Quantum Computing Market in India

Quantum Computing in India Trends and Forecast

The future of the quantum computing market in India looks promising, with opportunities in optimization, simulation, and machine learning applications. The global quantum computing market is expected to reach an estimated $7.7 billion by 2031, with a CAGR of 36.8% from 2025 to 2031. The quantum computing market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the growing need for high-performance computing and the rising demand for quantum computing solutions from various industries.

• Lucintel forecasts that, within the deployment category, the cloud is expected to witness higher growth over the forecast period due to its increasing usage among users, owing to its flexibility and powerful systems.
• Within the application category, optimization will remain the largest segment due to the growing use of quantum algorithms to optimize problems and solve them faster and more efficiently.

Emerging Trends in the Quantum Computing Market in India

India is rapidly growing in terms of emerging trends in the quantum computing market worldwide. Backed by governmental support, private sector investments, and powerful academic and research institutions, the country aims to spearhead innovations in the quantum technologies field. The Indian research and commercial quantum computing sectors are flourishing. These trends are creating new opportunities across various industries, ranging from information technology to healthcare, and reshaping the technological development landscape in the country.

• Government Support and Initiatives: The Indian government has significantly increased its focus on quantum technologies. Programs like the National Mission on Quantum Technologies and Applications (NMQTA) aim to provide strategic direction and funding for quantum research. The government has accelerated the country’s quantum computing capabilities with an investment of INR 8,000 crore in quantum technologies. This encourages public-private collaboration and pushes India to become a better participant in the quantum race by setting a framework for innovation and infrastructure development.
• Collaboration Between Academia and Industry: In India, academia and industry are increasingly collaborating on quantum computing projects. Leading institutions like IITs (Indian Institutes of Technology), IISc (Indian Institute of Science), and government research bodies such as ISRO and DRDO are partnering with tech companies to drive innovation in quantum computing. These collaborations are crucial for accelerating research and translating quantum theories into practical, commercial applications. As a result, India is becoming a hub for quantum computing research and development, with promising prospects for commercializing quantum technologies.
• Focus on Quantum Computing in Healthcare: India is exploring quantum computing potential in healthcare, particularly for drug discovery, molecular simulations, and personalized medicine. Quantum algorithms can process vast amounts of healthcare data, making them ideal for tackling complex problems in medical research. Indian institutions are conducting pilot projects in collaboration with global pharma companies to explore quantum-powered simulations for faster drug discovery. This trend promises to revolutionize healthcare by accelerating the development of new treatments and therapies, making medical advancements more accessible and efficient.
• Quantum Cryptography and Cybersecurity Applications: As data security concerns grow, quantum cryptography is gaining traction in India, particularly for protecting sensitive information. Quantum key distribution (QKD) and other quantum encryption methods provide an unbreakable level of security, especially against the rising threat of quantum-powered cyberattacks. India is focusing on implementing quantum cryptography for its banking, finance, and defense sectors. This trend is essential for maintaining the security of sensitive national and international data and ensuring that India remains competitive in the cybersecurity space.
• Development of Quantum Algorithms and Software: India is witnessing a rise in the development of quantum algorithms and software platforms. Tech companies and research institutions are investing in quantum programming languages and tools to build solutions that will run on quantum computers. This trend is key to overcoming the current barriers to quantum computing practical implementation. By developing these tools, India aims to foster an ecosystem that can leverage quantum hardware and software together to unlock new solutions for various sectors, from finance to AI.

These emerging trends in quantum computing—government support, collaboration between academia and industry, healthcare innovations, quantum cryptography, and software development—are positioning India as a rising force in the global quantum computing market. With strong government initiatives and strategic partnerships, India is creating an environment conducive to both technological advancements and market growth. As these trends continue to evolve, India is set to play a significant role in the commercialization and application of quantum technologies, driving progress in key industries such as healthcare, cybersecurity, and IT.

Recent Developments in the Quantum Computing Market in India

India is making significant strides in quantum computing, with key developments aimed at advancing research, fostering public-private collaborations, and addressing real-world challenges. The nation’s growth in the quantum space is fueled by a combination of government initiatives, institutional partnerships, and private-sector investments. These developments are unlocking new applications and opportunities for India, positioning the country as a rising hub for quantum computing in the global technological landscape.

