UK tech sector retains crown as the biggest in Europe with a combined market value of $1trillion
The UK tech sector has retained its crown as the biggest in Europe with its combined market value reaching £820billion – or $1 trillion.
It makes Britain third in the world behind the US (£15.7 trillion) and China (£4.2 trillion), according to the figures from data provider Dealroom for the Digital Economy Council, which is part of the Department for Digital, Culture, Media and Sport.
Digital minister Paul Scully said: ‘UK tech has remained resilient in the face of global challenges and we have ended the year as one of the world’s leading destinations for digital businesses.’
Global player: Britain is third in the world for tech behind the US and China, according to the figures from data provider Dealroom for the Digital Economy Council
According to the report, the figures ‘underline the success of the UK tech economy and its progress as a source of global innovation – a European Silicon Valley’.
However, some are wary about the outlook, with a recent warning from industry body Tech UK that soaring energy prices and staff costs could hold back growth.
The latest figures show UK tech firms raised £24billion from investors this year, down from £29.4billion during a bumper 2021.
But that was still more than the £11.8billion raised by French tech firms and £9.1billion by those in Germany combined. German fundraising was also down on last year.
The total value of the UK sector is up by 6 per cent on last year and it is more than twice the size of Germany’s tech sector, at £384billion, and three times that of France, where it is worth £253billion.
However, those countries’ industries have grown more quickly this year – Germany by more than 9 per cent and France nearly 30 per cent.
The report said the UK tech industry’s ‘ecosystem’ – comprising software or technology driven companies and investors focused in those areas – employed 3m workers.
The industry boasts 144 unicorns – defined as privately-held start-ups valued at more than $1billion (£820million).
Eight cities – Bristol, Cambridge, Edinburgh, Leeds, London, Manchester, Nottingham and Oxford – are home to two or more such companies.
Antony Walker, deputy chief executive of Tech UK said: ‘The Government said they intend to turn the UK into the next Silicon Valley – but to do that, we need a long-term plan that gives tech businesses the confidence they need to keep investing in the UK.’