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APAC Quantum Computing Market

ID: MRFR/ICT/44287-HCR
200 Pages
Aarti Dhapte
October 2025

APAC Quantum Computing Market Research Report By Vertical (Optimization, Machine Learning, Simulation), By Product Type (Hardware, Software, Services) and By Vertical (Aerospace Defense, BFSI, Energy Power, Healthcare, Information Technology Telecommunication, Transportation)-Forecast to 2035

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APAC Quantum Computing Market Summary

As per MRFR analysis, the APAC quantum computing market size was estimated at 400.0 USD Million in 2024. The APAC quantum computing market is projected to grow from 449.68 USD Million in 2025 to 1450.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 12.42% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The APAC quantum computing market is poised for substantial growth driven by government initiatives and emerging startups.

  • China remains the largest market for quantum computing, showcasing significant government investment in technology advancement.
  • India is rapidly emerging as the fastest-growing region, with a notable increase in quantum education and workforce development.
  • The collaboration between academia and industry is fostering innovation and accelerating the adoption of quantum technologies across the region.
  • Rising demand for advanced computing solutions and strategic partnerships are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 400.0 (USD Million)
2035 Market Size 1450.0 (USD Million)

Major Players

IBM (US), Google (US), Microsoft (US), Rigetti Computing (US), D-Wave Systems (CA), IonQ (US), Honeywell (US), Alibaba (CN), Xanadu (CA)

APAC Quantum Computing Market Trends

The quantum computing market in the Asia-Pacific region. is currently experiencing a notable transformation, driven by advancements in technology and increasing investments from both public and private sectors. Governments across various nations are recognizing the potential of quantum computing to revolutionize industries such as finance, healthcare, and logistics. This recognition is leading to the establishment of research initiatives and funding programs aimed at fostering innovation and collaboration among academic institutions and technology companies. As a result, the region is becoming a hub for quantum research and development, attracting talent and resources from around the world. Moreover, the growing interest in quantum computing is reflected in the rising number of startups and established companies venturing into this field. These entities are focusing on developing quantum algorithms, hardware, and software solutions tailored to meet the specific needs of industries within the region. The collaboration between academia and industry is also intensifying, with partnerships emerging to accelerate the commercialization of quantum technologies. This dynamic environment suggests that the quantum computing market in the Asia-Pacific region is poised for substantial growth, with the potential to impact various sectors significantly.

Increased Government Investment

Governments in the Asia-Pacific region are significantly increasing their investments in quantum computing initiatives. This trend is characterized by the establishment of national strategies aimed at promoting research and development. Such investments are likely to enhance the region's capabilities in quantum technologies, fostering innovation and attracting global talent.

Emergence of Startups

The quantum computing market is witnessing a surge in the number of startups focused on developing innovative solutions. These new entrants are exploring various applications, from cryptography to optimization problems. Their agility and fresh perspectives may drive advancements and create competitive dynamics within the market.

Collaboration Between Academia and Industry

There is a growing trend of collaboration between academic institutions and industry players in the quantum computing market. This partnership aims to bridge the gap between theoretical research and practical applications. Such collaborations could lead to accelerated development and commercialization of quantum technologies, benefiting various sectors.

APAC Quantum Computing Market Drivers

Strategic Partnerships and Collaborations

In APAC, strategic partnerships and collaborations are becoming a pivotal driver for the quantum computing market. Major technology firms are forming alliances with research institutions and universities to accelerate the development of quantum technologies. These collaborations often result in shared resources, knowledge exchange, and access to cutting-edge research. For example, a recent partnership between a leading tech company and a prominent university aims to develop quantum algorithms that could revolutionize data processing. Such initiatives not only foster innovation but also contribute to the overall growth of the quantum computing market in the region.

Increased Focus on Cybersecurity Solutions

As cyber threats continue to evolve, the quantum computing market in APAC. is witnessing an increased focus on developing advanced cybersecurity solutions. Quantum computing has the potential to enhance encryption methods, making data more secure against potential breaches. Governments and enterprises are investing in quantum-resistant cryptography to safeguard sensitive information. It is estimated that the cybersecurity segment of the quantum computing market could reach $2 billion by 2027, reflecting the urgency to address security challenges in an increasingly digital world. This focus on cybersecurity is likely to propel the growth of the quantum computing market.

