Omdia predicts 2025 will see a strong upswing in global quantum computing vendor revenue

Rhea-AI Summary

Quantum Computing (QC) market is expected to experience significant growth in 2025, according to Omdia's analysis. Despite having over 300 vendors, the market remains nascent with revenue primarily from experimental usage. Omdia predicts a shift from experimentation to operational implementation starting 2025, marking a important turning point in vendor revenue growth.

The report highlights four key trends for 2025: transition from experimental to production use, acceleration in neutral atom qubit innovation, emergence of additional QC app stores following IBM's September 2024 launch, and increased vendor consolidation. While achieving full 'quantum advantage' remains a long-term goal, Omdia anticipates growing adoption across various applications before reaching large-scale, fault-tolerant quantum computing capabilities.

Positive

• Expected significant revenue growth starting 2025
• Transition from experimental to operational implementation
• Growing adoption across multiple applications and use cases
• Acceleration in neutral atom qubit innovation
• Expansion of quantum computing app store ecosystem

Negative

• Market consolidation among 300+ vendors expected to accelerate
• Large-scale quantum computing still years away from realization
• Declining formation of new QC startups

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LONDON, Dec. 11, 2024 /PRNewswire/ -- Despite comprising over 300 vendors the QC market is at a nascent stage of market development. The reality is that essentially all vendor revenue to date comes from customers who are experimenting with QC technology – not using it for operational purposes. However, Omdia believes that 2025 will mark an important shift upwards in the trajectory of QC vendor revenue growth, partially because of a shift from experimentation to operation.

Reaching "quantum advantage" will be an on-going, years-long process and large-scale (i.e., thousands of logical qubits), fully fault tolerant QCs likely won't be available before the middle of the next decade. Nevertheless, well before that stage of technology development is reached, a growing number of adopters in a growing number of applications and use cases will see a tangible economic benefit from QC or even become able to perform computations that are intractable for classical computers.

Sam Lucero, Chief Analyst for Quantum Computing at Omdia, said "As this process unfolds, we'll gain more clarity on which qubit modalities are best suited to scale up and leverage quantum error correction (QEC). And perhaps, eventually, we'll find that entirely new qubit modalities will be invented."

However, as a cautionary note, the current 300-strong vendor landscape will undoubtedly consolidate over time; this process has already begun, and 2025 will likely see an acceleration of this trend.

Omdia recently published its 2025 Trends to Watch in Quantum Computing report, which assesses four key trends that will become prominent over the course of 2025:

• The start of a shift from experiments to production: Currently, nearly all use of QC technology is for experimentation – that is, to learn about QC technology. Starting in 2025, however, an increasing number of adopters will use QC technology for operational or production purposes.
• Neutral atom qubit innovation will accelerate: Several neutral atom qubit-based vendors achieved impressive technological milestones in 2024, engendering key strategic partnerships with key technology giants. Expect the pace of innovation with the neutral atom qubit modality to speed up in 2025.
• Additional app stores will appear in the market: IBM launched a QC "app store" in September 2024. While only six Functions exist in the Catalog at launch, the app store model will enable faster innovation cycles and more turnkey adoption. It will likely be copied by other vendors in 2025.
• Increasing vendor consolidation in the market: While investment in QC vendors resumed growth in 2024, the formation of new QC startups did not. The inevitable process of vendor consolidation in the 300-vendor strong QC market has begun.

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

Contact

Fasiha Khan- fasiha.khan@omdia.com

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SOURCE Omdia

FAQ

When will quantum computing shift from experimental to operational use?

According to Omdia, 2025 will mark the beginning of a shift from experimental to operational use of quantum computing technology.

What are the key quantum computing trends predicted for 2025?

Omdia identifies four key trends: shift to production use, acceleration in neutral atom qubit innovation, emergence of new app stores, and increased vendor consolidation.

How many quantum computing vendors currently exist in the market?

The quantum computing market currently comprises over 300 vendors, though consolidation is expected to accelerate in 2025.

When did IBM launch its quantum computing app store?

IBM launched its quantum computing app store in September 2024, with six Functions available at launch.

When will large-scale fault-tolerant quantum computers become available?

According to the report, large-scale fault-tolerant quantum computers with thousands of logical qubits likely won't be available before the mid-2030s.