Deep dive: Quantum technologies & sensing — the fastest-moving subsegments to watch

Global investment in quantum technologies reached $42 billion in cumulative public and private funding by the end of 2025, with quantum sensing alone attracting $3.8 billion in venture capital and government grants over the preceding three years, according to McKinsey's 2025 Quantum Technology Monitor. Within the broader quantum technology landscape, sensing is emerging as the subsegment closest to near-term commercial deployment, outpacing quantum computing and quantum communications in terms of real-world revenue generation and fielded systems. For policymakers and compliance professionals in the UK, where the National Quantum Strategy committed £2.5 billion through 2033, understanding which subsegments are accelerating fastest is essential for directing public investment, shaping procurement standards, and positioning regulatory frameworks ahead of market maturity.

Why It Matters

Quantum sensing exploits the extreme sensitivity of quantum systems (individual atoms, ions, photons, or solid-state defects) to measure physical quantities such as magnetic fields, gravitational gradients, time, and acceleration with precision orders of magnitude beyond classical instruments. This precision has direct implications across defence, healthcare, infrastructure monitoring, and environmental science.

The UK occupies a distinctive position in the global quantum sensing landscape. The UK National Quantum Technologies Programme, now in its second phase, has funded over 100 collaborative projects across four quantum technology hubs since 2014, with sensing applications accounting for roughly 35% of total programme spending (UKRI, 2025). British companies and university spinouts lead in several subsegments, particularly atomic clocks, quantum gravimeters, and diamond nitrogen-vacancy (NV) centre magnetometers.

From a policy and compliance perspective, quantum sensors create both opportunities and challenges. Gravity gradient mapping can detect underground infrastructure, unmapped utilities, and geological hazards without excavation, reducing construction risk and regulatory liability. Quantum magnetometers enable non-invasive medical diagnostics that could reshape NHS screening pathways. At the same time, the dual-use nature of quantum inertial navigation (which enables GPS-free positioning for military platforms) requires export control frameworks that balance innovation incentives against proliferation risks.

The UK's Integrated Review Refresh (2023) explicitly identified quantum sensing as a strategic technology requiring coordinated industrial policy. For compliance teams, this means new procurement specifications, testing standards, and security classifications are coming. Understanding which subsegments are moving fastest helps organisations prepare before requirements become mandatory.

Key Concepts

Quantum gravimetry uses cold-atom interferometry to measure local gravitational acceleration with sensitivities below 1 microgal (one billionth of standard gravity). This enables detection of underground voids, tunnels, pipes, and density anomalies from the surface, without drilling or excavation. The principle relies on dropping or launching clouds of laser-cooled atoms and measuring the interference pattern created by gravitational phase shifts during free fall.

Nitrogen-vacancy (NV) centre magnetometry exploits point defects in diamond crystals where a nitrogen atom replaces a carbon atom adjacent to a lattice vacancy. These defects act as atomic-scale magnetic field sensors that operate at room temperature, unlike superconducting quantum interference devices (SQUIDs) that require cryogenic cooling. NV magnetometers achieve sensitivities of 1 to 10 picotesla per root hertz, sufficient for detecting bioelectric signals from neural activity or cardiac rhythm.

Quantum clocks and timing use optical transitions in trapped ions or neutral atoms confined in optical lattices to maintain frequency stability at the 10^-18 level, roughly 1,000 times more precise than current caesium microwave standards. This precision enables improved synchronisation for financial trading networks, telecommunications infrastructure, and navigation systems.

Quantum inertial navigation combines quantum accelerometers and gyroscopes to provide continuous position tracking without external reference signals such as GPS. Cold-atom interferometers measure acceleration along each axis, while Sagnac-effect atom interferometers measure rotation rates, together enabling dead-reckoning navigation with drift rates below 1 nautical mile per month.

What's Working

Quantum Gravimetry for Underground Infrastructure Detection

The subsegment demonstrating the strongest commercial traction in the UK is quantum gravimetry applied to underground infrastructure mapping. Muquans (now part of iXblue/Exail) delivered the first commercial quantum gravity gradient sensor in 2021, and UK-based Gravity Pioneer, a spinout from the University of Birmingham, has completed over 40 field deployments across the UK since 2023. Their gravity gradiometer has successfully detected buried utilities, mineshafts, and sinkholes at depths of 2 to 15 metres in environments where ground-penetrating radar fails due to clay soils or waterlogged ground.

The commercial case is compelling. UK Water estimates that the country's water and sewerage networks suffer 24,000 burst water mains per year, with 43% occurring because utility locations were incorrectly mapped or entirely unknown. A 2024 pilot with Severn Trent Water demonstrated that quantum gravity surveys reduced dig-related utility strikes by 62% compared to conventional utility detection methods, saving an estimated £1.8 million across 180 excavation sites (Severn Trent Water, 2024). Network Rail has separately trialled quantum gravity sensors for detecting voiding beneath railway embankments, identifying three previously undetected subsurface voids along a 12-kilometre section of the West Coast Main Line.