Rising Demand for Advanced Computing Solutions

The quantum computing market in APAC.. is experiencing a surge in demand for advanced computing solutions across various sectors. Industries such as finance, healthcare, and logistics are increasingly seeking to leverage quantum computing capabilities to solve complex problems that classical computers struggle with. For instance, the financial sector is projected to invest approximately $1.5 billion in quantum technologies by 2026, indicating a robust interest in optimizing trading strategies and risk management. This rising demand is likely to drive innovation and investment in the quantum computing market, as organizations aim to enhance their computational power and efficiency.

Government Initiatives for Technology Advancement

Government initiatives aimed at technology advancement are significantly influencing the quantum computing market in APAC.. Various governments are launching funding programs and grants to support research and development in quantum technologies. For instance, a recent initiative in Japan allocated $500 million to foster innovation in quantum computing and related fields. Such government backing not only provides financial resources but also encourages collaboration between public and private sectors. This proactive approach is expected to stimulate growth in the quantum computing market, positioning APAC as a leader in technological innovation.

Growing Interest in Quantum Education and Workforce Development

The quantum computing market in APAC. is also being driven by a growing interest in education and workforce development in quantum technologies. Educational institutions are increasingly offering specialized programs and courses to equip students with the necessary skills for careers in quantum computing. This trend is crucial as the demand for skilled professionals in the field is expected to rise significantly. Reports suggest that by 2030, the workforce in quantum computing could expand by over 30%, creating a talent pool that supports the burgeoning market. This emphasis on education is likely to enhance the overall capabilities of the quantum computing market.

Market Segment Insights

By Application: Cryptography (Largest) vs. Drug Discovery (Fastest-Growing)

In the APAC quantum computing market, the application segment is primarily led by cryptography, capturing the largest share due to its foundational role in enhancing data security across various industries. Cryptography's robust adoption is propelled by increasing concerns over data privacy and the necessity for advanced security protocols. Drug discovery follows as the fastest-growing application, driven by the need for rapid and efficient development of pharmaceuticals. The high computational power of quantum computing enables the exploration of vast chemical spaces, reducing the time and cost associated with drug development. The growth trends in this segment are fueled by technological advancements and rising investments in quantum technologies. Cryptography remains essential amidst growing cyber threats, while drug discovery benefits from collaborations between tech companies and pharmaceutical firms. Optimization problems are also gaining traction as the industry recognizes quantum computing's potential to solve complex issues. Financial modeling and machine learning, although important, currently represent smaller segments of the market compared to cryptography and drug discovery, though they are expected to expand as the technology matures.

Cryptography (Dominant) vs. Drug Discovery (Emerging)

Cryptography stands as the dominant application within the APAC quantum computing market, leveraging its ability to provide unprecedented security through quantum key distribution and secure communication channels. This application addresses the increasing need for data protection across various sectors, including finance and healthcare. On the other hand, drug discovery is emerging as a vital application, promising to transform the pharmaceutical industry by enabling the simulation of molecular interactions at a quantum level. This capability significantly accelerates the drug discovery process, offering innovative solutions to complex health challenges. Companies are increasingly exploring these applications, recognizing the significant competitive advantages they offer, thus propelling further investment and development in these areas.

By Component: Hardware (Largest) vs. Software (Fastest-Growing)

In the APAC quantum computing market, the hardware segment holds the largest share, characterized by a robust demand for quantum processors and control systems. Software solutions are gaining traction, particularly in areas such as quantum programming tools and algorithms, allowing the software segment to emerge rapidly with a growing share as organizations recognize the need for advanced quantum applications. The growth of these segments is driven by increasing investments in quantum research and development across the region. Hardware advancements boost capabilities, while software innovation enhances usability, further driving demand. Collaborative initiatives among tech giants and startups are essential, with government support fueling the ecosystem’s expansion as stakeholders aim to position themselves strategically in the evolving market landscape.

Hardware: Dominant vs. Software: Emerging

The hardware segment remains dominant in the APAC quantum computing market due to the critical need for advanced physical systems necessary for quantum computations. This includes quantum chips, superconducting materials, and measurement systems that are foundational to quantum mechanics applications. Conversely, the software segment is emerging, marked by the fast-paced development of algorithms and quantum programming languages tailored for various applications. As organizations aim to harness quantum technology, the focus on developing user-friendly and efficient software solutions is intensifying. This interplay showcases a dynamic shift where hardware facilitates computational possibilities while software evolves rapidly to meet the intelligent demands of industries ranging from finance to logistics.

