Quantum Computing Market

Quantum Computing Market in Drug Discovery: Industry Trends and Global Forecasts, till 2035 - Distribution by Drug Discovery Service Offered (Target Identification / Validation, Hit Generation / Lead Identification and Lead Optimization), Therapeutic Area (Cardiovascular Disorders, CNS Disorders, Dermatological Disorders, Endocrine Disorders, Gastrointestinal Disorders, Immunological Disorders, Infectious Diseases, Musculoskeletal Disorders, Oncological Disorders, Respiratory Disorders and Others), and Key Geographical Regions (North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Latin America and Middle East and North Africa)

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Quantum Computing In Drug Discovery: Market Overview

The global quantum computing market size in drug discovery application is estimated to grow from USD 368 million in 2023 to USD 1,633 million by 2035, growing at a CAGR of 13.2% during the forecast period from 2023-2035.

Quantum Computing Market, By Type of Drug Discovery Services, 2023-2035 (USD Million)

The early stages of research related to drug discovery, including the identification of a relevant biological target and a viable lead compound, play an important role in the overall success of a drug candidate in preclinical and clinical studies. The process of drug development, beginning from the discovery of a pharmacological lead to its commercial launch, is estimated to take around 10-15 years, involving capital investments in the range of USD 4 billion - USD 10 billion. Over time, the complexities associated with drug discovery have increased, specifically, for large molecules, which are inherently more complex than small molecule drugs. In order to overcome various challenges related to drug discovery, such as rising capital requirements and failure of late-stage programs, several pharmaceutical players are currently exploring the implementation of quantum computing in drug discovery processes.

Quantum computing is a process that uses laws of quantum mechanics to solve large and complex problems in a short span as compared to the computer-aided drug discovery. Currently, there are several quantum computing related approaches that are being used in the drug discovery process alone, such as structure-based drug design, fragment-based drug discovery and ligand-based drug discovery. The predictive power of quantum computing has proven to reduce the complexity, cost and time investment in the overall drug discovery procedure by allowing researchers to bypass the random screening of billions of molecules in a short span of time. As a result, the pharmaceutical industry stakeholders have started relying on the companies offering quantum computing software and hardware to support drug discovery. Furthermore, considering the various initiatives being undertaken actively by quantum computing companies, we are led to believe that the opportunity for stakeholders in quantum computing market, upcoming industry is likely to grow at a steady pace in the foreseen future.

Quantum Computing Market Key Insights

The Quantum Computing Market in Drug Discovery: Distribution by Drug Discovery Service Offered (Target Identification / Validation, Hit Generation / Lead Identification and Lead Optimization), Therapeutic Area (Cardiovascular Disorders, CNS Disorders, Dermatological Disorders, Endocrine Disorders, Gastrointestinal Disorders, Immunological Disorders, Infectious Diseases, Musculoskeletal Disorders, Oncological Disorders,  Respiratory Disorders and Others), and Key Geographical Regions (North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Latin America and Middle East and North Africa): Industry Trends and Global Forecasts, 2023-2035 report features an extensive study of the current market landscape, market size and future potential of quantum computing in drug discovery market. The report highlights the efforts of several stakeholders engaged in this rapidly emerging segment of the pharmaceutical industry. The report answers many key questions related to quantum computing market forecast and trends.

Quantum Computing Technology is Supporting Drug Discovery

Quantum computing is a rapidly emerging technology that uses quantum mechanism to solve large and complex problems in a short span of time as compared to traditional computers. Quantum computing has created a huge impact on the pharmaceutical industry in a short time period. It has wide applications in the pharmaceutical industry / medicine in areas such as drug discovery, disease analysis and diagnosis. Various industry stakeholders are integrating quantum computing for the discovery and development of drugs. Presently, quantum computing is used for the discovery and development of drugs owing to its capability of screening billions of molecules for specific targets in a short span of time. This procedure reduces the complexity and helps in saving time and cost associated with the drug discovery process. Quantum technology is supporting several steps within drug discovery from target identification to lead optimization.

Owing to the various benefits of quantum computing, such as big data processing and complex molecular modeling for minimizing cost and time investment, the adoption rate of quantum computing in pharmaceutical industry is expected to increase rapidly during the forecast period.

