Analysts at Bank of America (BofA) estimate that the quantum computing sector could expand to around $4 billion in value by the start of the next decade.
In a client note, BofA analysts cautioned that while “the promise of quantum computing is real,” the technology still faces several hurdles that researchers and developers are actively trying to address.
“Once these scaling hurdles are overcome (perhaps by 2030), we expect a much more meaningful inflection in revenues,” the analysts added.
According to BofA, the quantum computing market was valued at roughly $300 million last year. The projection contrasts with a report from consulting firm McKinsey in June, which suggested that the market could soar to $100 billion within ten years.
Proponents of quantum computing emphasize its transformative potential, particularly for the financial sector. HSBC reported on Thursday that its trial use of quantum computers in bond trading produced promising results. In collaboration with IBM, the pilot demonstrated a 34% improvement in predicting the likelihood that a bond trade would be filled at the quoted price, providing a notable advantage over traditional computing methods.
Despite this progress, practical applications of quantum technology in other industries remain largely unproven.
The BofA analysts also highlighted that there are currently four publicly-traded “pure play” quantum computing firms: D-Wave (NYSE:QBTS), Rigetti (NASDAQ:RGTI), IonQ (NYSE:IONQ), and Quantum Computing Inc (NASDAQ:QUBT). Major technology companies including IBM, Google (Alphabet), Microsoft, Nvidia, Amazon, and Intel are also actively investing in quantum computing development.
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