Superconductors Market Research Report and Outlook by 2028

The Superconductors Market is anticipated to reach a valuation of US$ 8,564.61 million by 2028, with a projected compound annual growth rate (CAGR) of 8.4% from 2022 to 2028.

Superconducting technologies represent cutting-edge systems employed across various sectors, including laboratories, electronics, defense, healthcare, and more. These technologies are celebrated for their capability to generate high magnetic fields efficiently, a feat that would be prohibitively expensive with conventional materials. The superconductors market is categorized based on type, application, and geographical region. The types of superconductors are divided into low-temperature superconductors and high-temperature superconductors. Their applications span medical, electronics, defense and military, among other fields. Geographically, the superconductors market is primarily divided into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America.

The processing capabilities of quantum computers hinge on superconducting qubits that operate at extremely low temperatures. However, as the demand for qubits increases, so does the need for control cables, which can generate excess heat and jeopardize the low-temperature environment necessary for the quantum processor. A potential solution to this challenge is the use of a classical processor situated nearby to manage the quantum processor. One innovative technology for this purpose is single flux quantum (SFQ), which utilizes superconducting technology instead of semiconductors to adhere to classical computing logic. Although SFQ has shown promise in a limited number of classical computers, its requirement for low temperatures has restricted its broader application.

While the low-temperature demands of single flux quantum (SFQ) technology have hindered its extensive use in classical computing, this limitation can transform into a significant advantage when applied to superconducting quantum computers. Additionally, traditional central processing units (CPUs) and graphics processing units (GPUs) that rely on silicon chips face a major drawback due to their high power consumption stemming from energy dissipation. However, substituting silicon chips with superconducting SFQ chips in GPUs could markedly improve performance while lowering power usage. Consequently, the rising demand for superconducting chips to enhance quantum computers and supercomputers is propelling the growth of the superconductors market.

In 2021, North America dominated the global superconductors market, while the Asia Pacific region is projected to exhibit the highest CAGR during the forecast period. Within Asia Pacific, countries such as Australia, China, India, Japan, South Korea, and others are categorized based on their superconductors market. The region's significant utilization of low-temperature superconductors in medical imaging technologies, such as Nuclear Magnetic Resonance (NMR) and Magnetic Resonance Imaging (MRI), has solidified Asia Pacific's status as the leading market for superconductor materials. The large population and growing health consciousness in the region have further stimulated the growth of the low-temperature superconductors market. Asia Pacific is expected to witness rapid expansion in the superconductors market, driven by factors such as the advancement of MRI technology and investments in energy storage and transmission systems. For instance, in October 2021, SuperQ Technologies India Pvt Ltd, a subsidiary of Qpi Technology, entered into a Memorandum of Understanding (MoU) with the Cryogenic Engineering Department of IIT-Kharagpur to expedite their research in superconductors. These advancements in superconducting products will create growth opportunities across various sectors, including healthcare, power generation, energy storage and distribution, high-energy physics, and quantum computing, thereby enhancing the market share of the superconductors industry.

Impact of COVID-19 on the Superconductors Market
The global superconductors market faced adverse effects from the COVID-19 pandemic, primarily due to significant disruptions in supply chains and the implementation of international trade restrictions by various countries. In 2020, many industries experienced downturns due to the pandemic, which also impacted global manufacturing sectors. The lockdowns imposed to curb the virus's spread severely disrupted supply chain operations and reduced the production of goods and services. As a result, players in the superconductors market encountered a slowdown in production. Furthermore, the closure of international borders, inactive distribution channels, and various government regulations aimed at ensuring public health led to restrictions on foreign trade.

The COVID-19 pandemic had a profound impact on North America, where countries in the region experienced declines in national GDPs, international trade, and overall economic activities. The electronics sector in North America was particularly affected during the first half of 2020, resulting in a significant drop in revenue for key players in the superconductors market. The pandemic led to a reduction in component manufacturers and disruptions in supply chains throughout the region. Moreover, the United States, being the largest producer and consumer of superconductor products, faced stringent government regulations in mid-2020 to enforce COVID-19 safety measures, causing substantial disruptions in the manufacturing and supply chain of superconductors. Consequently, manufacturers in the superconductors sector faced revenue losses and sluggish growth. However, as the economy began to recover in late Q4 of 2020, the demand for superconductors showed signs of growth, with an increased adoption rate from various end-users in the superconductors market.

Several key players in the global superconductors market highlighted in the market analysis include Bruker Corporation, Furukawa Electric Co. Ltd., American Superconductor Corporation, Sumitomo Electric Industries, Ltd., and Hitachi Ltd. The superconductors market is characterized by a high degree of fragmentation, with numerous players concentrated in specific regions to meet domestic demand.

The analysis of the superconductors market is based on both primary and secondary research methodologies. Secondary research involves gathering information from internal and external sources to compile qualitative and quantitative data about the market. This research also provides an overview and forecast of the superconductors market size across all segments. Conversely, primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, and national sales managers. External consultants, such as valuation experts, research analysts, and key opinion leaders, were also interviewed to validate the data and gain deeper analytical insights into the subject. The involvement of these participants has facilitated the acquisition of accurate and reliable information regarding the growth trajectory of the superconductors market.