. For example, Quantum electromagnetic sensing allows for the detection of minute variations in the electromagnetic field. This will have a wide range of uses, including in the medical field, where quantum electromagnetic sensing will allow for substantially enhanced mapping of essential organs. Quantum sensing will also find use in a variety of other areas, including transportation and medical usage. Governments across the world are quite interested in quantum technology and making investments for creating a robust IT and Telecom sector which would subsequently create a demand for high internet speed connectivity thus driving the growth of the market. However, the high capital investment involved in manufacturing the quantum devices and the design complexity associated with them are expected to restrain the market growth.
As per the International Telecommunication Union, 70% of the total young population globally uses the internet, while 90% of the total young population in developed countries have access to the internet. As a result, mobile broadband connections increased annually and grew by more than 20% over the last six years, reaching 4.3 billion by the end of 2017. The low cost of mobile broadband services was a major factor in their widespread adoption. The rapid adoption of digital services due to the pandemic, increased spending of government and enterprises to develop a robust telecom infrastructure and the availability of affordable mobile have propelled the demand for high-speed internet connectivity. This is expected to influence the market and in turn, drive the growth of the Quantum Optics market.
Quantum Optics is a very specialized field. The design and manufacturing of quantum optics-related devices are fairly complex. It requires huge research and development setup, highly skilled workers, and special equipment for manufacturing and hence attracts lees enterprises and manufacturers to this sector. Also, the initial cost for setup and installation is high which is acting as a major restraint to the market growth.
In the global quantum optics market, the silicon photonics sector contributed the maximum to the market share and generated major revenue. It is anticipated to remain dominant over the predicted period due to the ease of manufacturing and the ability to integrate numerous functionalities in a single chip. During the forecast period, the Indium Phosphide material is also used by manufacturers as it is cost-effective and can be used for mass production of high yield semiconductor chips thus driving the quantum optics market growth.
The market for quantum optics technologies will be a major enabler of significantly enhanced sensing and instrumentation. For instance, Quantum optics have remarkably improved the precision of gravity sensors. Quantum electromagnetic sensing allows for the detection of minute variations in the electromagnetic field. This will have a wide range of uses, including in the medical field, where quantum electromagnetic sensing will allow for substantially enhanced mapping of essential organs. AI-driven mechanical lidar sensors offer hardware and software solutions like real-time analysis for people counting, object detection, classification, and tracking. It has applications in mapping, smart cities, and industrial automation, including transportation, where it has the potential to significantly improve safety, particularly for self-driving vehicles.
Among these, the optical fiber communication segment dominated the market and is expected to continue its dominance in the coming years. Optical sensors are another promising device used in this sector. It is deployed in a variety of fields including defense, aerospace, energy, transportation, medicine, and others owing to its varied application in different industries the Quantum sensor market will grow from USD 400 million in 2019 to USD 545 million in 2030. The quantum computing hardware market is also poised to propel market growth. The market was valued at $30M in 2020 and is expected to reach $650M by 2030.
Based on geography, North America dominates the Quantum optics market due to the rising usage of PIC-based products, primarily in data centers and WAN applications of optical fiber communication. Moreover, the region's quantum optics circuits market will continue to grow at a faster rate during the projected period owing to the presence of major telecom companies and robust internet infrastructure.
The European market will also play a vital role in the growth of the market due to the increasing demand for compact optical communication devices which would eventually boost the market.
The Asia Pacific region is expected to have a stellar CAGR during the forecast period owing to growth in internet users, advanced IT infrastructure systems, and the presence of the highest number of manufacturers in regions like India, China, and Japan thus are boosting the market.
Quantum Optics Market Share by Company
Some of the prominent players in the market are TE Connectivity, Intel Corporation, Emcore Corporation, Aifotec AG, Ciena Corporation, Hewlett-Packard Development Company Finisar Corporation, Infinera Corporation, Oclaro Inc., Luxtera, Inc., and Nanophotonics Corporation among others. The latest technological advancements and the presence of so many key market players have made the market fairly competitive. To expand their market reach and maintain their market position, these companies have used a variety of growth tactics such as mergers, acquisitions, collaborations, and partnerships. With the increased demand for integrated quantum optical circuits in the worldwide market, key participants in the integrated quantum optical circuits market are expected to benefit from lucrative growth prospects in the future.
NOTABLE HAPPENINGS IN THE QUANTUM OPTICS MARKET
Partnership- In January 2020, IBM partnered with Daimler AG, to improve the capacity and charging speed of electric vehicle batteries. These organizations employed a quantum computer to model the dipole moment of three lithium-containing molecules, paving the way for the development of Li-S batteries, which will be more efficient, long-lasting, and cost-effective than lithium-ion batteries.
Collaboration- IBM and the Unitary Fund collaborated in November 2019 to give grants and priority access to certain IBM Q systems. The Unitary Fund, following IBM's quantum computing vision, wants to build a quantum technology business that serves the general public.
Product Launch- Xanadu developed the world's first cloud-based photonics-based quantum computing platform. Photonics-based systems utilize light as opposed to conventional superconductors. It also received funding of USD 45 million dollars from DARPA.
Product Launch- In 2021, QCI launched Qatalyst, a cloud-based quantum computing platform. Qatalyst enables enterprises to use cloud-based resources from other companies. It has collaborated with Microsoft Azure to provide commercial cloud access to QCI's distinctive quantum features for customers using Azure.
COVD-19 Impact on Quantum Optics Market
The COVID-19 pandemic had a catastrophic effect on the world economy and wreaked havoc on most businesses, particularly the electronics manufacturing sector. The key manufacturing sectors were forced to halt operations because of the pandemic-related lockdown. The restriction created a supply chain crisis during the pandemic as there was a shortage of labor, and raw materials and the localized shutdown of a few production plants decelerated the overall market growth. However, due to the relaxation of restrictions and the resumption of R&D and production operations, the market is likely to bounce back and gain speed in the future years. The lockdown also necessitated the companies to adopt to work from home for the safety of employees and there was a rapid adoption of digital services for professional and personal use. This growth of internet users and the need for high-speed connectivity is going to contribute to the market's upward trend in the coming years.
Chapter 1. Global Quantum Optics Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Global Quantum Optics Market – Executive Summary
2.1. Market Size & Forecast – (2022 – 2027) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2022 - 2027
2.3.2. Impact on Supply – Demand
Chapter 3. Global Quantum Optics Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. Global Quantum Optics Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porters Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Global Quantum Optics Market - Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Global Quantum Optics Market – By Material Type
6.1. Indium Phosphide
6.2. Silica Glass
6.3. Silicon Photonics
6.4. Lithium Niobate
6.5. Gallium Arsenide
Chapter 7. Global Quantum Optics Market – By-Products
7.1. Light Sources
Chapter 8. Global Quantum Optics Market – By Application
8.1. Optical Fiber Communication
8.2. Optical Sensors
8.4. Quantum Computing
Chapter 9. Global Conductive Inks Market - By Region
9.1. North America
9.3. Asia Pacific
Chapter 10. Global Quantum Optics Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)
10.1. Company 1
10.2. Company 2
10.3. Company 3
10.4. Company 4
10.5 Company 5
10.6. Company 6
10.7. Company 7
10.8. Company 8
10.9. Company 9
10.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.