• Launch of the National Mission on Quantum Technologies and Applications (NMQTA): The Indian government’s NMQTA is a major step toward developing quantum computing capabilities in India. With an investment of INR 8,000 crore, the mission aims to enhance India’s research capabilities, create state-of-the-art infrastructure, and foster quantum talent. This initiative is designed to propel India’s position in quantum computing globally. By focusing on both academic research and industry collaboration, the mission addresses the need for long-term investments in quantum technologies, ensuring that India can compete on the global stage in quantum computing and its applications.
• India’s First Quantum Computing Startups: Indian startups like QNu Labs and BosonQ Psi are leading the charge in quantum technology. These companies are developing quantum software, cryptographic solutions, and quantum algorithms to tackle real-world problems in fields like cybersecurity and banking. Their focus on creating commercially viable quantum products is driving the growth of India’s quantum computing market. Startups are also attracting investments from global venture capitalists, further accelerating the commercialization of quantum computing technologies in India and contributing to the country’s leadership in the quantum revolution.
• Global Quantum Research Institution Collaborations: India is forming strategic collaborations with global leaders such as IBM, Google, and Microsoft for advanced research, access to shared resources, and building an ecosystem of quantum computing in the country. Through these partnerships, India is better positioned to benefit from the latest cutting-edge research in quantum technologies. As a result, Indian researchers and companies are now better equipped to leverage quantum computing to solve complex problems, positioning India as a key player in the global quantum landscape.
• Quantum Computing Applications for Indian Defense and Space Sectors: The Indian defense and space sectors are increasingly adopting quantum computing for applications such as secure communications, satellite technology, and complex simulations. Government institutions like ISRO and DRDO are investing in quantum computing to enhance national security and defense technologies. Quantum encryption methods, such as quantum key distribution (QKD), are critical for ensuring the security of classified defense and space communications. By integrating quantum technologies into its defense and space programs, India is boosting its strategic capabilities in these critical sectors.
• Quantum Education and Skill Development Initiatives: In line with the growing demand for quantum talent, India is focusing on quantum education and skill development. Institutions like the Indian Institute of Science (IISc) and IITs are offering specialized programs and research opportunities in quantum computing. Additionally, several quantum coding boot camps and online courses are being launched to train the next generation of quantum engineers and scientists. By investing in quantum education, India is addressing the talent gap and ensuring that its workforce is equipped to drive the future of quantum computing innovation.

The recent developments in the quantum computing market in India, such as government initiatives, startup growth, global partnerships, defense sector applications, and education initiatives, are shaping the future of quantum technology in the country. With continued investments in research and infrastructure, India is poised to be a key player in the global quantum computing landscape. These developments are driving advancements across various sectors, from defense to healthcare, and positioning India for long-term success in quantum computing innovation.

Strategic Growth Opportunities for Quantum Computing Market in India

India is rapidly adopting quantum computing technology, and several growth opportunities are emerging in key application areas. With substantial government backing, academic contributions, and the rise of domestic and global collaborations, the quantum computing market is poised for substantial growth. Various sectors are already exploring quantum applications, and these efforts are likely to drive innovation and shape the country’s competitive advantage in this cutting-edge field.

