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Quantum computing

Quantum information processing is slowly becoming a reality, ushering in a new technological era.

Overview

Quantum computing is the use of quantum mechanics to store and process information millions of times faster than a classical computer. The technologies currently used in building and operating quantum computers are largely still nascent, which makes them error prone and difficult to scale, but full of enormous potential. Current quantum systems are used to solve complex problems for corporations, and real-world application in areas such as chemistry and drug development are expected to take place in the coming two to five years.

As quantum computing technology matures, commercial opportunities for quantum computers are likely to grow exponentially, even though a general-purpose quantum computer suitable for wide-scale commercialization is expected to be available in the 2030s.

What's driving this industry?
Market Sizing

Global cumulative addressable market size estimated at USD 67.2 billion over 2021-25

View details

COVID-19 IMPACT

Covid-19 Impact: Short-Term 

  • - - Difficulty finding new enterprise users and attracting private investments

  • - - Delays and increased cost in hardware research due to difficulties in procuring components

  • ++ Government investment unaffected due to the significance of quantum technology to national security

  • ++ Low impact on software research as cloud services help overcome lockdown restrictions

Market Mapping

Quantum computing companies can be categorized into six segments, with the highest number of startups located in the software applications category. While the most highly funded startups operate as end-to-end providers or specialize in developing quantum computing hardware, a growing number of smaller companies have entered the software space in recent years—inflating the size of this segment. Startups face competition from big tech incumbents, the majority of which operate as end-to-end providers that develop both quantum hardware and software. Overall, most startups in this industry are still at the seed stage with only a quarter having reached the early stage size.

Incumbents
Growth
Early
Seed
Pre-Seed
End-to-End Providers
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Hardware: Processors
?
Hardware: Components and Enablers
?
System Software
?
Software Applications
?
Cloud Computing Platforms
?
Technologies
Technologies
Technologies
Technologies
Technologies
Technologies
Google
IBM
Microsoft
Honeywell
Amazon
Alibaba
Quantinuum
D-Wave Systems
Rigetti Computing
Xanadu
Quantum Circuits
Intel
Atos Origin
IonQ
PsiQuantum
Atom Computing
ColdQuanta
SeeQC
Pasqal
Universal Quantum
Quantum Brilliance
InfinityQ Technology
Alice & Bob
BraneCell Systems
Bleximo
Oxford Quantum Circuits
QuiX
Alpine Quantum Technologies GmbH
Silicon Quantum Computing
IQM
Quantum Machines
M Squared Lasers
ColdQuanta
SeeQC
Quandela
Quantum Motion Technologies
Qnami
QphoX
Anametric
AuroraQ
Quantum Machines
Cambridge Quantum Computing
Zapata Computing
Q-CTRL
Riverlane
Strangeworks
Aliro Technologies
Baidu
Cambridge Quantum Computing
Zapata Computing
QC Ware
1QBit
Classiq
Phasecraft
Quantum Computing Inc.
QSimulate
ProteinQure
Menten AI
Qindom Inc.
Bleximo
QbitLogic
Qu & Co
Multiverse Computing
Baidu
IonQ
QC Ware
1QBit
Strangeworks
Oxford Quantum Circuits
Alpine Quantum Technologies GmbH

The Disruptors

Technological uncertainty levels the playing field

The development of viable quantum computers requires trial and error of different technologies. While large incumbents are less likely to experiment with multiple technologies, startups have an important role in accelerating innovation.

The uncertainty around quantum hardware technology levels the playing field for all existing and new players in the industry. This is evident in the case of PsiQuantum, a relatively unknown startup which attracted the three largest investments in the history of quantum computing during 2019–2021, to prove the viability of the ‘photonic approach’ in building quantum computers. In addition, companies with different approaches do not necessarily directly compete with each other.

End-to-End Providers

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Disruptors

?
Funding in USD Millions
Quantinuum
270
D-Wave Systems
256
Rigetti Computing
198
Xanadu
136
Quantum Circuits
18

Hardware: Processors

?

Disruptors

?
Funding in USD Millions
IonQ
Public - Market cap USD 2.3 bn
PsiQuantum
665
ColdQuanta
72
SeeQC
38
Pasqal
30
Quantum Brilliance
11
InfinityQ Technology
5
Oxford Quantum Circuits
Unknown
Silicon Quantum Computing
Unknown
Watchlist
?
Atom Computing
Universal Quantum
Alice & Bob
BraneCell Systems
Bleximo
QuiX
Alpine Quantum Technologies GmbH

Hardware: Components and Enablers

?

Disruptors

?
Funding in USD Millions
IQM
82
Quantum Machines
73
ColdQuanta
72
SeeQC
38
M Squared Lasers
24
Qnami
7
Watchlist
?
Quandela
Quantum Motion Technologies
QphoX
Anametric
AuroraQ

System Software

?

Disruptors

?
Funding in USD Millions
Quantum Machines
73
Cambridge Quantum Computing
73
Zapata Computing
67
Q-CTRL
43
Riverlane
24
Watchlist
?
Strangeworks
Aliro Technologies

Software Applications

?

Disruptors

?
Funding in USD Millions
Quantum Computing Inc.
Public - Market cap USD 71.1 mn
Cambridge Quantum Computing
73
Zapata Computing
67
QC Ware
40
1QBit
36
Classiq
16
Phasecraft
11
Watchlist
?
Multiverse Computing
QSimulate
ProteinQure
Menten AI
Qindom Inc.
Bleximo
QbitLogic
Qu & Co

Cloud Computing Platforms

?

