Quantum technology is an emerging field that leverages the principles of quantum mechanics, the area of physics that deals with the behaviour of particles at the subatomic level, to create novel devices and systems with unprecedented capabilities.
It encompasses a number of areas, including quantum computing, quantum communication, quantum sensing, and quantum metrology. In each of these areas, the effects of quantum mechanics, such as superposition and entanglement, are employed to perform tasks that are either impossible or inefficient using classical means.
Quantum technologies
Quantum computing is perhaps the most well-known and studied quantum technology. Whereas classical computers at the fundamental level operate in bits, which can be 1 or 0 (you could think of it as on/off), a quantum ‘qubit’ can be 0,1 or both at the same time due to a property called superposition.
This fundamental difference allows quantum computers to have exponentially higher computing power over classic computers. Although, compared to classic computers, current quantum computers have high error rates, consume a lot of energy and require specialised, complex infrastructure to operate.
For example, Shor’s algorithm can factor large numbers into their prime factors, a problem that is believed to be intractable for classical computers.
This has significant implications for the security of modern communications, which rely heavily on the computational complexity of factoring large numbers and as such, quantum algorithms could, theoretically, break many public key cryptography schemes.
As the emergence of quantum computing threatens the security of the internet, new technologies are being developed to create secure communication channels that are immune to the quantum advantage.
The current focus point behind quantum communication is to use the properties of entangled particles to encode and transmit information in a manner that is secure against eavesdroppers. Whether quantum computing can solve this problem that it will create before there is too much disruption, time will tell.
Quantum technologies and AI
Quantum computing is the preeminent technology often discussed as poised to revolutionise the technological landscape, and indeed the world, at least until the recent rise of artificial intelligence (AI) to the forefront of the discussion.
AI however has not reduced the significance of quantum computing – quite the opposite in fact. AI relies, and is limited by, hardware capacity for complex computations. Quantum computing, with its potential for exponentially increased computation power over classical computers, means the combination of these technologies opens possibilities previously relegated to the realm of science-fiction.
As both technologies mature, their intersection will redefine the limits of what machines can learn, understand, and solve.
Promising applications
One of the most promising applications of quantum communication to date is quantum key distribution (QKD), which uses the laws of quantum mechanics to distribute secret keys between two parties without the need for a trusted third party.
Quantum simulation is also an exciting area of research that seeks to use quantum computers to simulate the behaviour of complex physical systems with the potential to enable breakthroughs in many areas of science and technology, including materials science, chemistry, and condensed matter physics. This has the potential to deliver the ability to design new materials with specific properties, optimise chemical reactions, and study the behaviour of exotic states of matter.
Quantum sensing and quantum metrology are two distinct but related areas of quantum technology that rely on the sensitivity of quantum systems to measure physical quantities with high precision. Quantum sensing is focused on the development of sensors that can detect and measure physical parameters such as magnetic fields, temperature, and pressure, with applications ranging from medical diagnostics to environmental monitoring.
On the other hand, quantum metrology is focused on the development of high-precision measurement devices that can be used to measure physical quantities such as time, frequency, and length, with applications in scientific research and engineering.
The UK and Northern Ireland landscape
The UK’s quantum technology sector is rapidly advancing, underpinned by robust government investment, a thriving startup ecosystem, and world-class academic research. With over 51 high-growth quantum companies employing more than 500 people as of mid-2023, the UK is positioning itself as a global leader.
The National Quantum Technologies Programme (NQTP), launched in 2014, has invested over £1 billion to foster collaboration between universities, industry, and government, while the UK’s 10-year National Quantum Strategy commits an additional £2.5 billion to scale innovation, commercialization, and workforce development.
Leading institutions such as Oxford, Cambridge, and Imperial College London drive cutting-edge research through dedicated hubs and Centres for Doctoral Training. The industry is bolstered by pioneering indigenous companies, which are developing quantum hardware, software, and networking solutions.
Public-private initiatives such an Innovate UK and the National Quantum Computing Centre (NQCC) further accelerate progress by uniting stakeholders to tackle real-world challenges in AI, energy, and healthcare. Internationally, the UK is forging strategic partnerships and shaping global standards to ensure secure and ethical quantum development, reinforcing its role as trusted and influential player in the quantum domain.
Queens University Belfast have a dedicated Centre for Quantum Materials Technologies, and with various local initiatives to raise awareness and interest in quantum technology it has the potential to be an area attracting significant investment and growth within Northern Ireland.
In summary
Quantum technology has enormous potential to disrupt a wide range of industries, through its use in a wide variety of applications and the security threats posed by this emerging technology.
A lot of resources are being channelled into understanding and developing quantum technologies, with significant amounts of research and development being undertaken in this field.
The UK’s Research and Development tax credit scheme is designed to encourage and incentivise investment in R&D in areas such as quantum technologies, with UK companies being able to claim up to 15% credits (up to 16.2% for accounting periods beginning on or after 1 April 2024) in respect of qualifying R&D expenditure, across categories such as staffing costs, cloud computing, data licences, software, consumables, utilities, workers employed by third parties, and in some cases subcontracted R&D under the RDEC scheme.
HMRC have increased their compliance measures over the last few years, requiring more information to be submitted in support of claims and increasing the number of compliance checks it carries out. It is therefore now even more important than ever to have robust and supportable claims. KPMG, with experienced software developers and engineers, are well placed to assist with putting such R&D claims together.
Get in touch
For more information on R&D Incentives please get in touch with Paul Eastham or Gianmario Pala of KPMG in Ireland’s R&D Incentives practice. We look forward to hearing from you.
