Insight must precede application. ~ Max Planck, Father of Quantum Physics
Quantum computing is no ordinary technology. It has attracted huge interest at the national level with funding from governments. Today, some of the biggest technology giants are working on the technology, investing substantial sums into research and development and collaborating with state agencies and corporates for various projects across industries.
Heres an overview of quantum computing as well as the players exploring this revolutionary technology, and ways to invest in it.
Understanding Quantum Computing
Lets begin with understanding quantum computing. While standard computers are built on classical bits, every quantum computer has a qubit or quantum bit as its building block. Thus, unlike a classical computer where information is stored as binary 0 or 1 using bits, a quantum computer harnesses the unique ability of subatomic participles in the form of a qubit which can exist in superposition of 0 and 1 at the same time.As a result, quantum computers can achieve higher information density and handle very complex operations at speeds exponentially higher than conventional computers while consuming much lessenergy.
It is believed that quantum computing will have a huge impact on areas such as logistics, military affairs, pharmaceuticals (drug design and discovery), aerospace (designing), utilities (nuclear fusion), financial modeling, chemicals (polymer design), Artificial Intelligence (AI), cybersecurity, fault detection, Big Data, and capital goods, especially digital manufacturing. The productivity gains by end users of quantum computing, in the form of both cost savings and revenue opportunities, are expected to surpass $450 billion annually.
It will be a slow build for the next few years: we anticipate value for end users in these sectors to reach a relatively modest $2 billion to $5 billion by 2024. But value will then increase rapidly as the technology and its commercial viability mature,reportsBCG.
The market for quantum computing isprojectedto reach $64.98 billion by 2030 from just $507.1 million in 2019, growing at aCAGR of 56.0%during the forecast period (20202030).According to aCIRestimate, revenue from quantum computing is pegged at $8 billion by 2027.
Which Nations Are Investing In Quantum Computing?
To gain the quantum advantage, China has been at the forefront of the technology. The first quantum satellite was launched by China in 2016. Apaperby The Center for a New American Security (CNAS) highlights how, China is positioning itself as a powerhouse in quantum science.
Understanding the strategic potential that quantum science holds, U.S., Germany, Russia, India and European Union have intensified efforts towards quantum computing. In the U.S., President Trumpestablishedthe National Quantum Initiative Advisory Committee in 2019 in accordance with the National Quantum Initiative Act, signed into law in late 2018, which authorizes $1.2 billion to be spent on the quantum science over the next five years.
The Indian government in its 2020 budget has announced a National Mission on Quantum Technologies & Applications with a total budgetoutlayof INR 8000 crore ($1.12 billion) for a period of five years while Europe has a 1 billioninitiativeproviding funding for the entire quantum value chain over the next ten years. In October 2019, the first prototype of a quantum computer waslaunchedin Russia while in Germany, the Fraunhofer-Gesellschaft, Europes leading organization for applied research,partneredwith IBM for advance research in the field of quantum computing.
The Companies Leading the Way
IBM has been one of the pioneers in the field of quantum computing. In January 2019, IBM (IBM)unveiledthe IBM Q System One, the world's first integrated universal approximatequantum computing system designed for scientific and commercial use. In September itopenedthe IBM quantum computation center in New York to expand its quantum computing systems for commercial and research activity. It has also recentlyinvestedin Cambridge Quantum Computing, which was one of the first startups to become a part of IBMs Q Network in 2018.
In October 2019, Google (GOOG,GOOGL) made anannouncementclaiming the achievement of "quantum supremacy."It published the results of this quantum supremacy experiment in theNaturearticle, Quantum Supremacy Using a Programmable Superconducting Processor.The term "quantum supremacy" wascoinedin 2012 by John Preskill. He wrote, one way to achieve quantum supremacy would be to run an algorithm on a quantum computer which solves a problem with a super-polynomial speedup relative to classical computers. The claim wascounteredby IBM.
