US Export Plan - Sector Report - Engineering and Advanced Manufacturing

Key subsectors of focus for the US market

Scotland’s engineering and manufacturing exports are increasingly focused on high-value, capital-intensive goods, including pharmaceuticals, aerospace components, automotive systems and renewable energy technologies, overlapping with other sectors covered in this report^[14], and highlighting that this is a driving force for other growth industries in Scotland.

Within all of these sub-sectors robotics, automation, advanced materials and quantum and photonics stand out as key enablers and core strengths within Scotland’s industrial base.

Robotics and automation: With the global robotics market expected to reach $218 billion by 2030, this is a key opportunity area for Scottish exporters. The United States is experiencing a surge in the adoption of robotics technology across various industries, revolutionising productivity and efficiency. Looking ahead, the revenue is anticipated to experience an annual growth rate (CAGR 2025-2030) of 4.67%, resulting in a market volume of US$12.88bn by 2030^[15]. Scotland’s strengths in robotics R&D, AI integration and automation align well with US demand. Edinburgh is a key hub of innovation and activity in this area, including through the National Robotarium, a joint initiative between Heriot-Watt University and the University of Edinburgh, which is recognised as the UK’s centre of Robotics and AI^[16]. This is already bringing benefits to manufacturing, including in the food and drink sector, healthcare tech and renewables.

Advanced materials: Across the Atlantic, there is a strong demand for high-performance materials across aerospace, automotive, electronics, energy and healthcare sectors. The growing demand for lightweight materials in the automotive industry is a key driver of the US composites market. In aerospace, this demand is fuelled by the presence of major aircraft manufacturers like Boeing, combined with the rapid growth of the US aerospace sector along with rising air passenger traffic, and by the expansion of commercial space manufacturing for exploration missions led by companies such as Northrop Grumman, SpaceX, and Virgin Galactic^[17].

Scotland is home to world-class research and innovation in advanced materials. For example, it hosts leading research centres such as the Advanced Materials Research Laboratory (University of Strathclyde) and facilities at the University of Edinburgh, which has a strong focus on composites, functional materials and nanotechnology^[18]. The Lightweight Manufacturing Centre within NMIS also demonstrates Scotland’s world-class engineers and researchers exploring next generation sustainable materials, products and processes for a net-zero world^[19].

Quantum and photonics: Quantum and photonics are a rapidly evolving pillars of advanced manufacturing that are considered key technologies for future competitiveness, driving innovation in areas like smart manufacturing, industry 4.0 and high-precision production. The market is growing rapidly, with quantum technology estimated to be worth $1.62 billion in 2025 and predicted to grow to $11.12 billion in 2035, a compound growth rate (CAGR) of 21.24%^[20]. The US quantum market is growing rapidly, with states investing heavily in quantum R&D hubs, manufacturing facilities, national labs and university-industry partnerships. Major tech companies like IBM, Google and Microsoft are at the forefront, pioneering advancements in quantum computing, communication, and sensing. Notable investment to accelerate quantum includes plans to build a $300 million Quantum Research and Innovation Hub at Stony Brook University, New York; $500 million to develop the Illinois Quantum and Microelectronics Park (IQMP) and a partnership between Microsoft and the University of Maryland in the Discovery District to establish a quantum research centre^[21].

Scotland has established a strong position in the global quantum and photonics landscape – with over 80 firms operating across these sectors – many of which are exporting high-performance components and subsystems^[22]. According to Technology Scotland, around 80% of quantum technology depends on lasers and advanced optics, an area where Scotland has world-leading capability giving it a competitive edge in the global market^[23]. In terms of photonics, it is already a £1.2 bn sector and 98% of goods manufactured are exported outside of Scotland, illustrating the ability of Scottish companies to compete on a global scale. Of the export markets, the US represents the largest share of international sales, accounting for 78% of all sales^[24].

Engineering and advanced manufacturing is a diverse sector. In addition to these core capabilities, Scotland is increasingly being recognised for its expertise in other key emerging areas which present opportunities for the US market. Examples include:

Subsea and marine tech: Scotland is a global leader in subsea engineering with over 700 supply chain businesses delivering innovative, smart, clean-tech services for a range of subsea projects^[25]. Building on decades of experience in offshore oil and gas, the sector is now also an important part of the transition to renewable energy production. This strength is underpinned by a network of universities and research centres like the National Subsea Centre^[26] and European Marine Energy Centre. It is also home to the world's only tidal blade test centre, FASTBLADE at the University of Edinburgh. In the US, the subsea and offshore services market is growing steadily, projected to reach $40.9 billion by 2034 (from $22.5 billion in 2025), driven by deepwater oil and gas projects and offshore wind development^[27]. Scotland’s world-class subsea and marine tech engineering capabilities, highly skilled talent pool and cutting-edge engineering capabilities, proven track record in offshore operations, and innovation in clean-tech solutions position Scottish companies well to expand into this growing market.

Semiconductors: Scotland specialises in advanced semiconductor packaging, which is becoming increasingly vital as technologies like artificial intelligence (AI), quantum computing, photonics, and electric vehicles demand compact, efficient, and high-performance chips. In July 2025 there was a landmark development within Scotland with the establishment of the National Advanced Semiconductor Packaging and Integration Centre in Renfrewshire^[28]. Backed by £160 million investment from the UK Government, it has reinforced Scotland’s role in the global semiconductor market. As one of the world’s largest semiconductor buyers, the US relies heavily on international supply chains to meet its demand, and the market is a major destination for semiconductors and related products and services, whether directly or indirectly. In the US, a key consideration is the CHIPS Act. Approximately $39 billion, amounting to around three-quarters of CHIPS Act funding is going go towards building semiconductor fabs, including $2 billion for mature chips critical to defence, automotive, and manufacturing. The remaining funds will support R&D and workforce development to strengthen the domestic semiconductor ecosystem. The states that have benefited most from the CHIPS Act investments are those hosting major semiconductor fabrication and supply chain projects such as Texas, Arizona, Ohio and New York. Exporters setting up local operations or distribution hubs can tap into these incentives. Import data shows that of all states, Texas has the second highest value of semiconductor imports from the UK^[29]. Texas also provides incentives such as the Texas Semiconductor Innovation Fund^[30]