Google report: UK’s Internet sector is worth £100bn

Google report: UK’s Internet sector is worth £100bn

Google is backing a new report that sings the praises of the UK’s Internet sector and argues that it is key to the country’s economic recovery.

The Connected Kingdom report, commissioned by Google and produced by Boston Consulting (BSG), states that UK Internet economy is worth £100 billion a year, larger than the construction, utilities or transport sectors. It’s growing at 10% a year and directly employs 250,000 people.

We caught wind of the report, which has not yet been officially announced, when a video was added to Google’s YouTube channel this morning. The video’s since been made private, indicating that the report probably wasn’t meant for launch yet. (UPDATE: As of 28 October 2010, the report is officially launched and we’ve embedded the video below).

The report is an interesting read, designed “to foster a better understanding of how the Internet helps power the UK economy.”

Key points include:

  • In 2009, the Internet contributed an estimated £100 billion to the UK economy, that’s 7.2%.
  • London leads UK levels of Internet use, followed by the South East and East of England.
  • The UK Internet  economy is likely to grow by 10% per year, reaching 10% of GDP by 2015.

The report’s website offers case studies of UK Internet businesses as diverse as Moshi Monsters creator Mind Candy, 3D interior design service MyDeco, gardening company Wiggly Wigglers, the self-explanatory UK Tights and tartan retailer Scotweb.

It’s clearly in Google’s best interests that as the UK economy recovers from its current poor state, the Internet is recognised as an important sector. Indeed, the Connected Kingdom site notes: “As we face uncertain economic times ahead, this report suggests that Internet companies could be at the heart of our future recovery.”

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