According to a study by Boston Consulting Group (BCG) the Internet contributes to 8.3% of the UK economy, a bigger share than for any of the other G20 major countries. The study predicts the entire G20 Internet economy will be over $4 trillion in 2016; almost doubling from 2010 in which it was $2.3 trillion. That made the internet bigger than the healthcare, construction or education sectors. In fact if the internet were a separate sector it would be the fifth largest in the UK!
This figure is only set to rise with the UK web economy predicted to stay ahead in growth over the next four years with an estimated 11% rise; higher than the U.S. projected growth of 5.4% and that of China with 6.9%.
Small and medium sized companies who focus on the internet sector, are reaping the rewards of this industry. The BCG study suggest that such businesses have seen a 12.5% growth every year for the past three years. Is it any surprise then to hear that the Internet is contributing to up to 8% of GDP in some economies, powering growth, and creating jobs.
Developing G-20 countries already have 800m internet users, more than all the developed G-20 countries combined. Social networks reach about 80% of users in developed and developing economies alike. Mobile devices – smartphones and tablets – will account for four out of five broadband connections by 2016. According to Boston Consulting Group the internet has moved into the second half of the chessboard. “It has reached a scale and level of impact that no business, industry, or government can ignore. And like any technological phenomenon with its scale and speed, it presents myriad opportunities, which consumers have been quick and enthusiastic to grasp. Kristine Olson, Director of Sales at Talk Talk, cited Talk Talk research which showed that on the whole Brits said they would demand ”£2,175 to give up the internet for a year, and would rather give up coffee, alcohol or chocolate,” she noted. “Some 17 per cent of people would rather give up showering for a year than going online.”