Oxford Economics released a quantum economic report stating quantum computing could add £200 billion to the UK economy by 2045, but highlighted the risks that without funding the UK will lose both its early advantage and a productive sector.
The report examines the value of quantum computing to the UK economy, today and in the future, and the importance of the UK Government stepping up support. The report analyses the sector’s demographics, funding landscape, and competitive position relative to international counterparts. Additionally, it explores the industry’s broader economic impact and its potential to drive productivity gains for UK end-users in the future.
The productivity analysis is built on established modelling principles, providing a measured, and robust assessment showing that the successful deployment of quantum technologies is expected to drive an economy-wide productivity boost of up to 7% by 2045, which could result in over £200 billion in gross value added to UK. Importantly this gain could be achieved by 2040 in the event quantum computing is useful to end users as early as 2029.
The report analyses the sector’s demographics, funding landscape, and competitive position:
- UK hosts more quantum startups than anywhere else in Europe
- Gov spending is low in comparison to US, China and 10x lower than many European countries
- £212 Bn boost to UK economy and 33% productivity, depending on when quantum computing becomes commercially viable
Without sufficient funding, the UK risks losing an innovative, extremely productive sector.
James Palles-Dimmock, CEO of Quantum Motion, said, “Given the sluggish state of the economy at the moment, the findings of the IBM/OQC/Oxford Economics report validate what we see daily at Quantum Motion: scalable quantum computing has the power to spark entirely new industries, transform R&D in pharmaceuticals and clean energy, and deliver major productivity gains in finance.
“We believe that domestic quantum hardware is pivotal to achieving the substantial benefits outlined in this report. Past leaps in computing, from microprocessors to cloud infrastructure, highlight how investing in the right technology at the right time drives mass adoption and long-term economic returns. Quantum computing will be equally transformative, but requires significant R&D, manufacturing capacity, and expert talent to compete globally.
“These systems are complex and capital-intensive to build at utility scale, which is why government support and intelligent procurement play such a critical role. Public funding can help bridge the gap to commercial viability, ensuring that world-class research and start-ups remain rooted in Britain. By building confidence for private investors and cultivating a robust supply chain, the UK can remain at the forefront of quantum innovation.”