Disruptors

?
Funding in USD Millions
IonQ
Public - Market cap USD 2.3 bn
QC Ware
40
1QBit
36
Oxford Quantum Circuits
Unknown
Watchlist
?
Strangeworks
Alpine Quantum Technologies GmbH

Quantinuum

Quantinuum is a full-stack quantum computing company formed in November 2021, via a merger, to leverage the hardware capabilities of Honeywell Quantum Solutions (HQS)—the quantum unit of Honeywell International—and the software expertise of Cambridge Quantum Computing (CQC).

It offers quantum solutions in areas including cyber security and encryption, drug discovery and delivery, finance, and material science. All of Quantinuum’s products will be compatible with many quantum technologies including trapped ions (H1 computers) and superconducting qubits (IBM). 

CQC brings to the table its quantum software expertise with industry breakthroughs such as the implementation of quantum algorithms to calculate the excited states of molecules and the successful testing of natural language processing on a quantum computer for the first time (April 2020). Quantinuum also offers CQC’s open-source hardware-agnostic software development kit (SDK) TKET. 

Quantinuum’s H1 generation of trapped-ion quantum computers—H1-1 and H1-2—that are powered by Honeywell, are commercially available on the cloud and the 10-qubit H1 system is reportedly the first quantum computer to reach a quantum volume benchmark of 1,024. 

The company, in December 2021, introduced “Quantum Origin,” a quantum-enhanced cryptographic key generation platform. It is reportedly the world’s first commercial product to be built by a quantum computer. It will be initially offered to financial services companies and cybersecurity product vendors before being rolled out to high-priority sectors like telecommunication, defense, and government. The product was integrated into the Strangeworks ecosystem in January 2022, providing access to Strangeworks and its customers. Quantinuum also plans to launch a quantum chemistry product in 2022. 

The company secured an investment between USD 270 million and USD 300 million from Honeywell International for a stake of 54% and a long-term agreement to supply ion traps for HQS systems. It also announced plans to go public within the next 12 months, while considering other avenues of raising cash, such as a special purpose acquisition company (SPAC) listing to fund its quantum computing milestones.

Segment:
End-to-End Providers
Total funding:
USD 270.0 million
Disruptor Funding History

End-to-End Providers:

Quantinuum
D-Wave Systems
Rigetti Computing
Xanadu
Quantum Circuits

Hardware: Processors:

IonQ
PsiQuantum
ColdQuanta
SeeQC
Pasqal
Quantum Brilliance
InfinityQ Technology
Atom Computing
Universal Quantum
Alice & Bob
BraneCell Systems
Bleximo

Hardware: Components and Enablers:

The Incumbents

Uncertainty Around Technology Puts Tech Giants’ Edge at Risk

Large tech companies became more actively involved in quantum computing after the launch of D-Wave’s quantum annealers in 2011. Almost all the incumbents operate across the stack (hardware and software), with the objective of building an in-house general purpose (universal) quantum computer. This could mean that the incumbents are all eyeing the long-term large-scale revenue opportunities that universal quantum computers offer. Industry experts also argue there is no theoretical proof that quantum annealers can offer a major advantage over classical computers.

While incumbents have a few obvious advantages (e.g. access to large investments and the availability of a supporting ecosystem and faster access to users) over startups, uncertainty around qubit design technology puts tech giants' edge at risk. It is possible that a startup with no such advantages could prove the viability of quantum computers with a newer technology. That said, many of the biggest advancements in today’s quantum technology have come from leading incumbents, in particular from Google and IBM.

The uncertainty around the technology has also elevated the need for partnerships across companies, mainly for software solutions. Microsoft and Amazon (AWS) have partnered up with companies that work on various quantum hardware technologies that allow users to run programs in any back-end technology.

Research commencement

In-house

company-logo-0Google
2006
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company-logo-1IBM
1996
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company-logo-2Intel
2015
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company-logo-3Microsoft
2005
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company-logo-4Honeywell
2014
check
company-logo-5Amazon
2019
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company-logo-6Baidu
2018
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company-logo-7Alibaba
2015
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company-logo-8Atos Origin
2015
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Google

Google’s quantum research began in 2006 with a focus on using quantum computing to accelerate machine learning. The project expanded in 2013 with the introduction of the Google AI lab, partnering with NASA and the Universities Space Research Association. Initial research was based on D-Wave’s annealing computer, which Google purchased in a multi-year collaboration that requires D-Wave to supply all new models to Google’s lab. Google states purchasing D-Wave’s computers ensures that the company has access to commercially available latest chips. Google builds its own hardware and software in its lab to help develop future innovations, including AI. Unofficial sources claim Google has a second secretive quantum computing team at ‘lab X’ that focuses mainly on quantum software.

Google’s approach to quantum computing is centered entirely on superconducting qubits, which the company believes can provide greater opportunities to scale up, owing to their basis in its existing semiconductor architecture. It has also been partnering with other quantum startups (e.g. Zapata), enterprises (Volkswagen, NTT), universities (UC Santa Barbara) and global research organizations (Forschungszentrum Jülich) for joint research on quantum computing.

Google is currently the strongest player in quantum computing hardware. Google was the first and only company to have claimed quantum supremacy—i.e. proving that a quantum computer can carry out computations that today’s classical computers cannot perform—on its 53-qubit computer, which was later refuted by IBM. Google nevertheless developed an even more powerful, 72-qubit quantum computer chip, announced in 2018, recording the most qubits in a universal quantum computer in the world. However, Google is heavily dependent on superconducting technology, which has a few disadvantages when it comes to emerging technologies. The company could find itself at a considerable disadvantage if another qubit technology prevails over superconducting technology in the future.

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
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