Tech Industry Statistics

Tech Industry Statistics

In today’s rapidly evolving landscape, understanding key tech industry statistics is paramount for businesses aiming to stay competitive. 

The US tech industry boasts a market worth $1.6 trillion and remains a powerhouse of innovation and economic influence. Additionally, a staggering 27% of companies view digital transformation as indispensable for their survival within their sectors. 

Moreover, embracing artificial intelligence (AI) yields significant benefits, with 75% of companies reporting enhanced decision-making capabilities upon full AI integration. These statistics underscore the critical role of technological advancements in reshaping business strategies and outcomes.

1. Key Technology Industry Growth Statistics

  • The Tech industry is expected to increase from $8508.63 billion in 2023 to $9039 billion in 2024, reflecting a compound annual growth rate of 6.2%.
  • The US tech industry market boasts an approximate worth of $1.6 trillion.
  • Caucasian makeup  68% of tech industry employees in the US.
  • Artificial intelligence is anticipated to contribute a remarkable $15.7 trillion to the global economy by 2030.
  • Hardware, software, and services collectively account for 56% of the technology industry.
  • The “Big Four” companies, namely Amazon, Apple, Google, and Facebook, jointly hold a staggering value of $4 trillion.

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Tech Industry Statistics

2. How big is the technology industry?

  • 7.9% of the total US workforce is employed in Tech, compromising 7.7 million tech industry jobs and 8 million tech occupation jobs.
  • The IT industry’s contribution to total US GDP in 2022 was 10%, which was consistent with 10% in 2019 and 10.5% in 2020.
  • Tech professionals earn significantly higher wages compared to other industries, with an average increase of up to 85%
  • In certain areas like San Jose, California, tech workers earn up to 507% more than the regional average salary. Alabama stands out for offering the highest tech salaries within the state, with tech workers earning 85% more than the average salary.
  • North America, Asia, and Europe dominate the global IT industry, collectively holding 88% of the market share. 
  • North America leads with 35%, followed by Asia with 31% and Europe with 22%.

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2.1. Tech Industry Share in the US Economy

Industry

Percentage in the US GDP

Healthcare

17.7%

Technology

10.5%

Construction

6.4%

Retail

5.5%

Non-durable manufacturing

4.8%

Source: Zippia

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2.2. Global Tech Industry Distribution

Overall, the worldwide technology business is worth approximately $5.2 trillion.

Region

Percentage

North America

35%

Asia

32%

Europe

22%

Latin America

6%

Africa

5%

Source: Zippia

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Tech Industry Statistics

2.3. How much is the technology industry worth?

Below is the table showing the tech industry’s worth based on regions.

Region

2019

2020

2021

2022

North America

33%

34%

35%

35%

Asia

33%

32%

32%

31%

Europe

22%

23%

22%

22%

Latin America

6%

6%

5%

6%

Africa

5%

5%

5%

5%

Source: Statista

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2.4. Biggest Tech Companies by Market Cap

Company

Market Cap

Microsoft

$3022 trillion

Apple

$2831 trillion

NVIDIA

$2219 trillion

Alphabet

$2076 trillion

Amazon

$1937 trillion

Meta Platforms (Facebook)

$1146 trillion

TSMC

$734.37 billion

Broadcom

$592.30 billion

Tesla

$577.85 billion

Tencent

$444.03 billion

Source: Companies Market Cap

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3. Tech Industry Growth Statistics

  • In 2020, US exports of technology goods and services exceeded $300 billion.
  • The data recovery and protection sector is predicted to expand by more than 9.7%.
  • In 2022, 264,500 new employees in the technology industry were added to the market.
  • The US technology market accounts for more than one-third of the global market.
  • In the United States, there are about 585,000 technology enterprises.
  • Tech personnel might earn up to 85% more than those in other industries.
  • The whole technology industry is expected to increase at a 5% annual rate until 2024.
  • Augmented Reality is expected to grow at a CAGR of 100% by 2025.
  • The cloud computing sector is predicted to grow at a CAGR of 17.5% by 2025.
  • The three fastest expanding technology industries are Blockchain DeFi, Artificial Intelligence, and Virtual Reality/Augmented Reality.
  • The growth rate of the technology workforce is predicted to be double that of other industries.

