Quantum Computing
High-Impact Use Cases
July 2023
Newsletter #2

Table of content
1. Quantum computing use case archetypes
- Quantum Simulation
- Quantum Optimization
- Qunatum Security
2. Industry-specific use cases
- Automotive
- Pharmaceuticals
- Finance
- Logistics
- Chemicals
3. Why it's important to start your quantum computing journey now

1. Quantum computing use case archetypes
In what archetypes can quantum computing use cases be divided?
In our second newsletter edition, following the introduction to Quantum Computing (QC), we dive deeper into the potential high-impact use cases of QC across various industries like automotive, pharmaceuticals, finance, logistics and chemicals. To fully understand the benefits and risks of Quantum Computing, it is essential to differentiate its capabilities, which can be categorized into three archetypes: optimization, simulation and security.
1.1 Quantum simulation
Large complex systems such as drug molecules, complex molecular formations for materials and natural occurrences like photosynthesis increase the need for more enhanced computing effort to simulate them correctly. The current supercomputers, bound to Moore’s Law - the principle that the number of transistors on a computer processor doubles every two years - cannot reach the degree of precision needed by these simulations. For example, in material science, simulating in detail (without approximations) the properties of small molecules consisting of half a dozen atoms is classically very complicated. QC, on the other hand, which uses principles of quantum mechanics to process information in ways that traditional computers cannot, can be used to simulate these systems more efficiently than the current supercomputers thanks to their advanced faster algorithms.
1.2 Quantum optimization
Optimization involves selecting the optimal alternative among a range of potential solutions. Especially if the set of possible solutions grows exponentially with the process size, finding the optimal solution might be prohibited or very expensive for classical algorithms. Optimization procedures, such as genetic algorithms and heuristic solvers for supply-chain optimization in the logistics industry and for smart grids in power stations in the energy industry, which typically take much time to complete, could be made more efficient, less time-consuming with the increased speed of transaction and more cost saving with the incurred operational resource cost thanks to quantum algorithms. This advancement in optimization is being researched for potential use in multiple industries to enhance, for example, supply-chain optimization, production, and research and development and in financial institutions for portfolio optimization.
1.3 Quantum security
Being more technologically advanced than conventional computing, QC could give rise to new encryptions, for instance, in commercial and governmental institutions, to secure their data. Current public-key cryptography, such as the RSA and DLP, has the risk of being hacked due to quantum algorithms, such as Shor's algorithm. This could threaten highly sensitive commercial, private and national security data. On the other hand, this perceived threat to public-key encryption has prompted the development of quantum-resistant algorithms such as lattice- or ring-based cryptography like NTRU encryption algorithms or GLP-Variant GLYPH Signatures.

Source: PwC internal
2. Industry-specific use cases

Automotive
A use case of how QC could and is already being applied in the automotive industry is the development of new batteries for electric vehicles (EVs). QC simulation might be used to create EV battery packs that are safer to drive, more dependable to operate, can supply energy at greater distances without recharging and leave fewer carbon footprints. This was demonstrated, for instance, by Volkswagen's collaboration with Google in 2018, when they announced employing quantum computing to simulate chemicals like carbon chains and lithium-hydrogen to create a "tailor-made battery".

Pharmaceuticals
The study and development of molecular structures biopharmaceuticals sector could be revolutionized through QC. Through detailed simulations, the trial-and-error phase in developing new drugs could be shortened with a more accurate prediction of drug effects than ever before. In the long run, this could make new products and drugs available commercially faster and more efficiently compared to current development, where new medicines could take up to 13 years to go through their development process before being approved for commercial use. Additionally, in the pharmaceutical industry, the technology offers the potential for more accurate systems, such as cancer diagnostics.

Finance
Complex simulations and optimization problems are the order of the day in finance and insurance. With high pressure to comply with regulatory requirements for every transaction made, financial institutions are expected to deliver perfect compliance with little to no error. Examples include creditworthiness checks or risk analysis in transactions. Due to their complex nature, it is hard to properly manage the costs of risk on trades. QC offer the possibility to solve such tasks by solving highly complex algorithms in a fraction of the time with more precision, thus significantly increasing efficiency and profitability.

Logistics
Route and transport planning is a highly complex and computationally intensive field. Factors such as traffic and weather are often difficult to predict, which may lead to uncertainty. With more computing power, Quantum computers can process significantly more relevant parameters and information in less time. With the help of real-time optimizations and weather simulations, they offer enormous potential for optimizing supply chains by providing better decision-making support, for instance, through simulating more precise disruption scenarios and providing predictions - which makes the technology interesting for companies in a wide range of industries. Contributing to faster recovery times, reduced costs, and fewer negative effects on operations and customer service may ultimately increase the effectiveness of the entire route and transport planning process.

Chemicals
Accurate predictions of molecular properties are essential for designing novel small molecules and polymers in the chemical industry. While conventional computational-chemistry tools have helped chemical researchers advance R&D, they rely on approximations and typically give only partial information on the properties of molecules. In situations where no trustworthy computational techniques are currently available, QC will enable precise quantum-mechanical simulations, and more accurate process conditions optimization, opening opportunities for savings and revenue.
3. Why it’s important to start your quantum computing journey now
Overall, the current state of Quantum Computing is relatively early. However, the technology is no longer confined to the high-tech lab, as it’s on the way to becoming more accessible to commercial use for businesses over the next >5 years, paving the way for the quantum age. The potential of QC has attracted significant public investment worldwide, with the EU, Germany, USA, India, and China leading the way with a combined investment of over 20 billion EUR in 2022. This funding can be seen as an indicator of the technology's growing importance and potential impact across many industries.
We at PwC are a passionate community of solvers that help you to conquer your most complex challenges through the potential of quantum computing. Reach out to us to discuss how we can explore the strategic relevance of quantum computing for your organization and identify and implement individual use cases.

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