United kingdom Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in united kingdom, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Information and Communication Technology
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Overview

The UK’s Information and Communication Technology (ICT) sector is one of the most dynamic and innovation-driven in the world, offering substantial opportunities across artificial intelligence (AI), cybersecurity, cloud computing, and emerging frontier technologies like quantum computing. The UK is the third-largest AI market globally, behind only the United States and China, with a sector valued at $89 billion and growing at nearly 10% annually. Backed by major public and private investment—including $27 billion to date—and a robust national strategy, the UK is positioning itself as a global AI hub.

Major U.S. tech companies are deeply embedded in the UK ecosystem. Google DeepMind, OpenAI, and Anthropic maintain research and operational bases in London; Microsoft, Amazon Web Services (AWS), and Google Cloud dominate the UK’s rapidly expanding cloud-computing market, together accounting for an estimated 70% of capacity. Apple, Meta, and NVIDIA have also expanded UK operations through new AI and silicon-design facilities, data centers, and R&D partnerships aligned with the government’s AI Growth Zones and national compute initiatives. These investments complement the UK’s broader digital infrastructure push—including hyperscale data centers, nationwide full-fiber networks, and advanced 5G/6G rollout. Cybersecurity is another high-growth subsector, driven by a sharp increase in cyber threats and a national focus on strengthening resilience. The UK’s $17.5 billion cybersecurity market benefits from the National Cyber Security Center’s public-private engagement model, which promotes private sector ownership or cyber risk while coordinating national resilience efforts. Simultaneously, integrated communication and cloud technologies continue to expand, with UK software market revenue projected to reach $48.37 billion by 2030. Quantum computing is also emerging as a strategic priority, with the UK ranking second globally for private investment and launching a $900 million initiative to accelerate commercialization through the National Quantum Computing Center. With strong public-sector procurement, infrastructure projects, and a tech-savvy business environment, the UK ICT sector presents significant opportunities for U.S. companies looking to invest, partner, or expand.
 

Leading Sub-Sectors

Artificial Intelligence

The UK is a global leader in AI. The UK ranked third after the United States and China in the Stanford Institute for Human‑Centered Artificial Intelligence “AI Index Report 2025” based on strengths in AI research and development and education. The major U.S. AI companies have significant and expanding operations in the UK. UK business adoption of AI is growing rapidly, from 39% of firms in 2024 to 52% in 2025, according to an Amazon Web Services 2025 study of AI adoption in the UK. The UK AI sector has revenue of $89bn currently, has received $27bn of investment and is growing at 9.6% per year.

Cybersecurity

The rapid development of digitalized services has been accompanied by significant growth in cybercrime, leading to greater spending on security in both public and private sectors and driving demand for more sophisticated and bespoke cyber solutions.

Integrated Communication and Networking Technologies

About 200,000 digital companies operate in the UK, including all major U.S. tech giants. UK policy prioritizes full-fiber rollout, advanced connectivity technologies, and 5G/6G innovation, supported by institutions such as UK Research and Innovation (UKRI) and the Office of Communications (Ofcom). The growth of software as a service (SaaS) has created an industry of products and services that require subscription-like recurring payments and the mindset of UK consumers has shifted from one-off purchases to active, recurrent purchases by many customers. Also, the vast majority of UK enterprises rely on the mobile connectivity of its workforce, which is an ideal setting for SaaS and cloud providers. 

In 2025, the UK software market is expected to generate revenue of $38 billion.

Looking ahead, the UK software market is expected to grow at an annual rate of 4.83% to 2030, resulting in a market volume of US$48.37bn by then.

Quantum

The UK aims to build a globally competitive quantum technologies ecosystem, underpinned by strong government backing and a National Quantum Strategy that outlines a ten-year vision for the UK to become a “quantum-enabled economy”. Among its key commitments, the government has pledged $900 million in investment to accelerate the application and impact of quantum computers and $155 million to promote quantum applications in industry such as fraud detection, sensing, and grid optimization. Through initiatives such as open access to the National Quantum Computing Center (NQCC) and funding competitions via Innovate UK, the UK is encouraging the commercialization of quantum technologies across computing, networking, sensing and navigation. This presents many opportunities for U.S. companies seeking entry into a market actively cultivating quantum use-cases in healthcare, energy, defense and communications.

Opportunities

AI 

Artificial intelligence and machine learning present substantial prospects, with the UK being home to some of the biggest names in the business such as Google DeepMind, and with key players opening their first office outside the United States here (e.g. OpenAI and Anthropic). In addition to $1.2 billion in UK public funding, industry is also providing funding for AI solutions, with global AI powerhouses having invested significantly in the UK AI market.

The current uptake of AI in the UK varies significantly by sector and within sectors. Businesses and sectors that have digitalized operations and services took up AI more easily and effectively than those that have not. The digitalization of banking, insurance, healthcare, and business services in the country is the key driver for the growth of AI in the country. AI is also being deployed in addressing complex UK public sector challenges, including improving efficiency in mainstream public services, with applications in the processing of processing tax, benefits, visas, passports, and other government licenses. AI solutions for data management and analysis are most prevalent in the UK, followed by natural language processing and generation, machine learning, AI hardware, computer vision and image processing and generation.