Regulatory tailwinds are accelerating adoption. The UK's Street Works (Qualifications of Supervisors and Operatives) Regulations are being updated to reference advanced sensing technologies, and the Highway Authorities and Utilities Committee (HAUC) has initiated a working group on quantum sensing integration into permit-to-dig workflows.

Diamond NV Magnetometry for Medical Diagnostics

Diamond NV magnetometry is advancing rapidly toward clinical deployment for non-invasive cardiac and neural diagnostics. Quantum Diamond Technologies (QDT), based in Boston with a UK research partnership at University College London, has developed a magnetocardiography (MCG) system using an array of NV diamond sensors that maps cardiac magnetic fields without the cryogenic infrastructure required by SQUID-based systems. In clinical trials at Massachusetts General Hospital, the system detected ischaemic heart disease with 89% sensitivity and 94% specificity, comparable to SQUID-based MCG but at one-fifth the installation cost and with zero ongoing cryogen expenses (QDT, 2025).

In the UK, the Quantum Enhanced Sensing and Imaging consortium (led by the University of Birmingham) has demonstrated NV magnetometer-based magnetoencephalography (MEG) prototypes that allow patients to move naturally during brain imaging, eliminating the rigid head constraint of conventional MEG systems. This advance has particular significance for paediatric neurology, where conventional systems produce unreliable results because children cannot remain still. Cerca Magnetics, a spinout from the University of Nottingham, has deployed its OPM-MEG (optically pumped magnetometer) system in five NHS trusts for epilepsy presurgical mapping, reducing the need for invasive intracranial electrode placement in 30% of assessed patients (Cerca Magnetics, 2025).

Quantum Timing for Financial and Telecoms Infrastructure

Precise timing underpins financial market integrity and telecommunications network operation. In the UK, the National Physical Laboratory (NPL) has developed a compact optical atomic clock with frequency stability of 2 x 10^-16 at one-second averaging time, suitable for deployment in data centres and financial exchanges. The London Stock Exchange Group participated in a 2024 demonstration where quantum-enhanced timing reduced timestamp uncertainty from 100 microseconds to below 1 microsecond, enabling more reliable trade sequencing and regulatory audit trails under MiFID II requirements (NPL, 2024).

BT Group has integrated quantum clock technology into its Openreach fibre network synchronisation architecture at three pilot sites, demonstrating holdover performance (the ability to maintain timing accuracy when GPS signals are lost) of 48 hours at sub-microsecond accuracy, compared to 4 hours for conventional oven-controlled crystal oscillators. This capability directly addresses Ofcom's resilience requirements for critical national infrastructure timing.

What's Not Working

Quantum Inertial Navigation Remains Too Large and Expensive

Despite strong theoretical advantages, quantum inertial navigation systems have not yet achieved the size, weight, power, and cost (SWaP-C) requirements for most operational platforms. Current cold-atom inertial measurement units occupy 100 to 500 litres and consume 200 to 1,000 watts, compared to 1 to 5 litres and 10 to 50 watts for fibre-optic gyroscope systems. The UK Ministry of Defence has funded multiple demonstrator programmes through DSTL (Defence Science and Technology Laboratory), but the 2024 programme review concluded that quantum inertial navigation is unlikely to achieve platform-ready SWaP-C before 2030 at the earliest (DSTL, 2024). The primary bottleneck is the vacuum and laser system required to cool atoms to microkelvin temperatures: miniaturising these components while maintaining performance has proven significantly harder than projected.

Scalable Manufacturing Gaps

The transition from laboratory prototypes to manufactured products is stalling in several subsegments. Diamond NV sensors, for example, require synthetic diamonds with nitrogen-vacancy concentrations controlled to parts-per-billion precision. Element Six (a De Beers subsidiary) is the dominant supplier of sensor-grade synthetic diamond, but production capacity is limited to hundreds of units per year, insufficient for medical device scale-up. A single sensor-grade diamond substrate costs £2,000 to £5,000, compared to the £50 to £200 target needed for mass-market medical devices (Element Six, 2025).

Similarly, cold-atom systems require ultra-high-vacuum chambers, precisely tuned laser sources, and specialised magnetic shielding, all of which are currently produced in small batches by specialist suppliers. The UK Quantum Technology Hub for Sensors and Timing at the University of Birmingham has identified supply chain maturity as the single largest barrier to commercialisation, estimating that component costs must fall 5 to 10x before quantum sensors can compete with classical alternatives in price-sensitive applications.

Standards and Certification Lag Behind Technology

No internationally recognised performance standards exist for quantum sensors in regulated applications. Medical quantum magnetometers must navigate Class IIa or IIb medical device classification under the UK's MHRA framework, but no harmonised standard defines minimum sensitivity, calibration protocols, or interference immunity requirements specific to quantum-based instruments. Similarly, quantum gravimeters used for safety-critical infrastructure assessment (such as detecting voids beneath railway tracks) lack a British Standard or equivalent certification pathway. This creates regulatory uncertainty that slows procurement decisions, particularly in the public sector where approved-supplier lists require referenced standards.

