Insight
Scotland has established a strong position in the global quantum and photonics landscape. With over 80 firms operating across these sectors – many of which are exporting high-performance components and subsystems – this community of innovators has already demonstrated its ability to compete on the world stage. The opportunity now exists to scale that presence, turning deep technical expertise into sustained commercial leadership in high-growth international markets.
Scotland’s potential in quantum and photonics is reinforced by the launch of the Critical Technologies Supercluster Advisory Board. This initiative – driven by Technology Scotland, the Scottish Government, Scottish Enterprise, and the Universities of Glasgow and Strathclyde – aims to grow revenues beyond £10 billion by 2035. The strategy centres on skills development, investment, scale-up, internationalisation, and collaboration. Priority technologies include quantum, photonics, semiconductors, connectivity, and sensing.
A Foundation of Technical Excellence
The Scottish ecosystem is underpinned by a concentrated base of highly capable companies. Around 70 firms are active in photonics and over 30 in quantum technologies, with 23 operating at the intersection of both fields. These companies are not simply experimental, they are commercially engaged, with the vast majority pursuing export markets.
Crucially, this is a sector already embedded in the global value chain. Companies such as Photon Force are recognised internationally as key suppliers in quantum sensing, and others are engaging directly with recognised global technology leaders. The focus is no longer on proving the value of the technology but capitalising on the current market validation, scaling delivery and deepening market penetration.
Increasing Market Share
Despite the strength of this foundation, many Scottish companies remain situated at the upstream end of the supply chain, delivering materials, components, or subsystems, but not integrated end-user solutions. This limits their influence over customer relationships and potentially leaves value on the table.
Compounding this challenge is the issue of scale and capacity. Many Scottish firms are SMEs, where technical staff are often also responsible for sales and business development. This dual role places strain on limited resources and can result in missed opportunities, especially in international markets where proximity and persistence matter. Attending key events, following up on leads, and maintaining a regular presence in target markets are all essential – but all are resource-intensive.
At the same time, the markets themselves are evolving rapidly. Quantum technology (as a whole) is estimated to be worth $1.3 billion in 2024 and is predicted to grow to $8.3 billion in 2033, a compound annual growth rate (CAGR) of 23%. Within this, the quantum computing segment is forecast to reach $50 billion in 2035. Similar trajectories are forecast in quantum sensing and communications. The opportunity is significant, but so is the competition – evidence of this is the increased funding (£10m) allocated to Quantum Missions by UKRI as a result of interest in the pilots. Readiness to engage at scale is now a critical success factor for Scottish companies.
Building Integrated Systems Through Strategic Collaboration
Moving up the value chain would position Scottish companies for growth. That means forming strategic alliances across the domestic sector and internationally to deliver higher-value propositions. Many companies have complementary technologies and capabilities; by aligning more closely and collaborating on demonstration systems or platform solutions, they can offer more to customers without each having to scale individually.
There is also an opportunity to combine innovation and manufacturing through hybrid business models. Leveraging low-cost, high-volume production capabilities overseas – particularly in the Far East – while retaining IP and systems design in Scotland could enable firms to remain competitive while expanding their global reach.
Pursuing these opportunities would increase individual company resilience but also enhance the overall positioning of the Scottish quantum and photonics cluster as a source of integrated, scalable solution developers rather than high-tech component providers.
Enabling Global Market Engagement
For this transformation to succeed, targeted support is essential. Many companies are already internationally active but lack the resources to pursue new market opportunities or deepen their presence in existing ones. A focused approach that eases the resource strain will help them reach their expansion goals.
Key enablers include dedicated business development and management capacity support to facilitate collaborations and enhance company visibility in key markets.
Support mechanisms need to reflect the current maturity of these firms. This is not a nascent sector in need of awareness-raising, but a technically advanced one seeking scale and strategic growth. Engagement should be tailored, sustained, and driven by company-specific objectives.
The Time to Act is Now
The global quantum landscape is intensifying. Governments are investing heavily: £2.5 billion through the UK’s National Quantum Strategy, $15 billion from China, and major initiatives underway in the US, EU, and beyond. Industry giants are consolidating their supply chains and placing large bets on scalable technologies. Market standards are being shaped, and long-term relationships are being formed.
Scotland has the assets to be a major player in this next phase of the quantum economy. The companies exist; the expertise is proven; and the global demand is growing. What’s needed is a shift in approach from resource-limited product exploitation to strategic customer engagement and development.
By supporting its quantum and photonics sectors to scale strategically, Scotland can not only maintain its competitive edge but expand it globally, securing a lasting position in some of the most important technologies of the next century.