Quantum Computing in Automotive Market

Market Definition

Quantum computing applies advanced quantum mechanics principles to solve complex challenges in vehicle design, manufacturing, logistics, and autonomous driving in the automotive industry. Unlike classical computing, which relies on binary bits, quantum computing utilizes qubits that can process multiple possibilities simultaneously, enabling faster and more efficient computations.

This technology enhances optimization in supply chains, accelerates the discovery of new battery materials for electric vehicles, improves artificial intelligence for self-driving cars, and enables advanced traffic management systems. 

The quantum computing in automotive market encompasses the development, adoption, and integration of quantum computing technologies to optimize vehicle design, manufacturing processes, supply chain logistics, and autonomous driving systems. 

Quantum Computing in Automotive Market Overview

The global quantum computing in automotive market size was valued at USD 139.2 million in 2023 and is projected to grow from USD 208.4 million in 2024 to USD 5,052.6 million by 2031, exhibiting a CAGR of 57.68% during the forecast period.

Quantum computing in the automotive market is experiencing rapid growth, due to advancements backed by investments from automotive manufacturers and tech firms. The rising demand for efficient vehicle design, enhanced battery performance for electric vehicles, and real-time data processing for autonomous driving is further accelerating quantum computing adoption.

Quantum computing enables high-speed simulations and optimizations, allowing companies to develop next-generation materials, improve aerodynamics, and enhance fuel efficiency. Supply chain and logistics optimization is another major feature, which helps automakers streamline production, reduce costs, and enhance operational efficiency.

Major companies operating in the global quantum computing in automotive industry are International Business Machines Corp., Microsoft, D-Wave Systems Inc., Amazon, Alphabet Inc., Rigetti & Co, Inc., PASQAL SAS, Accenture, Terra Quantum AG, IonQ, Inc., Porsche Automobil Holding SE, BMW Group, TOYOTA MOTOR CORPORATION, Hyundai Motor Company, and Ford Motor Company.

Additionally, government initiatives, strategic partnerships, and increased funding for research and development are driving innovation in vehicle safety, traffic management, and energy efficiency.

The integration of artificial intelligence and machine learning with quantum computing is also bringing predictive maintenance, intelligent mobility solutions, and advanced driver-assistance systems (ADAS) to the market. As the automotive industry continues its shift toward electrification and automation, quantum computing iwill likely play a crucial role in shaping the future of mobility.

• In December 2023, Airbus and BMW Group announced the launch of the Quantum Mobility Quest, a collaborative initiative that uses quantum computing to address complex challenges in the mobility sector. The partnership focuses on applying quantum simulation, quantum optimization, quantum machine learning, and quantum solvers to enhance future mobility solutions, including material science innovations such as hydrogen fuel cells and corrosion prediction.

Key Highlights:

1. The global quantum computing in automotive market size was valued at USD 139.2 million in 2023.
2. The market is projected to grow at a CAGR of 57.68% from 2024 to 2031.
3. North America held a market share of 40.12% in 2023, with a valuation of USD 55.9 million.
4. The hardware segment garnered USD 61.4 million in revenue in 2023.
5. The autonomous & connected vehicles segment is expected to reach USD 33.5 million by 2031.
6. The market in Asia Pacific is anticipated to grow at a CAGR of 54.16% during the forecast period.

Market Driver

"Rising Innovation in Vehicle Optimization and EV Battery Technology"

The quantum computing in automotive market is experiencing significant growth, driven by the increasing demand for vehicle optimization and advancements in battery technology for electric vehicles (EVs).

Quantum computing enables automakers to perform complex simulations with unprecedented speed and accuracy, allowing for enhanced vehicle design, crash testing, and the development of more efficient autonomous driving algorithms. This leads to improved safety, aerodynamics, and overall vehicle performance.

Additionally, the push for electrification has intensified the need for better battery technology. Quantum computing accelerates the discovery of new materials, optimizing energy storage, charging efficiency, and battery longevity.

By leveraging quantum simulations, manufacturers can design next-generation EV batteries that offer higher energy density and faster charging times, ultimately supporting the transition to sustainable mobility.

• In January 2025, Pasqal and EDF announced their collaboration through the GENCI-led quantum inception program to optimize energy management for electric vehicle (EV) smart charging using neutral-atom quantum computing. The partnership demonstrated the potential of quantum technology in energy demand forecasting, addressing the complexities of electricity distribution as EV adoption grows.

Market Challenge

"High Implementation Costs and Deployment  Complexity"

The quantum computing in automotive market faces several challenges, including high implementation costs and limited availability of skilled professionals. Despite its potential, quantum computing requires significant investment in hardware, software, and infrastructure, making widespread adoption challenging for many automotive companies.

