Exploring UK technology sector trends
The UK technology sector has long been a hub of innovation, adaptability, and growth. In 2025, this remains true despite an ever-evolving global landscape. With international competition intensifying, particularly around AI supremacy between the US and China, UK SMEs continue to demonstrate remarkable resilience and agility. Azets' Tech Sector Report offers an in-depth look into these trends, providing valuable insights for business owners, investors, and advisers alike.
The vibrant SME tech landscape
While global headlines often focus on multinational giants, the real engine of UK tech innovation lies in the SME market. The report hones in on businesses with revenues between £2m and £50m, and M&A transactions under £100m. These businesses are not only weathering geopolitical shifts, but actively thriving, with subsectors like AI, fintech, and green technology leading the way.
Key technology sector trends
Azets' analysis highlights the diversity within the tech sector:
- AI and Fintech: Driving significant revenue growth, these subsectors are attracting considerable development capital and shaping the next phase of tech innovation.
- Green Technology: Demonstrating impressive profitability, green tech continues to align with broader ESG priorities and attract sustained investment.
- Software Development & E-Commerce: These mature subsectors remain active, though growth is stabilising as businesses have adapted post-pandemic.
Investment and M&A activity
The report underscores a rebound in M&A activity following a period of economic and political turbulence. AI, robotics, and life sciences are seeing early-stage capital pour in, while subsectors such as telecoms, cloud computing, and cyber are experiencing consolidation through strategic acquisitions.
Benchmarking for growth
For business leaders, benchmarking performance is essential. The report offers valuable KPIs on revenue growth, EBITDA margins, working capital efficiency, and valuation multiples, providing a strong foundation for strategic planning and valuation discussions.
Why download the full report?
The full 2025 Azets Tech Sector Report delivers detailed financial analysis, subsector performance metrics, M&A valuation trends, and actionable insights from our corporate finance team, to help you benchmark your business and inform future decisions.
Download the Full 2025 Azets Tech Sector Report below.