According to a new research report published on October 2010, the UK online economy constitutes an increasingly large proportion of the GDP and now stands at 7.2 percent (representing £100 billion in 2009) of Kingdom’s overall economy. This is more than more many traditional economic sectors like utilities (2 percent), transport (5%) and construction (6%), UK is now number one (1) country for e-commerce according Boston Consulting Group report. Majority of this turnout is from e-commerce transactions internet users make and the infrastructure cost related to their connectivity devices. Remaining comes from exports, government IT spending and network infrastructure investment by service providers.
The report projects that Internet economy will stand at 4th position with a contribution as big as 10 percent of the total GDP by 2015.
UK has its online businesses based all over the country and these small online businesses are churning out huge annual growth of 43 percent a year. More than 73 percent households have a broadband internet connection – over 19 million – this is a growth of more than 200 percent from 2005. Over 31 percent internet users have accessed internet on their mobile device representing almost 50 percent growth from 2009 tally of 23 percent. Another interesting trend based on this report is new internet user’s age group; every second new internet user is over 50 years old.
The report also found that pure internet companies now employ over a quarter of million people in country and total number of adults who brought goods or services online in the past year totaled 31 million or 62 percent of total adult population! As online shopping continues to grow massively online advertisement market has boomed to around £3.5 billion a year.
This report was written based on a research conducted by Boston Consulting Group (BCG) and commissioned by Google UK
Reference: The Connected Kingdom
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