Quantum Computing in Automotive Market Driven by 35.15% CAGR

Quantum Computing in Automotive Market Size, Segments, Companies, Competitive Analysis, Value Chain & Trade Analysis 2025-2034

Analysts project the quantum computing in automotive industry to expand from USD 560 million in 2024 to USD 11385.41 million by 2034, marking a CAGR of 35.15% through the decade. North America leads the quantum computing in automotive market with a 40% share. Asia Pacific is expected to grow the fastest. The cloud-based deployment dominates at 55%, with electric & hybrid vehicles showing the highest growth. OEMs hold 40% of the market share.

Quantum Computing in Automotive Market Size and Regional Production Analysis

The quantum computing in automotive market is forecasted to expand from USD 756.84 million in 2025 to USD 11385.41 million by 2034, growing at a CAGR of 35.15% from 2025 to 2034. The increasing adoption of self-driving vehicles by fleet operators coupled with numerous government initiatives aimed at enhancing vehicular safety has boosted the market expansion.

Additionally, rapid investment by market players for advancing r&d associated with quantum computing along with rising demand for luxury vehicles from the HNIs in developed nations is playing a vital role in shaping the industrial landscape. The growing focus on creating fault-tolerant systems through advancements in logical qubits is expected to create ample growth opportunities for the market players in the upcoming years.

Quantum Computing in Automotive Market Growth and Trends 2025

What is Quantum Computing in Automotive?

The quantum computing in automotive market is driven by the increasing sales of autonomous vehicles coupled with advancements in V2X technology. Quantum computing in the automotive sector uses qubits for solving complex problems in several areas such as vehicle design, autonomous driving, supply chain management, and enhancing security. These computing solutions are deployed in various modes including on-premises and cloud. The end-users of these solutions consists of automotive OEMs, tier-1 & tier-2 suppliers, technology & R&D companies, government & research institutes. This market is expected to rise significantly with the growth of the ICT sector in different parts of the world.

Highlights of the Quantum Computing in Automotive Market

  • North America generated highest revenue of the quantum computing in automotive market with a share of around 40%.
  • Asia Pacific is expected to rise with the highest CAGR during the forecast period.
  • By application, the battery design & optimization segment led the market with a share of around 35%.
  • By application, the autonomous vehicle development & simulation segment is expected to rise with the highest CAGR during the forecast period.
  • By deployment mode, the cloud-based quantum computing segment dominated the market with a share of around 55%.
  • By deployment mode, the on-premise quantum computing segment is expected to grow with the highest CAGR during the forecast period.
  • By vehicle type, the passenger cars segment dominated the market with a share of around 45%.
  • By vehicle type, the electric & hybrid vehicles segment is expected to rise with the fastest CAGR during the forecast period.
  • By end-user, the automotive OEMs segment dominated the market with a share of around 40%.
  • By end-user, the technology & R&D Companies segment is expected to rise with a the highest CAGR during the forecast period.

Quantum Computing in Automotive Market Outlook

  • Industry Growth Overview: Between 2025 and 2030, the industry is expected to experience immense growth due to the surging demand for luxury vehicles coupled with technological advancement in quantum computing.
  • Major Investors: Private equity and strategic investors are actively entering the space, drawn by technological developments, investments, research activities and some others. Several automotive companies such as General Motors, BMW, Volkswagen and some others are investing heavily for advancing cloud computing associated with autonomous vehicles.
  • Startup Ecosystem: Some of the prominent startup companies includes IonQ, Rigetti Computing, Quantinuum, PsiQuantum, Atom Computing and some others. These brands are constantly engaged in research and development related with quantum computing for the automotive sector.

Key Metrics and Overview

Metric Details
Market Size in 2024 USD 560 Million
Projected Market Size in 2034 USD 11385.41 Million
CAGR (2025 - 2034) 35.15%
Leading Region North America
Market Segmentation By Application, By Deployment Mode, By Vehicle Type, By End-User Industry and By Region
Top Key Players Volkswagen AG, BMW Group, Ford Motor Company, IBM Corporation, Google Quantum AI, Microsoft Corporation, Quantinuum, QMill, QNu Labs.

Application Insights

How did the Battery Design & Optimization Segment Led the Quantum Computing in Automotive Market in 2025?