By End Use: Government (Largest) vs. Academic (Fastest-Growing)

In the APAC quantum computing market, the distribution of end user segments shows a strong inclination towards government utilization, capturing a significant share. Government agencies have recognized the potential of quantum computing for various applications, including defense, national security, and advanced research. Academic institutions, while currently holding a smaller share, are rapidly increasing their investments in quantum research and development, driven by the growing interest in quantum technologies among students and faculty. The growth trends in this segment are fueled by increased funding and collaboration between governments and academic institutions. Governments are investing to foster innovation and technological advancements, positioning themselves as leaders in the quantum space. Meanwhile, academic institutions are rapidly adopting quantum computing power to enhance their research capabilities. This trend signifies a shift towards a more integrated approach, where collaboration leads to accelerated advancements across the field.

Government: Dominant vs. Academic: Emerging

The government segment in the APAC quantum computing market is characterized by substantial investments and strategic initiatives aimed at harnessing quantum technologies for national priorities. This sector enjoys dominance due to its access to resources and the urgency of applying quantum computing for solving complex problems such as cryptography, data analysis, and climate modeling. In contrast, the academic sector, while emerging, is gaining momentum as universities and research institutions are increasingly focusing on quantum computing education and research initiatives. This growth is driven by the need to develop skilled professionals in quantum technologies, making significant contributions to the overall advancement and application of quantum computing in various fields.

By Technology: Superconducting Qubits (Largest) vs. Trapped Ions (Fastest-Growing)

In the APAC quantum computing market, Superconducting Qubits dominate, capturing a significant share due to their high performance and scalability. Trapped Ions follow as a compelling second, appealing to research institutions for their precise control and stability. Photonic Quantum Computing and Topological Qubits, although emerging, are steadily gaining traction, contributing to the diversification of technology adoption in the region. The growth trajectory for these technologies is influenced by advancements in quantum applications across sectors such as finance and cryptography. Growing investments from governments and venture capitalists into quantum research further enhance the competitive landscape. As innovation continues, Trapped Ions are expected to witness accelerated adoption, positioning them as the fastest-growing segment, while Superconducting Qubits maintain their lead.

Technology: Superconducting Qubits (Dominant) vs. Trapped Ions (Emerging)

Superconducting Qubits are characterized by their ability to operate at ultra-low temperatures, making them highly efficient for complex computations. Their dominance in the APAC market is attributed to established manufacturing processes and investment in research and development. Conversely, Trapped Ions harness electromagnetic fields for qubit control, rendering them incredibly stable and resistant to external noise, which is imperative for quantum computations. This technology is increasingly appealing to academic institutions and startups, marking it as an emerging competitor. As more players enter the market, the evolution of these technologies could reshape the landscape, with each facilitating unique advantages in different applications.

Get more detailed insights about APAC Quantum Computing Market

Regional Insights

China : Robust Growth and Investment Landscape

Key cities such as Beijing, Shanghai, and Shenzhen are pivotal in the quantum computing landscape, hosting major players like Alibaba and IBM. The competitive landscape is characterized by a mix of domestic and international firms, with a strong emphasis on collaboration between academia and industry. Local market dynamics are influenced by a skilled workforce and a vibrant startup ecosystem. Applications in sectors like cryptography, optimization, and drug discovery are gaining traction, positioning China as a leader in quantum technology.

India : Government Support Fuels Innovation

Cities like Bengaluru, Hyderabad, and Pune are emerging as key markets for quantum computing, with a vibrant ecosystem of startups and research institutions. The competitive landscape features players like IBM and local startups, fostering collaboration and innovation. The business environment is characterized by a supportive regulatory framework and increasing investment from both public and private sectors. Applications in sectors like cybersecurity and data analytics are gaining momentum, further driving market growth.

Japan : Strong Research and Development Focus

Tokyo and Osaka are key cities in Japan's quantum landscape, hosting major players like IBM and local firms. The competitive environment is marked by a blend of established corporations and innovative startups, creating a dynamic ecosystem. Local market dynamics are influenced by Japan's technological prowess and a focus on high-quality manufacturing. Applications in sectors such as logistics and supply chain optimization are emerging, positioning Japan as a significant player in the quantum computing arena.

South Korea : Strong Government and Industry Collaboration

Seoul and Daejeon are key markets for quantum computing, with a competitive landscape featuring major players like Samsung and IBM. The business environment is characterized by strong collaboration between government, academia, and industry, fostering innovation. Local market dynamics are influenced by a highly skilled workforce and significant investment in research and development. Applications in sectors like artificial intelligence and cybersecurity are gaining traction, further driving market growth.

