Japan Quantum Computing Market Insights Forecasts to 2032
- The Japan Quantum Computing Market Size was valued at USD 145.17 million in 2022
- The market is growing at a CAGR of 35.8% from 2022 to 2032
- The Japan Quantum Computing Market Size is expected to reach USD 2,280.89 million by 2032
- Japan is expected to grow the fastest during the forecast period
The Japan Quantum Computing Market Size is expected to reach USD 2,280.89 million by 2032, at a CAGR of 35.8% during the forecast period 2022 to 2032. Quantum technology is an essential advancement that has profound implications for commercial and security, as well as for the financial system and the community. Japan is aggressively promoting R&D, industrialization, and commercialization of key technologies in order to achieve "quantum technology and innovation" as rapidly as possible in the future.
With the use of quantum mechanics, quantum computers are thought to have qualities adept at tackling computational challenges more quickly than conventional computers. It had been anticipated that advancements in electronic equipment and software development settings, in addition to the creation of new applications and the exploration of new use cases by businesses, would result in considerable development in future years. Several significant Japanese businesses are engaged in quantum information science, including Hitachi, Ltd., NEC Corporation, and the Mitsubishi Group.
According to Japan's Quantum Technology Innovation Strategy, the Quantum Technology Innovation Centers will serve as central locations for merged programs involving the commercial sector, educational institutions, and the government, which include fundamental research to technology illustration, IP management, and training for employees. For example, Mitsui & Co., Ltd ("Mitsui") and Quantinuum signed a strategic partnership agreement in October 2022 to jointly participate in the distribution of quantum computing within Japan and the rest of the Asia-Pacific region. They will work together to develop quantum applications and provide value-added services to organizations working in a variety of quantum computing domains, which are expected to be worth US$450B - US$850B by 2040.
This research report categorizes the market for Japan Quantum Computing Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Quantum Computing Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Quantum Computing Market.
Japan Quantum Computing Market Report Coverage
|Market Size in 2022:||USD 145.17 million|
|Forecast Period 2022-2032 CAGR:||CAGR of 35.8%|
|2032 Value Projection:||USD 2,280.89 million|
|Historical Data for:||2020 to 2022|
|No. of Pages:||120|
|Tables, Charts & Figures:||94|
|Segments covered:||Japan By Offering, By Deployment, By Application, By End-User,|
|Companies Covered:||Riken, Fujitsu Limited, Hitachi Ltd., Toyota Motor Corporation, Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Trust Bank Ltd., JSR Corporation, Mitsubishi Corporation, Canon, Nippon Telegraph and Telephone Corporation, NEC Corporation, Toshiba Corporation, JSR Corporation, Sony Corporation, Mizuho Financial Group Inc., Quantinuum, Mitsubishi UFJ Financial Group|
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The increasing incorporation of quantum computing technology across multiple business sectors and industries, as well as increased investments in quantum computing technology by various government initiatives in Japan, are the major factors contributing to market growth throughout the estimated time frame. Japan additionally intends to bring practical applications in the industry to fruition by aiming to produce its first domestically produced quantum computer by March of next year.
The Japanese government decided in January 2022 that it was a good opportunity to revise its overall quantum technology strategy, as the United States and China made advancements toward developing vital modern technology. For its fiscal 2022 budget, the country more than doubled its quantum-related investment. In Japan, the government-backed Riken Institute now leads initiatives to foster development. With the goal to research industrial applications, the government is also anticipated to add two more research locations, bringing the overall number to 10. The Japanese market leaders are not only increasing their investments in quantum technologies, but they are also looking for relevant collaborations and partnerships to advance computing, create useful applications, and build a future quantum workforce.
The banking and finance services sector, which focuses on accelerating trade activities, transactions, and data processing in numerous ways, is also gaining traction with quantum computing. One of the potential advantages of quantum computing for financial services is the provision of pertinent and necessary cybersecurity solutions to protect customer’s financial data with future-oriented digital encryption. As a result of these factors, the Japan quantum computing market is expected to grow rapidly during the forecast period, with the highest CAGR.
- In 2022, the services segment is witnessing a higher growth rate over the forecast period.
Based on the offering, the Japan Quantum Computing Market is segmented as hardware, software, and services. Among these, the services segment is witnessing a higher growth rate over the forecast period, owing to the growing number of start-ups investing in quantum computing research and development. The use of quantum computing systems and services in optimization, simulation, and machine learning applications results in the lowest possible cost of utilization and the most effective operations of end-use industries.
- In 2022, the cloud segment is witnessing significant CAGR growth over the forecast period.
