Global Quantum Computing in Drug Discovery Market Report and Forecast 2024-2032

Quantum Computing in Drug Discovery Market Size

The global quantum computing in drug discovery market was valued at USD 0.4 billion in 2023 driven by the increasing utilization of software to develop high efficacy drugs across the globe. The market is expected to grow at a CAGR of 13% during the forecast period 2024-2032 and attain a market value of USD 1.1 billion by 2032.

Quantum Computing in Drug Discovery Market Outlook

• In February 2024, 1910 Genetics and Microsoft agreed on a partnership to build an AI-driven drug discovery and development platform. Such collaborations are expected to boost the market growth in the forecast period.

• In April 2024, Qubit Pharmaceuticals partnered with PINQ² to utilize quantum computers for quicker pharmaceutical research. This collaboration signifies a new phase in exploring quantum computing for drug discovery, utilizing the advanced infrastructures at PINQ².

• Technical innovations to yield faster and more effective results is amongst major market trends. In May 2024, Google DeepMind announced an AI breakthrough with AlphaFold3, which uses a diffusion model, which an image-generating software also uses, to predict protein structures.

Quantum Computing in Drug Discovery Market Overview

Quantum computing in drug discovery involves leveraging the principles of quantum mechanics to accelerate and enhance the drug discovery process. Quantum computers can solve complex problems efficiently than classical computers, making them useful in modeling molecular structures, predicting drug interactions, and optimizing lead compounds. This technology holds the potential to revolutionize drug discovery by significantly reducing the time and cost involved in bringing new drugs to market. As pharmaceutical companies increasingly adopt quantum computing, it could lead to the discovery of new therapeutic agents and personalized medicine approaches that were previously unattainable with classical computing methods. Drug discovery is the process of identifying new medications through stages such as target identification, compound discovery, testing, and trials. The goal is to develop safe and effective drugs for diseases treatment.

Quantum computing plays a vital role in drug discovery by tackling complex molecular and chemical issues that traditional computers cannot handle. It allows for accurate simulation of molecular interactions, speeding up the process of identifying potential drugs and improving understanding of disease mechanisms. Creating advanced models of intricate biological systems and improving outcome predictions can lead to decreased time and expenses in drug development. 

Quantum computing is employed in drug discovery to perform molecular modeling, optimize lead compounds, and predict drug-receptor interactions. The advancements in quantum computing are transforming the pharmaceutical industry through improved drug discovery techniques. Quantum algorithms have advanced, efficiently solving increasingly complex problems. Progress in quantum hardware has improved, enabling bigger and more precise simulations. Software platforms that are easy to use are progressing by incorporating themselves into drug discovery processes. These advancements allow scientists to investigate new potential drugs and enhance current compounds with more accuracy, potentially leading to the discovery of groundbreaking treatments.

Global Quantum Computing in Drug Discovery Market Growth Drivers

Surge Growth in Strategic Collaborations Spurs Market Growth

In February 2024, 1910 Genetics and Microsoft agreed to partner and combine robotics-driven laboratory automation with multimodal AI (artificial intelligence) models from 1910 Genetics with HPC (high-performance computing) platform Azure Quantum Elements from Microsoft. The market is experiencing growth because of partnerships among technology companies, pharmaceutical companies, and academic organizations. These collaborations promote the use of quantum computing for drug discovery by merging quantum skills with drug development expertise. This has resulted in the development of specific quantum algorithms for drug discovery and the merging of quantum computing with pharmaceutical research platforms.

Partnerships between academia and industry leaders further spur innovation by combining theoretical research with real-world implementation. These collaborations accelerate the process of developing drugs and finding new treatments. For instance, in April 2024, Qubit Pharmaceuticals partnered with PINQ² to utilize quantum computers for quicker pharmaceutical research. This collaboration signified a new phase in exploring quantum computing for drug discovery, utilizing the advanced infrastructures at PINQ².

Increased Utilization of Software to Meet Rising Quantum Computing in Drug Discovery Market Demand

Progress in quantum computing technology has resulted in the creation of advanced software tools, enabling pharmaceutical researchers to leverage quantum algorithms easily. These platforms enable the creation of intricate molecular structures, the improvement of drug candidates, and the forecast of drug-receptor interactions with enhanced precision and effectiveness. SaaS models are increasingly allowing smaller pharmaceutical companies and research institutions to access quantum computing, driving further growth in the market. In May 2024, Google DeepMind announced an AI breakthrough with AlphaFold3, which predicts protein behaviour with potential implications in antibiotics, cancer therapy, and agriculture. This advancement could illuminate the inner workings of biological systems, leading to significant advancements in various fields.

Quantum Computing in Drug Discovery Market Trends 

The market is witnessing several trends and developments to improve the current scenario. Some of the notable trends are as follows:

Innovation in Hardware Capabilities

Enhanced abilities allow for intricate simulations and address more significant molecular challenges essential in drug development. Businesses and research organizations are making significant investments in the development of advanced quantum processors for pharmaceutical purposes, leading to ongoing improvement in hardware functionalities.

Focus on Collaboration and Investment

Partnership and financial support from various institutions are fueling the market expansion. Significant funding from both private and public sectors is fast-tracking the use of quantum computing in drug discovery. This funding is directed towards the progression of algorithms, hardware, and the integration of quantum computing into workflows.

Advancements in Quantum Algorithm

Quantum algorithms are specifically created for intricate molecular simulations and optimization issues, enhancing their efficiency and strength. Variational quantum eigensolvers (VQE) and quantum approximate optimization algorithms (QAOA) effectively simulate chemical reactions and enhance molecular structures. Quantum algorithms are predicted to improve drug discovery abilities, resulting in novel therapeutic compounds and treatments.