Vancouver, Canada headquartered D-Wave is the worlds first commercial supplier of quantum computers and its systems are being used by organizations such as NEC, Volkswagen, DENSO, Lockheed Martin, USRA, USC, Los Alamos National Laboratory and Oak Ridge National Laboratory.In February 2019, D-Waveannounceda preview of its next-generation quantum computing platform incorporating hardware, software and tools to accelerate and ease the delivery of quantum computing applications. In September 2019, itnamedits next-generation quantum system as Advantage, which will be available in the Leap quantum cloud service in mid-2020.In December 2019, the companysignedan agreement with NEC to accelerate commercial quantum computing.
Amazon (AMZN)introducedits service Amazon basket in late 2019, which is designed to let its users get some hands-on experience with qubits and quantum circuits. It allows to build and test circuits in a simulated environment and then run them on an actual quantum computer.
Around the same time, Intel (INTC)unveileda first-of-its-kind cryogenic control chip code-named Horse Ridgethat will speed up development of full-stack quantum computing systems.
In addition, companies such as Microsoft (MSFT), Alibaba (BABA), Tencent (TCEHY), Nokia (NOK), Airbus, HP (HPQ), AT&T (T) Toshiba, Mitsubishi, SK Telecom, Raytheon, Lockheed Martin, Righetti, Biogen, Volkswagen and Amgen are researching and working on applications of quantum computing.
Investors looking to invest in the technology can either look at individual stocks or consider Defiance Quantum ETF (QTUM) to take exposure to companies developing and applying quantum computing and other advanced technologies. Launched in April 2018, QTUM is a liquid, low-cost and efficient way to invest in the technology. The ETF tracks the BlueStar Quantum and Machine Learning Index, which tracks approximately 60 globally listed stocks across all market capitalizations.
While quantum computing is not mainstream yet, the quest to harness its potential is on, and the constant progress made is shrinking the gap between research labs and real-world applications.
Disclaimer: The author has no position in any stocks mentioned. Investors shouldconsider the above information not as a de facto recommendation, but as an idea for further consideration. The report has been carefully prepared, and any exclusions or errors in reporting are unintentional.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Where the Buzz About Quantum Computing Is Wrong - Toolbox - February 21st, 2020
- New report: Quantum Computing Market Size position and size report for 2019 to 2023 recently published - Instant Tech News - February 21st, 2020
- Global Deep Learning Chip Market (2019 to 2027) - Drivers, Restraints, Opportunities and Trends - ResearchAndMarkets.com - Business Wire - February 21st, 2020
- Quantum Computing Technologies Market: Industry Players Analysis, New Innovation, Growth Prospects, Size, Growth, Revenue, Development Policy,... - February 21st, 2020
- Why Quantum Computing Gets Special Attention In The Trump Administration's Budget Proposal - Texas Standard - February 20th, 2020
- Quantum Internet: The Technology That Could Change Everything? - The National Interest Online - February 20th, 2020
- HPC User Forum to Explore AI-HPDA Use In Banking and Investment Firms - insideHPC - February 20th, 2020
- 29 deeptech VCs in Europe you need to know - Sifted - February 20th, 2020
- Why Quantum Computing Gets Special Attention In The Trump Administration's Budget Proposal - KUT - February 19th, 2020
- The $600 quantum computer that could spell the end for conventional encryption - BetaNews - February 19th, 2020
- Quantum Internet Workshop Begins Mapping the Future of Quantum Communications - Quantaneo, the Quantum Computing Source - February 19th, 2020
- Correcting the jitters in quantum devices - MIT News - February 19th, 2020
- Govt creates tech group to chart the tech landscape for India - Economic Times - February 19th, 2020
- The EU is preparing to invest 2bn in a cloud computing alliance - NS Tech - February 19th, 2020
