Digitech Sector Insights

Essex is a key part of the technological revolution underway. The digital technology (digitech) sector in Essex is a major part of the local economy and relevant across all sectors, reflecting broader trends of digital innovation and tech-driven business growth locally and nationally. Essex benefits from its proximity to London and infrastructure that supports tech startups and established companies alike. The sector spans various industries, from software development and IT services to fintech, artificial intelligence, cyber security and digital marketing. All are present in Essex.

There are tech hubs and clusters in particular areas locally including Chelmsford with businesses in areas such as software development, cyber security and cloud computing. The Knowledge Gateway at the University of Essex also provides office space and support for tech start-ups and digital businesses and Harlow Enterprise Zone is a centre for data management and digital infrastructure.  The Kao Data Centre is at the forefront of developing and operating cutting-edge data centres designed for AI and advanced computing.  Other notable companies in the sector include e2v technologies in Chelmsford and an increasing number of local companies are involved in AR and VR technologies. Extraordinary Essex has produced Tech 50 – ‘a list of the most innovative and exciting tech businesses based in Essex.’

Extraordinary Essex outlines that ‘locally, the telecom and digital technology sectors boast around 5,270 businesses (2023). These businesses employ 20,000 people (2023) and generated more than £1.274 billion in Gross Added Value (GVA) in 2022’.

The sector is also important and central to the economy as a whole. It has been positioned by the government as a fundamental growth driver as part of the industrial strategy and is one of the eight growth driving sectors.  The sector plan for digital and technologies illustrates the pace of change, outlining that ‘the fastest growing areas of the economy of the future will be those driven by technology. Already nine of the top 15 most valuable global businesses by market captialisation are technology businesses, a radical change from 20 years ago.’

The Sector plan sets out a vision for the UK to be one of the top three places in the world to create, invest in and scale-up a fast-growing technology business. This will include prioritising research and development funding and frontier technologies such as Artificial intelligence (AI), cyber security, engineering biology, quantum technologies and semiconductors.

The plan also notes that employers have called for shorter, more flexible courses and the skills system is therefore being reformed to be more agile and flexible.  Shorter duration apprenticeships are planned to help address this. Tech first is a new programme supported by £187 million funding to reach up to one million young people and provide over 4,500 bursaries, Masters’ placements and PhD opportunities to support students into the tech workforce. Additionally, there is a commitment to the development of Technical Excellence Colleges and introducing short courses in areas such as AI, digital and engineering funded through the Growth and Skills Levy.

Skills England has produced a Sector Needs Assessment for Digital and Technologies and outlines that ‘in June 2024, employment across occupations defined as being of relevance to the digital and technologies sector was around 4 million and projections indicate an increase of around 380,000 workers by 2035 (10%).’  This also highlights that there are skills shortages in the sector. Additionally, there is a growing demand for digital skills across the economy.  Skills England note that engagement with the sector ‘highlighted a critical shortage in machine learning, user experience design, bio-medical and big data expertise, as well as for data architect roles not covered by current apprenticeships.’ New roles will include those that will provide leadership in governing the introduction of emerging technologies including AI.  The report also highlights that only 25% of the sector is female currently and only 9% from lower social economic backgrounds compared to 39% across the UK workforce.

Given the focus on the creative sector as one of the government’s eight growth driving sectors, growth is likely to continue in Essex with the potential for attracting further funding and investment. The close proximity to London, clear links to other sectors and fundamental role of digitech to the wider economy mean that this will continue to be highly important. Initiatives such as Digital Essex  and the Essex Digital Strategy  are also helping to ensure that the sector and digital skills more broadly are supported.

Essex benefits from substantial investment in digital infrastructure, with extensive broadband coverage and 5G networks being rolled out in key areas. This connectivity will continue to be crucial for the operation of tech companies, particularly those involved in cloud computing and digital services.

While there are challenges such as access to large-scale investment and talent retention, initiatives like the Knowledge Gateway, university-led innovation programmes, training available and digital apprenticeship schemes are helping to build a robust ecosystem for tech growth. As Essex continues to develop its digitech infrastructure, it should continue to be a prominent player in the UK’s tech landscape.

A skilled workforce, able to adapt to changes is clearly critical for the sector, and it has faced challenges in recruiting skilled people to roles.  Work is already underway and there is a range of provision locally responding. Skills England has set out the need for clearer training routes into the sector – ‘Despite various qualifications (such as T Levels and apprenticeships), employers and learners often lack clear training routes. Employers seek engaging and intuitive occupational maps, especially for young people, while training programmes must adapt to diverse workforce needs and support career changers moving into mid-level skill roles. This can include online courses, self-paced learning, and pay-as-you-go modules. The new offer should balance recruiting new talent with developing existing employees.’

Locally, there are a range of courses on offer through further and higher education and training providers to support the sector . Many colleges have state of the art facilities and equipment, responding to industry need and developments. There are further and higher education options, including post-graduate. Further links are provided in the skills supply and providers section.

As well as skills needs of the sector itself, digital is cross cutting across all sectors. Skills England notes that ‘with around 7.3 million employed adults without essential digital skills for the workplace, basic digital skills are set to become the UK’s largest skills gap by 2030. This gap has already been highlighted as part of the UK Government’s work to support digital inclusion.’

Top ten specialist and essential skills advertised in Essex vacancies over the past year (to Summer 2025) helps to illustrate what employers in the digitech sector locally are looking for. You can view further information and detail via this link.

Specialist Skills advertised                                               Essential Skills advertised

·  Project Management                                                       ·  Communication

·  Microsoft Azure                                                                  ·  Detail orientated

·  Python (Programming Language                                 ·  Management

·  AutoCAD                                                                              ·  Customer service

·  Automation                                                                        ·  Problem solving

·  SQL (Programming language)                                      ·  Planning

·  Technical Support                                                            ·  Operations

·  Agile Methodology                                                           ·  Mentorship

·  Microsoft 365                                                                     ·  Leadership

·  JavaScript (Programming language)                         ·  Innovation