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4. Tech Industry Employment Statistics

  • In the US, the average income of a tech industry professional is $71,809 which is more than the American salary by $20,000/year. 
  • Entry-level jobs in the tech industry have an average salary of $53,000 which is more than the national average. 
  • Amazon, Apple, Google, and Facebook, collectively known as the “Big Four,” boast a combined valuation of $4 trillion. These tech giants employ approximately 1.68 million individuals, with Amazon alone accounting for the majority at 1.3 million employees.
  • The U.S. hosts at least 585,000 tech companies, a noteworthy figure given that the “Big Four” and Microsoft collectively represent around 20% of the overall market.
  • Nvidia’s acquisition of Arm for $40 billion in 2020 marked the largest tech acquisition of the year. 
  • Other significant acquisitions included AMD’s purchase of Xilinx for $35 billion and Salesforce’s acquisition of Slack for $27.7 billion. Notably, these companies currently boast robust stock performance.

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Tech Industry Statistics

5. Tech Industry Demographics Based on Employees

  • Tech companies and startups in the US hired over 25,000 new workers in August 2022.
  • The employment rate in the tech industry increased by 175,700 jobs in 2022 as mentioned by the US Bureau of Labor Statistics (BLS). This also marks a 46% increase compared to 2021 and a 92% increase compared to 2019.
  • CompTIA reports that approximately 5.8% of the US workforce is employed in the tech sector.
  • Singapore’s tech sector employed 136,100 people in June 2022 alone and has had an average annual hiring rate of 8,100 workers in the past 5 years.
  • TechBehemoths notes that the US added 267,000 new jobs to the tech market in 2022.
  • CompTIA projects that 272,323 new tech jobs will emerge in the US in 2023.
  • In Canada, the government dedicates 2% of its GDP to the IT sector.
  • Owl Labs highlights that 16% of tech companies worldwide operate entirely remotely.
  • According to Statista, from 2020 to 2021, 48% of organizations invested in cloud-enabled tools to support their remote workforce.

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5.1. Top US States by Tech Employment

Wondering how many tech companies are there in the US? Below is the table showing top states with the highest number of companies. 

State

Employment

California

1,866,951

Texas 

1,025,106

New York

679,083

Florida

585,296

Virginia

446,507

Pennsylvania

445,168

Illinois

441,205

Massachusetts

440,793

Michigan

412,324

Ohio

401,066

Source: Zippia

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Tech Industry Statistics

5.2. Tech Industry Gender Demographics

According to 2022 data, 73.3% of the tech industry workers consist of men while only 26.7% are women. Additionally, compared to 2010, 28.49% of the tech workforce consisted of females and the gap keeps expanding rather than reducing.

Year

Male

Female

2010

71.51%

28.49%

2011

72.49%

27.51%

2012

73.90%

26.10%

2013

74.42%

25.58%

2014

74.79%

25.21%

2015

76.49%

23.51%

2016

76.62%

23.38%

2017

76.53%

23.47%

2018

77.22%

22.78%

2019

75.98%

24.02%

2020

74.50%

25.50%

2021

72.74%

27.26%

2022

73.30%

26.70%

Source: Zippia

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5.3. Tech Industry Employee Demographics Based on Ethnicity

    • 11.1% of the tech population are Asians despite constituting 5.4% of the total US population.
    • When it comes to average tech workers’ salary, Asians earn $7000 more annually than white people and $9000 more than the black population. 
    • At 61%, white people make up the largest demographic in the US tech industry however, this has decreased from 63.89% in 2010.
    • Despite making up 12.1% of the U.S. population, Black workers account for only 10.2% of tech industry employees.
    • This discrepancy extends to salary figures, with Black workers earning the lowest average salary in the industry at $61,061.

