Global Quantum Computing in Energy and Utility Market Size Likely to Grow at a CAGR of 4.40% By 2034

Market Size and Growth

As per the Quantum Computing in Energy and Utility Market size analysis conducted by the CMI Team, the global Quantum computing in energy and utility market is expected to record a CAGR of 4.40% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 16.10 Billion. By 2034, the valuation is anticipated to reach USD 23.72 Billion.

Overview

As per the industry experts at CMI, the main positioning factor for quantum computing applications in the energy and utilities industry is the increase in efficiency to operate complex and data-rich processes. As renewable energy sources continue to grow, quantum computing is allowing for better utility forecasting and optimization of renewable energy, such as wind and solar. These capabilities can also improve responsiveness in grid management, predictive maintenance, and energy storage systems. Convenience and allowing utility companies to solve complex optimization problems faster than they could do with classical computing ensures more reliable and cost-effective solutions and ultimately will lead to more widespread adoption of quantum technologies in the energy sector.

Key Trends & Drivers

• Better Energy Efficiency: Quantum computing can process large datasets considerably faster than classical computers. This enables significant improvements in predictions and optimizations for energy systems, which improves energy distribution, grids, and storage and increases energy efficiency. Quantum algorithms can quickly identify consumptive behavior patterns or consumption to optimize resources and reduce waste, which is a growing need, particularly in renewable energy management. Aside from the energy efficiency impact, it is one of the main systems driving quantum computing in energy and utilities.

• Better Inclusion of Alternative Energy Sources: The growing demand for renewable energy generation requires systems at times that require optimization, from solar, wind, hydroelectricity, etc. Quantum computing optimizes how we forecast the next day’s and next hour’s weather and provides more accurate renewable energy production models. Quantum computing improves the incorporation of renewable energy into existing grids and helps improve the balancing of supply and demand, in doing so, reduces the need for non-renewable resources. The emphasis on cleaner energy systems and climate sustainability will significantly influence the adoption of quantum computing in the energy and utilities sector.

• Cost Optimization and Reduction: Energy systems are complex, including grid systems, generation production, and regulations to consider. Energy systems require constantly optimized integrations of a vast number of systems to reduce costs and ultimately help provide better services to consumers. In theory, quantum computing should help accomplish large-scale optimization processes to improve energy systems across the electricity supply chain in the future.

• Enhanced Decision-Making and Predictive Analytics: Quantum computing can help to improve predictive analytics by allowing users to analyze vast amounts of data quickly and with the highest degree of accuracy. The energy and utility sectors can leverage quantum predictive analytics to more accurately forecast energy demands, grid stability, and maintenance. Quantum algorithms are also capable of forecasting potential system failures or energy shortages before they happen, allowing them to remedy inefficiencies proactively and mitigate unexpected inhibitors to energy availability. The real-time analytics of quantum computing provide energy and utility operators with increased operational efficiencies, which is essential to the maintenance of reliability in the energy supply chain.

• Support for Smart Grid and IoT Integration: The transition to smart grids, in combination with the increased utility of the Internet of Things (IoT) with energy systems, is creating a powerful need for advanced computational solutions. Quantum computing can facilitate the computational power needed to assist in the integration of IoT devices by analyzing real-time and near-real-time data produced by the IoT devices. Quantum computing can help utilities optimize data from IoT devices to make smart grids responsive and adaptive to even further changing energy demands. As utilities continue to modernize their assets and infrastructure, quantum computing assists with the coordinated operation and scalability of smart grids and IoT systems.

Report Scope

SWOT Analysis

• Strengths: Quantum computing allows for an unprecedented level of computational ability, providing energy and utility companies with rapid solutions to complex optimization problems. With its unique ability to analyze large sets of data simultaneously, quantum computing has the potential to improve grid management, predictive maintenance, and energy efficiency. Furthermore, quantum computing’s abilities would enable energy companies to facilitate renewable energy sources to be integrated into the energy grid, optimize energy storage capabilities, and reduce operational costs. No other technology has the same ability to support the implementation of sustainability programs. These strengths are unique to quantum computing and are why it’s a very promising technology for the energy sector; it will help companies operate more efficiently and sustainably and help provide a competitive advantage.

• Weaknesses: Quantum computing still has many challenges to overcome within the energy and utility sectors. While quantum computing has much potential, it is still in its early stages for the energy sector and has little in the way of actual, realizable applications that can be scaled. Quantum hardware is also very expensive to build and operate, which will deter some companies from pursuing the technology. The skilled labor shortage is about to emerge with quantum computing; it’s very difficult to find a quantum physicist who also understands the application of quantum algorithms to energy and utility optimization. In other words, for energy to realize the value of quantum computing, there are still significant hurdles to overcome.

• Opportunities: With the rise of renewable energy, the need for more intelligent, more efficient energy systems presents major opportunities for quantum computing. The technology can provide the needed solutions for energy forecasting, optimization of the grid system, and energy storage, helping to leverage a transformation away from carbon-based energy sources. In addition, as it matures, the demand for quantum-based solutions in areas such as smart grids, energy storage, and predictive maintenance will increase, allowing firms to invest in an emerging and rapidly changing market where they can differentiate themselves with cutting-edge technology.

• Threats: Quantum computing certainly faces threats in the energy space, mainly because of competition with different classical computing technologies. Classical supercomputing continues to improve its performance in specific energy applications, and in some circumstances, it may provide similar or equivalent levels of performance to quantum in a short-term perspective. Furthermore, regulatory issues and the costs of implementing quantum computing systems can delay or limit the adoption possibilities. Despite the potential benefits, complex and variable information surrounding critical reasons to adopt products and services based on quantum technologies can deter investor confidence, leading to delayed adoptions from the utility and energy sector.

List of the prominent players in the Quantum Computing in Energy and Utility Market:

• IBM
• Google
• Microsoft
• Rigetti Computing
• D-Wave Systems
• Honeywell Quantum Solutions
• Intel
• IonQ
• Xanadu Quantum Technologies
• Alibaba Quantum Laboratory
• Cambridge Quantum Computing
• Zapata Computing
• Quantum Circuits Inc.
• Toshiba Corporation
• Fujitsu
• Accenture
• AWS (Amazon Web Services) Quantum Computing
• Microsoft Azure Quantum
• Baidu Quantum Computing
• QCI (Quantum Computing Inc.)
• Others

The Quantum Computing in Energy and Utility Market is segmented as follows:

By Technology

• Quantum Hardware
• Quantum Software
• Quantum Services

 By Application

• Grid Optimization
• Energy Storage Systems
• Renewable Energy Forecasting
• Predictive Maintenance
• Supply Chain Optimization

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America