Conducted by Intralink, an international business development consultancy, the research is part of the UK-APAC Tech Growth Programme commissioned by the UK government. It notes that Japan, once a leader in quantum computing during the late 1990s, has recently lagged behind. However, with the Japanese government now significantly increasing its investment in this area, there arises a plethora of opportunities for UK companies specialising in quantum computing hardware, software, and services. These firms have the chance to collaborate with Japanese counterparts to advance the current state of quantum computing towards practical commercial applications.

Key points in the report include the following:

• The quantum computing sector in Japan could be worth up to £1.74 billion by 2032
• Newly-created Japanese ‘Quantum Innovation Hubs’ are promoting global partnerships – for instance, in technology licensing, joint product development or other collaborative initiatives
• Japan’s tech sector, led by companies including Fujitsu, NEC, Toshiba and Hitachi, has prioritised quantum annealing and simulation approaches, creating a particular opportunity for UK companies offering gate-based alternatives.

The report also identifies three application areas that represent the greatest immediate opportunities for UK tech firms:

• Quantum finance: Quantum technology can solve complex calculations quickly and accurately, providing the potential to revolutionise Japanese banks’ ability to undertake financial tasks including portfolio optimisation, risk assessment algorithmic trading, option pricing and fraud detection.
• Quantum chemistry: Quantum computing has the transformative potential to enable Japanese corporations to undertake accurate simulations of molecular structures and chemical reactions to advance drug discovery and material design.
• Quantum optimisation: Quantum computing also offers the opportunity to transform Japanese industries including transport, logistics and manufacturing by providing rapid, efficient solutions to complex problems such as route optimisation and cargo allocation.

William Jasprizza, Managing Director of Intralink Japan and a co-author of the report, said: “The transformative potential of quantum computing in Japan is clear. And our report confirms the huge opportunities awaiting UK firms with the expertise to help Japanese companies develop practical, commercial solutions in a range of sectors.

“Japan’s government and tech sector face fundamental challenges, including a lack of quantum tech education and a scarcity of skilled researchers, and this is fuelling their appetite to collaborate with companies from overseas.

“To succeed in Japan, UK quantum computing firms need to understand the nuances of the market and Japanese business culture and make the right industry connections. This is where the UK-APAC Tech Growth Programme comes in.”

The UK-APAC Tech Growth Programme – backed jointly by the Department for Business & Trade and Department for Science, Innovation & Technology initiative – is aimed at scaleups throughout the UK with significant international growth potential.

The programme helps UK companies expand in South Korea, Taiwan, Singapore, Vietnam, Malaysia, the Philippines, Thailand, Indonesia, Australia and New Zealand, as well as Japan.

Intralink’s teams on the ground in Asia Pacific identify participants’ business opportunities, provide market entry advice and help them sell their products, forge partnerships and raise investment.