The Internet Industry Contributes 7.2 Percent To The U.K. Economy
Monday, November 1st, 2010
According to a recent report by The Boston Consulting Group (BCG), the United Kingdom Internet Industry contributed £100 billion to the economy, in 2009. This represents 7.2% of U.K. GDP and is more than the construction, transport and utilities industries.
The report indicates that this share is likely to grow to about 10% of GDP by 2015.
Around 60% of this total is represented by “consumption”, the amount that Internet users spend on online shopping and on the cost of their connections, hardware devices and software, required to access the Internet. The rest comes from investment in the United Kingdom’s Internet infrastructure, government IT spending, and net exports.
More than 19 million households have an internet connection
More than 19 million households have an Internet connection, which represents a 73% market share. Plus, broadband penetration has more than doubled since 2005.
U.K. users spent the equivalent of an entire 24-hour day on the Internet in April, an increase of 65% in just three years. Almost one third of all Internet users have accessed the Internet on their mobile handset, up from 23% in 2009. That share rises to 44% among users aged 16 to 24.
£50 billion spent on online purchases
The number of people who bought goods or services online in the past year, totalled 31 million, or 62% of the U.K. Population. In total, they spent £50 billion on goods, services and travel.
The report also found that the U.K. Internet economy employs and estimated 250,000 people and has annual revenue of £50 billion.
“The Internet is pervasive in the U.K. economy today, more so than in most advanced countries,” said Paul Zwillenberg, partner with BCG in London.
“Whether they are driving international expansion, improving their interactions with customers or the efficiency of their supply chains, U.K. companies are increasingly embracing the Internet’s potential. Several industries, including media, travel, insurance, and fashion, are being transformed by it.”
The report was commissioned by Google UK but was researched and written independently by BCG.
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“This change is very much necessary for not only half the world’s internet users today but more than half, probably, of the future users as the internet continues to spread ” Rod Beckstrom President of Icann