Quantum Computing Market Landscape

The companies supporting drug discovery efforts include both quantum computing software providers and quantum computing hardware providers. Software companies claim to offer services across various types of drug discovery steps. Further, these are focused on different types of therapeutic areas, primarily including oncological disorders, infectious diseases and cardiovascular disorders. Hardware companies primarily offer hardware as a service; some of the players also offer the option of purchasing the hardware directly. 

Quantum Computing Market Trends: Partnerships and Collaborations to Drive the application of Quantum Technology in Drug Discovery?

Currently, various partnerships have been inked for application of quantum computing in drug discovery. Majority of these partnerships are research and development agreements, followed by platform utilization agreements. Drug developers require support from both quantum computing software and hardware developers. In July 2021, Riverlane and Astex Pharmaceuticals announced their collaboration with Rigetti Computing to utilize their quantum systems along with Riverlane’s algorithm expertise to develop molecular models of chemical compounds and study their interaction with proteins in the human body. Another UK based company, Quantinnum, launched its quantum computational chemistry software named InQuanto in 2022. The company collaborated with an undisclosed big pharmaceutical developer for quantifying drug-protein interactions. Collaborations will be inevitable in this market and will put forward quantum computing use cases for the pharmaceutical industry. We expect the quantum computing software and hardware companies to increasingly collaborate with the drug developers to provide a solution to the drug discovery and drug design challenges, driving the market growth during the forecast period.

Recent Developments in Quantum Computing in Drug Discovery Market

In addition to the partnerships and collaboration between the industry players, a number of academic institutes are collaborating with quantum computing software and hardware companies on projects to accelerate the use of quantum computing in drug discovery and development. Such projects are receiving grants from several non-profit organizations. Currently, more than 170 grants have been awarded to various organizations, primarily focused on quantum computing in drug discovery. Further, it is important to mention that the maximum number of grants have been awarded under type 5 category. In late 2022, a team of researchers at Pennsylvania State University received USD 1.2 million grant from the National Science Foundation to design drugs targeting Ras family for treatment of cancer. In the UK as well, Innovate UK’s Industrial Strategy Challenge Fund provided a GBP 6.85 million grant to SEEQC for development of a full-stack quantum computer for Merck. Riverlane, Oxford Instruments, the University of Oxford, Medicines Discovery Catapult, and members from the Science and Technology Facilities Council, including the UK’s National Quantum Computing Centre are all part of the consortium led by SEEQC which is responsible for the project.

Quantum Computing in Drug Discovery Market Size

As the adoption of quantum computing in drug discovery increases amongst innovators in the pharmaceutical and biopharmaceutical industries, lucrative opportunities are expected to emerge for players offering services for quantum computing in drug discovery. The global quantum computing market, focused on drug discovery is expected to grow at a CAGR of ~14% from 2023 to 2035.

North America Will Continue to be the Driving Force Within the Quantum Computing Market for Drug Discovery

North America currently holds nearly 50% share of the quantum computing market for drug discovery. This region will continue to drive the market growth during the forecast period with an estimated CAGR of 14% from 2023 – 2035. A number of start-ups working on improving the drug discovery process using quantum computing are based in North America and Europe. One such company in the US based quantum computing software developer, Zapata Computing, which was formed as a spin-off from Harvard University in 2017. 

Leading Quantum Computing Companies Supporting Drug Discovery

Examples of service providers engaged in quantum computing market (which have also been captured in this report) include (in alphabetic order) Accenture, Aurora Fine Chemicals, Amazon Web Services, Huawei, IBM, Microsoft, Fujitsu, Xanadu and XtalPi. This market report includes information on all the quantum computing software and hardware companies supporting the application of quantum technology in drug discovery.

Recent Developments in Quantum Computing in Drug Discovery Market

Several recent developments have taken place in the field of quantum computing in drug discovery. We have outlined some of these recent initiatives below. These developments, even if they took place post the release of our quantum computing market report, substantiate the overall market trends that have been outlined in our analysis.

  • In June 2023, Algorithmiq raised USD 15 million in Series A funding round. 
  • In April 2023, Moderna announced the collaboration with IBM with an aim to explore quantum computing and artificial intelligence to advance and accelerate mRNA research and science. 
  • In March 2023, Cleveland Clinic in collaboration with IBM launched first deployment of an onsite private sector IBM-managed quantum computer in the US for healthcare research.