On the basis of deployment, the Japan Quantum Computing Market is segmented into on-premises, and cloud. Among these, the cloud segment is witnessing significant CAGR growth over the forecasted period. As more robust systems are developed, the demand for cloud-based computing solutions and services is expected to grow. Furthermore, to more comprehensive solutions from leading vendors, the cloud offers several alternative methodologies for implementing quantum computers. The abundance of interaction provided to users is additionally driving the growing acceptance of cloud-based services and systems. Another factor encouraging the widespread utilization of cloud quantum computing systems as well as services is the freedom of choice provided by quantum computing systems to consumers.
- In 2022, the optimization segment is witnessing a higher growth rate over the forecast period.
Based on the application, the Japan Quantum Computing Market is segmented as optimization, simulation, machine learning, and others. Among these, the optimization segment is witnessing a higher growth rate over the forecast period. A technique of employing quantum computing technology to boost the effectiveness of algorithmic optimization is known as quantum computing optimization. This entails employing quantum computing techniques to solve optimization problems more effectively and quickly than standard techniques. Organizations can optimize their workflows, enhance decision-making processes, and decrease costs by utilizing the capabilities and rapidity of quantum computing technology.
- In 2022, the healthcare & pharmaceuticals is dominating the market with the largest market share of 31.3% over the forecast period.
Based on end-user, the Japan Quantum Computing Market is segmented into healthcare & pharmaceuticals, chemicals, banking & finance, aerospace & defense, transportation & logistics, energy & power, academia, government, and others. Among these, the healthcare & pharmaceuticals segment dominates the market with the largest market share of 31.3% over the forecast period. Quantum computing technology has resulted in the potential to power the development of computer-generated circumstances in which experts may evaluate parameters that include body fluids, electrolytes, circulation, metabolic rate, and temperatures on virtual representations of human beings. Computing services are used in the pharmaceutical and research sector for handling a variety of applications such as big healthcare data processing and fast DNA sequencing. Quantum-enhanced machine learning methods are of particular interest to the industry.
The report offers the appropriate analysis of the key organizations/companies involved within the Japan Quantum Computing Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Companies
- Fujitsu Limited
- Hitachi Ltd.
- Toyota Motor Corporation
- Mitsubishi UFJ Financial Group Inc.
- Sumitomo Mitsui Trust Bank Ltd.
- JSR Corporation
- Mitsubishi Corporation
- Nippon Telegraph and Telephone Corporation
- NEC Corporation
- Toshiba Corporation
- JSR Corporation
- Sony Corporation
- Mizuho Financial Group Inc.
- Mitsubishi UFJ Financial Group
Key Target Audience
- Market Players
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
- In March 2023, Fujitsu and Osaka University's Center for Quantum Information and Quantum Biology (QIQB) announced the development of a new, highly efficient analog rotation quantum computing architecture, marking a significant step toward the realization of practical quantum computing. The new architecture reduces the number of physical qubits required for quantum error correction – a prerequisite for the realization of fault-tolerant quantum computing – by 90%, from 1 million to 10,000 qubits.
- In March 2023, the collaboration of researchers from RIKEN and other affiliated institutions successfully developed Japan's first quantum computer, which has been made available to external users under full access. Because of its high computational capacity, this innovative computing technology is regarded as a next-generation system. The quantum computer operates on quantum mechanics principles, harnessing the properties of Quanta such as photons and electrons to increase processing speeds exponentially.
- In April 2022, The Japanese government developed a new strategy called the Vision of Quantum Future Society, which expanded on the 2020 strategy's initiatives for social innovation through quantum technology. It aims to positively evolve society by incorporating quantum technology into social and economic systems, creating opportunities for industrial growth and a carbon-neutral society while also addressing social issues such as those raised by the SDGs.
- In February 2021, NEC Corporation and ParityQC announced that they have begun working together in the field of quantum annealing, a method of quantum computing. NEC will be the first company in the world to use the ParityQC architecture in quantum annealing devices. NEC will implement the ParityQC Architecture, ParityQC's new paradigm for solving optimization problems on a quantum computer, into its own superconducting parametron quantum devices as part of the collaboration.
This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan Quantum Computing Market based on the below-mentioned segments:
Japan Quantum Computing Market, By Offering
Japan Quantum Computing Market, By Deployment
Japan Quantum Computing Market, By Application
- Machine Learning
Japan Quantum Computing Market, By End-User
- Healthcare & Pharmaceuticals
- Banking & Finance
- Aerospace & Defense
- Transportation & Logistics
- Energy & Power
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