Quantum computers operate on fundamentally different principles than classical computers, requiring specialized quantum processors, cryogenic cooling systems, and error-correction mechanisms to function effectively. These advanced technologies are not only expensive to develop but also demand continuous research and innovation to improve their stability and scalability.

Automotive companies rely on classical computing systems for design, manufacturing, and simulation, and transitioning to quantum computing requires significant modifications to existing workflows. The compatibility of quantum algorithms with current automotive software is another hurdle, as many industry applications are not yet optimized for quantum computing.

To overcome these challenges, automakers are leveraging hybrid computing models that combine classical and quantum processing, allowing them to experiment with quantum applications without fully replacing existing infrastructure.

Moreover, the growing adoption of Quantum-as-a-Service (QaaS) is reducing cost barriers by providing cloud-based access to quantum computing, eliminating the need for direct hardware investments.

 Market Trend

"Increasing Collaboration and Quantum-as-a-Service (QaaS)"

The quantum computing in automotive market is evolving rapidly, driven by key trends such as increasing collaborations between automakers and quantum technology companies, along with the growing adoption of QaaS.

Automotive manufacturers are increasingly partnering with quantum computing firms to develop specialized solutions that address some of the industry's most complex challenges.

These collaborations focus on supply chain optimization, where quantum computing helps streamline logistics, reduce costs, and improve efficiency by rapidly analyzing multiple variables and scenarios.

Additionally, quantum technology is being leveraged in advanced materials research, helping in the discovery of lightweight, durable, and more energy-efficient materials that enhance vehicle performance and sustainability.

• In June 2024, Classiq, BMW Group, and NVIDIA collaborated to enhance mechatronic system optimization in electric vehicles using quantum computing. The project leverages advanced quantum algorithms, including the Quantum Approximate Optimization Algorithm (QAOA) and the Harrow-Hassidim-Lloyd (HHL) algorithm, with NVIDIA GPUs and CUDA-Q enabling complex quantum simulations. This initiative aims to improve efficiency and reduce energy waste, marking a key step in applying quantum computing to automotive innovation.

The emergence of Quantum-as-a-Service is making quantum computing more accessible to automakers without requiring substantial investments in dedicated quantum hardware.

Instead of building expensive quantum infrastructure, automotive companies can access quantum computing capabilities through cloud-based platforms provided by leading technology firms. This allows manufacturers to run high-speed simulations, optimize vehicle design, improve battery performance, and enhance real-time decision-making for autonomous vehicles without in-house quantum expertise.

The adoption of QaaS is expected to expand as automakers increase reliance on cloud-based quantum solutions to enhance efficiency and innovation across their operations.

Quantum Computing in Automotive Market Report Snapshot

Segmentation	Details
By Component	Hardware, Software, Services
By Application	Vehicle Design & Simulation, Battery Development & Energy Optimization, Autonomous & Connected Vehicles, Manufacturing & Supply Chain Management, Traffic Optimization & Fleet Management, Cybersecurity and Encryption
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Hardware, Software, Services): The hardware segment earned USD 61.4 million in 2023 due to increasing investments in quantum processors and the development of high-performance quantum computing infrastructure for automotive applications.
• By Application (Vehicle Design & Simulation, Battery Development & Energy Optimization, Autonomous & Connected Vehicles, Manufacturing & Supply Chain Management, Traffic Optimization & Fleet Management, Cybersecurity and Encryption): The autonomous & connected vehicles segment held 24.05% of the market in 2023, due to the rising adoption of quantum-powered optimization and AI-driven decision-making for safer and more efficient self-driving technologies.

Quantum Computing in Automotive Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America accounted for a quantum computing in automotive market share of 40.12% in 2023 in the global market, with a valuation of USD 55.9 million. The region’s dominance is driven by the strong presence of key technology providers, increasing investments in quantum computing research, and early adoption of advanced technologies by major automotive manufacturers such as General Motors, Ford, and Tesla.

Additionally, the U.S. government and private sector companies are investing heavily in quantum computing applications for vehicle design, autonomous driving, and supply chain optimization. Initiatives from tech giants and partnerships between automakers and quantum computing firms, are further propelling market growth in the region.

The automotive sector in North America is leveraging quantum computing for material simulations, battery performance optimization, and traffic flow management, contributing to enhanced vehicle efficiency, sustainability, and cost reductions.

Moreover, the presence of renowned research institutions and government funding programs is fueling innovation in quantum technology applications for the automotive industry.

