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United Kingdom ICT Market (2026-2031) - Growth Driven by Digital Transformation and Cloud Adoption

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CSCO Cisco Systems Inc. is mentioned as a provider of networking equipment, a resilient hardware demand area within the UK ICT market. The article does not provide specific sentiment towards Cisco itself but notes the general demand for its product category. DELL Dell Technologies Inc. is listed as a company profile within the UK ICT market report. The article mentions resilient hardware demand, which could include Dell products, but offers no specific sentiment for the company. AMZN Amazon Web Services (AWS) is mentioned as a cloud service provider. The article highlights significant growth in cloud adoption and services within the UK ICT market, indicating a positive environment for cloud providers like AWS, though no direct sentiment is expressed. MSFT Microsoft Corp. is listed as a company profile. The article discusses the rapid adoption of SaaS and cloud services, areas where Microsoft is a major player. The general market trends are positive for cloud and software, but no specific sentiment is attributed to Microsoft. GOOGL Google Cloud UK Ltd is mentioned as a company profile. The article highlights growth in cloud adoption and services, a sector where Google Cloud operates. The overall market trend is positive for cloud services, but no specific sentiment is given for Google Cloud. IBM IBM UK Ltd is mentioned as a company profile. The article discusses IT services, cloud, and cybersecurity growth, areas where IBM is active. The general market outlook for these segments is positive, but no specific sentiment is provided for IBM. FTNT Fortinet Inc. is mentioned as a company profile. The article highlights cybersecurity as the fastest-growing product category with increasing investment. This indicates a positive market environment for cybersecurity firms like Fortinet, though no direct sentiment is expressed. PANW Palo Alto Networks Inc. is listed as a company profile. The article emphasizes the rapid growth and increasing investment in cybersecurity. This suggests a favorable market for cybersecurity leaders like Palo Alto Networks, but no specific sentiment is provided. CIEN Ciena Corp. is mentioned as a company profile. The article notes resilient demand for networking equipment and the convergence of infrastructure and communications services. This suggests a positive environment for companies like Ciena, but no specific sentiment is given.

United Kingdom ICT Market (2026-2031) - Growth Driven by Digital Transformation and Cloud Adoption Dublin, Sept. 15, 2026 (GLOBE NEWSWIRE) -- "United Kingdom ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

United Kingdom ICT Market to Reach USD 309.46 Billion by 2031, Driven by SaaS, Cloud and Cybersecurity Investment

The United Kingdom ICT market is estimated to reach USD 195.47 billion in 2026, rising from USD 178.33 billion in 2025. The market is projected to attain USD 309.46 billion by 2031, expanding at a compound annual growth rate of 9.62% from 2026 to 2031.

Market growth is accelerating as public- and private-sector organizations increasingly view information and communications technology as a driver of productivity, resilience and long-term value. Investment continues across IT hardware, software, services, infrastructure, cybersecurity and communication services. Demand from small and medium-sized enterprises and large organizations is also supporting adoption across government, financial services, healthcare, energy, utilities, retail, manufacturing and other major industries.

Software-as-a-Service Adoption Accelerates

Rapid adoption of Software-as-a-Service is reshaping technology procurement throughout the United Kingdom. Businesses are moving away from perpetual software licenses in favor of subscription and consumption-based models for office productivity, finance, human resources and supply-chain management.

The Help to Grow Digital program offered software vouchers worth GBP 5,000, equivalent to approximately USD 6,749, to an addressable base of 1.2 million businesses. This initiative helped expand the digitally enabled small and medium-sized enterprise segment and supported recurring SaaS revenue opportunities. Approximately 90% of UK companies used at least one cloud service in 2024, compared with 78% in 2022.

Software vendors are responding with industry-specific platforms designed to address regulatory and operational requirements. Freemium plans, embedded artificial intelligence assistants and flexible billing options are making cloud software more accessible to cost-conscious businesses. Integrations with HM Revenue & Customs and Companies House systems are also helping organizations automate compliance and reduce administrative workloads.

Healthcare Digital Transformation Supports ICT Spending

Digital technology adoption across UK healthcare is creating significant opportunities for cloud, cybersecurity, analytics and IT services providers. In 2024, only 63% of NHS trusts had foundational electronic patient record functionality, highlighting a substantial technology investment requirement.

Healthcare spending priorities include interoperable data platforms, AI-assisted diagnostics and zero-trust security systems designed to protect sensitive patient information. Remote patient monitoring pilots have achieved reductions of up to 26% in hospital readmissions, encouraging broader deployment across integrated care systems.

Demand is also increasing for healthcare data integration, medical-grade cloud hosting and privacy-focused machine learning. Telehealth remains an important part of service delivery, accounting for more than 30% of outpatient consultations and sustaining investment in secure video platforms, connected medical devices and healthcare analytics.