• Quantum Cryptography for Cybersecurity: As cybersecurity threats evolve, quantum cryptography presents a unique opportunity for India to enhance its data security. Quantum key distribution (QKD) offers a new level of encryption that cannot be compromised by traditional methods or even quantum computers themselves. By investing in this technology, India can ensure secure communications across critical sectors like banking, defense, and healthcare. This application provides a competitive advantage to India in terms of national security and global trust in its digital infrastructure, driving the need for robust encryption systems and enabling the country to lead in cybersecurity innovations.
• Healthcare and Drug Discovery: Quantum computing’s ability to process vast amounts of data quickly and accurately offers tremendous potential for healthcare in India. Quantum algorithms can revolutionize drug discovery, simulate complex molecular structures, and improve personalized medicine. By adopting quantum computing for healthcare applications, India can significantly reduce the time and cost involved in developing new treatments. This opportunity is especially impactful in the Indian context, where healthcare affordability and access are critical issues. Through efficient drug discovery, quantum computing can help address public health challenges and transform medical research in the country.
• Financial Sector Optimization: The Indian financial sector stands to benefit significantly from quantum computing, particularly in risk analysis, fraud detection, and portfolio optimization. Quantum algorithms can process large datasets more effectively, providing financial institutions with better insights for decision-making. India’s banking and finance industries are already exploring quantum computing to gain a competitive edge in asset management, improve security, and enhance customer services. These advancements are expected to streamline operations, optimize trading strategies, and improve the country’s position in the global financial market by adopting cutting-edge quantum solutions.
• Artificial Intelligence and Machine Learning: Quantum computing offers exponential speed and processing capabilities that can transform artificial intelligence (AI) and machine learning (ML) applications. India can use quantum computing to accelerate AI and ML algorithms, particularly for optimization, pattern recognition, and predictive analytics. As industries such as e-commerce, logistics, and healthcare adopt AI technologies, quantum computing will enable faster, more accurate predictions, delivering stronger insights and enhancing automation. This will enable Indian industries to remain competitive in the AI space, leading to increased innovation, automation, and efficiency.
• Government Research and National Security: With growing national security concerns, quantum computing can be used for complex simulations, cryptography, and secure communication within defense and government agencies. India’s defense sector, through organizations like ISRO and DRDO, is exploring quantum technologies to enhance satellite communication, secure data exchanges, and develop more advanced defense systems. The Indian government’s focus on quantum computing for national security will help strengthen its defense capabilities and position India as a global leader in quantum-based applications for military and governmental purposes.

The strategic growth opportunities in quantum computing applications in India, such as quantum cryptography, healthcare, finance, AI, and national security, are reshaping the technological landscape. These sectors are set to benefit from India’s growing investment and innovation in quantum technologies. By tapping into these opportunities, India can solidify its place as a key player in the global quantum revolution, driving economic growth, enhancing national security, and improving critical services for its citizens.

Quantum Computing Market in India Driver and Challenges

India’s quantum computing market is influenced by a mix of technological, economic, and regulatory factors. While the country is advancing rapidly in the development and application of quantum technologies, it also faces challenges in talent development, infrastructure, and policy regulations. These drivers and challenges are critical in shaping the trajectory of quantum computing in India, impacting the industry’s growth and its integration across different sectors.

The factors responsible for driving the Quantum Computing market in India include:
• Government Support and Investments: The Indian government has committed substantial investments to quantum computing, including the National Mission on Quantum Technologies and Applications (NMQTA). This government backing is a key driver, as it enables research funding, collaboration opportunities, and infrastructure development. It also signals to the global market that India is serious about becoming a quantum leader. By increasing financial resources and policy support, India can accelerate innovation and facilitate the growth of quantum technologies across industries such as defense, healthcare, and finance.
• Growing Demand for Quantum Talent: As quantum computing technology advances, the demand for skilled talent in the field is escalating. India’s robust educational ecosystem, including institutions like IITs and IISc, is focusing on training the next generation of quantum researchers and engineers. This growing emphasis on quantum education and skill development helps address the talent gap and provides India with the human resources required to drive innovation. With a large talent pool, India can further fuel the growth of its quantum computing industry, accelerating the pace of research and commercial applications.
• International Collaborations and Partnerships: Collaborations between Indian institutions and global quantum computing players like IBM, Google, and Microsoft are fostering technological advancements in the country. These partnerships help India access advanced quantum research and cutting-edge technologies, providing a platform for local researchers and companies to innovate. International collaborations also boost India’s credibility and visibility in the global quantum ecosystem, accelerating the pace of innovation and ensuring India is not left behind in the global race to harness quantum technologies for various applications.
• Rising Applications Across Sectors: Quantum computing’s applications are expanding across sectors such as finance, healthcare, defense, and cybersecurity, fueling the demand for solutions that leverage quantum advantages. As industries increasingly realize the potential of quantum computing for solving complex problems, India’s diverse industrial base becomes a key driver for market growth. This growing adoption across sectors is creating new opportunities for Indian companies and startups to leverage quantum computing for commercial applications, ensuring that quantum technologies deliver both strategic and economic value to the country.
• Focus on National Security and Defense: National security and defense needs are major drivers in the adoption of quantum technologies. India’s defense and space agencies, such as ISRO and DRDO, are investing heavily in quantum computing for secure communications, encryption, and defense simulations. The strategic importance of quantum computing for national security is prompting the Indian government to prioritize research and development in the field. This focus on national security is critical to enhancing India’s defense capabilities and ensuring secure digital infrastructures for the country.
• Limited Infrastructure and Resources: A key challenge in India’s quantum computing market is the limited infrastructure to support advanced research and development. Quantum computing requires specialized hardware, sophisticated laboratories, and high-level expertise, all of which are currently underdeveloped in India. Lack of adequate infrastructure can hinder the pace of innovation and prevent Indian companies and institutions from fully capitalizing on quantum technologies. Addressing this challenge through investment in infrastructure and research facilities is vital for sustaining long-term growth in quantum computing.