The battery design & optimization segment dominated the market with a share of around 35%. The growing adoption of advanced computing solutions by battery makers has boosted the market growth. Also, rapid investment by battery companies for opening up technologically advanced manufacturing centers is playing a vital role in shaping the industrial landscape. Moreover, the increasing use of cloud-based quantum computing solutions by EV makers for designing EV batteries is expected to drive the growth of the quantum computing in automotive market.

The autonomous vehicle development & simulation segment is expected to grow with the highest CAGR during the forecast period. The growing sales of autonomous vehicles in several countries such as China, the U.S., Denmark and some other has driven the market growth. Also, numerous government initiatives aimed at mandating ADAS in vehicles coupled with technological advancements in self-driving cars is playing a crucial role in shaping the industry in a positive manner. Moreover, the rising deployment of self-driving cars by fleet operators for gaining maximum profits is expected to boost the growth of the quantum computing in automotive market.

Deployment Mode Insights

What made the Cloud-based Quantum Computing to be the most Dominant Segment of the Quantum Computing in Automotive Market in 2025?

The cloud-based quantum computing segment led the market with a share of around 55%. The growing adoption of cloud-based quantum computing solutions by automotive OEMs for enhancing design and optimization of modern cars has boosted the market growth. Also, rapid investment by technology providers for developing advanced cloud computing frameworks for the automotive sector is playing a vital role in shaping the industrial landscape. Moreover, numerous advantages of cloud including cost savings, scalability and flexibility, enhanced security and some others is expected to accelerate the growth of the quantum computing in automotive market.

The on-premise quantum computing segment is expected to expand with the highest CAGR during the forecast period. The rapid deployment of on-premises solutions in automotive workshops for operating numerous activities has boosted the market growth. Also, the rising emphasis of EV companies for deploying on-premises solutions for designing EV batteries is contributing to the industry in a positive manner. Moreover, several advantages of on-premises solutions including flexibility, superior control, high performance and some others is expected to propel the growth of the quantum computing in automotive market.

Vehicle Type Insights

Why did the Passenger Cars Segment Held the Largest Share of the Quantum Computing in Automotive Market in 2025?

The passenger cars segment led the market with a share of around 45%. The growing sales of passenger cars in numerous prominent countries such as the U.S., India, China, Germany and some others has boosted the market expansion. Additionally, rapid deployment of autonomous taxis by fleet operators for reducing dependency on manual drivers is playing a prominent role in shaping the industrial landscape. Moreover, partnerships among passenger car manufacturers and tech providers to integrate cloud-computing in modern vehicles is expected to foster the growth of the quantum computing in automotive market.

The electric & hybrid vehicles segment is expected to grow with the fastest CAGR during the forecast period. The growing adoption of electric vehicles in several nations such as Germany, the U.S., Canada, China and some others has driven the market growth. Also, numerous government initiatives aimed at rising awareness about EVs coupled with integration of quantum computing for enhancing driving range in hybrid vehicles is playing a vital role in shaping the industrial landscape. Moreover, the rising consumer demand for eco-friendly vehicles is expected to drive the growth of the quantum computing in automotive market.

End-User Insights

What made the Automotive OEMs to be the Most Dominant Segment of the Quantum Computing in Automotive Market in 2025?

The automotive OEMs segment led the market with a share of around 40%. The growing adoption of quantum computing technology by automotive OEMs for operating several functions has boosted the market expansion. Also, technological advancements in the automotive sector coupled with rapid investment by EV makers for integrating cloud-based quantum computing in their manufacturing plants is contributing to the industry in a positive manner. Moreover, partnerships among automakers and technology providers is expected to propel the growth of the quantum computing in automotive market.

The technology & R&D companies segment is expected to expand with a the highest CAGR during the forecast period. The growing focus of technology providers for advancing research and development associated with quantum computing has boosted the market growth. Also, rapid investment by automotive brands for opening up new R&D centers is playing a vital role in shaping the industrial landscape. Moreover, collaborations among tech providers and automakers for deploying on-premises computing networks in manufacturing units is expected to foster the growth of the quantum computing in automotive market.

Geographical Insights

Why North America Dominated the Quantum Computing in Automotive Market in 2025?

