Quantum Computing in Automotive Market size was valued at USD 246.4 million in 2023 and is estimated to reach USD 7.45 billion by the end of 2036, witnessing more than 36.4% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of quantum computing in automotive is assessed at USD 336.1 million.
The automotive industry players have identified the potential of quantum computing in revolutionizing vehicle design, manufacturing, and operations. Modern connected cars are becoming progressively complex with their expanding ecosystem of processors, sensors, and communication systems. This has implored car manufacturers (OEMs) to highlight the pressing need for efficient quantum computing applications in the automotive sector. The industry is leveraging the latest developments in complex optimization problems, quantum simulation, and sophisticated quantum AI and machine learning to strengthen automobile manufacturing processes.
Quantum computing is projected to impact the development of advanced materials used in automotive manufacturing. OEMs and Tier 1 suppliers employ this technology to modify the behavior of atoms and molecules to develop new materials with customized properties, including enhanced strength and better electrical conductivity. This is anticipated to streamline the production of durable and advanced vehicle components during the forecast period. The integration of quantum computing is expected to enable the transitions toward autonomy and electrification of vehicles, giving the market players a competitive edge. Three main application areas of particular interest to automotive companies are image classification, logistics optimization, and battery chemistry.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
36.4% |
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Base Year Market Size (2023) |
USD 246.4 million |
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Forecast Year Market Size (2036) |
USD 7.45 billion |
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Regional Scope |
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Component (Software, Hardware, Services)
The software segment is projected to hold the largest revenue share of about 55% by 2036 owing to its crucial role in improving quantum computer performance. Developing algorithms specifically for automotive applications requires software that optimizes supply chain management, autonomous driving systems, manufacturing procedures, and vehicle design. The software segment in quantum computing has the potential to completely transform the way automobiles are designed and driven with the appropriate algorithms.
For example, in June 2024, with NVIDIA and the BMW Group collaborated to optimize mechatronic software systems, marking significant advancements in the automotive sector by implementing quantum computing. This initiative was launched to focus on solving complex computational constraints to discover the optimal architecture of electrical and mechanical systems.
Application (Battery Optimization, Material Research, Route Planning and Traffic Management, Autonomous and Connected Vehicles, Production Planning and Scheduling)
The routing and traffic segment is expected to account for a prominent revenue share in quantum computing in automotive market, owing to traffic congestion that leads to increased travel times, fuel consumption, and environmental pollution. Quantum computing facilitates dynamic routing and traffic management based on the state of the roads, patterns of the weather, and movements of vehicles. This feature improves the flexibility of traffic control systems, which results in reduced congestion and more efficient traffic flow.
Volkswagen in 2019, unveiled a test project utilizing MAN-buses equipped with an in-house traffic management system designed to optimize traffic through the use of quantum computing. This system determines the fastest path for each of the nine participating buses separately using a D-Wave quantum computer. In this way, the journey time for each passenger was shortened, even during high traffic.
Deployment (Cloud, On-premises)
The cloud segment is estimated to dominate quantum computing in automotive market, holding a revenue share of 75% during the projected timeframe owing to the scalable access to quantum resources offered through cloud-based quantum computing platforms. Automotive enterprises, research organizations, and quantum computing operators can work together and exchange knowledge more easily through cloud-based platforms. Cloud quantum computing accelerates innovation and encourages a collaborative environment by offering a centralized platform for the exchange of data and algorithm development within the automotive industry.
Our in-depth analysis of the global market includes the following segments:
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APAC Market Statistics
Asia Pacific is expected to account for largest revenue share of 43% in the quantum computing in automotive market during the forecast period owing to the increasing investments in quantum research and development by countries such as China, Japan, and South Korea. Additionally, ongoing collaboration of private companies accelerates advancements in quantum computing technology, driving innovation and commercialization efforts in the region.
Quantum computing in automotive market in India is expected to register rapid growth owing to the competitiveness of automotive companies in developing innovative designs using quantum computing technology. Factors such as an increasing interest in utilizing quantum computing for vehicle manufacturing and designing and employing autonomous driving technologies also enhance market expansion. According to Nasscom-Avasant's 2022 report, by 2030, the quantum technology sector in India is expected to generate USD 310 billion. To take utmost advantage of this potential, a strong national policy that supports a structure that accurately utilizes quantum technology resources and reflects unique industrial results is needed.
China market is influenced by the rising importance of technological innovations in emerging fields including, quantum technology with an aspect of building a foundation for future industrial and technological development in the country. Additionally, the government of China is putting in efforts to support the country in achieving significant advancements using quantum computing technologies to develop new sources for its economic growth.
Quantum computing in automotive market in Japan is growing as several businesses in the country are engaged in leveraging quantum information science including Riken, JSR Corporation, Hitachi, Mitsubishi Group and various other market leaders. As per Japan's Quantum Technology Innovation Strategy, the Quantum Technology Innovation Centers serve as the hubs for programs involving the government, business sectors, and educational institutions together at one place. Furthermore, the influx of investments in the EV sector is likely to support the Japan market expansion during the forecast period.
North America Market Analysis
North America is projected to be the fastest-growing region owing to advanced technological infrastructures, including research facilities and technology hubs that promote R&D. Furthermore, the region's dominance in quantum computing in automotive industry is propelled by individuals with technological expertise in quantum computing, collaborations of market key players, supportive regulatory environment, and market demand in shaping the future of quantum-powered solutions for the automotive industry.
The U.S. quantum computing in automotive market is driven by the leading quantum computing companies, such as Amazon, Google, IBM Corporation, and Microsoft, as well as renowned research institutions including NASA. These organizations help automotive companies streamline their quantum simulations and design processes contributing to increasing developments using quantum technologies. This contribution of regulatory organizations in shaping the country's quantum computing in automotive market results in cost savings and reduced environmental impact, and helps identify potential risks and challenges in the coming future.
Quantum computing in automotive industry in Canada is influenced by the investments of provincial governments that help build a growing environment that includes world-class centers of quantum technology in Canada, including market-leading companies. In January 2023, the Government of Canada launched the National Quantum Strategy to support the quantum computing sector in the country and amplify its existing focus on research to propel the industry growth.
Quantum computing in automotive market possesses the potential to address complexities and optimize various aspects, from traffic congestion management to vehicle design and manufacturing. this market is dominated by key market players who are gaining traction by adopting several strategies including mergers and acquisitions (M&A), geographical expansion, and partnerships. The list of key players includes:
Author Credits: Saima Khursheed
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