Challenges in the Quantum Computing market in India are:
• Regulatory and Policy Barriers: Regulatory and policy frameworks in India related to quantum technologies are still evolving. While government support is evident, a clear regulatory framework for the application of quantum technologies is lacking. The absence of comprehensive policies could impede the progress of quantum computing applications in key industries. Clear guidelines and regulations are needed to enable smoother adoption and commercialization of quantum computing technologies. Proper policy measures will help manage risks and promote greater private sector participation in the quantum ecosystem.
• Technological and Scientific Barriers: Quantum computing is still in the early stages of development, and several technological challenges remain, including error correction, qubit coherence, and scalability. India’s quantum computing market faces these scientific barriers as researchers work to build more stable and scalable quantum systems. Overcoming these barriers requires significant investment in R&D and technical expertise. The pace of technological breakthroughs will determine how fast the nation can move from theoretical research to actual, application-based quantum solutions.

Favorable factors driving Indian quantum computing market include government support, international collaborations, and applications across sectors. However, challenges such as limited infrastructure, regulatory uncertainties, and technological barriers need to be addressed for progress to be sustained. By focusing on these drivers and overcoming the challenges, India can establish itself as a leading player in the global quantum computing race, advancing technological innovation and securing long-term economic and strategic benefits.

List of Quantum Computing Market in India Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, quantum computing companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the quantum computing companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7

Quantum Computing Market in India by Segment

The study includes a forecast for the quantum computing market in India by deployment, technology, application, and end use.

Quantum Computing Market in India by Deployment [Analysis by Value from 2019 to 2031]:

• On-Premises
• Cloud

Quantum Computing Market in India by Technology [Analysis by Value from 2019 to 2031]:

• Trapped Ions
• Quantum Annealing
• Superconducting Qubits
• Others

Quantum Computing Market in India by Application [Analysis by Value from 2019 to 2031]:

• Optimization
• Simulation
• Machine Learning
• Others

Quantum Computing Market in India by End Use [Analysis by Value from 2019 to 2031]:

• Space & Defense
• Transportation & Logistics
• Healthcare & Pharmaceuticals
• Chemicals
• Banking & Finance
• Energy & Power
• Academia
• Government
• Others

Features of the Quantum Computing Market in India

Market Size Estimates: Quantum computing in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Quantum computing in India market size by deployment, technology, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different deployments, technologies, applications, and end uses for the quantum computing in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the quantum computing in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the quantum computing market in India?
Answer: The major drivers for this market are growing need for high-performance computing and rising demand for quantum computing solutions from various industries.
Q2. What are the major segments for quantum computing market in India?
Answer: The future of the quantum computing market in India looks promising with opportunities in the optimization, simulation, and machine learning applications.
Q3. Which quantum computing market segment in India will be the largest in future?
Answer: Lucintel forecasts that cloud is expected to witness the higher growth over the forecast period due to its growing usage among users given to its flexibility and powerful systems.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the quantum computing market in India by deployment (on-premises and cloud), technology (trapped ions, quantum annealing, superconducting qubits, and others), application (optimization, simulation, machine learning, and others), and end use (space & defense, transportation & logistics, healthcare & pharmaceuticals, chemicals, banking & finance, energy & power, academia, government, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Quantum Computing Market in India, Quantum Computing Market in India Size, Quantum Computing Market in India Growth, Quantum Computing Market in India Analysis, Quantum Computing Market in India Report, Quantum Computing Market in India Share, Quantum Computing Market in India Trends, Quantum Computing Market in India Forecast, Quantum Computing Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.