Quantum Computing Sector to Bounce Back in 2024, Predicts IQM-OpenOcean-Lakestar Report
Summary:
A report from IQM, OpenOcean, and Lakestar predicts recovery in the quantum computing sector in 2024, following the 50% drop in investments in 2023. The study, analyzing European and global trends, highlights the sector's resilience. An increased commitment to governmental funding is expected to offset private investment decline. The study cautiously anticipates quantum computing's maturity and foresees a key technological turning point by the end of the decade despite uncertainty and perceived competition from AI.
A survey conducted by IQM, OpenOcean, and Lakestar, issued on January 30, predicted a revival of the slump in quantum computing investments, with no signs of a "quantum winter" hitting the sector in 2024. The brief titled "IQM–OpenOcean–Lakestar State of Quantum 2024" assured that the sector will demonstrate resilience in the face of financial shrinkage, mainly due to strong governmental support and ongoing advancements.
In this report, it is noted that despite overall global economic downturns, quantum computing has shown tenacity through sustained growth, underpinned by assertive governmental aid and persevering investment momentum in Europe, according to IQM Quantum Computers.
The report examined Europe's role in the quantum domain and sought perspectives from a broad spectrum of enterprise end-users, providers, and research institutions, which included groups like HSBC, Dell, Federal Reserve, Citi and Moderna. It downplayed concerns about the continuation of the adverse investment dip witnessed in 2023 throughout 2024.
The report suggested that governments' increased focus on funding commitments and contracts is starting to compensate for the decline in private investments, thereby pacifying investor fears.
Quantum technologies' conditions in Europe vary somewhat from the global scene. Overall, investments slipped by 50% worldwide and by 80% in the U.S sector in 2023. Despite this overall decline, quantum computing in EMEA (Europe, the Middle East, and Africa) showed 3% growth.
An enhanced forecast for quantum computing notwithstanding, uncertainties that may deter investors remain. While some experts cautioned that Artificial Intelligence is absorbing funding and interest that would otherwise be directed to quantum computing, others expressed concerns about the possibly lengthy journey of quantum computing towards maturity.
Ultimately, given the lack of a definitive timeline for the sector's maturation, experts anticipate that governmental investments and collaborations will carry the sector through a predicted broader tech sector slowdown.
However, several leading quantum computing companies have adjusted their plans recently to suggest that a technological turning point could occur before the decade's close. IBM expects to reach this crossroad in quantum computing by 2029, while the MIT/Harvard spinoff, QuEra, aims to unveil a 10,000-qubit error-corrected quantum computer by 2026. Additionally, the Cambridge/Honeywell spinoff, Quantinuum, has secured $500 million in a funding round led by JP Morgan Chase for the development of their error-corrected quantum system.
Published At
1/30/2024 10:29:20 PM
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