United Kingdom ICT Market Size

UK ICT Market Analysis

The United Kingdom ICT market is anticipated to record a CAGR of 7.8% over the forecasted period. The rising usage of IoT-based devices across several industries, including BFSI, IT and Telecom, Retail and E-commerce, and other industry verticals, is significantly driving the ICT technology industry. Furthermore, increasing government expenditures on sustaining high-end, maintained, and advanced infrastructures and proper implementation of various enhancement and modernization projects are fueling the country's market expansion.

• By subsidizing the adoption of cutting-edge technology by firms in every region to boost product development, the government is providing better access to the advantages of digital technologies throughout the entire UK, enhancing productivity. Some digital technology policy sectors are devolved and are subject to the digital plans of the Devolved Governments (Wales' digital strategy, Scotland's digital strategy, and Northern Ireland's digital strategy). Furthermore, they are dedicated to working with the devolved governments to ensure that digital technology's advantages are realized throughout the United Kingdom.
• In December 2021, The Belfast Region City Deal was a partnership between the Northern Ireland Executive, the UK Government, local councils, and partners that included an overall investment package of around GBP 1 billion to promote inclusive and sustainable economic growth in the region. This comprises a GBP 350 million investment from the government to develop the region's innovation and digital capabilities and initiatives that will enable future technological innovation.
• In addition, steady growth is shown in the communication market in the upcoming years. For instance, in January 2022, there were around 66.99 million internet users in the UK. There were 71.8 million mobile connections in the UK at the start of 2022, a 3.8% rise over 2021.
• ICT sales in the United Kingdom increased significantly in 2021, owing mostly to a rise in e-learning and remote working. As firms invest in modernizing their IT infrastructure, growth is expected to continue in 2022. However, in many situations, supply has fallen short of meeting demand. Semiconductor supply shortages continue to be a critical concern, and backlogs remain significant throughout the ICT value chain, hindering production. Meanwhile, smartphone manufacturers have depleted their chip inventories, and gaming consoles are in limited supply. Therefore, rising transportation costs, inflationary pressures, and increasing competitive rivalry adversely affect the performance of the business.
• During COVID-19, companies expanded the digitization of their customer and supply-chain contacts and their internal processes. It has been demonstrated that customers have shifted drastically toward online channels.