The quantum computing market size is expected to reach $1.76 billion by 2026 at a compound annual growth rate (CAGR) of 30.2%, according to a recent report from MarketsandMarkets. The firm also projects the quantum machine learning segment to have the highest CAGR.

MarketsandMarkets noted that the quantum computing market size was $472 million in 2021 and the expected growth was fueled by the early adoption in the banking and finance sector, increasing investment by governments around the world on quantum technology research and development, and the deployment of quantum computing as-a-service since the pandemic.

However, the market research firm warns stability and error correction issues will continue to restrain market growth.

The research looked into various segments in the quantum computing market and found that machine learning is expected to witness the highest growth rate in the coming years. This segment includes the integration of quantum algorithms within machine learning programs.

“In the case of complex models, it becomes very difficult to sort many variables systematically. Thus, users can opt for quantum computing technology to resolve this complexity with accuracy and speed,” the report wrote.

Researchers used the Monte Carlo method as an example. The methods are also called Monte Carlo experiments, which is a computerized mathematical technique that can be used to estimate numerical quantities from a large dataset. As quantum algorithms are able to increase the execution speed of a solution, those algorithms can speed up the Monte Carlo method's implementation and reduce the computational time, according to the report.

Additionally, MarketsandMarkets forecasts the superconducting qubits segment will account for the largest size of the market from 2021 to 2026. The growth is driven by faster operations of quantum computers based on this superconducting qubit technology than others, and tech giants including IBM, Google, and Intel are expected to release their quantum computing services equipped with superconducting qubits in the near future.

The firm also pointed out that the services segment will have noticeable growth from increasing investment from global startups in research and development on quantum computing technologies. “This technology is used in optimization, simulation, and machine learning applications, thereby leading to optimum utilization costs and highly efficient operations in various end-use industries,” researchers noted.