With this announcement, the UK tech sector joins that of the US and China as ecosystems now worth $1 trillion.
The rapid rise in value for the UK tech sector can be, in a large part, attributed to a wave of tech adoption ranging from digital health apps, to education platforms, video conferencing and e-commerce during the Covid-19 pandemic.
The fastest period of growth took place between 2020 and 2021, when the ecosystem increased by 42% in revenue.
Platforms aiding the remote operations of firms across the country, and across all industries, have since become key parts of our daily lives, aiding the surge of company valuations, and the UK tech ecosystem generally into a new league.
Announcing the figures today ahead of the West Midlands Tech Review in Birmingham, Digital Minister Chris Philp said: “Our tech industry has gone from strength to strength, overtaking the rest of Europe and entering the history books as the third country ever to reach this milestone.
“We’re working hard to make the UK the best place in the world to found, grow or float tech businesses – whether they’re early-stage start-ups or global innovators – ensuring they have the best talent, investment and regulation to thrive.
“Every corner of the country has contributed to the sector’s success including the West Midlands, whose digital ecosystem is set to keep growing by at least £2.7 billion by 2025 and create 52,000 additional jobs.”
“Ten years ago people said there weren’t enough start-ups in the UK. Five years ago people said there weren’t enough scale-ups. Every day, innovative and experimental tech companies are being launched across the UK that will grow into the next generation of unicorns and decacorns, and we at Tech Nation are committed to supporting and fuelling these high-potential businesses across the whole country.”
Yoram Wijngaarde, founder and CEO at Dealroom, added: “The explosion in VC investment started by the pandemic amid the overwhelming demand for digital services for healthcare, education and food delivery has helped spur on this growth but the foundations were laid long before 2020.
“As companies and investors grapple with the global challenges of 2022, from the Russia-Ukraine war to the ongoing supply chain crisis and the cost of living rises, it’ll be interesting to see how tech ecosystems like the UK’s adapt and adjust.”