Sectors
Advanced connectivity technologies
Advanced connectivity technologies (ACT) are unlocking bold new opportunities to drive efficiency, resilience and transformation across key sectors in the UK.
The UK is leading the way in advanced communications, powered by a globally competitive research base and world-class innovation, from top universities and SMEs (small and medium enterprises) to major players like BT. With strong government backing and strategic global partnerships, the UK is well positioned to drive the next decade of technological transformation and create scalable investment opportunities in cutting-edge connectivity.
Opportunity highlights
Businesses can seize investment opportunities in the UK ACT sector across four key areas.
Compound semiconductors and photonic integrated circuits
With a market worth £10 billion and set to nearly double by 2030, the UK’s globally recognised strengths in compound semiconductors and integrated circuits, covering advanced design, fabrication and system integration, offer a high-growth investment opportunity in next-generation connectivity.
Advanced radio frequency (RF) and optical wireless
With government backing and world-class research, the UK is advancing in RF, LiFi (light fidelity), and optical communications; technologies reshaping global connectivity that offer an attractive landscape for telecoms investors.
Intelligent network management and design
Investment opportunities abound in the UK’s £230 billion advanced artificial intelligence (AI) ecosystem, underpinned by world-class research, a pro-innovation regulatory environment, and state-of-the-art digital infrastructure. With strengths spanning foundational AI, machine learning, and real-time data processing, the UK offers a dynamic platform for scalable, cross-sector AI applications, from healthcare and finance to manufacturing and mobility.
Secure, resilient, and quantum-safe networks
The UK is leading the way in secure, resilient, and quantum-safe networks, offering significant investment opportunities as quantum technologies move towards commercial scale. A world-first quantum-secured metro network launched by BT and Toshiba in London showcases the UK’s strength in Quantum Key Distribution (QKD) over standard fibre, pioneering next-generation cybersecurity solutions to counter emerging quantum-enabled threats.
Commercial maturity
The UK has a significant ACT footprint. Initial market analysis has identified over 11,800 UK telecoms firms, with 2,800 firms undertaking ACT-related work either as part of their core or wider (hybrid) business, contributing an estimated global GVA (gross value added) of £11.1 billion in 2024. The UK’s pro-innovation regulatory environment is ensuring sustained growth and advancements within AI, 6G and satellite technology. Aided further by strengthening partnerships with key ACT-developing countries such as South Korea, Japan, India and the US, the UK’s diverse talent pool and top-tier university network, with strengths in AI, semiconductors and quantum technology, can enable long-term growth and prosperity for businesses.
Key UK assets
With thriving clusters in every region, the UK delivers investment-ready opportunities:
South England
A powerhouse for ACT. Facilities like the Harwell Science and Innovation Campus, Wires and Wireless Systems Hub, Hub in All-Spectrum Connectivity (HASC) and Satellite Applications Catapult offer access to pioneering research, top-tier talent and investment-ready infrastructure.
London
Home to key players such as Microsoft AI, OpenAI and DeepMind as well as leading research at UCL (University College London) and facilities such as CHEDDAR Hub, Sonic Lab, and Digital Catapult. London has a strong VC (venture capital) ecosystem, with London-based startups raising $10.8 billion in venture capital funding in 2024 alone.
Belfast City Region
A vibrant hub around Belfast with facilities such as the Centre for Secure Information Technologies (CSIT) and the Institution of Engineering and Technology (IET), alongside Queen’s University’s Centre for Wireless Innovation.
Research and development (R&D) capability
The UK has a substantial base of R&D activity directly engaged in the telecoms sector, including highly skilled local workforces.
Nationwide clusters provide expertise, collaboration and R&D potential throughout the UK. Adastral Park in Suffolk, for example, demonstrates the sheer strength of the telecoms sector in the UK. It is a cluster of high-tech telecoms and technology companies, including BT, and sits at the heart of the UK’s digital ecosystem.
The Federated Telecoms Hubs are also at the forefront, with a plethora of academic institutions, industry and innovation hubs such as SONIC Labs, National Dark Fibre Facility and the UK Telecoms Lab accelerating collaboration potential. Companies can leverage nationwide skills and expertise to benefit from commercialisation opportunities, with top clusters, cutting-edge R&D, and strong industry growth.
The India–UK Connectivity and Innovation Centre was launched at the Indian Mobile Congress in October 2025 with a joint investment of £24 million to accelerate innovation in the digital connectivity ecosystem. The Centre will open new investment opportunities for the UK’s ACT sector and strengthen bilateral collaboration in emerging technologies. This research partnership represents a significant opportunity to bring together world-leading innovators, researchers, and telecom enterprises from both countries to shape the future of next-generation connectivity.
Business and government support
ACT has been identified as a growth market within the digital and technologies sector in the Industrial Strategy. The UK is actively accelerating ACT through targeted support packages, including the £300 million Open Networks Programme and the Technology Missions Fund, alongside a commitment of £22.6 billion in annual government R&D funding by 2029–2030. This includes £240 million dedicated to advancing ACT development over a four-year programme and £130 million to enhance the UK’s world-class ACT lab infrastructure. At the same time, streamlined planning processes, strong industrial support, and modern regulatory frameworks are helping to reduce barriers and unlock new opportunities for investment.
Talent
A telecommunications workforce of 266,000 is spread across the UK, with a strong future pipeline supported by 435,570 recent STEM graduates. The £187 million TechFirst skills programme is aimed at harnessing the breadth of talent across software, systems integration, and digital engineering. The UK is bringing together world-class institutions, telecom-specialised programmes, robust R&D, government-backed bootcamps and academies, and streamlined visa pathways to develop the workforces of the future.
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Nokia Bell Labs
Bell Labs leads in 'pure' research with a strong focus on future technologies. Its Cambridge-based R&D specialises in multimodal AI and machine learning for IoT (internet of things) and wearables, social computing, and materials science. It collaborates closely with UK universities and plays a key role in initiatives like REASON and TUDOR under the Future Open Networks Research Challenge.
Samsung R&D Institute UK (SRUK)
Based in Staines-upon-Thames and a key player in Samsung’s global innovation network, SRUK specialises in communication networks, on-device AI, IoT, and telecoms. They have been instrumental in advancing 5G technologies such as massive MIMO (multiple-input multiple output), beamforming, and LDPC (low-density parity-check) channel coding as well as playing a pivotal role in Samsung’s AI and IoT capabilities.
Fraunhofer UK Research
Based in Glasgow, and operating the Fraunhofer Centre for Applied Photonics at the University of Strathclyde, Fraunhofer UK Research delivers advanced laser, optical, and quantum technology demonstrators for industry. It supports the UK’s growing photonics and quantum clusters, alongside training doctoral students with a strong focus on inclusion and diversity in STEM (science, technology, engineering and mathematics).