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To stay at the forefront of cutting edge technology, the UK’s IT business is undergoing significant changes. The UK tech industry ranges from developing software and providing technical support to spearheading innovations in cyber security, cloud computing, and artificial intelligence.

During 2022 and beyond, fast-growing UK tech companies have continued to raise at near-record levels (£24 billion), more than France (£11.8 billion) and Germany (£9.1 billion) combined. This takes the total raised over the past five years to nearly £100 billion (£97 billion).

In this blog, we delve a little deeper into the trends we can expect to see in the coming year and the staggering statistics to support them.

18 Top Global & UK IT Industry Statistics For 2024

The following statistics are sourced from Statistica, GOV.uk, Trade.gov, Great.gov, SHRM.org, IBIS World, LinkedIn, Global Resourcing, and Comptia.

  • Global revenue in the IT Services market is projected to reach $94.08bn in 2024.
  • Total IT services market revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.62%, resulting in a market volume of $117.10bn by 2028.
  • IT Outsourcing dominates the market with a projected global market volume of $35.51bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.62%, resulting in a UK market volume of approx £93 billion by 2028.
  • Globally, the average Spend per Employee in the IT Services market is projected to reach $2.65k in 2024.
  • The UK AI market is worth more than £16.8 billion, according to the International Trade Administration, and is expected to grow to £801.6 billion by 2035.
  • The number of UK AI companies has increased by over 600% over the last 10 years.
  • Around one in six UK organisations, totaling 432,000, have embraced at least one AI technology – according to government research.
  • 68% of large companies, 33% of medium-sized companies, and 15% of small companies have incorporated at least one AI technology.
  • Following a 10-week trial of computer vision technology, Marks & Spencer reported an 80% reduction in warehouse accidents.
  • The IT and telecommunications sector has the highest AI adoption rate at 29.5%, closely followed by the legal sector at 29.2% The hospitality, health, and retail sectors have the lowest adoption rates, at around 11.5%.
  • The UK has an AI workforce of over 50,000.
  • Software developers’ revenue is expected to grow at a compound annual rate of 4.2% over the five years through 2023-24 to £44.1 billion.
  • More than 2 million tech vacancies were advertised over the last year, with an estimated 1 million positions in tech still vacant.
  • Nearly a quarter of professionals in tech are now female, and 28% of new hires last year.
  • Ethnic minorities comprise only 13% of senior tech roles
  • 35% of organisations measure non-binary gender diversity
  • Ethnic minority groups make up one-quarter of all tech workers
  • In the UK, one-third of tech employees work in the top 4 metropolitan areas, with London being the largest area. The other three areas include Manchester, Birmingham and Bristol. Year-over-year, both London and Birmingham experienced the most pronounced increase in net tech employment.

What are the Trends for The UK IT Industry for 2024?

As we delve into the latest trends shaping the UK IT industry for 2024, it becomes evident that the sector is undergoing a profound transformation driven by innovation, digitalisation, and evolving consumer demands. From the widespread adoption of cloud computing to the rise of artificial intelligence, the UK IT support landscape is poised for significant growth.

In this section, we will explore the key trends shaping the future of the UK IT industry and their implications for businesses, professionals, and policymakers alike.

The Booming UK Tech Sector

The UK tech sector remains a powerhouse, driving economic growth and innovation. According to recent UK IT industry statistics, the market size is projected to reach unprecedented heights by 2024, with a forecast period marked by exponential expansion. 

This growth can be attributed to several factors, including increased investment in digital technologies, a burgeoning demand for IT services, and the relentless pursuit of digital transformation across industries.

Digital Transformation and Its Impact

Organisations are swiftly embracing digital transformation in today’s economy to maintain relevance and outpace competitors. UK IT industry statistics highlight the widespread adoption of digital technologies across the retail sector and public services.

This trend has sparked increased demand for technological solutions, particularly in areas such as cloud computing, artificial intelligence, and cybersecurity services.

Rise of Cloud Computing

Cloud computing infrastructure continues to dominate the UK IT landscape, offering businesses scalability, flexibility, and cost-efficiency. According to industry statistics, the adoption of cloud services is on the rise, with many IT professionals recognising its potential to drive innovation and streamline operations. 

As businesses increasingly turn to cloud-based solutions, the market for cloud computing services is expected to witness significant growth in the coming years.

Embracing Artificial Intelligence

Artificial intelligence (AI) is revolutionising industries, from healthcare to finance, and the UK is at the forefront of this AI revolution. With advancements in machine learning and deep learning algorithms, AI-powered solutions are becoming increasingly sophisticated, offering businesses unparalleled insights and efficiency gains. Statistics indicate a growing investment in AI technologies, as businesses seek to harness its transformative potential.

Cyber Security Concerns

As digital technologies become more pervasive, cyber security has emerged as a top priority for businesses and governments alike. With cyber threats becoming more sophisticated and prevalent, the importance of robust cyber security measures cannot be overstated. 

Statistics highlight the growing demand for cybersecurity services, as organisations seek to safeguard their data and protect against cyber attacks.

Example of a recent UK Cyber Security Incident

The cosmetics retailer Lush, based in the UK, has admitted a cyber security incident that might have exposed staff or customer data. Following an increase in ransomware assaults in the UK, which saw 667 companies infected in the first half of 2023 alone, came this particular incident. 

Lush is working with outside IT forensic experts to conduct a thorough investigation into the event. Organisations impacted by such attacks can request assistance from certified corporations through the UK’s National Cyber Security Centre (NCSC) Cyber Incident Response system.

Business Process Outsourcing (BPO)

Business process outsourcing (BPO) remains a cornerstone of the UK IT industry, providing businesses with specialised expertise and efficient solutions. Data demonstrates an ongoing dependence on BPO services, notably in functions like human resources and customer support.

As businesses prioritise operational efficiency and concentrate on their core strengths, the sustained demand for and benefits of IT outsourcing are anticipated to endure.

Looking for Expert IT Support For Your Small Business?

We hope you’ve found this blog informative and insightful. By delving into the latest UK IT industry statistics, it’s evident that the sector continues to evolve, which means your business can too!

Binary Blue have been providing IT support to a number of small businesses for over five years, our complete care ethos makes sure all your IT needs are covered.

We are experts in 1st and 2nd line support, cyber security, IT migrations and IT management.

Contact us today to find out more about our business IT support packages!

UK IT Industry Statistics FAQs

What are the primary drivers behind the growth of the UK IT industry in 2024?

The growth of the UK IT industry in 2024 is propelled by several factors, including increased investment in digital technologies, rising demand for IT services across sectors, and the relentless pursuit of digital transformation by businesses seeking a competitive edge.

How is digital transformation impacting businesses in the UK?

Digital transformation is reshaping businesses across industries in the UK, enabling them to streamline operations, enhance efficiency, and deliver superior customer experiences. From adopting cloud computing to leveraging artificial intelligence, businesses are embracing digital technologies to stay agile and innovative in a rapidly evolving market.

What role does cloud computing play in the UK IT landscape?

Cloud computing has emerged as a cornerstone of the UK IT landscape, offering businesses scalability, flexibility, and cost-efficiency. With the adoption of cloud-based solutions on the rise, businesses can leverage cloud computing to drive innovation, enhance collaboration, and optimise resource utilisation.