Securing the future: UK's quantum computing landscape and investment opportunities

2025 is the UN’s International Year of Quantum Science and Technology. In this article, we reflect on the current UK’s position in relation to quantum computing and anticipate those sectors most likely to see the greatest impact, security concerns and investment challenges and opportunities. Contributions have come from a number of people operating at the forefront of the quantum computing field. 

What is Quantum Computing?

“Quantum computing isn’t just faster—it’s fundamentally different. And it’s poised to reshape the future of problem-solving.”

Quantum computing is a radically new approach to computation that leverages the principles of quantum physics to process information in ways classical computers simply can't. At its core are qubits, which unlike traditional bits locked into a state of 0 or 1 can exist in superposition, meaning they hold multiple states at once. This allows quantum computers to explore vast solution spaces simultaneously, making them uniquely suited to solving problems that are too complex or time-consuming for even the most powerful supercomputers.

Though the technology is still in its early stages and faces significant engineering challenges, recent breakthroughs especially in quantum hardware have accelerated progress. With major public and private investment pouring in, quantum computing is edging closer to real-world impact, promising transformative advances in fields like healthcare, energy, AI and robotics, navigation and communication and financial optimisation

Where are we now?

The UK is making bold moves in quantum technology, positioning itself as a global leader through strategic investments, infrastructure upgrades and commercial partnerships.

Quantum computing is now a strategic priority in the UK’s national infrastructure plan, integrated into supercomputing centres and AI growth zones with a £2bn roadmap signalling the country’s ambitions for quantum leadership. As part of that roadmap significant investments include £670m for quantum computing with a 10-year funding settlement for the National Quantum Computing Centre (NQCC) in Oxfordshire to accelerate real-world applications and commercialisation. Oxford Ionics have installed a high-performance trapped-ion quantum computer there designed for scalable upgraded and industrial R&D. ORCA Computing has delivered an enhanced version of their PT Series photonic quantum computer to the NQCC, where it is deployed in the datacentre for benchmarking and application development.

The UK is aligning with global standards to secure digital infrastructure against future quantum threats, with Microsoft pledging quantum-safe products by 2033. Good progress is being made with  BT and Toshiba launching a quantum key distribution (QKD) network in London, protecting sensitive data for banking and financial services firms like HSBC and EY in 2024

The UK isn’t just investing in quantum—it’s building an ecosystem. From sovereign compute capabilities to cross-sector adoption, the country is laying the groundwork for quantum to reshape its economy, infrastructure and global competitiveness.

Impact on UK’s sectors and markets

There is no doubt that quantum’s impact will be profound; the following sectors in the UK will be most affected by it:

• Healthcare
• Energy
• AI and robotics
• Navigation and secure communication

Let’s look at each of them in turn and experts from Mills & Reeve will share their insights on the impact.

Healthcare

Quantum technology is poised to revolutionise healthcare, particularly in the realms of drug discovery, genomics and diagnostics, by enabling simulations and computations that were previously impossible with classical systems.

Drug discovery

Quantum computers can model complex molecular interactions at atomic precision drastically reducing the time and cost of identifying viable drug candidates. Quantum algorithms can simulate how proteins fold and interact with other molecules, helping researchers design more effective treatments for diseases like cancer and Alzheimer’s and by simulating individual genetic and biochemical profiles, quantum systems can help tailor drugs to specific patients, improving efficacy and reducing side effects.

Quantum-enhanced machine learning can help with disease target identification and characterisation, as well as the generation of candidate molecules such as novel peptides for vaccine development.

Genomics

Quantum algorithms can optimise the analysis of massive genomic datasets, speeding up the identification of genetic markers linked to diseases. Quantum-enhanced machine learning can improve the accuracy of detecting rare genetic variants, which are often missed by classical methods and quantum simulation supports the design of synthetic DNA sequences for therapeutic applications, including gene editing and regenerative medicine.

Diagnostics

Ultra-sensitive quantum sensors can detect biomarkers at extremely low concentrations, enabling earlier and more accurate diagnosis of conditions like Parkinson’s or certain cancers.

