Six Frontier Technologies Set to Supercharge UK Growth and Security by 2035

The UK Government’s Modern Industrial Strategy focuses on six key “frontier technologies” that could contribute up to 8.4% of the UK’s GDP by 2035. These technologies—ranging from artificial intelligence to semiconductors—are expected to drive innovation, strengthen economic growth, and enhance national security.

At the core of the digital and technology sector plan are six priority areas:

• Advanced Connectivity Technologies (ACT)
• Artificial Intelligence (AI)
• Cybersecurity
• Engineering Biology
• Quantum Technologies
• Semiconductors

The government’s analysis suggests these technologies could account for half of the UK’s projected GDP growth in the next decade. Beyond economic impact, they offer practical benefits like transforming financial services, improving healthcare, securing infrastructure, and supporting the transition to net zero.

Each of these technologies has dual-use potential—fueling economic development while enhancing national security. Success in these areas depends on securing critical resources such as gallium, germanium, silicon, copper, and fibre optics. Complementary strategies like the 2025 Critical Minerals Strategy and the Steel Strategy are underway to support these foundations.

1. Advanced Connectivity Technologies (ACT)

Building on a strong heritage in connectivity, the UK’s ACT sector includes roughly 2,800 firms generating £11.1 billion in global value added in 2024. ACT is vital for future tech, expected to deliver £14.6 billion in productivity benefits by 2035.

The government is investing over £300 million since 2022 to develop ACT, focusing on next-generation technologies such as 6G. Initiatives include the Open Networks Programme and funding for labs like the UK Telecoms Lab and SONIC Labs.

Plans include a £240 million research programme targeting commercialisation in defence and transport, £130 million to enhance lab infrastructure, and securing spectrum availability. International partnerships with countries like Japan, India, and the US will help shape secure and sustainable 6G standards.

2. Artificial Intelligence (AI)

AI investment in the UK has surpassed £44 billion since July 2024, with London ranking as the third-largest AI venture capital hub globally. The UK leads Europe and ranks fourth worldwide in the AI Index, hosting major players such as Google DeepMind and Arm.

The AI Opportunities Action Plan guides government support, backed by over £2 billion in funding. Key efforts include creating AI Growth Zones to ease investment in AI data centres, expanding public compute capacity, and launching supercomputers like Isambard-AI and Dawn.

To address AI’s energy demands, the AI Energy Council explores renewable solutions and small modular reactors (SMRs), supported by £2.5 billion for SMR development. Additionally, the government aims to upskill 7.5 million people in AI use by 2030 and integrate AI in public services.

Funding commitments include £1 billion to expand AI research resources, £750 million for a supercomputer in Edinburgh, and £500 million to establish a Sovereign AI Unit. Efforts also focus on developing an AI and copyright framework, promoting adoption through an AI Adoption Fund, and accelerating AI-driven scientific discoveries.

3. Cybersecurity

The UK cybersecurity sector generated £13.2 billion in revenue and £7.2 billion in exports in 2023. Hubs in the South West, Greater Manchester, Lancashire, and Belfast attract global firms and nurture homegrown companies like Darktrace and NCC Group.

Government programmes support innovation and talent development, including CyberASAP, which has spun out 34 academic startups, and CyberFirst, which has engaged over 415,000 students. The National Cyber Innovation Centre in Cheltenham will further boost collaboration and investment.

Key investments include £10 million to expand CyberASAP, £2 million for the Cyber AI Hub in Belfast, £6 million for the Cyber Runway accelerator, and £24 million promoting ‘secure by design’ hardware. A Cyber Growth Action Plan is expected in summer 2025.

4. Engineering Biology

Engineering biology advances healthcare, sustainable fuels, and precision-bred crops. The UK is a leading biotech hub with over 1,000 businesses concentrated in Edinburgh, Bristol, London, Cambridge, and Scotland’s Central Belt.

In 2024, equity financing in biotech hit £3.7 billion, a 106% increase. The Precision Breeding Act (2023) introduces a new regulatory framework supporting agritech innovation. Previous investments like the £100 million Synthetic Biology for Growth programme have yielded returns between 3-9 times the initial funding.

The government is launching a £196 million National Engineering Biology Programme for research, alongside £184 million for scale-up infrastructure, including pilot and manufacturing facilities. Regulatory reform continues via the Engineering Biology Sandbox Fund and the Regulatory Innovation Office. Strengthening innovation networks and international collaboration remains a priority.

5. Quantum Technologies

Quantum computing, sensing, and communications offer benefits such as accelerated drug discovery and improved hospital logistics. The UK ranks second worldwide for quantum investment, with the Oxford-Cambridge corridor attracting over £782 million since 2000.

The National Quantum Technologies Programme has invested over £1.1 billion since 2014 and attracted £692 million in private investment. The government aims to secure a 15% share of the global quantum market by 2040 and 15% of private equity investment by 2033.

Five National Quantum Missions focus on navigation, sensing, networks, and quantum computing, supported by £670 million in funding. The National Quantum Computing Centre receives a decade-long funding commitment, and a Quantum Skills Taskforce is shaping a skills development plan.

6. Semiconductors

Semiconductors are essential for digital technologies and AI. The UK semiconductor industry grows at 8% annually, with revenues projected to reach £17 billion by 2030. South Wales hosts the world’s first compound semiconductor cluster, while Cambridge, Scotland, and Bristol are also key hubs.

Strengths lie in design, compound semiconductors, and photonics. The government supports startups through programmes like ChipStart and invests in supply chain resilience via partnerships including the EU’s Chips Joint Undertaking.

Key investments include £60 million into Pragmatic Semiconductor to expand manufacturing, £19 million for the UK Semiconductor Centre, £50 million across two Innovation and Knowledge Centres, and £5 million for the Chip Design Enablement Programme. A £35 million skills programme addresses talent shortages with bursaries and a new Centre for Doctoral Training.

Alongside innovation, the strategy emphasises pathways for technology adoption across industries. This includes leveraging the R&D Missions Accelerator Programme, exploring public procurement via a Commercial Innovation Hub, and developing standards through the Regulatory Horizons Council and AI assurance initiatives.

In the foreword to the sector plan, the Secretary of State for Science, Innovation and Technology highlighted the challenge of supporting technology development so British industry remains competitive, ensuring opportunity and security for families and communities.