Investing.com -- The quantum computing industry is poised for explosive growth, with UBS estimating a market capitalization of $300-400 billion by the end of the decade.
While still in its infancy, the bank says quantum computing is gaining momentum as governments and private investors pour resources into its development.
According to UBS, “Quantum computing has been one of the main points of tension in the technological rivalry between the US and China,” with strategic implications for national security and technological leadership.
They note that Washington’s export controls aim to slow development in China, highlighting the technology’s geopolitical significance.
Quantum (NASDAQ:QMCO) computing leverages principles of quantum mechanics to solve complex problems, such as simulating datasets, optimizing large systems, and advancing artificial intelligence (AI).
The technology holds transformative potential across various sectors, including drug discovery, cybersecurity, defense, and finance.
UBS projects a total addressable market for quantum computing to reach $1.8 billion this year and grow to $20 billion by 2030.
Despite this optimism, technical hurdles remain. UBS highlights challenges around qubit stability and error rates, which hinder scalability.
“Years of sustained innovation, significant resources, and global collaboration are required to overcome the remaining scientific and engineering barriers,” UBS noted. However, Alphabet’s (NASDAQ:GOOGL) recent breakthroughs in error reduction suggest progress is being made.
UBS emphasizes that quantum computing will complement, rather than replace, existing computational systems like AI chips.
“Quantum computing will likely complement existing computational infrastructure by handling specific workloads that are infeasible or highly inefficient for classical hardware,” the bank states.