Ensuring that the UK can capture the benefits of quantum computing
Commissioned by IBM and Oxford Quantum Circuits
Quantum computers have the potential to be millions of times more powerful than today’s supercomputers. They are expected to solve computational problems that are either impractical or impossible for traditional computers to perform. This will bring significant economic advancements. This report looks at the potential scale of quantum computers impact on the UK economy.
The analysis predicts that quantum computing technologies could give the UK an economy-wide productivity boost of up to 8.3% by 2055, with initial gains from as early as 2034. However, the report finds that increased government support for the sector will be crucial for the UK to realise the benefits of quantum computing and remain globally competitive in the field.
According to the findings, if the UK were to achieve commercial viability of quantum computing by 2035, the economy could see a productivity increase of up to 1% that year, with subsequent increases of 4% by 2040, 7% by 2045 and 8% by 2050. An 8% increase is equivalent to every worker achieving an additional three weeks’ worth of productivity per year without working an extra hour.
However, if commercial viability of quantum computing was achieved by 2029, economy-wide productivity could increase by as much as 5% by 2035, and by up to 8% from 2040 to 2050.
The experts behind the research
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Andy LoganDirector of Industry Consulting
Andy Logan leads our Consultancy offer on different industries for clients. He undertakes studies forecasting the demand for company’s products, analysing the drivers of different industries growth, and assessing the size of different markets and industries. He also investigates the competitive pressures and opportunities facing industries now and in the future. Another area, where he has a keen interest is in studies assessing the demand and supply of labour for different industries and occupations, identifying potential skill shortages and implications for migration.
He has worked with clients in most industries, and in many countries of the world.
Prior to joining Oxford Economics, Andy worked in a variety of economist roles at the Bank of England for 15 years. His research focused on the labour market, commodity and producer prices, UK trade flows, and the performance of UK banks. He holds an MSc. and BA. degrees from the universities of London and Leicester.
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Emily GladstoneLead Economist
Emily is a Senior Economist on the Industry team where she supports bespoke industry projects in areas such as renewable energy, construction and insurance. She is also involved in other projects like economic impact studies.
Prior to joining Oxford Economics, Emily worked for 5 years as a government economist for the UK Civil Service, working in the Department for International Trade (DIT) and the Department for Business, Energy and Industrial Strategy (BEIS). In DIT she worked on assessing the socio-economic impact of Free Trade Agreements (FTAs) and Freeports. She also worked in a crisis covid-19 analytical team, providing supply chain analysis and reporting of critical goods to ministers. In BEIS, she used economic analysis to develop policy positions for manufactured goods for both Free Trade Agreements, the Northern Ireland Protocol and the UK's Global Tariff Schedule. Emily holds a Bsc in Economics from the University of St Andrews.
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Sofia de MartinEconomist, Industry