The UK government has identified six frontier technologies that will be prioritised in its Modern Industrial Strategy.

These technologies offer the greatest growth potential for the UK while also strengthening the UK’s national security and tech sovereignty.

The selected technologies include: Advanced Connectivity Technologies (ACT); Artificial Intelligence (AI); Cybersecurity; Engineering Biology; Quantum Technologies; Semiconductors.

1. Advanced Connectivity Technologies (ACT)

Advanced Connectivity Technologies are foundational to the UK’s digital economy, enabling secure, high‑performance data transmission across sectors including transport, defence and future telecoms. ACT‑linked activity accounts for around a quarter of the UK telecoms sector, generating an estimated £26.2 billion in revenue and £11.1 billion in global GVA.

Looking ahead, the government is committing £240 million to a four‑year targeted ACT research programme and £130 million to strengthen lab and testbed infrastructure.

2. Artificial Intelligence (AI)

Artificial intelligence is a transformative, economy‑wide technology with the potential to reshape productivity, public services and scientific discovery. In 2023, the UK AI sector generated £14.2 billion in revenue, contributed £5.8 billion in GVA and employed 64,500 people. The UK is ranked first in Europe and fourth globally for AI capability and has attracted over £44 billion in private AI investment since July 2024.

Funding into AI includes over £2bn via the AI Opportunities Action Plan and a £1bn expansion of the AI Research Resource, as well as new AI Growth Zones.

3. Cybersecurity

Cybersecurity underpins trust, resilience and growth in an increasingly digital economy. The UK cyber sector is world‑leading, generating £13.2 billion in revenue, contributing £7.8 billion in GVA, and supporting 67,300 jobs in 2023‑24. Exports have grown rapidly, reaching £7.2 billion in 2023, up from £4.2 billion in 2020.

The Cyber Security and Resilience Bill, alongside the Cyber Growth Action Plan (published in 2025) will further strengthen market confidence. Investment includes £21 million to promote secure‑by‑design hardware based on CHERI architecture and the creation of the National Cyber Innovation Centre in Cheltenham, expected to catalyse £1 billion in private investment.

4. Engineering Biology

Engineering biology applies advanced biological design to create new products and more sustainable manufacturing processes across healthcare, agriculture and industry. Globally, engineering biology could deliver a £1.6–£3.1 trillion economic impact by 2040, with the UK recognised as the strongest ecosystem outside the US and China.

The UK Government is investing £196 million in a National Engineering Biology Programme to support researcher‑led innovation and £184 million in scale‑up infrastructure to address manufacturing bottlenecks. Regulatory reform is central, supported by the Engineering Biology Regulators Network, regulatory sandboxes and the Genetic Technology (Precision Breeding) Act, which creates new routes to market for agritech.

Recommended reading

• What Does The UK Gov’s New Industrial Strategy Mean For Businesses?
• What Six ‘Frontier Technologies’ are the UK Government Betting On?
• Is Quantum AI The Next Frontier In Business Innovation?

5. Quantum Technologies

Quantum technologies – spanning computing, sensing and communications – offer transformative capabilities for healthcare, defence, energy and finance. The UK ranks second globally in quantum investment and has received over £1.1 billion in public funding since 2014 through the National Quantum Technologies Programme. Quantum computing alone could add £11 billion to UK GDP by 2045 and support over 126,000 jobs.

The UK Government is launching an ambitious long‑term programme with a goal of securing 15% of the global quantum market by 2033. This includes £670 million to support quantum computing development and a 10‑year funding commitment for the National Quantum Computing Centre. Five National Quantum Missions will drive adoption in areas such as NHS diagnostics, navigation and secure communications.

6. Semiconductors

Semiconductors are critical enablers of AI, advanced connectivity, clean energy and modern electronics. In 2022, the UK semiconductor sector generated £9.6 billion in revenue, contributed £7.4 billion in GVA, and employed around 15,000 people, with productivity of approximately £460,000 GVA per employee.

The UK Government is establishing a UK Semiconductor Centre with up to £19 million to provide sector leadership, alongside £25 million for new Innovation and Knowledge Centres and £35 million to strengthen the skills pipeline.