Hey there, tech enthusiasts and curious minds! If you’ve ever wondered about the magic behind the tech industry or how it’s shaking up the world, you’re in for a treat. In 2023, the tech scene is bustling with energy, and we’ve got a front-row seat to all the action.
From the bustling giants like Amazon, Apple, Google, and Facebook, to the quiet whispers of augmented reality (AR) taking over our lives, there’s a lot to unpack.
So, buckle up as we take a relaxed stroll through “19 Tech Statistics to Know in 2023.” We promise it’s going to be a tech-tastic ride!
With a whopping 12.2 million tech professionals in the workforce, it’s no wonder that the tech industry wields a mighty influence on the U.S. economy. We’ve gathered some eye-opening statistics to shed light on just how much tech is shaping the economic landscape. Here’s what our research has unveiled:
Tech Employment’s Remarkable Share
A remarkable 7.9% of the entire U.S. workforce is employed in tech-related roles. This figure combines the 7.7 million jobs within the tech industry and an additional 8 million tech-related occupations.
What’s even more impressive is that the number of tech jobs has been growing at a faster pace since the onset of the pandemic.
Tech’s Economic Contribution
In 2022, the tech industry accounted for over 10% of the total U.S. Gross Domestic Product (GDP). This level of contribution is not just significant but also quite consistent. In 2019 and 2020, the tech industry’s share of the GDP stood at 10% and 10.5%, respectively.
It’s safe to say that tech’s prominence in the economic landscape has been evident for several years now.
Tech: A Driving Force
When it comes to driving the U.S. economy, the tech industry secures second place, trailing only behind the healthcare sector. Surprisingly, tech wields a more substantial influence than construction, retail, and non-durable manufacturing industries.
For instance, while retail makes up 5.5% of the total GDP, non-durable manufacturing contributes 4.8%. Both of these figures are dwarfed by the tech industry’s 7.9% slice of the GDP pie.
Tech Professionals’ Earnings
Tech employees tend to rake in considerably more than their counterparts in other industries. In fact, their earnings can be up to 85% higher.
In certain tech hubs, this gap widens even further. For instance, tech workers in San Jose, California, can earn a staggering 507% more than the area’s average salary.
Alabama takes the crown for offering the highest tech salaries within the state, with tech professionals earning 85% more than the average income.
However, in some states, this percentage increase is less pronounced, as seen in Wyoming, where the average tech employee makes just 32% more.
Global Tech Landscape
While the world’s IT industry is a diverse landscape, North America, Asia, and Europe continue to dominate. These regions collectively control 88% of the tech industry’s market share, with North America at 35%, Asia at 31%, and Europe at 22%.
Although Africa and Latin America have made significant strides in recent years, the developed markets continue to grow and shape the global tech landscape.
In the world of tech, it’s no secret that some mammoth companies call the U.S. home. Let’s dive into the fascinating details of how these industry giants and their employees operate:
Average Income in Tech
The average income for tech industry professionals across the United States stands at a healthy $71,809. This figure shines brightly compared to the average American salary, which lingers at $51,480 annually.
Even for those just starting their tech careers, the average income clocks in at $53,000, still surpassing the national average.
The “Big Four”
Amazon, Apple, Google, and Facebook, collectively known as the “Big Four,” are giants of the tech world and hold a combined valuation of a staggering $4 trillion.
Together, they provide employment to approximately 1.68 million individuals, with Amazon boasting the lion’s share, employing 1.3 million people.
Diversity of Tech Companies
The tech landscape is teeming with diversity, as there are at least 585,000 tech companies in the U.S. This number is quite remarkable, especially when you consider that the “Big Four” and Microsoft together make up roughly 20% of the overall market.
Tech’s Acquisition Game
In 2020, the tech industry witnessed some remarkable acquisitions. The biggest of them all was orchestrated by Nvidia, which acquired Arm in a monumental deal valued at $40 billion.
Other significant acquisitions included AMD’s purchase of Xilinx for $35 billion and Salesforce’s acquisition of Slack for a substantial $27.7 billion. It’s hardly surprising that these companies’ stocks are in great shape.
The tech industry in the United States is a diverse landscape, both in terms of companies and the people who make it tick. Let’s delve into some intriguing facts about the demographics of tech employees:
Tech Workers by State
When it comes to tech employment relative to the population, Massachusetts leads the way, with roughly 6% of its population employed in the industry.
