Prioritizing quantum computing applications for business advantage

Quantum investment is accelerating

Investment in quantum technologies is booming. A veritable who’s who of technology companies are developing quantum computers, custom semiconductors, and communication devices. Government investments are equally significant, ranging from USD tens of millions to billions in countries and confederations such as China, the US, Canada, the UK, the European Union, Israel, Australia, and Russia.

Even though universal quantum computing has not yet reached mainstream commercialization, we predictspecific applications could confer significant competitive advantage for some organizations in the coming years. Almost all organizations—90 percent according to Gartner—will be active in quantum computing projects and utilize quantum computing as a service by 2023. As a result, the overall quantum computing market is forecast to reach USD 240 million by 2025, a 48 percent compound annual growth rate (CAGR).

Many quantum applications—even early ones—are expected to have significant disruptive implications for industries and businesses. As a result, many of today’s business leaders may need to investigate the advantages of quantum computing just to preserve marketplace viability. As quantum technology moves closer to commercialization, specific applications are emerging in areas such as chemical modeling, scenario simulation, optimization, and artificial intelligence/machine learning. For example, some quantum algorithms offer theoretical (and significant) speed-up over classical solutions, particularly for such thorny math problems as solving linear systems, searching unstructured data, conducting Monte Carlo simulations, combinatorial match, and number factorization. These algorithms are now being tested to identify the business advantages they may potentially deliver.

Getting ready for quantum computing

As quantum computers begin to become commercially viable, businesses will need to explore and assess potential applications specific to their competitive contexts. And because of their computational power and speed, some quantum applications may yield early, proprietary quantum advantage that could meaningfully affect business models or industry value chains. Because quantum is a new type of computing, early familiarity and assessment are critical for rapid adoption once the technology is ready for widespread use.