Semiconductor Volatility Creates Market Constraints

Semiconductor supply-chain volatility and inflation remain key challenges for the United Kingdom ICT market. The country sources approximately 98% of its advanced chips from Asia, exposing data center projects and device replacement programs to extended lead times and price increases of between 12% and 18%.

The UK semiconductor industry generates approximately GBP 9.6 billion, or USD 12.95 billion, in domestic revenue and accounts for about 2% of the global market. Under the National Semiconductor Strategy, the government has committed GBP 1 billion, equivalent to USD 1.34 billion, over ten years to support chip design tools, compound semiconductor fabrication and advanced packaging. However, major capacity additions are not expected to mature before 2028, prompting technology integrators to redesign components and strengthen European supply partnerships.

IT Services Maintain Leading Market Position

IT services represented 33.78% of United Kingdom ICT spending in 2025, reflecting continued demand for consulting, implementation, outsourcing and managed technology solutions. Managed services expanded by 9.9% as employers sought to address technical skills shortages, while cloud professional services grew by 12.4% amid increasing multi-cloud complexity.

Infrastructure and communications services are also converging into integrated platforms combining computing, storage and connectivity. Hardware demand remains resilient for edge routers, networking equipment and ruggedized devices that support hybrid work and Internet of Things deployments.

Cybersecurity is forecast to be the fastest-growing product category, advancing at a CAGR of 9.71%. Organizations are increasing investment in threat intelligence, incident response and managed security as data theft and ransomware risks intensify. Additional market growth will be supported by nationwide 5G infrastructure expansion, artificial intelligence adoption, low-code platforms and rising demand for secure, outcome-based ICT services.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

4.1 Market Overview

4.2 Market Drivers

4.2.1 Rapid surge in demand for Software-as-a-Service (SaaS)

4.2.2 Rise in digital technology adoption across healthcare

4.2.3 Expansion of 5G infrastructure nationwide

4.2.4 Escalating cyber-security spending by UK enterprises

4.2.5 Government incentives for SME digitalisation

4.2.6 Growing investment in quantum-ready data-centre capacity

4.3 Market Restraints

4.3.1 Semiconductor supply-chain volatility and inflationary pressure

4.3.2 High prevalence of data theft and ransomware incidents

4.3.3 Regulatory compliance complexity post-Brexit (data localisation)

4.3.4 Acute shortage of advanced AI/ML talent

4.4 Value Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces Analysis

4.7.1 Bargaining Power of Suppliers

4.7.2 Bargaining Power of Buyers

4.7.3 Threat of New Entrants

4.7.4 Threat of Substitutes

4.7.5 Intensity of Competitive Rivalry

4.8 Investment Analysis

4.9 Impact of Macroeconomic Factors

4.10 Industry Stakeholder Analysis

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Product Type

5.1.1 IT Hardware

5.1.1.1 Computer Hardware

5.1.1.2 Networking Equipment

5.1.1.3 Peripherals

5.1.2 IT Software

5.1.3 IT Services

5.1.3.1 IT Consulting and Implementation

5.1.3.2 IT Outsourcing (ITO)

5.1.3.3 Business Process Outsourcing (BPO)

5.1.3.4 Managed Security Services

5.1.3.5 Cloud and Platform Services

5.1.4 IT Infrastructure

5.1.5 IT Security/Cybersecurity

5.1.6 Communication Services

5.2 By Enterprise Size

5.2.1 Small and Medium-sized Enterprises

5.2.2 Large Enterprises

5.3 By End-user Industry Vertical

5.3.1 Government and Public Administration

5.3.2 BFSI

5.3.3 IT and Telecom

5.3.4 Energy and Utilities

5.3.5 Retail, E-commerce, and Logistics

5.3.6 Manufacturing and Industry 4.0

5.3.7 Healthcare and Life Sciences

5.3.8 Oil and Gas

5.3.9 Gaming and E-Sports

5.3.10 Other Verticals

6 COMPETITIVE LANDSCAPE

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)

6.4.1 BT Group plc

6.4.2 Vodafone Group Services Ltd

6.4.3 Capita plc

6.4.4 Computacenter plc

6.4.5 Softcat plc

6.4.6 Cisco Systems Inc.

6.4.7 Dell Technologies Inc.

6.4.8 Amazon Web Services EMEA SARL

6.4.9 Microsoft Corp.

6.4.10 Google Cloud UK Ltd

6.4.11 IBM UK Ltd

6.4.12 Fujitsu Services Ltd

6.4.13 Nokia Corp.

6.4.14 Juniper Networks Inc.

6.4.15 Fortinet Inc.

6.4.16 Palo Alto Networks Inc.

6.4.17 ZTE Corp.

6.4.18 Huawei Technologies Co. Ltd

6.4.19 Ciena Corp.

6.4.20 CommScope Holding Co. Inc.

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/bmqzbq

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