Scope of the Report

The quantum computing report features an in-depth analysis of various firms / organizations that are engaged in supporting drug discovery, across different segments as defined in the table below:

Report Attribute Details

Forecast Period

2023 – 2035

Base Year 2022

Market Size 2022

$411 million

CAGR

13.6%

Type of Drug Discovery Services Offered

Target Identification / Validation, Hit Generation / Lead Identification, Lead Optimization

Therapeutic Area

Cardiovascular Disorders, CNS Disorders, Dermatological Disorders, Endocrine Disorders, Gastrointestinal Disorders, Immunological Disorders, Infectious Diseases, Musculoskeletal Disorders, Oncological Disorders, Respiratory Disorders, Other Indications

Key Geographical Regions

North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Middle East and North Africa, Latin America

Key Companies Profiled

Accenture, Amazon Web Services, Atos, Fujitsu, Huawei, IBM, Microsoft, Xanadu, XtalPi
(Full list of 75+ companies captured in the market landscape analysis of the report)

Customization Scope

15% Free Customization Option (equivalent to 5 Analyst working days)

Excel Data Packs (Complimentary) Market Landscape Analysis, Company Competitiveness Analysis, Grant Analysis, Partnership and Collaboration Analysis, Market Forecast and Opportunity Analysis

 

This image provides a list of quantum computing companies. Presently, over 45 players around the globe claim to offer quantum computing services across different steps of drug discovery The infographic highlights quantum computing market landscape. Leveraging their expertise, 86% stakeholders offer such services across target discovery / identification, primarily focusing on oncological disorders The image provides a list of quantum computing hardware proviers. More than 30 players, worldwide, claim to offer hardware-as-a-service for quantum computing in drug discovery, and have developed the required expertise in different types of computational approaches


The market report presents an in-depth analysis, highlighting the capabilities of various stakeholders engaged in this industry, across different geographies. Amongst other elements, the report includes:

  • An executive summary of the insights captured during our research. It offers a high-level view on the current state of quantum computing in drug discovery market and its likely evolution in the short to mid and long term.
  • A general overview of quantum computing in drug discovery , along with information on its types and applications across various industries. It also highlights the applications of quantum computing, specifically related to drug discovery. Further, the chapter features a discussion on the challenges, key growth drivers, and future perspectives.
  • A detailed assessment of the overall market landscape of quantum computing software companies, based on several relevant parameters, including year of establishment, company size (in terms of number of employees), location of headquarters, business capabilities (platform / software, quantum as a service, drug discovery service and in-house pipeline), platform capabilities (drug discovery, drug design, supply chain management and drug development(clinical trials)), type of drug discovery service(s) offered (target discovery / identification,  target validation / selection, hit generation / identification / discovery, hit to lead / hit expansion / target to lead / lead identification / select lead series and lead optimization), type of molecule(s) supported (small molecules and large molecules), compatible computational approaches (artificial intelligence and cloud computing), end user(s) (pharmaceutical companies, contract research organizations and academic / research institutes) and therapeutic area(s) (cardiovascular disorders, infectious diseases, neurological disorders , oncological disorders and others)  
  • A detailed competitiveness analysis of quantum computing software companies based on company strength (in terms of years of experience), portfolio strength (in terms of type of drug discovery services offered, type of molecule(s) supported, type of computational approaches and type of end-user(s)), and portfolio diversity (in terms of business capabilities).
  • Elaborate profiles of quantum computing software companies. Each profile includes a brief overview of the company, financial information (if available), details on service portfolio, recent developments and an informed future outlook.
  • A detailed assessment of the overall market landscape of quantum computing hardware companies, based on several parameters including year of establishment, company size (in terms of number of employees), location of headquarters, type of offering(s) (hardware as a service and hardware for purchase), data storage on cloud and compatible computational approaches (artificial intelligence and cloud computing)
This image provides a view on quantum computing hardware providers market distribution. Majority of the quantum computing hardware providers, headquartered in North America, were established before the year 2000; in fact, ~50% of the overall market landscape is catered to by large companies The infographic highlights that the rise in the adoption of quantum computing in the biopharmaceutical industry is anticipated to create profitable business opportunities for both quantum computing software and hardware providers The image highlights competitiveness amongst the quantum computing companies. In pursuit of gaining a competitive edge, manufacturers claim to be steadily expanding their existing capabilities in order to enhance their service portfolio related to quantum computing

 