Significant growth in AI is driven by an increasingly digital economy and supportive policy environments and indeed the UK Gov’s commitment to technological innovation has led to an escalation in both public and private investments in AI.

Published in early 2025, the UK AI Opportunities Action Plan aimed at driving a $63 billion boost to the UK economy. An average of $270 million a day in private sector investment has been funneled into the AI sector since last summer, with an additional $19 billion committed by Vantage Data Centres (U.S.), Nscale (UK) and Kyndryl (U.S.) to build data centers in the country. Data centers have been classified as critical national infrastructure since September 2024 and as part of a wider campaign to position the UK as a global leader in AI innovation and development, the UK Government has opened applications for AI Growth Zones. These zones will unlock investment in AI-enabled data centers and support infrastructure by improving access to power and providing planning support.

In the past year, the UK government has procured a record $770 million in AI contracts to optimize the civil service. These include a strategic partnership (signed in July 2025) with OpenAI under which the company will invest in the UK in exchange for the government using its technology in public services. Large tech companies and consultants have been the biggest winners of public contracts in recent years. 

Information on the UK Government AI tenders can be found at:

Cyber 

- Cybersecurity is another of the most active strategic technologies subsectors in the UK, with U.S. cyber companies and technologies very well perceived in the UK. Organizations’ IT footprints are becoming increasingly complex, driving demand for more sophisticated and customized cyber solutions. The number of cyberattacks reported to the UK National Cyber Security Centre (NCSC) hit an all-time high over the past year. Over 2,000 reports were sent to the agency by victims, a 64% increase on the previous year. In the NCSC’s Annual Review released in October 2025, nationally significant incidents doubled to 204 and highly significant ones increased 50% to 18%, underscoring that cyber risk is now a core business and national security issue. 

The report highlighted ransomware as the most pervasive danger, citing high-profile attacks on Marks & Spencer, the Co-op, and Jaguar Land Rover that disrupted retail operations and exposed millions of records. Emerging risks include AI-enhanced cyber operations and the global proliferation of commercial intrusion tools. The NCSC’s report urges companies to act now – embedding cyber governance at the board level, adopting foundational protections like the NCSC’s “Cyber Essentials,” and collaborating across sectors – to build resilience against an increasingly frequent, complex, and state-linked threat landscape. The UK government plans to release a Cybersecurity and Resilience Bill by the end of 2025 to better address these concerns. 

Cyber threats cost billions annually and cause significant disruption for UK businesses and the economy. In early 2025, plans were set out to implement a bill that would help face the growing risk of these cyber threats and ensure that essential IT services are not an easy target for cyber criminals. The UK Cyber Security and Resilience Bill will aim to strengthen the UK’s critical infrastructure and deliver security and renewal. The UK has a $17.5 billion cyber security industry including many U.S. tech companies - the bill will create a new standard of security and protection, supporting a thriving environment for tech companies. The UK government introduced the Cyber Security and Resilience Bill to Parliament on November 12, 2025. To learn about the details of the proposed bill, click here.

Integrated Communication and Networking Technologies

Opportunities exist to supply organizations of all sizes from SME to large corporations, with the most substantial opportunities to be found in organizations for which tech, data and cybersecurity are mission critical. 

  • Large Enterprises: The bulk of the tech market is orientated around large commercial enterprises. Financial services, utilities and transportation companies are the largest market.
  • Public Sector: Central and local governments are investing heavily in tech / digital as they implement their digital transformation agenda to move services online.
  • Small and Medium-sized Businesses: While most large enterprises in the UK have already implemented adequate tech tools, small, and medium-sized enterprises have also started to direct their attention towards digital tools to optimize their processes.

Cloud Computing

Cloud computing offers significant growth opportunities: almost all software companies in the UK use cloud technologies, and opportunities exist in both the public and private sectors for companies offering cloud or linked services. The UK government strongly supported the adoption of cloud technologies, with G-Cloud frameworks allowing the government to buy directly from suppliers after reaching an agreement on basic terms of use.

Quantum 

The UK government has highlighted quantum as a priority frontier technology, recognizing its potential to revolutionize our economy and national security. The UK is a global leader in quantum, ranking second worldwide (after the U.S.) for the number of companies and levels of private investment; and it aims at becoming a home to leading start-ups and larger companies. The country is focused on accelerating commercialization and adoption with $900 million earmarked for the UK’s national quantum computing mission, including 10-year, long-term backing of the National Quantum Computing Centre (NQCC) to keep the center at the heart of quantum computing innovation. The NQCC houses a wide range of quantum computing platforms open to anyone with a valid use case, to foster collaboration that pushes the boundaries of what’s possible with quantum technology.

Resources

Industry Events

  • CyberUK, April 21-23, 2026, Glasgow
  • Infosecurity Europe, June 2-4, 2026, London
  • London Tech Week, June 8-12, 2026, London

Trade Associations

Government Departments

 

For further information, please contact:

Claudia Colombo, Commercial Specialist, U.S. Commercial Service, Tel: +44 (0)20 7891 3443

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