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UK deep tech investment and growth in 2026 

The UK deep tech ecosystem continues to grow in scale, value and global significance. Yet behind the record figures lie important questions about investment dynamics, emerging technological strengths and how the UK captures value from its innovation.

Deep tech is increasingly critical to the UK's economic and strategic future. Moving beyond headline figures, the State of UK Deep Tech™ 2026 report examines how value is created, realised, retained and recycled - and how success can fuel further growth and innovation.

Produced by the Royal Academy of Engineering, with Dealroom as its data partner, the report combines market analysis and expert insights to explore the opportunities and challenges shaping the ecosystem's future.

State of UK Deep Tech Index

Go beyond the report. Explore the data.

Explore interactive data on UK deep tech companies, investment activity and ecosystem trends. Discover emerging technologies, regional strengths and investment patterns, and track how the UK's deep tech landscape evolves over time.

Explore the Deep Tech Index

State of UK deep tech at a glance

  • £503 billion - total value of the UK deep tech ecosystem
  • #3 - UK’s global ranking for deep tech investment
  • 13 - new deep tech unicorns created in 2026
  • £9.6 billion - invested year-to-date, with full year investment projected to reach £12.8 billion
  • £155 billion - combined value of privately held UK deep tech companies
  • 71% - share of UK deep tech venture investment going to AI in 2026 

What is deep tech?

We define deep tech as companies that build on the fundamental principles of engineering and science to create novel solutions and are capital, time and R&D-intensive.  

Being grounded in cutting-edge advances in engineering and science, deep tech offers solutions to the world’s most complex environmental, economic and societal challenges. 

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Explore deep tech sectors

Discover the technologies and sectors driving innovation across the UK, from artificial intelligence and quantum computing to advanced materials, life sciences and next-generation connectivity. 

Space

Technologies enabling space exploration and operations, including launch systems satellites, spacecraft, in-orbit manufacturing and servicing, space-based infrastructure and technologies addressing orbital sustainability.

Robotics

Technologies enabling machines to perceive, interact with and operate autonomously, including humanoids, collaborative and industrial robotics, advanced manipulation, sensing and control systems.

Energy

Technologies advancing energy generation, storage and distribution, including nuclear energy, next-gen batteries, advanced hydrogen technologies, geothermal systems and novel grid infrastructure.

Novel AI

Technologies advancing the underlying capabilities of artificial intelligence, including foundation models, novel machine learning architectures, privacy-preserving AI and advanced AI acceleration.

Novel transportation

Technologies transforming transportation through advances in propulsion, autonomy and vehicle engineering, including electric aircraft, sustainable aviation, advanced autonomous transport systems.

Health and life sciences

Technologies advancing healthcare and biological sciences, including novel therapeutics, biotech, synthetic biology advanced medical devices, diagnostics and digital therapeutics.

Food and agritech

Technologies transforming food production and agriculture through advances in biology and engineering, including cultivated proteins, precision fermentation, crop engineering, synthetic biology, novel food production and advanced agricultural robotics.

Security and defence

Technologies strengthening security, resilience and defence capabilities, including advanced defence systems, autonomous platforms, novel sensing, secure communications, hardware-based cybersecurity and cryptographic technologies.

Semiconductors and quantum

Technologies advancing computing, sensing and communications through semiconductor engineering, photonics and quantum science, including novel chip architectures, advanced materials and quantum technologies.

Blockchain infrastructure

Technologies advancing decentralised computing and secure digital transactions, including foundational blockchain networks, advanced cryptography and innovations improving network scalability, security and performance.

Other climate tech

Technologies addressing environmental and industrial challenges through advances in materials science, chemistry and engineering, including carbon capture and removal, low-carbon chemicals and advanced biomaterials.

Key deep tech insights

UK deep tech investment is set to reach record levels

  • The UK remains the world’s third-largest deep tech market, behind only the US and China 
  • Investment is projected to reach £12.8 billion in 2026, surpassing the previous 2021 peak 

The UK deep tech ecosystem continues to grow in value

  • The UK deep tech ecosystem is now worth £503 billion, with privately held UK deep tech companies valued at £155 billion, more than 5x their 2020 value  
  • A record 13 new deep tech unicorns have been created in 2026, demonstrating the UK’s ability to build globally significant companies 

AI accounts for 71% of UK deep tech venture investment 

  • AI-related companies account for 71% of UK deep tech venture investment in 2026, up from approximately 36% in 2025 
  • The UK is attracting significant global investment in specialist technologies, including AI for materials, quantum and techbio 

Voices from the ecosystem

"Deep tech is no longer simply an economic opportunity; it has become a strategic national capability."

- Ana Avaliani, Director of Enterprise and Place at the Royal Academy of Engineering

“Generating a record 13 unicorns in the UK this year is a remarkable achievement and a clear sign of the strength of UK deep tech."

- Sir John Lazar CBE FREng, President of the Royal Academy of Engineering

“The UK is brilliant at creating deep tech companies, but we need to match that with an ability to scale them."

- Dr Caroline Hargrove CBE FREng, Chair, Enterprise Committee

Challenges in the deep tech ecosystem

Too few UK deep tech companies reach their full potential  

  • Just 2.8% of UK deep tech startups achieve an outlier outcome - unicorn, $1 billion+ exit or $100m+ revenue - compared with 6.5% in the US  
  • US deep tech funding rounds are more than twice the size of UK rounds, creating a significant disadvantage as companies scale  

Closing the UK’s growth capital gap  

  • UK investors provide 59% of early-stage deep tech investment, but just 21% at late stage 
  • Closing the domestic growth capital gap could require an additional £5.1-12bn annually

Turning research strengths into global businesses 

  • The UK has strong innovation pipeline, with more than 730 VC-backed university spinouts founded since 2010  
  • Scaling these businesses requires more than investment, with access to infrastructure, talent, customers and international markets all playing a critical role.  

For more information about this subject, please contact Enterprise Hub.

Explore our deep tech research archive

State of UK Deep Tech 2025

How do we unlock the potential in UK deep tech? This comprehensive annual report into the deep tech sector reveals growing momentum, as well as challenges we must tackle. 

Download 2025 report

State of UK Deep Tech 2024

Read the Royal Academy of Engineering State of UK Deep Tech to delve into the UK’s deep tech ecosystem, review comprehensive investment data and analysis of trends and potential.

Download 2024 report

State of UK Deep Tech 2023

The first comprehensive report analysing the deep tech ecosystem, with a focus on geographical distribution, investment, growth trajectories, funding and leadership composition.

Download 2023 report

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