Industry Insights
DIGITAL TECHNOLOGY
The UK’s tech sector defies forecasts with a remarkable 6% growth, contributing £205 billion to the economy in September 2023. Government incentives, post-Brexit trade policies, and robust R&D commitments drive this resurgence. Collaboration boosts tech investment to £15 billion in H1 2023, supporting startups and global expansion. Moreover, employment in the tech industry stands at 1.6 million jobs—an increase of 7% from last year (Propel, 2023).
The “Diverse Founders in Advanced Digital Technology 2023” report highlights significant investments in immersive tech, with all-female and mixed-gender teams securing 13.7% and 16.6% of annual tech investment. Additionally, FinTech firms, contributing £10 of every £100 of UK economic output, lead in innovative products and services, creating over 2.3 million jobs.
The future looks promising, with the UK government’s “Tech2030” initiative to solidify the nation’s leading digital economy status. The tech sector’s contribution to GDP is estimated to reach £250 billion next year, driven by the growing adoption of 5G technology and fibre-optic broadband expansion (Propel, 2023).
Currently, 2,865 digital technology companies are active and have collectively raised £20.6 billion in equity investments between 2013 and 2022.
In future networks, 736 high- growth companies have secured equity investments of £2.83 billion during the same period.
One hundred eighteen high-growth companies in quantum have secured equity investments of £501 million from 2013 to 2022.
Industry Challenges
· Hybrid workforce issues
· Fluctuating IT needs
· Increasingly urgent need to address climate change
(Deloitte, 2022)
Investment Opportunities
· Digital innovation
· Advances in risk management for multi-cloud, multivendor environments
· The evolution of enhanced employee benefits, wellbeing programs, and flexible, hybrid workplaces
(Tech Nation, 2020; Deloitte, 2022)