The quantum computing in automotive industry in Asia Pacific is expected to register the fastest growth in the market, at a projected CAGR of 54.16% over the forecast period. This rapid expansion is driven by the increasing demand for electric vehicles (EVs), advancements in AI-powered automotive technologies, and government initiatives supporting quantum research and development.

Furthermore, the growing presence of tech startups, collaborations between automotive OEMs and quantum computing firms, and government-backed quantum initiatives are key factors fueling the region’s market expansion.

The increasing adoption of connected and autonomous vehicles (CAVs) and smart city developments in Asia Pacific will further drive the demand for quantum-powered solutions in the automotive industry.

Additionally, rising investments in quantum computing infrastructure, increasing R&D expenditures by leading automakers, and strong academic contributions from institutions are accelerating innovation in quantum applications.

• In February 2025, Toyota Tsusho Corporation and ORCA Computing announced their partnership to provide quantum computing solutions across Japan and the rest of Asia Pacific region. The collaboration focuses on integrating ORCA Computing’s PT Series quantum systems with classical high-performance computing, enabling advancements in the automotive, chemical, and Industry 4.0 sectors.

 Regulatory Framework

• In the U.S., the National Institute of Standards and Technology (NIST) develops post-quantum cryptography standards for data security. The National Science Foundation (NSF) and Department of Energy (DOE) fund quantum computing research in collaboration with universities and private sectors. The National Quantum Initiative Act coordinates federal efforts to advance quantum technology and maintain the country's leadership in the field.
• In Europe, the European Competence Framework for Quantum Technologies outlines the necessary knowledge and skills required to work in the field of quantum technologies within Europe, essentially mapping out the competency landscape for quantum computing and other related quantum applications, allowing for better planning and design of education and training programs in the region.

Competitive Landscape

The global quantum computing in automotive market is characterized by both established corporations and rising organizations. Market players are investing heavily in research and development to enhance quantum algorithms, improve computing power, and develop industry-specific applications tailored to automotive needs.

Collaborations between automotive manufacturers, technology firms, and research institutions are driving advancements in quantum computing solutions for vehicle design, battery innovation, and autonomous driving technologies.

Companies are also focusing on integrating quantum computing with artificial intelligence and machine learning to accelerate real-time data processing and optimize complex simulations.

Partnerships with cloud computing providers are expanding accessibility to quantum technology, allowing automakers to leverage quantum-as-a-service models for various applications. Additionally, investments in quantum software development are enabling more practical applications, such as supply chain optimization, predictive maintenance, and advanced driver-assistance systems.

The increasing number of patents and proprietary technologies in quantum computing indicates a strong emphasis on gaining a technological advantage. The dynamic landscape of this market is further shaped by government initiatives, regulatory support, and cross-industry collaborations, all of which contribute to the continuous evolution and commercialization of quantum computing in the automotive industry.

• In 2024, IonQ and Hyundai Motor Company partnered to develop variational quantum eigensolver (VQE) algorithms for studying lithium battery chemistry. The collaboration aims to create the largest battery chemistry model run on a quantum computer, simulating the structure and energy of lithium oxide to enhance battery performance, cost, and safety. By combining IonQ’s expertise in quantum computing with Hyundai’s knowledge of lithium batteries, the partnership seeks to improve charge and discharge cycles, durability, and capacity of next-generation batteries.

List of Key Companies in Quantum Computing in Automotive Market:

• International Business Machines Corp.
• Microsoft
• D-Wave Systems Inc.
• Amazon
• Alphabet Inc.
• Rigetti & Co, Inc.
• PASQAL SAS
• Accenture
• Terra Quantum AG
• IonQ, Inc.
• Porsche Automobil Holding SE
• BMW Group
• TOYOTA MOTOR CORPORATION
• Hyundai Motor Company
• Ford Motor Company

Recent Developments (Collaborations/New Product Launch)

• In February 2025, Quantinuum announced the launch of its Generative Quantum AI (Gen QAI) framework, utilizing quantum-generated data from its H2 quantum computer to enhance AI model fidelity. Quantinuum is collaborating with industry leaders, including HPE Group in Italy, to apply quantum AI in automotive technologies such as battery development and aerodynamic optimization.
• In November 2024, Volkswagen Group and IQM Quantum Computers collaborated for a study on battery simulation using a hybrid quantum-classical computing approach. The findings highlighted significant progress in battery material simulations and suggested that hybrid quantum-classical techniques could handle larger systems than existing methods, marking an important step toward better EV batteries.
• In October 2024, Ayesa and Mercedes-Benz Spain collaborated to develop a zero-error vehicle manufacturing process using quantum and classical AI. The quantum AI model demonstrated higher accuracy than traditional AI in detecting anomalies, enhancing production efficiency and reducing manual verification efforts.