Quick Answer 🔍How many technology companies in the US in 2023?
There are at least 585,000 technology companies in the United States.
CompTIA, a leading technology trade association says that in 2022 the global technology industry could reach over $5.3 trillion in revenue.
Also, it will resume its 5% to 6% year-over-year growth pattern. That said, how many technology companies in the US do you think exist today?
Technology firms have managed to thrive during the pandemic and will continue that path going forward.
Not only did the technology industry thrive during COVID-19, it grew bigger across the world.
The tech industry received a record number of spots on the 2021 Global 2000, which is the Forbes’ yearly ranking of the largest public organizations on the globe.
If that’s not enough to tell you that technology is widespread across the globe, the following information will answer the question, how many technology companies in the US are in operation today, to show you more.
How Many Technology Companies In the US?
We will get right to it and answer this question with the most recent data available.
At the end of 2021, there were at least 585,000 technology companies in the United States.
According to data taken from Zippia, at the end of 2021, the tech industry in America reached a market value of $1.6 trillion, with 35% of the world market share.
The number of technology businesses in the US in 2020 was 557,000.
In 2019, 13,400 technology startups were launched. It was estimated that up to 245,500 new jobs in the industry in 2021, with 6% projected growth.
In 2020, it was reported that the United States tech industry employed about 12.2 workers.
We suspect the numbers are now higher and are expected to grow in coming years.
How Many Technology Companies In The US Drive the Economy?
Due to the size of the tech industry, it literally drives the US economy just as the global tech industry drives the global economy.
While the tech industry isn’t the only industry that drives the economy, it’s one of the most significant sectors that do.
Let’s look at some data.
Since the start of the COVID-19 pandemic, tech jobs has grown faster than before. It’s doubled since 2019.
Net employment in the technology sector accounts for 7.9% of all the American workforce.
People working for tech companies earn about 85% more than those working in other industries.
This 85% is an average since the percentages are more inflated in certain states and locales.
In Alabama, 85% accounts for workers in tech earning more, while in San Jose, California, that percentage is 507%.
Moreover, in Wyoming, tech employees make 32% more than in other industries.
According to the data, the tech industry is second only to the healthcare industry in driving the economy.
Tech drives the US economy more than retail, non-durable manufacturing, and retail. The fact is that technology is number 2 of the top 5 American industries.
Data from 2020 shows that technology contributed 10.5% to the United States GDP. This has been a constant in the tech industry with 10% in 2019 and 10.2% in 2018.
We can say that the significance of technology has been obvious over the past several years.
How Many Technology Companies In The US According to Tech Sectors?
It stands to reason that there would be certain sectors in technology that grow faster than others. Consequently, there are currently three top, fast-growing sectors in tech.
These sectors include:
- Blockchain DeFi – CAGR by 2025 is estimated at 67.3% growth.
- Artificial Intelligence (AI) – CAGR of 40.2%
- Virtual and Augmented Reality (VR and AR) – VR and AR will experience 100% growth.
With this information, here are the top tech companies driving these technologies today.
The Top 5 Largest Technology Companies in The US:
- Apple, located in Cupertino, California, USA, is number one with a market value of $2,780 billion. The company was established in 1976 by Steve Jobs, Ronald Wayne, and Steve Wozniak.
- Microsoft, headquartered in Redmond, Washington, USA, has a market share of $2,311 billion and was founded by Paul Allen and Bill Gates in 1975.
- Alphabet, Google’s parent company, is worth $1,770 billion and its headquarters is found in Mountain View, California, USA. This company was founded by Larry Page and Sergey Brin in 1993.
- Amazon Inc has a market share of $1,460 billion. It was founded by Jeff Bezos in 1994 and is located in Seattle, Washington, USA.
- Meta Platforms Inc – Facebook is worth $839 billion and has its headquarters in Menlo Park, California, USA. As you probably know, this company was started by Mark Zuckerberg in 2004.
Numbers will fluctuate in any industry, but the tech industry seems consistent, at least for now. Anything can change. If history is any indication, things can take a turn upwards or downwards very quickly.
How Many Technology Companies In The US Compared to the Global Market?
Overall, North America, which includes the US, has the highest market share in technology at 35%. Next is Asia with 32% of the market share.
Europe accounts for 22% of the distribution of the industry. Latin America at 6% and Africa at 5% complete the market share pie.
Accordingly, North America controls the market share by 3% right now.
Other countries/continents are quickly gaining growth, so it remains to be seen if the US and North America keep their market share.
The overarching global technology industry has a market value of about $5.2 trillion. As a comparison, the US technology industry is valued at $1.6 trillion, as mentioned earlier.
How Many Technology Companies In The US? Demographics
Employee demographics are more than just numbers. The calculations for workers are made in proportion to the population of an area.
Consequently, Massachusetts has only 440,793 workers in the technology industry, which is higher in proportion to its population than California’s 1.86 million workers.
In 2021, it was reported that men account for 73.2% of the total tech industry. Only 23.1% of women work in this industry.
Over the past ten years, the gap in these percentages has widened, not shrunk like you might expect.
Whether that’s due to the fact that the annual salary for women is about $3,000 less than it is for men, or simply their lack of interest in the field is for another discussion.
The Asian population makes up 11.1% of the industry’s workers. African American workers account for 10.2% and Caucasians make up 61% of tech workers in America.
When accounting for the total race populations, the gap isn’t as wide as it seems, though it’s still not balanced.
Also, salaries differ between races, which is an inequality that will hopefully be addressed in the coming years.
Over half of technology employees are 40 years and older, according to the data. The 40 plus crowd makes up 55% of the total employment by age in the US tech industry.
In comparison, the 30 to a 39-year-old demographic makes up 30% and finally, 16% of technology employees are between 20 and 29 years old.
How Many Technology Companies In The US? General Data
American tech industry professionals have an average income of $71,809. In comparison, this annual salary is $20,000 above what the average American makes.
The “Big Four” in tech, Apple, Google, Amazon, and Meta/Facebook, are worth about $4 trillion together.
These four huge companies employ around 1.68 million people, of which 1.3 million of them work for Amazon.
As mentioned at the top of the article, at the end of 2021, there were at least 585,000 technology companies in the United States.
This is a huge number considering that Microsoft along with the above “Big Four” make up 20% of the tech market.
More than 90% of Americans have the internet available to them. In 2000, the percentage was 50% and in comparison, only 7% of the world could access the internet.
Artificial Intelligence is expected to help businesses achieve and maintain a competitive edge.
Unfortunately, plans to downsize by reducing the number of employees is part of the strategy for saving money and becoming more efficient.
Cloud computing is expected to grow from $371.4 billion in 2020 to about $832.1 billion by 2025.
Let’s face it, the technology industry is enormous. It drives the GDP in America and across the world.
The question of how many technology companies in the US are currently in operation says a lot about the impact this industry has on the world.
The American tech industry is maintaining its hold and holds a strong CAGR of 5%. New technologies like Blockchain DeFi, VR and AR, and AI are leading the way in growth.
There are still inconsistencies in the gender and race demographics, which needs to be addressed. One could say that this industry has a diversity issue to fix.
If you’re considering taking the leap into a technology career, now is a good time to do so.
The statistics and data show that this industry is not going to go away anytime soon. If anything, it will thrive and grow. You might as well do the same.