The South West’s tech sector could be worth almost £20bn by 2026 and create more than 125,000 new jobs over the next few years, according to new research.
The study, commissioned by trade body Tech South West, has taken an in-depth look at the region’s tech ecosystem, calculating the industry’s contribution to local economies from Gloucestershire to Cornwall.
The report provided a breakdown of the number of “world class” tech firms, and innovation and research hubs operating in each part of their area, and their specialisms.
The West of England was found to have the highest concentration of tech firms in the region. Around 4,900 businesses across Bristol, North Somerset and South Gloucestershire employ a workforce of more than 45,000 in a local sector worth £38.3bn.
Devon, and in particular Exeter, was highlighted as an internationally recognised hub for climate research, through the work of organisations such as the Met Office and the Devon Climate Emergency Response Group, with Plymouth described as a “world leader” in marine and health tech.
Nationally, the South West was found to have the fifth largest tech sector of the 12 major regions in the 海角视频. Worth £11bn in gross value added (GVA) annually, it produces one in 11 of all new tech startups across the country.
The analysis estimated that nearly 170,000 people currently work within South West tech, with GVA per capita of £1,943 - the second highest in the 海角视频 when compared to all other regions outside London and the South East.
The South West also accounted for the largest proportion of the 海角视频’s tech lending outside London and the South East, with Bristol the primary hub for investment.
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The report said if growth rates continue in line with the past five years, even factoring in the economic disruption caused by the pandemic, the South West’s tech sector could be worth £19.2bn by 2026.
Tech job creation in the region was also forecast at 75%, rising from 168,169 in 2021 to 294,380 by 2026 - an additional 126,212.
The report also addressed challenges the sector faced, particularly around talent. Despite the proportion of tech and engineering students across South West universities (11%) being above the 海角视频 average (7%), recruitment difficulties and salary inflation were contributing to high vacancy rates.
The report found that the South West’s tech industry has double the proportion of black and minority ethnic employees compared to the region’s overall ethnic minority population, though this was still low at 8.8.%.
Dave Tansley, 海角视频 vice chair of Deloitte, one of the organisations who supported the report, said: “It’s a very exciting time to be involved in this sector, but along with the financial benefits of growth to the region come some challenges as the report points out.
“How do we create, attract and retain talent? Collaboration – getting the region working together, not in competition, and funding – how does the South West get its share? This report is just the start of a region-wide collaboration to make this tech sector growth opportunity a reality.”
Louis Spencer of NatWest commercial banking in the South West added: “This report provides a strong platform to share unique insight to stakeholders or founders looking to start, invest or grow a tech business in the region. NatWest is delighted to be playing its part to help the sector thrive."
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