Rising Preference for Precision Medicine 

Precision medicine is emerging as a major market trend. Quantum computing enables in-depth simulation and examination of biological systems, resulting in tailor-made treatments. Scientists utilize quantum algorithms to mimic the impact of drugs on genetic profiles, developing personalized treatments specific to each person. It is essential for complicated illnesses that traditional techniques may not adequately address. With the progress of quantum computing, its application in precision medicine is predicted to grow, offering personalized healthcare choices.

Quantum Computing in Drug Discovery Market Segmentation

Market Breakup by Offering

• Target Identification / Validation

• Hit Generation / Lead Identification

• Lead Optimization

• Others

Market Breakup by Therapeutic Area

• Cardiovascular Disorders

• CNS Disorders

• Dermatological Disorders

• Endocrine Disorders

• Gastrointestinal Disorders

• Immunological Disorders

• Infectious Diseases

• Musculoskeletal Disorders

• Oncological Disorders

• Respiratory Disorders

• Others

Market Breakup by End User

• Pharmaceutical Companies

• Biopharmaceutical Companies

• Research and Academic Institutes

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Quantum Computing in Drug Discovery Market Share

Market Segmentation Based on Offering to Witness Significant Growth

Based on offering, the market is divided into target identification/validation, hit generation/lead identification, lead optimization, and others. Target identification and validation are crucial in the initial phase of drug discovery; hence it is expected to have significant growth during the forecast period.

Quantum computing excels at facilitating accurate simulations of molecular interactions, enhancing comprehension of possible drug targets. It accurately simulates intricate biological systems, forecasting the interaction between molecules and targets. This makes drug development more efficient by focusing on the most promising targets, cutting down on time and costs during the drug discovery process.

Quantum Computing in Drug Discovery Market Analysis by Region

Based on region, the market report covers North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. North America is expected to dominate the market powered by its advanced technological infrastructure and the presence of prominent pharmaceutical companies. Investments from both the public and private sectors in quantum computing research are driving innovation, leading to successful partnerships between technology companies, academic institutions, and pharmaceutical companies.

Europe is also poised to have a significant market share supported by government backing for quantum technology research. The focus on precision medicine in the area increases the need for innovative drug discovery. The market in the Asia-Pacific region is rapidly expanding due to technological advancements and investments in pharmaceutical research. The growth of the pharmaceutical industry in the region and the emphasis on healthcare innovation are pushing for the implementation of quantum computing, which is poised to lead to substantial market expansion in the coming years.

Leading Players in the Quantum Computing in Drug Discovery Market

The key features of the market report include patent analysis, grant analysis, funding, and investment analysis as well as strategic initiatives including recent partnerships and collaborations by the leading players. The major companies in the market are as follows:

IBM Corp.

IBM is a global provider of hybrid cloud and AI solutions, consulting, system hardware and software, infrastructure, hosting, and analytics, AI, automation, blockchain, cloud computing, IT management, cybersecurity, and software development services.

Microsoft Corporation

Microsoft Corp is a leading developer and provider of software, services, and devices, offering operating systems, productivity applications, server applications, software development tools, desktop and server management tools, and hardware products like PCs, tablets, and gaming consoles. They also provide cloud-based solutions and consulting services.

Rigetti Computing Inc.

Rigetti Computing, a quantum computing company based in California, builds and deploys full-stack quantum systems with superconducting qubits. They also operate Forest, a cloud platform for quantum algorithm development. Rigetti partnered with Riverlane and Astex Pharmaceuticals to use Rigetti Quantum Cloud Services for simulating molecular systems, potentially revolutionizing drug discovery in pharmaceutical research and development.

Xanadu Quantum Technologies Inc.

Xanadu Quantum Technologies, based in Toronto, Canada, creates cloud-accessible photonic quantum computers and open-source software for quantum machine learning. In January  2022, Xanadu partnered with Menten AI to develop quantum machine learning for drug discovery.

Other players in the market are 1QB Information Technologies, Inc., Alphabet Inc., Atos SE, D-Wave Systems Inc., Fujitsu Limited, Honeywell International Inc., Intel Corporation, and Quantum Brilliance Pty Ltd.

Key Highlights of the Report

Key Questions Answered in the Global Quantum Computing in Drug Discovery Market Report

• What was the global quantum computing in drug discovery market value in 2023? 
• What is the global quantum computing in drug discovery market forecast outlook for 2024-2032? 
• What are the regional markets covered in the EMR report?
• What is market segmentation based on offering? 
• What is market segmentation based on the therapeutic area? 
• Who are the end users of the market?
• What are the major factors aiding the global quantum computing in drug discovery market demand? 
• How has the market performed so far and how is it anticipated to perform in the coming years? 
• What are the major drivers, opportunities, and restraints in the market?  
• What are the major trends influencing the market?  
• Which regional market is expected to dominate the market share in the forecast period?  
• Which country is likely to experience elevated growth during the forecast period?  
• Who are the key players involved in the global quantum computing in drug discovery market? 
• What are the current unmet needs and challenges in the market? 
• How are partnerships, collaborations, mergers, and acquisitions among the key market players shaping the market dynamics?

Quantum Computing in Drug Discovery Market Report Snapshots

Quantum Computing in Drug Discovery Market Size

Quantum Computing in Drug Discovery Market Growth

Quantum Computing in Drug Discovery Market Trends

Quantum Computing in Drug Discovery Market Share

Quantum Computing in Drug Discovery Market Regional Analysis

Quantum Computing in Drug Discovery Companies