Technology.
UK tech captured more than a third of the total (£89.5 billion) investment into Europe in 2021, with £29.4 billion raised by UK start-ups and scale-ups. With more money than ever flowing into UK tech – £29.4 billion in 2021, up from 2020s £11.5 billion – almost £9 billion of all venture capital invested went into start-ups and scale-ups outside London and the South East. The regions are home to nine of the 29 unicorns formed in 2021.
The combined value of UK tech companies founded since 2000 is now £540 billion, after the biggest year-on-year increase since 2013/14. The UK is more attractive to international investors than ever, with 63% of tech investment in 2020 coming from overseas, up from 50% in 2016.
Analyze.
Artificial intelligence (AI)
- There are now many applications of AI across a wide range of sectors, from healthcare to manufacturing. The UK is a powerhouse of European AI, home to a third of Europe’s AI start-up companies, twice as many as any other European county.
The UK now has more than 1,300 AI companies - a 600% increase in the number of firms over the last decade - with a collective turnover of almost £1.47 billion. Over the last decade, venture capital investment rocketed from £88.4 million to more than £1.47 billion. Investment in UK deep tech continues to rise, with £2.3 billion invested in 2020, representing a 291% increase over the last 5 years.
Robotics and autonomous systems (RAS)
It's estimated that the total economic impact of the application of RAS within UK industries is estimated at £6.4 billion by 2035, based on current adoption trends.
Significant growth is predicted over the next decade with the rise of mobile robots, with a projected compound annual growth rate of 40% per annum between 2020 and 2030. The total market for UK RAS is expected to be worth £3.5 billion by 2030.
Fintech:
The UK is the third-largest destination for investment in financial technology services, holding 10% of the global market share. With over 1,600 firms in the sector, a figure that is projected to double by 2030, the UK FinTech sector contributes £7 billion to the economy annually.
There is an increasing demand for contactless transactions and branchless mobile banking services. The UK has one of the highest consumer Fintech adoption rates in the world, with 71% of UK citizens utilizing Fintech services.
Cybersecurity:
The UK’s cybersecurity sector generated £8.9 billion in revenue during 2020 and attracted record investment, despite the economic uncertainty during the coronavirus (COVID-19) pandemic.
Advances in digitalized services and online retailing have been matched by a significant increase in the rate of cyber crime, resulting in much greater investment in cybersecurity. In 2020 there were a record 82 investments in digital security, valued collectively at £981 million.
Business and government support:
Support is available in the form of a knowledge transfer partnership. This is available to firms of any size based in the UK. The partnerships are provided by UK Research and Innovation, which provides grants to help businesses innovate, grow and develop, and connects companies with academic partners to address innovation challenges.
The Science and Technology Facilities Council (STFC) drives innovation in the technology sector by bridging the gap between businesses and pioneering science. It offers support to tech start-ups by offering business incubation programs, providing the access to facilities, expertise and networking events
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