Quantum-enhanced imaging techniques offer higher resolution and contrast, improving the detection of abnormalities in tissues and organs and quantum systems can simulate disease progression based on patient data, supporting proactive and preventive healthcare strategies.

Gayle Curry, Commercial and HealthTech Partner at Mills & Reeve, has been a vocal advocate for the transformative potential of quantum in health innovation, “Quantum simulation isn’t just a futuristic concept: it’s becoming a foundational tool in the next wave of healthcare innovation”.

Energy

Quantum technology is beginning to reshape the energy sector in profound ways especially through materials science for clean energy and grid optimisation. These innovations are not just theoretical; they’re being actively explored in UK infrastructure projects, legal frameworks and commercial partnerships.

Materials science for clean energy

Quantum simulations allow researchers to model atomic-level interactions in battery materials, accelerating the development of high-capacity, fast-charging and longer-lasting energy storage systems. Quantum computing also  helps identify new photovoltaic materials with optimal band gaps, improving solar panel efficiency and reducing manufacturing costs and quantum models are being used to simulate complex reactions in hydrogen production and nuclear fusion, helping unlock cleaner and more scalable energy sources.

Grid optimisation

Quantum algorithms can optimise energy distribution across national grids in real time, balancing supply and demand with unprecedented precision. Quantum-enhanced machine learning improves predictions of energy consumption patterns, enabling better planning and reduced waste and quantum cryptography strengthens grid cybersecurity, protecting critical infrastructure from emerging threats.

Melanie Grimshaw, Energy Partner at Mills & Reeve, advises on clean energy infrastructure from solar and battery storage to heat networks and hydrogen systems: “Optimum risk allocation and long-term relationships between counterparties are key factors to consider. Quantum’s role in energy isn’t just about better tech it’s about building smarter, cleaner and more resilient infrastructure”.

AI and robotics

Quantum technology is rapidly becoming a game-changer in AI and robotics in the UK, where legal and commercial frameworks are evolving to support its integration. At the heart of this transformation is the promise of enhanced machine learning models and hybrid compute infrastructure: two areas where quantum computing offers capabilities that classical systems simply can't match.

Enhanced machine learning models

Quantum algorithms can process high-dimensional data more efficiently, enabling faster training and better generalisation in models used for natural language processing, image recognition and autonomous systems. Quantum kernels allow AI models to explore richer feature spaces, improving accuracy in tasks like fraud detection, medical diagnostics and predictive maintenance and quantum computing excels at solving complex optimisation problems, which are central to training neural networks and tuning hyperparameters. Quantum-enhanced generative models can improve anomaly detection routines essential to agentic AI for autonomous systems, for example in biomanufacturing.

Hybrid compute infrastructure

Hybrid systems combine classical compute power with quantum accelerators, allowing AI workflows to offload specific tasks like matrix inversion or pattern matching to quantum processors. Robotics systems can tap into quantum cloud services for real-time decision-making, especially in logistics, manufacturing, and healthcare automation and quantum cryptography enhances the security of AI models and robotic systems, protecting them from adversarial attacks and data breaches.

Alison Ross Eckford, a Commercial and Technology Partner at Mills & Reeve, has been involved in numerous digital transformation, AI procurement and complex tech contracting projects, “Quantum computing isn’t replacing AI - it’s supercharging it! As hybrid systems become more common, we are helping businesses structure partnerships, protect IP and ensure compliance with evolving regulations”.

Navigation and secure communication

Quantum technology will make navigation systems more precise and reliable and communication systems more secure and resilient, both on Earth and in space. The UK is investing in both areas as part of the government’s aim of becoming a “quantum-enabled economy” by 2033. Here are just two examples of quantum technology in navigation and communication applications that are currently being developed:

Navigation

Conventional (non-quantum) inertial sensors are used to estimate the position and orientation of an object, such as an aeroplane or satellite, without relying on external positioning data (once calibrated against an external reference point). However, they require periodic correction by reference to an external source, usually a Global Navigation Satellite System, to maintain accuracy.