North America led the quantum computing in automotive market with a share of around 40%. The growing demand for luxury vehicles from the HNIs in the U.S. and Canada has boosted the market growth. Also, rise in number of automotive R&D centers along with increasing sales of autonomous trucks is playing a crucial role in shaping the industry in a positive manner. Moreover, the presence of various market players such as IBM, Google, Ford Motor Company and some others is expected to foster the growth of the quantum computing in automotive market in this region.

  • In November 2024, IBM launched a new range of quantum computers. These quantum computers finds application in the automotive sector of the U.S.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. The rising adoption of electric vehicles in numerous countries such as China, Japan, India, South Korea and some others has driven the market expansion. Additionally, technological advancements in the automotive sector coupled with rapid deployment of self-driving vehicles by fleet operators is playing a prominent role in shaping the industrial landscape. Moreover, the presence of several market players such as Alibaba Group, Toyota Motor Corporation, SoftBank and some others is expected to boost the growth of the quantum computing in automotive market in this region.

  • In April 2025, Toyota partnered with IonQ. This partnership is done for distributing its quantum computing and networking technologies across Japan.

Top Vendors in Quantum Computing in Automotive Market

  • IBM Corporation: IBM (International Business Machines Corporation) is an American multinational technology company specializing in hybrid cloud and artificial intelligence (AI) solutions, providing software, hardware, and consulting services to clients worldwide. Its business spans across software, consulting, infrastructure, and financing segments.
  • Google LLC: Google LLC is a multinational technology corporation is known for its search engine although its extensive products and services also include cloud computing, software, e-commerce, hardware, and artificial intelligence (AI).
  • D-Wave Systems Inc: D-Wave is a leader in commercial quantum computing, providing annealing and gate-model quantum systems, software, and services to solve real-world problems in areas including logistics, AI, and drug discovery. It is headquartered in Canada with U.S. operations in Palo Alto, California, D-Wave offers cloud access to its quantum hardware via the Leap quantum cloud service and provides development tools such as the Ocean software development kit.
  • Rigetti Computing, Inc.: Rigetti Computing is a full-stack quantum computing company that designs, manufactures, and sells superconducting quantum processors and integrated quantum computers, along with a cloud platform for accessing them.
  • Microsoft Corporation (Azure Quantum): Microsoft Corporation is a multinational technology conglomerate, headquartered in Redmond, Washington, that develops, manufactures, and sells software, consumer electronics, PCs, and related services.
  • Honeywell International Inc.: Honeywell International Inc. is an American multinational technology and manufacturing conglomerate, headquartered in Charlotte, North Carolina, that provides solutions for aerospace, building automation, industrial automation, and energy & sustainability.
  • Alibaba Group: Alibaba Group is a Chinese multinational holding company founded in 1999, offering technology infrastructure and marketing services to help businesses and consumers conduct commerce online. Its core businesses include e-commerce, cloud computing, digital media and entertainment, and innovation initiatives.

Industry Leader Announcements

May 2025 Announcement
Francis Chow, Red Hat vice president and general manager for In-Vehicle Operating System and edge What we’re aiming at is to ease the operations of managing edge devices. We want to make it easy for onboarding, configurating, updating, troubleshooting and monitoring edge devices.
June 2025 Announcement
Shamik Basu, vice president, Verizon Business Cars are evolving from mechanical vehicles to software-defined mobile devices with the ability to leverage incredible connected technology. Edge Transportation Exchange leverages that technology to give automakers, governments, and tech developers a robust platform for building out the cellular-connected future of transportation – with visibility and reliability for all road users top of mind.
June 2025 Announcement
Ryo Hayashi, the CEO at DIMO Japan Japan remains an integral part of the global market, with key automakers, Tier 1 suppliers, and mobility innovators all concentrated in the country. Our immediate focus is to expand the DIMO platform and allow local companies to integrate with it.

Competitive Landscape

The quantum computing in automotive market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Rigetti Computing, Inc., Microsoft Corporation (Azure Quantum), IBM Corporation, Google LLC, D-Wave Systems Inc., Honeywell International Inc., Alibaba Group (Alibaba Quantum Laboratory), Baidu, Inc., Volkswagen AG, Daimler AG, BMW Group, Ford Motor Company, Toyota Motor Corporation, Zapata Computing, Inc., QC Ware Corp. and some others. These companies are constantly engaged in providing quantum-based technologies to the automotive sector and adopting numerous strategies such as collaborations, business expansions,launches, partnerships, acquisitions, joint ventures and some others to maintain their dominance in this industry.

