quantum Wargaming Exercise in the Auto Chemicals Market Demonstrated Several Important insights

Hypothetical wargaming output should be viewed in the context of the technology assumptions only

Three automotive chemicals competitors had different starting quantum capabilities and pursued different strategies

Company A

quantum wargaming in the automotive chemicals market

Context

Top-3 global manufacturer of plastics, chemicals, and agricultural products with a presence in over 160 countries leverages quantum to solidify competitive advantage and bolster product pipeline.

Strategy

Extended quantum capabilities by acquiring a quantum algorithm development partner, launched a quantum R&D pipeline and expanded automotive OEM partnerships and product licensing agreements. Partnered with quantum advisory teams to leverage quantum technology for R&D, energy usage and emissions reduction, and supply chain efficiency

Results over 6 years

6.5%  Market Share increase

$6.9 Billion Revenue

Company B

quantum wargaming in the automotive chemicals market

Context

A large European chemical company with operations in more than 100 countries leverages quantum to accelerate R&D commercialization and sustainability efforts.

Strategy

Expanded strong expertise in catalysts and silicas product families, acquired quantum algorithm development firm to bolster capabilities, launched alliance network with OEMs serving as material discovery and commercial marketplace platform. Accelerated transition-metal-based catalysts R&D and commercialization. Leveraged quantum capabilities in the development of automotive chemicals and fuels, carbon capture methods, processes, and materials

Results over 6 years

3.9%  Market Share increase

$1.9 Billion Revenue

Company C

quantum wargaming in the automotive chemicals market

Simulation Context

International chemicals company with a presence in over 50 countries leveraging quantum to develop lightweight automotive materials, manage supply chain logistics, and drive operational improvements.

Strategy

Leveraging quantum-enabled chemical compound modeling techniques for the development of lightweight temperature- and wear-and-tear resistant materials, innovating tire composition and design with top OEMs, and optimizing operations, supply chain, and inventory management using quantum technologies

Results over 6 years

8.3%  Market Share increase

$2.1 Billion Revenue

Key insights from the wargaming exercise

Market Structure

  • Quantum-enabled product and process innovations will disrupt industries and change their structure.
  • The innovations will quickly spill over into adjacent markets, creating a chain reaction of explosive growth.
  • The disruption mechanism is specific to the product and market segment – understanding the types of potential quantum disruptions is essential to defending your market position.

Competitive Dynamics

  • Quantum-enabled products and processes deliver significant value and drive step-change improvements in growth and profitability.
  • Fast-follower is not an advisable strategy for most quantum computing applications/use cases.
  • Acquisitions and partnerships with technology players are a fast way to enhance quantum computing capabilities.

Quantum Readiness

  • Quantum readiness capabilities developed before the first practical applications of quantum computing are critical for achieving market success and gaining a competitive advantage.
  • Understanding the required quantum computing power (e.g., the number of logical qubits, gate fidelity, etc.) to solve different types/classes of business problems is critical for setting strategic quantum priorities and defining the roadmap.

Output Example: Adjacent Growth

Revenue, $

quantum wargaming example

Quantum computing-driven adjacencies contributed approximately 25% of the total growth.

Adjacent revenues grew at ~ 83% CAGR for the simulation period.