A recent analysis by Constellation Research found 241 companies in the Quantum Computing space in seven categories are driving $8.512 billion in investment to date.
A review of funding announcements, deals in the pipe, and conversations with investors, demonstrated a tremendous appetite to fund all categories of the quantum ecosystem.
The funding to date does not include investments from established digital giants such as Amazon, Google, IBM, Intel, Microsoft, and Nvidia.
Across the seven categories, security represented the highest estimated market cap at $124.3 B followed by hardware companies at $23.2B. Full-stack vendors who deliver the complete quantum capabilities will drive $14.6 B in estimated market cap. Software came in at $6.1 billion and communications registered a $5.8 B estimated market cap (see Figure 1).
2021 Quantum Computing Market Valuations Breakdown
Figure 1. Investors Flock To The Quantum Landscape
Source; Constellation Research, Inc.
The Bottom Line: Expect A Period Of Innovation and Consolidation Ahead
The Quantum revolution has begun. Early investors have seen the potential and the market is entering a period of consolidation to acquire talent, intellectual property, and product offering roadmaps.
With over 241 startups in this space, Constellation expects at least a dozen full stack winners to emerge along with five to seven specialists in each category and emerging use case. Security will continue to receive the most funding and attention. New players will continue to attract funding as the quantum field advances. The early days of quantum are here and the winners will emerge in the next five years.
What quantum use cases drive your interest? Where do you see the quantum players win?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your strategy efforts.
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Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
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