Compared to their conventional counterparts, quantum inertial sensors, such as cold-atom interferometers, detect changes in motion and orientation with far greater accuracy, significantly reducing drift and therefore the need to recalibrate. This is a major benefit where obtaining external positioning data is difficult (or impossible), such as in underground and underwater environments.

This benefit is also a crucial advantage when an external positioning signal could be “spoofed” to direct an object off course (or towards an enemy), such as in the case of a military satellite. It’s clear that quantum sensors will one day replace current technology in some applications, but their size, cost and power consumption will all need to reduce dramatically before they are used on an aeroplane flying to a holiday destination or on an autonomous vehicle exploring the surface of Mars.

Secure communication

Satellite-based quantum key distribution (QKD) involves exploiting quantum entanglement (where particles in different locations share a joint quantum state so that measurements on one are correlated with measurements on the other) or prepare-and-measure protocols (which involve preparing, sending and then measuring quantum states) to detect interception attempts.

The technology complements existing encryption schemes and will help ensure that data remain secure. The UK is collaborating on satellite QKD missions as part of the infrastructure that will be needed to build a secure quantum internet for both civilian and military applications, which is currently a long-term research goal. Future ‘quantum-secure’ links between satellites and ground stations will protect against cyber threats and mitigate environmental factors to provide continuity in hostile or remote environments.

James Foster, Corporate Partner at Mills & Reeve, advises Technology and Life Sciences companies with valuable intellectual property on M&A and other transformative transactions. “Quantum technology has the potential to greatly improve navigation and communication in terms of precision, security and resilience. From urban mobility to deep space missions, technologies like quantum inertial sensors and satellite-based QKD are exciting examples of the applications that will in the future support and enhance the essential activities that underpin economic activity on Earth and in space.”

What’s next

The opportunities

The UK’s quantum computing sector is entering a pivotal phase: one marked by world-class research, growing commercial ambition and a critical need for capital to unlock its full potential.

There is public sector commitment witnessed by the opening of the NQCC and its funding settlement which signals long-term government support for quantum innovation. This investment enables infrastructure, talent development and industrial collaboration. The UK’s £2 billion compute roadmap embeds quantum computing into the national infrastructure, alongside AI and supercomputing, positioning it as a sovereign capability essential to digital resilience. In April, the UK government announced an additional $160 million investment to accelerate quantum research and commercial deployment, with targeted funding for Innovate UK.

The UK hosts a vibrant mix of global tech firms, university spin-outs and start-ups from ORCA Computing, Oxford Ionics and Quantinuum to Riverlane and Phasecraft each contributing to hardware, software and quantum algorithms.

The challenges

However, despite this momentum, experts and stakeholders consistently point to access to capital as the most significant barrier. Many UK quantum ventures struggle to transition from academic excellence to commercial viability, often lacking the scale-up funding needed to compete globally. Quantum’s long timelines and technical complexity can deter traditional investors, who may favour faster-return sectors like fintech or SaaS.

While public grants are robust, private equity and venture capital engagement remains uneven, especially outside London, Oxford  and Cambridge.

The stakes are enormous. Quantum computing is projected to deliver up to £200 billion in GDP growth, or an 8% uplift, by 2045 if the UK can harness quantum advantage across these key sectors
To truly capitalise on the quantum revolution, the UK must incentivise VC and institutional investors to back quantum ventures through tax reliefs, matched funding and clearer ROI pathways. There needs to be more help for researchers to protect and monetise their innovations through legal frameworks. Finally, tech transfer offices need to attract more foreign investment and talent while maintaining sovereign control over critical quantum infrastructure.

Quantum computing isn’t just a scientific frontier—it’s an economic catalyst. With the right investment strategy, the UK can convert its research excellence into global leadership and unlock transformative growth across industries. 

This is part 1 of the Securing the Future: UK's Quantum Computing Landscape and Investment Opportunities article. Read part 2.