A new year will bring new opportunities and, of course, change in the Quantum Industry. We have listed some predictions for the upcoming year of 2023. Of course we don’t have crystal ball, but some of the trneds of the last few years are likely to continue in the Quantum industry. We see the uptick in Quantum News Articles on every thing from Hadrware to Software to Quantum Applications.
- Continued growth and development of quantum hardware: Companies like IonQ, D-Wave, and Rigetti are at the forefront of developing and commercializing quantum computers. These companies are likely to continue improving the performance and capabilities of their hardware, as well as scaling up the number of qubits in their systems. Are the markets watching? Might we see a Santa Rally in the price of some of these stocks, which have been beaten down in 2022 since their recent IPO’s.
- Increased focus on quantum software and applications: While quantum hardware is an essential aspect of the industry, it is ultimately the software and applications that will drive the adoption and value of quantum technology. Companies like Xanadu are developing software and algorithms that can take advantage of the unique properties of quantum computers, making it easier and simpler for users to create Quantum Circuits. Expect a new push from companies like Strangeworks, who have demonstrated their ability to develop fantastic quantum interfaces that are a joy to use.
- Investment and funding: The quantum industry is expected to attract significant investment and funding from venture capital firms, government, and corporate sponsors. This will be critical in helping companies develop and bring their products to market. We are expecting inflows of capital. At some point, bargain hunters may approach the quantum market in the same way as early investors might have seen silicon chips or the internet revolution. With historically low prices, investors may soon seek more of a risk appetite and consider that Quantum is worthy of investment bucks.
- Talent and workforce development: As the quantum industry continues to grow, there will be increasing demand for skilled professionals with expertise in quantum physics, computer science, and engineering. Companies will need to attract and retain top talent to stay competitive. Many initiatives exist to help educate and train quantum employees today and tomorrow. Expect continued growth of the excellent online tutorials from Q-CTRL (black opal) and even more books assisting people in getting on board with Quantum technologies.
- Collaboration and partnerships: The quantum industry is a highly interdisciplinary field, and it will be necessary for companies to work together and form partnerships to advance the technology and drive its adoption. Expect even more collaboration and some high-profile tie-ups. Mainstream technology hasn’t adopted Quantum fully yet, but we think this will be only a matter of time, which could mean a buy-out. With historically low prices, could a pure-play Quantum company be snapped up by a tech giant? It could be an acquihire process where the talent is acquired.
- Get used to thinking in hundreds of qubits. Announcements from IBM have shown they are diligently executing their roadmap to get to thousands and millions of qubits. Expect to think in triple digits when it comes to qubit numbers.
- Expect another announcement of a pure-play quantum start-up to IPO, but we think this won’t take place until 2024, when the funding environment has changed. Potential companies are Xanadu which we feel is ripe for an IPO with its impressive technology and talent team and boas towards quantum applications, including quantum machine learning. Also at the heart of companies like Xanadu is a growing and trendy programming framework named pennylane.
- Mergers. If there is continued weakness in the investment climate, we expect companies to merge or be bought out. But there are potentially enough synergies within some companies that merging makes sense. Couple the amazing hardware from Riverlane (building a Quantum OS) and CQC with the applications layer of Xanadu and Hey Presto, and a fantastic and formidable combination. We saw the tie-up of Honeywell and Cambridge Quantum Computing already.
- Applications of Quantum continue to gain traction and we expect to see more of the same. With the excitement around new Machine Learning models and chat services, expect renewed interest in Machine Learn and Quantum Machine Learning.
- More mainstream headlines excite the “person in the street’s” appetite for quantum computing and its applications.
