The output of IT Services in the UK has shown a steady growth trend from 2013 to 2023, increasing from £70.46 billion in 2013 to £117.65 billion in 2023. The market experienced significant year-on-year variations, with notable peaks and troughs. The highest annual growth rate was observed in 2017 with a 10.65% increase, while the sector faced a decline of 2.67% in 2020 due to the pandemic impact. Over the last two years, the growth rate stabilized to 1.07% in 2022 and 2.94% in 2023. The compound annual growth rate (CAGR) was highest between 2017 and 2018 at 7.3%. The average annual growth rate over the past five years (up to 2023) stood at 3.26%.

Future trends to watch for:

Forecasts indicate a slowing growth rate, with a forecasted 5-year CAGR of 2.18% up to 2028.
Overall forecasted growth of 11.4% from 2023 to 2028 suggests a maturing market.
Emerging technologies such as AI, cloud computing, and cybersecurity solutions will likely drive future growth.