Quantum computing technologies are growing rapidly, and their applications are far-reaching. Specifically, quantum computing is poised to deliver a number of innovations across a variety of applications in the near future, from reducing manufacturing costs to supporting improvements and adaptations in the agriculture, automotive, and defense industries.

According to the Washington Technology Industry Association (WTIA) report, Quantum Information Sciences (QIS) in Washington state, prepared by Moonbeam for the association’s Advanced Technology Cluster, Quantum Sensing (QS) and Quantum Computing (QC) in particular are expected to experience rapid growth in the foreseeable future. The potential for hypergrowth, partnership, and investing opportunities make QC a sector worth watching. Here’s a breakdown of different applications in the space and their anticipated growth in the coming years.

Quantum Computing and Quantum Sensing: A Quick Primer

Quantum computing technology is designed to harness the principles of quantum mechanics, a theory in physics that explains properties of nature on the atomic and subatomic levels. Quantum computing capability could allow a monumental speed up of problem-solving up to 100 million times faster than traditional computers. As a result, quantum computers can handle operations at speeds exponentially greater than conventional computers and consume much less energy.

For context, QS technologies include: Atomic Clocks, Gravity Sensors, PAR Quantum Sensors, and Magnetic Sensors. These technologies have applications in end-user industries such as Automotive, Space, Healthcare, and Military & Defense. QC technologies include: Trapped-ions, Quantum Annealing, Superconducting Qubits, Photonic Qubits, Topological Qubits, Silicon Qubits, Neutral Atoms, which have applications in end-user industries such as Government, Healthcare and Life Sciences, Academia, Space and Defense, and Energy and Power.

For its part, QS is expected to experience a compound annual growth rate (CAGR) of 13.2%, or from $145.8 million to $299.9 million from 2018 to 2024. The chart below shows the anticipated growth of this sector in different regions of the world:

Asia-Pacific is the fastest-growing market for QS, while the largest market is North America.

In QC, the projected CAGR is 33.2%, or $390.7 million to $1,638.1 million from 2021 to 2026; the chart below illustrates its projected growth worldwide:

The fastest-growing market for Quantum Computing is also Asia-Pacific; its largest market is also North America.

A Closer Look at Quantum Sensing
Market share is well-distributed among the four main Quantum Sensing technologies: Atomic Clocks, Magnetic Sensors, PAR Quantum Sensors, and Gravity Sensors. All have a CAGR of greater than 12% from 2018 to 2024.

Atomic clocks held the highest share of the market in 2018 and commanded a market share of 31% in the global quantum sensors market. However, the gravity sensors segment is expected to experience the fastest growth rate during the forecast period, growing at a CAGR of 14.3% from 2019 through 2024. This is primarily because of its potential as a tool for subterranean surveying (e.g., detecting groundwater reserves and deposits of minerals, oil, or gas, among others).

The images below show a breakdown of the market shares for each technology as of 2019 and their projected growth worldwide through 2024:

Quantum Sensing technology has the potential for widespread use in various applications, the most prominent being in the Military & Defense, Automotive, and Agriculture industries, according to the WTIA report. Reducing manufacturing costs is a primary objective in implementing this technology. 

In the Military & Defense industry, Quantum Sensing technology can be helpful in the detection of radar signals that cannot be detected with stealth technology. The North Atlantic Treaty Organization (NATO) “has identified quantum as one of its key emerging and disruptive technologies.” 

According to NATO, “Quantum sensors have some promising military applications. For example, quantum sensors could be used to detect submarines and stealth aircraft, and quantum sensors could be used for Position, Navigation and Timing (PNT). Such ‘quantum PNT devices’ could be used as reliable inertial navigation systems, which enable navigation without the need for external references such as GPS. This would be a game-changing capability for underwater navigation on submarines, for instance, but also as a back-up navigation system for above-water platforms in case of GPS signal loss.” 

The automotive industry is also a significant potential end user due to the interest in self-driving vehicles. Quantum sensors could facilitate communications between vehicles, from vehicles to the grid or infrastructure, from vehicles to pedestrians, and more. In other words, Quantum Sensing technology has the potential to make cars truly “smart,” able to “see” and detect activity around them and be connected holistically to each other and the surrounding infrastructure and environment.

Such groundbreaking innovations in quantum open the door to catapult these industries light years ahead of where they are now. Combined, the Military & Defense and Automotive industries account for close to 45% of the global market share. 

PAR Sensors are ideal devices in the photosynthesis process, which is essential for food production. As such, they have the potential to increase agriculture productivity. Therefore, it is believed that the Agriculture industry will show the strongest growth (CAGR 16.2%). Other potential applications include the planning of fertilizer application and the reduction of energy requirements to produce fertilizers, which would serve to improve overall crop efficiency. 

Quantum Sensing is expected to grow globally, with many countries investing in defense and agriculture use cases. The following charts show the market for Quantum Sensing in North America, Europe, and Asia-Pacific, by country:

In North America, QS growth will be driven by construction, strong investment in the defense sector, and agriculture. 

Europe has several ambitious initiatives in quantum technology R&D, with almost half of the research being carried out in Germany, France, and United Kingdom. Key research areas for photonic technology are laser technology, photonics design research, nanophotonics, and thin films. 

The Asia-Pacific region is expected to have the fastest growth rate, as quantum technology is swiftly penetrating large-scale industrial verticals and replacing traditional systems. China is leading the market for quantum sensing in the region, having launched the world’s first quantum satellite in 2016 and advancing with a radar prototype that it claims could detect stealth aircraft in flight in 2018.

 

Quantum Computing Applications Abound

Potential applications of quantum computing are also expected to experience significant growth in the coming years. Quantum-assisted optimization accounts for 49% of market share, followed by Quantum Simulation with 35% of market share. 

Quantum-assisted Machine Learning is the application with the highest CAGR at 33.4%.

According to McKinsey, over the long term, the highest-value quantum computing use cases will likely be in the life sciences; financial services; and travel, transport, and logistics sectors.

 

Quantum Information Science (QIS) Potential in Washington State

Zooming in more locally, the WTIA QIS report included a SWOT analysis for QIS in Washington state. As the table below demonstrates, Washington’s strengths include its ability to attract advanced research funding (although challenges remain); the presence of strong industry players such as Microsoft and Amazon; solid collaboration between key players in the space focused on quantum technologies, including national lab (PNNL), academia (University of Washington, Washington State University), and industry; and development of excellence in quantum optics, devices, and software. 

Washington is also challenged by talent retention concerns, including loss of workforce to other states and due to lack of available visas, and local industry’s inability to absorb the talent coming out of the state’s institutions. Other issues include intellectual property bottlenecks and a lack of infrastructure and strategy, which hinders Washington state’s, and America’s, ability to make forward progress in QIS, causing us to lag behind other global nations. 

Download the full report for additional details on local and global trends in quantum computing, its marketshare, and growth potential. This report was supported by a U.S. Economic Development Administration grant administered by the Washington State Department of Commerce.