The digital economy is set to become a £3.2 trillion market by 2025, according to research from consultancy Ovum, a 29 per cent climb on today’s figure.
The rise in tech spending will come as part of what Ovum has dubbed “the second tech revolution” that it expects to unfold over the next decade as firms in a wide range of industries rush to utilise greater connectivity and technologies such as cloud computing, artificial intelligence and 3D printing.
The new revolution will see producers making use of new technologies along supply chains.
The report also warns periods of disruption caused by new technologies will become more frequent. Companies that do not keep up with the more rapid pace of innovation risk falling behind.
“I think it’s inherently more difficult for larger, more complex organisations to innovate. I believe the more successful ones will collaborate with smaller, agile firms either as suppliers, partners or potential acquisitions - and the others will become disrupted,” tech guru Eileen Burbidge told City A.M.
Failure to meet transformational challenge has resulted in 74 per cent of companies leaving the Fortune 500 over the past twenty years, Ovum said, as they were overtaken by the likes of Amazon, Facebook and Ebay.