Quantum computing will unlock new value across many industries, creating up to $850 billion in annual value by 2040, a new report by Boston Consulting Group (BCG) has revealed.
The report titled: “What Happens When “If” Turns to “When” in Quantum Computing?,” stated that investors are moving aggressively to increase the amount they allocate to quantum computing, with two-thirds of all equity investments in the field coming since 2018.
Through 2017, those investments totalled approximately $600 million and that amount nearly doubled over the next three years, the report said.
The report added that, “at the same time, companies are also significantly upping their quantum computing investment with 20 per cent expected to dedicate resources to quantum technology by 2023, up from just one per cent in 2018.”
BCG partner, director, and co-author of the report, Jean-Francois Bobier, predicted the acceleration would continue.
According to him, “recent advances and roadmaps from major hardware companies such as IBM, Google, Honeywell, IonQ, PsiQuantum and others have increased the confidence that we will have machines “powerful enough to tackle important business and society problems before the end of this decade.
“Impacted companies and governments should get prepared for an accelerated timeline.
“This upturn in investment is driven by major advances in quantum computing technology and predictions of massive performance and profit improvements as a result of this new capability,” Bobier said, adding that Quantum computing will unlock new value across many industries, creating up to $850 billion in annual value by 2040.
Much of the new investment, he said, is being directed toward the challenge of developing lower cost and more reliable quantum computing hardware, adding that researching and engineering the quantum bits (qubits) that power the computers is extremely difficult and expensive.
“In 2020, a total of $675 million in equity investments flowed to quantum computing, with $528 million of that going to hardware development. The year before, the total venture capital of just $211 million was split evenly between hardware and software. BCG expects 2021 to break previous records, with more than $800 million in investments,” he assured.
He predicted a race between five competing quantum hardware technologies over the decade. “As of today, they all bear unique performance and scalability trade-offs, and the jury is out on which ones will achieve a decisive advantage.
“Large, established companies such as IBM, Google, Honeywell and Amazon Web Services are heavily investing beside well-funded start-ups such as IonQ, which went public this year at an estimated initial valuation of $2 billion,” he added.
A BCG principal, Matt Langione, also predicted a significant surge in institutional and corporate investment in quantum technology.