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5.4. Tech Industry Employee Statistics Based on Ethnicity (US)

Ethnicity

Percentage

White

58.90%

Hispanic or Latina

15.20%

Asian

12.30%

Black or African American

10.10%

American Indian and Alaska Native

0.30%

Unknown

3.20%

Source: Zippia

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Tech Industry Statistics

5.5. US Tech Industry Employees By Age

55% of technology personnel are 40 or older.

Age Group

Percentage

20-29

16%

30-39

30%

40+

54%

Source: Zippia

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6. Women in Tech Statistics

  • In 2023, women held a mere 14% of leadership positions in the tech industry, emphasizing the ongoing gender disparity at the upper echelons of the field.
  • During the third quarter of 2023, 23% of over 17,000 surveyed developers identified as female, marking a gradual increase from 19% in 2021 and indicating a rising trend of women entering the development sphere.
  • Companies with at least one female founder secured $44.4 billion in US venture capital out of a total of $170.59 billion allocated last year, shedding light on both the investment potential and the challenges faced by female-led startups in accessing financial support.
  • Startup Genome’s 2023 report revealed that between 2016 and 2022, an average of 15% of tech startup founders were female, highlighting the relatively low representation of women in founding roles.
  • Female-founded companies accounted for less than 25% of total US venture capital deals in 2023, underscoring the disparities in funding allocation.
  • Despite comprising nearly half (49%) of all US workers in 2022, women represented only 26% of individuals employed in the tech sector, according to CompTIA’s State of the Tech Workforce report for 2023.

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6.1. Women Tech Founders Based on Region

Region

Percentage of Female Founders

Oceania

21.6%

North America

15.7%

Asia

14.9%

Sub-Saharan Africa

14%

Europe

12.6%

Latin America

12.6%

MENA

10.1%

Source: Technopedia

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7. Impact of AI and Automation on Tech Industry

  • 86% of businesses anticipate that AI will be a mainstream technology by the end of 2021. (PwC, 2021)
  • 73% of top executives intend to expand their investment in AI/ML and automation. (Celonis 2019)
  • 63% of executives say AI initiatives are necessary to keep up with their competitors. (Deloitte, 2020).
  • 58% of companies raised their spending on AI for labor planning. (PwC, 2021)
  • 83% of firms reported moderate to significant benefits from employing cognitive technologies. (Deloitte, 2020).
  • The main applications for AI include IT automation (47%), quality control (46%), cybersecurity (41%), predictive analytics (38%), and customer service (37%). (Deloitte, 2020).
  • 58% of businesses indicate they have completed at least six full AI installations in the last year. (Deloitte, 2020).
  • Machine learning adoption is currently around 63%. (Deloitte, 2020).
  • 50% of businesses now employ deep learning. This is 16 points higher than last year. (Deloitte, 2020).
  • 62% of businesses have implemented natural language processing. (Deloitte, 2020).
  • In terms of the AI and machine learning skills gap, 68% of executives thought it was moderate to extreme, while 27% said it was big or extreme. (Deloitte 2021).
  • 59% of businesses are developing and executing initiatives to equip their employees with the skills required to handle AI. (PwC, 2021).
  • 58% of companies raised their spending on AI for labor planning. (PwC, 2021).

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8. Tech Industry Statistics: Impact of Pandemic

  • Global digital adoption has surged by a minimum of three years, with an average of 58% of consumer interactions occurring digitally. (McKinsey & Company, 2020)
  • The Asia-Pacific region witnessed the most significant leap in adoption, advancing by four years, resulting in 53% of consumer interactions being digital. (McKinsey & Company, 2020).
  • Both consumer and business digital adoption were propelled five years forward within just the initial eight weeks of lockdown. (McKinsey & Company, 2020).
  • Leaders reported a 5% surge in their IT spending due to COVID-19, equating to a $15 billion increase within the first three months of the pandemic. (KPMG, 2020).
  • 70% of executives reported a slowdown in their public cloud adoption rate due to cybersecurity concerns. (Deloitte, 2021).
  • Cloud adoption poses cost management challenges, with 56% of companies unaware of the cost implications of cloud software licensing. Consequently, they exceed their cloud spending by an average of 23%, with 30% considering their cloud expenditure wasteful. (Deloitte, 2021).
  • 85% of CFOs anticipate a continued increase in remote work post-pandemic, driving up demand for hardware such as laptops and office products. (Gartner).
  • Microsoft Teams experienced a 50% surge in growth from April 2020 to October 2020 due to heightened usage during the pandemic. (Deloitte, 2021).
  • Similarly, Zoom reported a staggering 345% year-on-year growth due to Covid-19. (Deloitte, 2021).
  • Companies expedited the enablement of remote work by 40 times as a result of COVID-19-related restrictions. (McKinsey & Company, 2020).