Despite having 440,793 tech workers compared to California’s 1.86 million, the smaller population in Massachusetts means there are more tech workers per capita. California and Virginia follow closely, with approximately 5% of their population comprising tech workers.
Top Ten States by Net Tech Employment
Here’s a snapshot of the top ten states with the most tech employment as of 2022:
- California: 1,866,951
- Texas: 1,025,106
- New York: 679,083
- Florida: 585,296
- Virginia: 446,507
- Pennsylvania: 445,168
- Illinois: 441,205
- Massachusetts: 440,793
- Michigan: 412,324
- Ohio: 401,066
Gender Gap in Tech
As of 2022, the tech industry is predominantly male, with men making up 73.3% of the workforce. The gender gap seems to be widening rather than closing, with women comprising only 26.7% of tech industry employees.
What’s noteworthy is that women also earn an average of over $3,000 less annually compared to their male counterparts within the industry.
Diversity in Tech
Asians, while constituting just 5.4% of the total U.S. population, make up a significant 11.1% of tech industry workers. This trend becomes even more pronounced when examining average salaries, as the average Asian tech worker earns over $7,000 more annually than their white counterparts and over $9,000 more than their black counterparts.
White individuals are the most represented demographic in the U.S. tech industry, accounting for 61% of the employee count. However, this number has slightly decreased since 2010, when white workers comprised 63.89% of the tech workforce.
In contrast, Black workers, who make up 12.1% of the U.S. population, represent only 10.2% of tech industry workers. Notably, black workers tend to have the lowest salaries in the industry, averaging $61,061.
Age Distribution in Tech
A significant 55% of tech employees fall into the age group of 40 years and older. This age bracket substantially outnumbers the other two categories, with only 29% of tech workers between 30 and 40, and 16% aged 20 to 30.
In other words, there are more tech workers aged 40 and above than the combined total of younger age demographics.
As the tech industry continues to evolve, it’s fascinating to see its profound impact on the U.S. economy and the daily lives of Americans. Here are some noteworthy tech industry trends and predictions, as per our research:
Today, more than 90% of Americans have access to the internet. Compare this to around 50% in 2000, and the growth becomes even more impressive.
Furthermore, in 2000, only 7% of the global population had internet access, whereas today, estimates indicate that over half the world is connected.
The U.S. tech industry is on a sustainable growth trajectory, with an expected Compound Annual Growth Rate (CAGR) of 5% through 2024. This is a healthy growth rate, though it doesn’t take into account the most rapidly expanding areas within the industry.
For example, the Augmented Reality (AR) market is projected to experience an astounding CAGR of 100% between 2021 and 2025.
AI’s Competitive Advantage
Businesses are banking on artificial intelligence (AI) to gain or maintain a competitive edge, with a whopping 84% of them expressing this belief.
However, this may come with a downside for employees, as at least 22% of executives have indicated that reducing headcount would be a primary benefit of AI implementation.
Cloud Computing Boom
The cloud computing sector is poised for exceptional growth, with an expected CAGR of 17.5% by 2025. This is a remarkable surge, considering that the sector was valued at $371.4 billion in 2020 and could soar to a staggering $832.1 billion by 2025.
And that, dear readers, brings us to the end of our casual yet insightful tech journey through the numbers that define the tech world in 2023.
The internet’s growth, the exciting prospects of AR, the evolving job demographics, and the unstoppable rise of AI, these stats have painted a vivid picture of what’s happening in the tech world right now.
As we ride this high-tech wave, we can’t help but wonder where the next set of stats will take us. So, stay connected, stay curious, and stay tuned for more tech adventures! Until then, happy surfing!
The tech industry significantly influences the U.S. economy, contributing over 10% of the total Gross Domestic Product (GDP) in 2022, making it the second-largest driver behind healthcare.
The tech industry remains predominantly male, with men making up 73.3% of the workforce, and efforts are underway to address this gender imbalance.
One of the most rapidly expanding sectors is Augmented Reality (AR), with a projected Compound Annual Growth Rate (CAGR) of 100% between 2021 and 2025, signifying enormous growth potential.
North America controls 35% of the tech industry’s market share, making it a significant player, closely followed by Asia at 31%, and Europe at 22%.
AI is seen as a critical tool for maintaining or obtaining a competitive edge, with 84% of businesses believing it offers strategic advantages. However, some executives see reducing headcount as a potential outcome of AI implementation.