The UK’s technology industry is a pivotal growth sector, outpacing the broader UK economy in terms of expansion and retaining its position as one of the world’s top destinations for various technology-related endeavors.
Technology
In 2021, the UK’s tech sector garnered over one-third of the total tech investment in Europe, totaling £29.4 billion raised by UK start-ups and scale-ups. The influx of funds into UK tech substantially increased from £11.5 billion in 2020. Notably, nearly £9 billion of venture capital investments were directed toward start-ups and scale-ups located outside of London and the South East, with nine of the 29 unicorns formed in 2021 being in regional areas.
The combined value of UK tech companies established since 2000 has now reached £540 billion, marking one of the most significant year-on-year increases since 2013/14. The UK’s tech sector has become increasingly attractive to international investors, with 63% of tech investment in 2020 originating from overseas, a notable increase from the 50% reported in 2016.
Opportunity highlights
Artificial Intelligence (AI)
The UK is a major hub for AI in Europe, boasting a third of the continent’s AI startups, which is twice as many as any other European country. The country hosts over 1,300 AI companies, marking a 600% increase over the past decade, with a combined turnover of nearly £1.47 billion. Over the same period, venture capital investments in AI have surged from £88.4 million to over £1.47 billion. Investment in UK deep tech has been on the rise, reaching £2.3 billion in 2020, a 291% increase over the last five years.
Robotics and Autonomous Systems (RAS)
The application of RAS in various UK industries is projected to have a total economic impact of £6.4 billion by 2035, based on current adoption trends. Significant growth is anticipated in the next decade, especially in mobile robots, with a projected compound annual growth rate of 40% between 2020 and 2030. The entire UK RAS market is expected to reach £3.5 billion by 2030.
Fintech
The UK is the third-largest destination for investment in financial technology services globally, holding a 10% market share. With over 1,600 firms in the sector, a number expected to double by 2030, the UK’s FinTech sector contributes £7 billion to the economy annually. There is a growing demand for contactless transactions and mobile banking services without the need for physical branches. The UK boasts one of the highest consumer adoption rates of Fintech services, with 71% of UK citizens using Fintech services.
Cybersecurity
The UK’s cybersecurity sector generated £8.9 billion in revenue in 2020 and attracted significant investment, even during the COVID-19 pandemic. The growth of digital services and online retail has corresponded with an increase in cybercrime, leading to substantial investments in cybersecurity. In 2020, there were 82 investments in digital security, totaling £981 million in value, reaching a record high.
Commercial maturity
The UK’s technology sector is experiencing significant growth, making it the first in Europe to produce 100 tech unicorns. This surpasses the combined total of Germany (42), France (22), and the Netherlands (18). The UK had its best year in 2021, resulting in a total of 105 unicorns, with nearly 25% of these created in that year alone. The industry is rapidly maturing, and there are an additional 153 potential unicorns on the horizon.
In 2020, the UK government announced a future trade strategy aimed at fostering innovation in domestic firms and establishing the UK as a global tech powerhouse. If you want to stay updated on emerging technologies, the Department for International Trade’s technology team is organizing various events worldwide, including the Science and Tech Superpower Showcase 2022.
UK assets
London
London ranks fourth globally for tech venture capital investment, with $10.6 billion invested in 2020. The city is home to the ‘Silicon Roundabout’ cluster, with companies like Facebook, Intel, and Google. It also hosts prestigious research institutes like Imperial College London and University College London.
Thames Valley
Often called the ‘Silicon Valley of Europe,’ Thames Valley is a technology hub centered around Reading and extending to areas like Swindon, Oxford, and West London. The region contributed £10 billion in turnover to the UK economy in 2019-2020. With over 8,000 tech companies, it includes major players like Microsoft, which has its UK headquarters in Thames Valley. The region also boasts strong research and development resources, with institutions like the University of Oxford.
Manchester
Manchester is the leading digital tech city in the UK, with a growing £5 billion tech ecosystem. It’s home to over 10,000 digital and tech businesses, including Google, Microsoft, and IBM. The city benefits from a steady influx of graduates from prestigious research universities, such as the University of Manchester.
Cambridge
A global hub for health technology, the Cambridge cluster generated £18 billion in turnover in 2019-2020. It is a key innovator and has the highest number of patent applications per 100,000 people in the UK. The University of Cambridge and the Cambridge Healthtech Institute provide a solid research base.
R&D capability
Artificial Intelligence (AI)
The UK is a leader in AI research, with the third-highest rate of AI publication citations per capita globally. The Alan Turing Institute serves as the UK’s National Centre for AI and Data Science, partnering with 13 of the UK’s most renowned universities to conduct AI research. In September 2021, the UK government unveiled its National AI Strategy, outlining long-term plans for increased investment to boost AI discoveries in the country.
Cyber Security
The UK is home to 19 universities recognized as academic centers of excellence in cyber security research, accredited by the National Centre for Cyber Security. These centers have a proven track record of impactful cyber security research published in leading international journals and conferences.
Robotics and Autonomous Systems (RAS)
The UK Robotics and Autonomous Systems (UK-RAS) network fosters collaboration within the broader robotics industry and provides academic leadership. This network includes world-class institutions such as the University of Cambridge and Imperial College London among its members.
Business and government support
Knowledge Transfer Partnership (KTP)
Available to businesses of any size in the UK, KTPs are facilitated by UK Research and Innovation. These partnerships aim to help companies innovate, grow, and address innovation challenges. They connect businesses with academic partners and provide grants to support collaborative projects.
Science and Technology Facilities Council (STFC)
The STFC plays a crucial role in bridging the gap between businesses and cutting-edge science. It supports technology start-ups by offering business incubation programs, granting access to state-of-the-art facilities, providing expertise, and hosting networking events. These initiatives help technology companies thrive and innovate.
Other Sectors
Explore diverse sectors across the UK where you can invest and enhance your business or ideas.
Transition fuels
The UK has a range of exciting opportunities for international oil and gas businesses – from exploration to innovation.
Aerospace and jet zero
The UK has a dynamic, innovative aerospace sector and is positioning itself to stay at the forefront of new aviation technologies by pushing forward with low carbon travel.
Chemicals
The UK chemicals sector is playing a critical role in the delivery of a successfully decarbonised economy.