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Tech Industry Statistics

Below is the table showing the future trends in the tech industry and how it will affect the job market.

Trend

Equity Investment

Job Postings Difference

Applied AI

$104 billion

+6%

Industrializing Machine Learning

$3 billion

+23%

Generative AI

$5 billion

+44%

Next-generation Software Development

$2 billion

+29%

Trust Architectures and Digital Identity

$47 billion

+16%

Web3

$62 billion

+40%

Advanced Connectivity

$118 billion

+7%

Immersive-reality Technologies

$16 billion

+10%

Cloud and Edge Computing

$84 billion

+12%

Quantum Technologies

$2 billion

+12%

Future of Mobility 

$194 billion

+15%

Future of Bioengineering

$43 billion

-19%

Future of Space Technologies

$8 billion

+16%

Electrification and renewables

$288 billion

+27%

Climate tech beyond electrification and renewables

$86 billion

+8%

Source: McKinsey

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10. How many jobs are available in technology in the USA and Worldwide?

  • Tech companies expanded their workforce by approximately 6,000 employees last month, based on CompTIA’s analysis of BLS data.
  • Technology occupations across various sectors experienced a notable increase of 203,000 positions for the month. This resulted in a decline in the unemployment rate for tech occupations from 3.5% in February to 3.0% in March, as reported by CompTIA.
  • Employers posted 191,000 new job listings for tech roles, marking an 8,000 increase from the previous month (March 2024) and reaching the highest volume since August 2023.
  • Certain job categories saw higher percentage increases, notably, IT support specialists (78%), network support specialists (66%), and web UI/UX designers (62%). 
  • Additionally, postings for jobs in artificial intelligence (AI) or roles requiring AI skills accounted for 41% of March’s postings in the emerging technologies sub-category.
  • According to Janco Associates, a management consulting firm specializing in the IT industry, the number of unfilled IT positions decreased from 202,000 in January to 117,000 in February, representing a reduction of over 42%.
  • Janco’s data indicates that there are presently 4.18 million IT professionals employed in the United States.

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Tech Industry Statistics

11. FAQs

11.1. How many IT companies are in the USA?

As per CompTIA’s findings, the United States boasts over 557,000 software and IT services enterprises, with approximately 13,400 tech startups launched in 2019 alone.

11.2. How many jobs are available in technology?

In March 2024, there were around 191,000 new job openings for tech roles, marking an increase of 8,000 from the previous month and representing the highest volume since August 2023. The total number of active tech job postings in March 2024 reached an average of 438,000.

11.3. How many jobs are available in technology in the USA?

According to the latest data from the Bureau of Labor Statistics (BLS), as reported by IT employment consultancy Janco Associates, the United States currently hosts nearly 4 million jobs for IT professionals.

11.4. How much is the technology industry worth?

The technology industry will increase from $8508.63 billion in 2023 to $9039 billion in 2024, with a compound yearly growth rate of 6.2%. Furthermore, it is expected that the IT industry will expand by $12417.21 billion in 2028 at an 8.3% CAGR.

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Conclusion

In conclusion, the tech industry is poised for substantial growth in the coming years. With a projected increase from $8508.63 billion in 2023 to $9039 billion in 2024, boasting a compound yearly growth rate of 6.2%, the industry demonstrates robust momentum. 

Looking ahead, forecasts suggest even more remarkable expansion, with expectations of the IT industry reaching $12417.21 billion by 2028, driven by an impressive 8.3% compound annual growth rate. These statistics underscore the enduring vitality and potential of the technology sector as a cornerstone of global economic progress.

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