The Global $8.5 Trillion Tech Economy
The ever increase in internet access in the remote areas of around the globe is a favorable option for upcoming tech startups. With the ever-changing landscape, Artificial Intelligence intervention, the tech market is evolving.
Let us understand the contributions of each continent to the $8.5 Trillion Tech Economy:
North America: $2.6 Trillion (30.6%): The home of the most successful tech companies in the world, North America remains as the major contributor to the Tech Industry’s economy in the world.
North America remains as a dream for all tech enthusiasts around the globe with the state of facilities and growth. The United States of America’s Silicon Valley is a premier dream location that homes tech giants like Apple, Google, Intel etc.
Widespread adoption of 5G network services, progress of Machine Learning and AI services are prominent focuses of the upcoming decade. Additionally, companies are focusing on the sustainability model by investing resources in the green and clean energy sector.
Europe: $1.7 Trillion (20.9%): Since the 1900s, Europe is in competition with the West in innovating and pioneering new products and services around the world. The Britishers revolutionized the Aviation industry by launching World’s first Jetliner DH106 Comet.
ASML, SAP, Accenture are the top 3 most valuable European tech giants. Germany is a prime hub of automobile with Mercedes, BMW, Porsche in their entourage. These companies are focusing on building sustainable EVs of the future that require a lot of machine learning and software development.
Europe being in the center of the world map helps to connect the Eastern side of the world to the West. The drive of innovation and ease of life has helped the European countries develop the most talented tech innovators available in the market currently.
Asia Pacific: 1.3 Trillion (16.3%): India and China are the two most populous countries in the world. These countries have taken advantage of the population helping the continent create the fastest and by far largest tech market in the world.
With labor cost cheaper in comparison to Europe and West, major tech companies outsource to Asia. There are plenty of other reasons such as: Government incentives, Time zone advantage and cultural fit talent. However, there is a shift in the ideology of the Asian culture in the 2020s.
Countries like India, China, Japan is focusing in creating technologies that are in competition with the European and North American Markets. Moreover, to upskill and create employment, there is an increase in the technology adaptation shifting the mind of the society.
Latin America: $884 Billion (10.4%): The unique culture of the South American countries unites on the tech frontier. The mission of becoming technologically advanced and compete with the global market in tech exports.
Google aims on improving the digital infrastructure in six of the largest economies helping with their aim of moving the tech market to $1.37 Trillion by 2030.
The Latin America tech startups and existing countries are blooming in the financial sector. Finding their own niche in the global market, there is an emergence of Fintech startups in order to help the economy.
Middle East and Africa: $323 Billion (3.6%): There is a shift in the mindset of the government authorities in the Middle East as they plan to reduce commodity dependency. Oil and other natural resources have driven the Gulf countries for years.
According to Mckinsey & Company, the Middle East has among the highest consumer digital engagement in the world. Due to this, there is an untapped potential for technology in this side of the world.
The Gulf countries currently focus on diversifying their economy based on following trends of the Western world. Still in its early stages, Saudi Arabia government’s Vision 2030 is a big leap in the change of a perspective towards a digital world.
There is a significant increase in foreign investment in the African countries in their modernization revolution. There is a large focus on modernizing infrastructure in the continent with internet connectivity and education given the priority.
Conclusion
The dynamic nature of the tech market brings in a new dawn of hope for a change in human civilization. The growth in the tech market is a benefit for the economy as a whole. There is positive change in sectors like agriculture, medical, law & jurisdiction as well. You can read about it here.
While we cannot predict the future, we are positive about the changes made by the tech industry through the trends in the 21st century. With Machine Learning, Artificial Intelligence still in a growth stage, we are excited to see what the future holds for Technology.
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