IBM Software Segment Revenue in USD Million (2023-24)

  • According to the annual report of IBM, the revenue of the software segment in 2023 was around US$ 25011 million that increased to US$ 27085 million in 2024.

Recent Developments

  • In June 2025, Nvidia launched a full-stack solution. This solution is designed for enhancing autonomous driving in modern cars.
  • In April 2025, Siemens Cre8Ventures partnered with Terra Quantum. This partnership is done for launching quantum solutions for the automotive sector.
  • In November 2024,Volkswagen collaborated with IQM Quantum Computers (IQM). This collaboration is aimed at using a quantum computing solution for boosting electric car batteries.

Quantum Computing in Automotive Market Key Players

Tier 1

  • Volkswagen AG
  • BMW Group
  • Ford Motor Company
  • Toyota Motor Corporation
  • Mercedes-Benz AG
  • Hyundai Motor Group
  • Nissan Motor Co., Ltd.
  • General Motors (GM)
  • Stellantis N.V.

Tier 2

  • IBM Corporation
  • Google Quantum AI
  • Microsoft Corporation
  • Quantinuum
  • IonQ, Inc.
  • D-Wave Quantum Inc.
  • Rigetti Computing
  • QC Ware Corp.
  • Zapata Computing, Inc.
  • Classiq
  • Xanadu Quantum Technologies
  • PsiQuantum
  • Alice & Bob

Tier 3

  • QMill
  • QNu Labs
  • QpiAI
  • Quandela
  • Akhetonics
  • Black Sesame Technologies
  • Qoros Auto Co., Ltd.

Quantum Computing in Automotive Market Segments

By Application

  • Autonomous Vehicle Development & Simulation
  • Battery Design & Optimization (EV Batteries)
  • Supply Chain & Logistics Optimization
  • Traffic Management & Smart Mobility
  • Material Discovery & Vehicle Design

By Deployment Mode

  • Cloud-based Quantum Computing
  • On-Premise Quantum Computing

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • Electric & Hybrid Vehicles

By End-User Industry

  • Automotive OEMs
  • Tier-1 & Tier-2 Suppliers
  • Technology & R&D Companies
  • Government & Research Institutes

By Region

  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

Tags

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  • Insight Code: 1866
  • No. of Pages: 400
  • Format: PDF/PPT/Excel
  • Last Updated: 24 October 2025
  • Report Covered: Revenue + Volume
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Laxmi Narayan is a seasoned Research Analyst at Towards Automotive, with 5 years of specialized experience in market research, analysis, and consulting within the automotive technology domain.

Learn more about Laxmi Narayan

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar

FAQ's

The growth is primarily driven by the increasing adoption of autonomous vehicles, advancements in V2X technology, and the rising demand for luxury vehicles, coupled with heavy investment in R&D by automotive companies.

North America is leading with around 40% market share, driven by the high demand for luxury vehicles, a strong presence of automotive OEMs, and advancements in R&D for autonomous vehicles.

The battery design and optimization segment leads, driven by the growing demand for electric vehicle batteries and advanced computing solutions in battery manufacturing.

The electric and hybrid vehicle segment is expected to grow at the highest CAGR, fueled by increasing adoption of electric vehicles and government initiatives promoting eco-friendly transportation.

Cloud-based quantum computing, with its cost-saving and scalable benefits, is driving significant growth, particularly in vehicle design and optimization by automotive OEMs and tech providers.

Automotive OEMs, technology & R&D companies, and tier-1 & tier-2 suppliers are the key end-users, driving the demand for quantum computing solutions to enhance vehicle design, security, and operational efficiency.

The market is expected to experience significant growth between 2025 and 2030, driven by the demand for luxury and electric vehicles, as well as advancements in autonomous driving and V2X technology.

Key players include major automotive OEMs such as Volkswagen, BMW, Ford, Toyota, and General Motors, alongside tech giants like IBM, Google, and Microsoft. These companies are heavily investing in quantum computing to optimize vehicle design and autonomous driving systems.

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