- Quantum Computing Market Analysis With Key Players, Applications, Trends and Forecast To 2026 - Instant Tech News - February 19th, 2020
- Russian Quantum Center and Nissan have launched a project in the field of quantum chemistry - Quantaneo, the Quantum Computing Source - February 17th, 2020
- QUANTUM COMPUTING TECHNOLOGIES Market: Comprehensive study explores Huge Growth in Future | D-Wave Systems Inc., IBM Corporation, Lockheed Martin... - February 17th, 2020
- Quantum Internet Workshop Begins Mapping the Future of Quantum Communications - HPCwire - February 17th, 2020
- Quantum Computing Market 2020 Trends, Market Share, Industry Size, Opportunities, Analysis and Forecast by 2026 - Instant Tech News - February 17th, 2020
- Quantum Computing Market Size Outlook 2026: Prime Firms, Trends, Growth Factors Details by Regions, Sorts and Applications - Instant Tech News - February 17th, 2020
- Nobody is behind in science and technology: Serguie Beloussov - Kuensel, Buhutan's National Newspaper - February 17th, 2020
- China beats US in key patents to secure technological dominance - The News International - February 17th, 2020
- Quantum Computing Market 2019 Analysis by Key Players, Share, Trend, Segmentation and Forecast to 2026 - Instant Tech News - February 15th, 2020
- Chinese researchers smash the record for realising two entangled quantum memories at maximum distance - www.computing.co.uk - February 15th, 2020
- DOE Workshop Begins Mapping the Future of Quantum Communications - insideHPC - February 14th, 2020
- Scientists discover how to use time crystals to power superconductors - Big Think - February 14th, 2020
- Quantum Computing Market With Four Main Geographies And Their Countries - Instant Tech News - February 14th, 2020
- Russian Quantum Center and Nissan have launched a project in the field of quantum chemistry - Research Snipers - February 14th, 2020
- Global Quantum Computing Market Newest Research Report In PDF With Forecast [2020-2029] : International Business Machines (IBM) Corporation, Google... - February 14th, 2020
- Budget 2020: Govt bets on AI, data analytics and quantum computing - Livemint - February 2nd, 2020
- This Week's Awesome Tech Stories From Around the Web (Through February 1) - Singularity Hub - February 2nd, 2020
- AI has great potential in transforming the world: Alphabet CEO Sundar Pichai - YourStory - February 2nd, 2020
- Budget 2020: New scheme to boost local manufacturing of mobiles, will iPhone get cheaper now? - India Today - February 2nd, 2020
- What Is Quantum Computing and How Does it Work? - Built In - January 30th, 2020
- IBM Just Called Out Google Over Their "Quantum Computer" - The National Interest Online - January 30th, 2020
- Quantum Computing releases its new software application called Mukai - Proactive Investors USA & Canada - January 30th, 2020
- Burning Things With Big Lasers In The Name Of Security - Hackaday - January 30th, 2020
- What Is Quantum Computing, And How Can It Unlock Value For Businesses? - Computer Business Review - January 27th, 2020
- The End Of The Digital Revolution Is Coming: Here's What's Next - Innovation Excellence - January 27th, 2020
- Healthcare venture investment in 2020: Quantum computing gets a closer look - Healthcare IT News - January 27th, 2020
- Delta Partners with IBM to Explore Quantum Computing - Database Trends and Applications - January 27th, 2020
- New Centers Lead the Way towards a Quantum Future - Energy.gov - January 27th, 2020
- ASC20 Finals to be Held in Shenzhen, Tasks Include Quantum Computing Simulation and AI Language Exam - HPCwire - January 27th, 2020
- Toshiba says it created an algorithm that beats quantum computers using standard hardware - TechSpot - January 27th, 2020
- Quantum networking projected to be $5.5 billion market in 2025 - TechRepublic - January 27th, 2020
- University of Sheffield launches Quantum centre to develop the technologies of tomorrow - Quantaneo, the Quantum Computing Source - January 27th, 2020
- 5 Emerging Technologies That Will Shape this Decade - San Diego Entertainer Magazine - January 27th, 2020