Malaysia : Emerging Market with Potential

Kuala Lumpur and Penang are key cities in Malaysia's quantum landscape, with a developing ecosystem of startups and research institutions. The competitive landscape is characterized by a mix of local and international players, fostering collaboration and innovation. The business environment is evolving, with increasing investment from both public and private sectors. Applications in sectors like data analytics and optimization are gaining momentum, positioning Malaysia as a potential player in the quantum computing market.

Thailand : Government Initiatives Drive Growth

Bangkok and Chiang Mai are key markets for quantum computing, with a developing ecosystem of startups and research institutions. The competitive landscape features a mix of local and international players, fostering collaboration and innovation. The business environment is characterized by increasing government support and investment in research and development. Applications in sectors like data analytics and optimization are gaining traction, positioning Thailand as an emerging player in the quantum computing arena.

Indonesia : Potential for Future Growth

Jakarta and Bandung are key cities in Indonesia's quantum landscape, with a developing ecosystem of startups and research institutions. The competitive landscape is characterized by a mix of local and international players, fostering collaboration and innovation. The business environment is evolving, with increasing investment from both public and private sectors. Applications in sectors like data analytics and optimization are gaining momentum, positioning Indonesia as a potential player in the quantum computing market.

Rest of APAC : Emerging Markets with Unique Needs

Countries like Vietnam, Singapore, and the Philippines are key markets in the Rest of APAC, with developing ecosystems of startups and research institutions. The competitive landscape features a mix of local and international players, fostering collaboration and innovation. The business environment is characterized by increasing government support and investment in research and development. Applications in sectors like data analytics and optimization are gaining traction, positioning the Rest of APAC as a region with unique quantum computing opportunities.

APAC Quantum Computing Market Regional Image

Key Players and Competitive Insights

The quantum computing market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing investments in research and development. Major players such as IBM (US), Google (US), and Alibaba (CN) are at the forefront, each adopting distinct strategies to enhance their market positioning. IBM (US) emphasizes innovation through its Quantum System One, focusing on expanding its quantum ecosystem and fostering partnerships with academic institutions. Google (US), on the other hand, leverages its expertise in artificial intelligence to integrate quantum computing capabilities, aiming to solve complex problems across various sectors. Meanwhile, Alibaba (CN) is strategically investing in cloud-based quantum services, targeting the growing demand for quantum solutions in the Asia-Pacific region, thereby shaping a competitive environment that is increasingly collaborative yet fiercely competitive.

Key business tactics within this market include localizing manufacturing and optimizing supply chains to enhance operational efficiency. The competitive structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse innovation pathways, as companies strive to differentiate themselves through unique technological offerings and strategic partnerships. The collective influence of these key players is significant, as they drive market trends and set benchmarks for performance and innovation.

In October 2025, IBM (US) announced a strategic partnership with a leading university in Japan to advance quantum research and education initiatives. This collaboration is poised to enhance IBM's capabilities in quantum computing while fostering a new generation of talent in the field. The strategic importance of this partnership lies in its potential to accelerate innovation and expand IBM's influence in the Asia-Pacific market, aligning with its broader goal of establishing a robust quantum ecosystem.

In September 2025, Google (US) unveiled its latest quantum processor, designed to improve computational efficiency and scalability. This development is crucial as it positions Google to tackle more complex quantum algorithms, thereby enhancing its competitive edge. The introduction of this processor not only reinforces Google's commitment to quantum research but also signals its intent to lead in the race for quantum supremacy, which could have far-reaching implications across various industries.

In August 2025, Alibaba (CN) launched a new cloud-based quantum computing platform aimed at small and medium-sized enterprises (SMEs) in the region. This initiative is strategically significant as it democratizes access to quantum technologies, enabling a broader range of businesses to leverage quantum computing for innovation. By targeting SMEs, Alibaba is likely to expand its market share and foster a new wave of quantum applications, further intensifying competition in the sector.

As of November 2025, current trends in the quantum computing market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in driving innovation and addressing complex challenges. Looking ahead, competitive differentiation is expected to evolve, shifting from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This transition underscores the importance of agility and adaptability in a rapidly changing market landscape.

