Quantum Computing In Automotive Market Report

Market Insights

“The quantum computing in automotive market size was US$ 141 million in 2024 and is likely to grow at a CAGR of 49.0% in the long run to reach US$ 5,201 million in 2034.”

Market Dynamics

Introduction

The growth of quantum computers in the automotive market is greatly driven by key systems in automotive companies that are thought to use advanced and innovative technologies to solve complex challenges. These challenges include optimizing manufacturing processes, improving vehicle performance, improving security features, and accelerating the development of autonomous driving systems. Automotive companies recognize that quantum computing can revolutionize approaches to data processing, simulation and materials science, increasingly providing a competitive advantage in the technology operation market. Furthermore, governments around the world recognize the potential to increase efforts to promote quantum computing of expertise and promote innovation in several industries. These efforts are led to research, development and education programs, which further encourage the adoption of quantum technology. A combination of corporate investment and government initiatives.

Market JVs and Acquisitions:

In the quantum computing market, companies are increasingly engaging in mergers, acquisitions, and joint ventures to stay competitive and foster innovation. This trend is driven by the growing demand for advanced quantum solutions in industries like automotive, finance, and healthcare. Technology firms are partnering with quantum computing companies to combine their expertise in hardware, software, and artificial intelligence.

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In September 2023, Rigetti & Co has launched QC on Azure Quantum Platform from Microsoft and launched Aspen-M-2 80-qubit and Aspen-11 40-qubit Superconducting Processors in public previews.
• In January 2023, PASQAL introduced Pulser Studio, a no-code platform for designing quantum registers and pulse sequences on neutral atoms quantum computers.
• In November 2022, IBM unveils the next generation of IBM Quantum System 2 and 400 qubit quantum processors, enabling more complex quantum computations beyond classical functions.
• New Product Development
• Quantum-enhanced autonomous driving (2026-2035): Quantum computing will enable faster, more accurate decision-making algorithms for self-driving cars.
• Optimizing vehicle design (2026-2035): Quantum computing will simulate and enhance vehicle designs for improved performance, safety, and efficiency.
• Advancing material discovery (2026-2035): Quantum simulations will identify lighter, stronger materials for manufacturing safer, more durable vehicles.

Segment Analysis

By Application Type

“The autonomous and connected vehicle is expected to dominate the market during the forecast period due to its widespread use in the market.”

The market is divided into route planning and traffic management, battery optimization, materials research, autonomous and networked vehicles, production planning and planning, and more. Quantum computing is essential for optimizing route planning and traffic management by processing large amounts of data for actual traffic prediction. It also improves battery optimization in electric vehicles by improving energy storage solutions. In material research, quantum computing can help discover progressive materials to improve vehicle performance. As autonomous and networked vehicles grow, quantum computing plays a key role in improving AI, mechanical learning and data processing of self-driving technologies. In production planning and planning, quantum computing allows for efficient business, cost reductions, improved manufacturing time planning, and further growth in the market.

By Component Type

“Software segment is expected to dominate the market during the forecast period.”

Depending on the component type, the market is divided into software, hardware, and services. The software segment is expected to grow the fastest, as it enables advanced features such as AI, machine learning, and real-time data processing, which are critical for connected and autonomous vehicles. Additionally, the services segment is also anticipated to see significant growth due to the increasing need for software updates, system integration, and cloud-based solutions that enhance vehicle performance and user experience.

By Deployment Type

“Cloud based quantum computing segment is expected to dominate the market.”

Depending on the deployment type, the market is divided into cloud and on-premises segments. The cloud segment is expected to lead the market, driven by its ability to provide scalable, flexible solutions that support real-time data processing, software updates, and remote diagnostics for connected and autonomous vehicles. The cloud's ability to handle vast amounts of data makes it ideal for managing vehicle communication systems, fleet management, and AI-driven services. The on-premises segment, while more focused on applications requiring high security, low latency, and full control over data, such as critical vehicle systems, is expected to grow as well. As the automotive industry continues to advance toward more connected and autonomous solutions, the cloud segment is likely to experience the fastest growth.

By Stakeholder Type

“Automotive tier 1 and 2 segments are expected to grow fastest during the forecast period.”

The market, by stakeholder type, is divided into OEMs, Automotive Tier 1, and Tier 2 companies. Tier 1 and Tier 2 companies are expected to grow at the fastest rate. These companies are leveraging quantum computing to optimize key components such as lightweight structures, batteries, motors, and autonomous driving systems. Tier 2 companies are also using quantum computing for material research, improving production processes, and optimizing supply chain management to enhance efficiency and reduce costs. Collaborations between automotive companies and quantum computing providers are driving advancements in research areas like fluid dynamics and material science, significantly contributing to innovation in the automotive industry.

Regional Analysis

“The North America region is expected to hold the largest share in the market during the forecast period.”

The North America is projected to dominate the quantum computing in the automotive market. This region's dominance is mainly due to the early adoption of quantum computing systems, along with the availability of supporting software and services. The presence of major technology companies with significant capital and expertise has accelerated innovation in quantum computing. These companies have been at the forefront of research and development in quantum technologies, allowing them to offer advanced solutions tailored for various industries, including automotive. Their efforts have helped demonstrate the potential of quantum computing in real-world applications, such as optimizing vehicle components, improving autonomous driving systems, and enhancing supply chain management.

Key Players

The market is moderately fragmented. Most of the major players adopted partnerships, new product launches and jointy ventures to gain quantum computing in automotive market The following are the key players in the quantum computing in automotive market. Some of the major players provide a complete range of services.

Here is the list of the Top Players (Based on Dominance)

• IBM Corporation
• Microsoft Corporation
• Alphabet Inc
• Amazon
• D-wave systems
• IONQ
• Rigetti & Co
• Terra Quantum
• PASQAL

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The  quantum computing in automotive market is segmented into the following categories. 

Quantum Computing in Automotive Market by Application Type

• Route Planning and Traffic management (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Battery Optimization (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Material Research (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Autonomous and Connected Vehicle (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Production Planning and Scheduling (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Quantum Computing in Automotive Market by Component Type

• Software (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Hardware (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Services (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Quantum Computing in Automotive Market by Stakeholder Type

• OEM (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Automotive Tier 1 and Tier 2 (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Warehousing and Distribution (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Quantum Computing in Automotive Market by Deployment Type

• Cloud (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• On-premises (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Quantum Computing in Automotive Market by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s quantum computing in automotive market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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