  • Detailed profiles of quantum computing hardware companies. Each profile includes a brief overview of the company, financial information (if available), details on service portfolio, recent developments and an informed future outlook.
  • A detailed review of over 170 academic grants focused on quantum computing in drug discovery, based on several relevant parameters, such as year of grants awarded, amount awarded, support period, type of study section, administering institute center, type of grant, activity code, funding mechanism and amount granted, funding institute and support period, prominent program officers (by number of grants), location of recipient organizations, popular recipient organizations, organization type and amount granted to popular recipient.
  • A detailed analysis of recent partnerships inked between stakeholders engaged in the quantum computing market, since 2017, based on several relevant parameters, such as year of partnership, type of partnership, most active players (in terms of number of partnerships), and regional distribution of partnership activity in this domain.  
  • Quantum computing use cases highlighting the applications of quantum computing across various industries, such as chemical industry, cybersecurity, financial modeling, space sciences, oil and gas industry and weather forecasting, and its likely evolution in the foreseen future.
  • A qualitative analysis, highlighting the five competitive forces prevalent in quantum computing market supporting drug discovery, including threats for new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitute product and rivalry among existing competitors.
  • A detailed analysis of the current and future market based on blue ocean strategy, covering a strategic plan / guide for emerging players in this industry to help unlock an uncontested market, featuring thirteen strategic tools that can help software companies to shift towards a blue ocean strategic market.
The infographic highlights various partnerships that have been forged amongst quantum computing service providers either for quantum computing hardware or for quantum computing software. A considerable increase in the partnership activity has been witnessed in the past few years; close to 50% of the collaborations were inked by firms based in the same region The image provides an insightful blue ocean stragey for quantum computing companies. Based on the pioneer-migrator-settler map, we have classified the software providers into different categories; a selection of pioneers is expected to provide valuable offerings to lead the market in the longer term The infographic highlights the quantum computing market size. We expect the market to grow at an annualized rate of 14% in the coming decade; the opportunity is likely to be well distributed across types of drug discovery services, therapeutic areas and key geographical regions


One of the key objectives of the market report was to estimate the current market size, opportunity and future growth potential of quantum computing market in drug discovery over the forecast period. We have provided informed estimates on the likely evolution of the market for the period, 2023-2035. Our year-wise projections of the current and future opportunity have further been segmented based on relevant parameters, such as drug discovery services offered (target identification / validation, hit generation / lead identification and lead optimization), therapeutic area (cardiovascular disorders, CNS disorders, dermatological disorders, endocrine disorders, gastrointestinal disorders, immunological disorders, infectious diseases, musculoskeletal disorders, oncological disorders,  respiratory disorders and others), and key geographical regions ((North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Latin America and Middle East and North Africa). In order to account for future uncertainties associated with some of the key parameters and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s evolution.

The opinions and insights presented in the report were influenced by discussions held with stakeholders in this domain. The market report features detailed transcripts of interviews held with the industry stakeholders.
All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this report are in USD, unless otherwise specified.

Frequently Asked Questions

Question 1: What is quantum computing?

Answer: Quantum computing is a process that uses laws of quantum mechanics to solve large and complex problems in a short span as compared to the computer aided drug discovery.

Question 2: How can quantum computing help drug discovery?

Answer: The predictive power of quantum computing has proven to reduce the complexity, cost and time investment in the overall drug discovery process by allowing researchers to bypass the random screening of billions of molecules in a short span of time.

Question 3: Which part of drug discovery life cycle can quantum computing impact the most?

Answer: Lead optimization will be most influenced by quantum computing because of the role of quantum technology in modelling of molecular structures and evaluating the interactions of drug with its target.

Question 4: What is the quantum computing market size for application in drug discovery?

Answer: The global quantum computing market in drug discovery is estimated to be USD 411 million in 2022.

Question 5: What is the growth rate of quantum computing market focusing on drug discovery?

Answer: The global quantum computing market focusing on drug discovery is expected to grow at an annualized rate of 13.6% from 2023 to 2035.

Question 6: Which region is likely to hold the largest share in the quantum computing market focused on drug discovery?

Answer: North America is anticipated to capture the highest quantum computing market share by 2035.

Question 7: Which type of service providers are most likely to dominate the quantum computing industry for drug discovery?

Answer: Currently, quantum computing software companies hold the largest share in the market; this is followed by quantum computing hardware companies.

Question 8: What kind of partnership models are most commonly being adopted by stakeholders engaged in this industry?

Answer: Research and development agreements emerged as the most popular type of partnership model adopted by players engaged in offering quantum computing services for drug discovery. This is followed by platform utilization agreements.

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