Key Companies in the APAC Quantum Computing Market market include

Industry Developments

The APAC Quantum Computing Market has witnessed significant developments recently. In October 2023, Alibaba announced advancements in its quantum algorithms, focusing on improving computational efficiency for diverse industries, showcasing its commitment to leading in the quantum space. IonQ and Google have been collaborating to explore their quantum technologies, enhancing interoperability and shared research efforts, which marks a notable trend towards integration in the quantum sector. In September 2023, IBM outlined its strategic plan to expand its quantum computing initiatives in Australia, aiming to support local startups and academic research, thereby bolstering the regional ecosystem.

Notably, Microsoft unveiled a partnership with Fujitsu to leverage quantum-inspired algorithms for real-world applications, reflecting an increasing trend of joint efforts across major tech entities. The market valuation of companies like Honeywell and DWave Systems has also shown upward growth due to increased investments and demand for quantum solutions within various sectors. In the last two years, notable events include Toshiba's commitment to investing in quantum research, which it announced in July 2022, highlighting the accelerating pace of innovation and investment in the APAC quantum computing landscape.

Future Outlook

APAC Quantum Computing Market Future Outlook

The quantum computing market is projected to grow at a 12.42% CAGR from 2024 to 2035, driven by advancements in technology, increased investment, and rising demand for computational power.

New opportunities lie in:

  • Development of quantum-as-a-service platforms for businesses
  • Investment in quantum cryptography solutions for data security
  • Partnerships with academic institutions for research and talent acquisition

By 2035, the quantum computing market is expected to achieve substantial growth and innovation.

Market Segmentation

APAC Quantum Computing Market End Use Outlook

  • Academic
  • Government
  • Enterprise

APAC Quantum Computing Market Component Outlook

  • Hardware
  • Software
  • Services

APAC Quantum Computing Market Technology Outlook

  • Superconducting Qubits
  • Trapped Ions
  • Topological Qubits
  • Photonic Quantum Computing

APAC Quantum Computing Market Application Outlook

  • Cryptography
  • Drug Discovery
  • Optimization Problems
  • Financial Modeling
  • Machine Learning

Report Scope

MARKET SIZE 2024400.0(USD Million)
MARKET SIZE 2025449.68(USD Million)
MARKET SIZE 20351450.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)12.42% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies Profiled["IBM (US)", "Google (US)", "Microsoft (US)", "Rigetti Computing (US)", "D-Wave Systems (CA)", "IonQ (US)", "Honeywell (US)", "Alibaba (CN)", "Xanadu (CA)"]
Segments CoveredApplication, Component, End Use, Technology
Key Market OpportunitiesAdvancements in quantum algorithms drive demand for specialized hardware and software solutions in the quantum computing market.
Key Market DynamicsRapid advancements in quantum computing technology drive competitive innovation and regulatory adaptations in the APAC region.
Countries CoveredChina, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC

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FAQs

What is the expected market size of the APAC Quantum Computing Market in 2024?

The APAC Quantum Computing Market is projected to be valued at 357.0 million USD in the year 2024.

What is the anticipated market size of the APAC Quantum Computing Market in 2035?

In 2035, the market is expected to reach a valuation of 5000.0 million USD.

What is the expected compound annual growth rate (CAGR) for the APAC Quantum Computing Market from 2025 to 2035?

The market is anticipated to experience a CAGR of 27.119% during the forecast period from 2025 to 2035.

Which vertical is projected to have the largest market share in APAC Quantum Computing by 2035?

By 2035, the Simulation vertical is expected to dominate with a valuation of 2900.0 million USD.

What will be the market value of the Optimization segment in 2035?

The Optimization segment is expected to be valued at 1300.0 million USD by the year 2035.

Who are the key players in the APAC Quantum Computing Market?

Major players in the APAC Quantum Computing Market include Alibaba, Google, IBM, and Honeywell.

What is the expected market value of the Machine Learning segment by 2035?

The Machine Learning segment is projected to reach a value of 1800.0 million USD in 2035.

What growth factors are driving the APAC Quantum Computing Market?

Factors driving growth include advancements in technology, increased investment, and rising demand for computational power.

How is the APAC Quantum Computing Market expected to change from 2024 to 2035?

The market is expected to significantly grow from 357.0 million USD in 2024 to 5000.0 million USD by 2035.

What applications are expected to have a major impact on the growth of the APAC Quantum Computing Market?

Major applications impacting growth include Optimization, Machine Learning, and Simulation.

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