Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Digital economy in the United Kingdom (UK) - statistics & facts
The British government considers the UK’s digital sector as crucial in securing economic growth in the post-Brexit era. The UK has looked to attract digital investment on the strength of its infrastructure, skilled workforce, and leading institutions, which include some of the world’s most renowned universities, as well as the financial powerhouse of London. Government ministers have sought to nurture several key emerging sub-sectors, notably artificial intelligence (AI) and cybersecurity. However, the UK faces the challenge of fostering an open, innovative environment while delivering on safety and privacy commitments. The UK ranked 18th in a 2024 ranking of 67 nations by digital competitiveness, with the country’s business agility one of several factors keeping it from the top ten.
The UK digital sector adds 160 billion British pounds in GVA
The UK Department for Science, Innovation and Technology (DIST) has been responsible for driving digital development since its formation in 2023. The department estimated that the sector had contributed almost 160 billion British pounds in gross value added (GVA) in 2023, up around 0.6 percent on the previous year and accounting for approximately 6.5 percent of total UK GVA. The computer programming, consultancy, and related activities sub-sector has accounted for the greatest share of GVA in recent years, despite the number of businesses active in the sector having fallen below 125,000. Computer programming employees also enjoyed some of the highest earnings in the sector, ranking second only to software publishing.Digital infrastructure will underpin growth
The development of digital infrastructure is central to the UK’s digital strategy, with the expansion of next-generation telecommunications networks a top priority. As part of Project Gigabit, the government has set the target of bringing gigabit internet to at least 85 percent of premises by 2025 and 99 percent by the end of the decade. Fiber networks are playing a key role in achieving this, with fiber-to-the-premises (FTTP) coverage having surpassed two-thirds in each of the UK’s four nations. While fiber adoption has made an impact on the average download speeds nationwide, regional leaders have criticized the slow rollout outside urban centers. Government ministers are looking to fixed wireless access to bridge the gap in remote communities, while also looking ahead to satellite services.The AI Opportunities Plan seeks to accelerate AI innovation
AI will continue to dominate the UK’s digital agenda, with the industry expected to be worth more than 25 billion British pounds by 2030. The government’s AI Opportunities Plan, published in January 2025, recommended a raft of measures aimed at putting the UK on the front foot and ensuring it stays ahead of global competitors such as the United States and China. Among the headline recommendations are plans to boost data center expansion through the establishment of “AI Growth Zones,” a call to attract global AI talent, and proposals to ensure that future regulation remains supportive of innovation. The UK’s ability to deliver on these priorities will be instrumental in shaping its standing as a digital leader in the years ahead.
