Quantum Computing
Outlook: Predictions & Trends
August 2023
Newsletter #3

Table of content

1. Current state of quantum computing and market growth expectations
Over the past years quantum computing has remained a widely discussed technology topic, promising a significant improvement in complex problem-solving, optimization and simulation that outperforms the capabilities of computers today. For instance, a quantum computer could process the large volume of data required to predict and mitigate traffic jams within minutes or hours. In contrast, such a task would take a supercomputer thousands of years to solve.
The Future of Quantum Computing: TMT 2023 Predictions and QCaaS Market Insights
According to the TMT (Tech, Media and Telecom) 2023 predictions report from GlobalData, the quantum computing market is expected to grow to a range of $1 billion to $5 billion by 2025. There are already prototypes from companies like IBM and Google on the market and ready for use on the cloud, however it will still a few years to make quantum computers available to everyone. According to predictions from GlobalData, a full-scale commercialization of quantum computing will likely begin in 2027. With increasing corporate investment in quantum technology, the Quantum Computing as a Service (QCaaS) market is expected to grow to US$ 125bn by 2030 with a CAGR of almost 37% compared to 2022, with North America being the largest market and Asia Pacific being the fastest growing region now. Microsoft is currently leading the QCaaS market with “Microsoft Azure Quantum” providing users access to other company’s hardware, e. g. IonQ.
Advancing a strategy for quantum computing that will inspire, support and safeguard economic growth in the Middle East
"Although quantum computing is set to emerge into the real world in a handful of years, it is still for now in its relatively early stages. One of the main opportunities in the short term for nations in the Middle East therefore will be to foster experimentation and encourage the development of potential use cases.
The best chance for local economies to invest wisely, attract the right skills and gain a competitive edge will be if they concentrate their efforts on practical uses for the new technology for the established local energy economy and the region’s emerging financial services, high-tech and adjacent knowledge industries such as smart city development. Gulf nations taking action soon definitely have a good chance of exploiting quantum computing to their advantage, and in staying competitive with other regions that until now have taken the lead."
This is the conclusion of the World Government Summit 2019, in partnership with PwC. You can read the whole report here: Quantum leap report
2. Recent software and hardware developments
As for recent software and hardware developments, we are currently in the so-called NISQ phase, the Noisy-Intermediate-Size-Quantum Computer, which is characterized by universal (can perform every calculations) quantum computers with several hundreds of operational units, so-called qubits, which are intrinsically noisy, i.e. operations with these qubits are prone to errors and must be corrected by designing specific error mitigation algorithms. Thus, among the number of qubits, the quality becomes an indicator of the performance of recent quantum computers.
Just late 2022, IBM unveiled a 433 qubit processor “Osprey” with triple as many qubits as “Eagle”, IBM’s previous processor, positioning “Osprey” as the most powerful universal quantum computer to date, carrying the capability to accelerate certain calculations millions of times faster than the fastest supercomputers. Why is that so revolutionary? The number of classical bits required to represent a state on “Osprey” massively exceeds the total number of atoms known in our universe, which is approx. 1080. It carries the potential to speed up a diverse set of processes e.g. discovering new products, improving data encryption, optimizing strategies for investments, modelling oceans or space, and finding suitable treatments for diseases, exceeding anything seen so far, and making it possible to create reality at a significantly faster pace. Recently in 2023, researchers at IBM aim to release a more than 1.000-qubit processor; within the next two to three years, the researchers target to further scale and develop processors with more than 4.000 qubits (IBM Kookaburra Quantum System) by following a new approach – the modular system “Quantum System Two”. Let’s make that more approachable: In 2019, Google’s “Sycamore Processor” with only 53 qubits - 1/75 of the number of qubits IBM’s “Quantum System Two” will have – was able to perform a calculation within 200 seconds that would have taken the fastest supercomputer 10.000 years.
The “IBM Quantum System Two” is said to be the next wave in quantum computing as it uses communication links to combine several processors in one system. More precisely, as it employs a modular architecture and quantum communication it becomes scalable and increases the computational capacity. Moreover, the system allows to seamlessly integrate quantum and classical workflows by employing hybrid cloud middleware. The goal of a modular concept is to connect millions of qubits & other components and link them with microwave connections or quantum-friendly fiber-optic to open a new door: distributed, large-scale quantum computers to achieve a new state of power as we currently have it with the power of distributed classical computing.
The key advantages of qubits are the properties of superposition and entanglement. But those properties come to a price that the qubits must be isolated from their environment and thus operates at temperatures very close to absolute zero. The qubits can be isolated just for a very short time, long enough to perform calculations but too short for performing very complicated algorithms. To counteract the effects of environmental changes, e.g., Earth’s magnetic field or radiation from cellphones, that can lead to the collapse of the superposition and entangled states, companies like Google, IonQ and IBM test several approaches. Google demonstrates error correction by outperforming underlying qubits with other qubits assembled into error-correcting sets. IonQ and IBM both take similar approaches by mitigating in a variety of ways, e. g. including an option in the API to reduce error count by trading speed, allowing users to accelerate the development of quantum applications.
3. Outlook on the impact on cybersecurity and sustainability
Cybersecurity
While the potential of quantum computing is immense, its rapid advancement also brings about new challenges and risks, particularly in the realm of cybersecurity for organizations. Traditional encryption methods, which rely on the difficulty of factoring large numbers, can be rendered ineffective against quantum computers. The superior processing power of quantum computers could potentially break encryption algorithms used to secure sensitive data, including financial transactions, personal information, and government communications. This poses a significant threat to the confidentiality and integrity of data for businesses and individuals alike.
However, according to Vadim Lyubashevsky, a researcher at the Zurich IBM Lab, there are clear and precise expectations about the capabilities of a particular quantum computer and “it makes sense to prepare for things like that because we know exactly what [quantum computers] are going to do […] and we can address that ” (Euronews Next 2023). IBM and Vodafone are already collaborating to explore how the quantum-safe cryptography of IBM can be applied across the technology infrastructure of Vodafone. We will have a deep dive into the topic of quantum safe cybersecurity in one of the upcoming newsletter editions.
Sustainability
The advent of quantum computers marks a transformative phase in computing technology, offering significant potential in addressing environmental, social, and governance (ESG) issues. By harnessing this technology, unparalleled opportunities for optimization and simulations become available. Quantum computing presents humanity with a potent instrument precisely when our planet faces pressing ecological and social challenges. It is essential to embrace this opportunity and integrate this emerging technology into various business domains, particularly concerning ESG matters.
There is plenty of specific application areas for quantum computers within the sustainability area. One of them is logistics and supply chain management where process optimization is enabled through quantum algorithms that analyze extensive data. With their unparalleled computational capabilities, these machines can identify efficient transport routes, reducing costs and environmental impact. The "last mile" challenge in logistics can be revolutionized by using quantum-powered algorithms for automated delivery vehicles, ensuring prompt and reliable deliveries in congested urban areas. By optimizing routes and reducing carbon footprints, businesses can align with sustainability goals. Overall, quantum computing integration in supply chain management provides a competitive advantage, enhancing efficiency, productivity, and long-term growth prospects.
Quantum computing’s capabilities and associated advantages will position the technology as essential sooner or later in our fast-paced technological environment. We at PwC are a passionate community of solvers that help you to conquer your most complex challenges through the potential of quantum computing.
To discover more insights at the intersection of Quantum Computing and Sustainability as well as further application areas, please visit our dedicated website: Quantum Computing as a Driver of ESG Initiatives

© 2017 - 2023 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.