- Is Quantum Technology The Future Of The World? - The Coin Republic - January 12th, 2020
- Were approaching the limits of computer power we need new programmers now - The Guardian - January 12th, 2020
- Global Quantum Computing Market: What it got next? Find out with the latest research available at PMI - Pro News Time - January 12th, 2020
- Quantum Computing Technologies Market to Witness Huge Growth by 2020-2025, Latest study reveals - ReportsPioneer - January 12th, 2020
- Podcast: The Overhype and Underestimation of Quantum Computing - insideHPC - January 10th, 2020
- Charles Hoskinson Predicts Economic Collapse, Rise of Quantum Computing, Space Travel and Cryptocurrency in the 2020s - The Daily Hodl - January 10th, 2020
- Google and IBM square off in Schrodingers catfight over quantum supremacy - The Register - January 10th, 2020
- World High Performance Computing (HPC) Markets to 2025 - AI, IoT, and 5G will be Major Drivers for HPC Growth as they Facilitate the Need to Process... - January 10th, 2020
- Tucson Morning Blend Top 5 Tech Trends you'll love this year. Heather Rowe 1:27 - KGUN - January 6th, 2020
- Honeywell names Top 11 Innovations of 2019 - wingsmagazine.com - January 6th, 2020
- 19 Most In-Demand Tech Jobs in Silicon Valley (and the Companies Hiring) - Dice Insights - January 6th, 2020
- January 9th: France will unveil its quantum strategy. What can we expect from this report? - Quantaneo, the Quantum Computing Source - January 4th, 2020
- US Government Looks To Restrict Exports Of AI, Quantum Computing And Self-Driving Tech - WebProNews - January 4th, 2020
- News Content Hub - Five emerging technologies for the 2020s - Riviera Maritime Media - January 4th, 2020
- Superconductor or not? They're exploring the identity crisis of this weird quantum material. - News@Northeastern - January 3rd, 2020
- Year 2019 in Science: History of Humans, Ebola Treatment and Quantum Computing - NewsClick - January 3rd, 2020
- 5 tech that will explode in your life this decade - ETCIO.com - January 3rd, 2020
- Quantum Computing Market Utilities and Recycling In Global 2020 Outlook, Business Strategies, Challenges and Forecasts - Market Research Sheets - January 3rd, 2020
- Quantum Teleportation Has Been Achieved With the Help of Quantum Entanglement - Dual Dove - January 3rd, 2020
- The science fiction that became science fact in 2019 - SYFY WIRE - January 3rd, 2020
- Global Quantum Computing Market to Witness an Outstanding Growth During 2020-2029 - Neptune Pine - January 3rd, 2020
- Quantum Computing Technologies market by Size | Growth | Analysis | Trends and Forecasts to 2020-2025 Bulletin Line - Bulletin Line - January 3rd, 2020
- The Impact of Quantum Computing on Banking will be gigantic says Deltec Bank, Bahamas - Quantaneo, the Quantum Computing Source - December 28th, 2019
- How This Breakthrough Makes Silicon-Based Qubit Chips The Future of Quantum Computing - Analytics India Magazine - December 28th, 2019
- 2020 Will be a Banner Year for AI Custom Chipsets and Heterogenous Computing; Quantum Computing Remains on the Far Horizon - Business Wire - December 28th, 2019
- Top 5: Scientific Breakthroughs That Made 2019 an Unforgettable Year of Human Progress - The Weather Channel - December 28th, 2019
- 2020 will be the beginning of the tech industry's radical revisioning of the physical world - TechCrunch - December 28th, 2019
- IBM and the U. of Tokyo launch quantum computing initiative for Japan | - University Business - December 25th, 2019
- IBM and the University of Tokyo Launch Quantum Computing Initiative for Japan - Martechcube - December 25th, 2019
- AI, 5G, 'ambient computing': What to expect in tech in 2020 and beyond - USA TODAY - December 18th, 2019
- The Quantum Computing Decade Is ComingHeres Why You Should Care - Observer - December 18th, 2019
- Shaping the technology transforming our society - Fermi National Accelerator Laboratory - December 17th, 2019
- Quantum Technology Expert to Discuss Quantum Sensors for Defense Applications at Office of Naval Research (ONR) - Business Wire - December 17th, 2019