The Gross Value Added (GVA) in the UK IT services sector showed robust growth from 2013 to 2023, increasing from £41.17 billion to £72.55 billion. The year-on-year growth rate peaked at 10.12% in 2016 but showed more moderate increases in subsequent years, around 5% from 2020 to 2023. The five-year compound annual growth rate (CAGR) leading up to 2023 was 5.87%. Looking ahead, the forecast suggests continued growth with a projected GVA of £89.56 billion by 2028. However, the forecasted CAGR for the next five years is slightly lower at 3.33%, indicating a deceleration in growth rate but still a healthy overall increase of 17.81% cumulatively over the period.
Future trends to watch for:
- Increasing demand for IT services due to digital transformation across industries
- Emergence of advanced technologies such as AI and machine learning driving service innovation
- Impact of regulatory changes and Brexit on IT sector dynamics
- Considering cybersecurity services due to rising cyber threats
- Growing importance of cloud computing and data analytics
- Potential talent shortages amid increased competition