Key Players

Established companies: Element Six (sensor-grade synthetic diamond production), Exail (formerly iXblue, quantum gravimeters and inertial sensors), Honeywell Quantinuum (trapped-ion quantum technologies), BT Group (quantum timing network integration), Thales UK (quantum inertial navigation for defence)

Startups: Cerca Magnetics (OPM-MEG brain imaging systems), Gravity Pioneer (quantum gravity gradient sensors for infrastructure), Quantum Diamond Technologies (NV diamond magnetocardiography), Infleqtion (cold-atom sensors and clocks), Delta g (portable quantum gravity sensors)

Investors: UKRI (UK Research and Innovation public funding), British Patient Capital (growth-stage quantum investments), Amadeus Capital Partners (early-stage deep tech), Quantonation (quantum-focused venture fund), In-Q-Tel (strategic defence technology investments)

Action Checklist

• Review National Quantum Strategy deliverables and assess alignment with organisational technology roadmaps and procurement timelines
• Engage with HAUC and relevant standards bodies on emerging specifications for quantum sensor integration in infrastructure assessment
• Evaluate quantum gravimetry pilots for underground utility detection to reduce dig-related incidents and regulatory non-compliance
• Assess MHRA regulatory pathways for quantum-based medical devices and begin pre-submission engagement if developing or procuring clinical systems
• Map export control obligations under the UK Strategic Export Licensing framework for dual-use quantum sensing technologies
• Monitor Ofcom resilience requirements for telecommunications timing and evaluate quantum clock holdover capabilities against compliance thresholds
• Identify supply chain dependencies on sole-source quantum components (particularly sensor-grade diamond and cold-atom vacuum systems) and develop risk mitigation strategies

FAQ

Q: Which quantum sensing subsegment is closest to widespread commercial deployment? A: Quantum gravimetry for underground infrastructure detection is the furthest advanced, with multiple companies offering commercial field services and over 100 completed surveys in the UK alone. The technology addresses an immediate and well-quantified market need (reducing utility strikes during excavation), has demonstrated measurable ROI in pilot deployments, and faces relatively low regulatory barriers compared to medical or defence applications.

Q: How do quantum sensors compare to classical sensors in terms of cost per measurement? A: Quantum sensors are currently 5 to 50 times more expensive per measurement than classical equivalents in most applications. However, the relevant comparison is total cost of outcome rather than cost per measurement. A quantum gravity survey that costs £15,000 but prevents a £500,000 utility strike delivers a 33:1 return. Similarly, an NV magnetometer MCG system at £200,000 replaces a SQUID-based system costing £1 million with £100,000 per year in cryogen costs. In applications where quantum precision enables outcomes that classical sensors cannot achieve at any price, the cost comparison becomes secondary.

Q: What UK regulations currently affect quantum sensing deployment? A: The primary regulatory frameworks are: the UK Strategic Export Licensing (for dual-use quantum inertial sensors), MHRA medical device regulations (for quantum-based diagnostic instruments), Ofcom network resilience requirements (for quantum timing in telecoms), and emerging updates to Street Works Regulations and HAUC guidance (for quantum gravimetry in utility detection). The Export Control Joint Unit maintains the UK Strategic Export Control Lists, which include quantum sensors capable of inertial navigation with drift rates below specified thresholds. Organisations developing or deploying quantum sensors should conduct an early regulatory mapping exercise to identify applicable frameworks.

Q: What skills gaps exist in the UK quantum sensing workforce? A: The UK National Quantum Computing Centre's 2025 workforce survey identified three critical gaps: systems integration engineers who can translate laboratory quantum systems into fieldable products (estimated 200 to 400 positions unfilled), metrology specialists who can develop calibration and testing protocols for quantum sensors (approximately 50 to 100 positions), and regulatory affairs professionals with sufficient technical literacy to navigate quantum-specific compliance requirements (approximately 30 to 60 positions). University quantum physics programmes produce strong researchers, but industry repeatedly identifies the translation from research to product engineering as the binding constraint.

Sources

• McKinsey & Company. (2025). Quantum Technology Monitor: Global Investment and Commercial Readiness Assessment. New York: McKinsey & Company.
• UK Research and Innovation. (2025). National Quantum Technologies Programme: Phase 2 Progress Report and Impact Assessment. Swindon: UKRI.
• Severn Trent Water. (2024). Quantum Gravity Sensing Pilot: Utility Detection Performance and Cost-Benefit Analysis. Coventry: Severn Trent Water plc.
• Quantum Diamond Technologies. (2025). Clinical Validation of Diamond NV Magnetocardiography: Multi-Centre Trial Results. Boston, MA: QDT Inc.
• Cerca Magnetics. (2025). OPM-MEG Deployment in NHS Epilepsy Pathways: 18-Month Outcomes Report. Nottingham: Cerca Magnetics Ltd.
• National Physical Laboratory. (2024). Compact Optical Atomic Clocks for Financial Infrastructure: Demonstration Results and Performance Benchmarks. Teddington: NPL.
• Defence Science and Technology Laboratory. (2024). Quantum Inertial Navigation: Programme Review and Technology Readiness Assessment. Porton Down: DSTL.
• Element Six. (2025). Sensor-Grade Synthetic Diamond: Production Capacity and Roadmap to Scale. Didcot: Element Six Ltd.