Global Economy: The Age of the Tech Giants

Published on: September 6th, 2020 / Update from: September 6th, 2020 - Author: Konrad Wolfenstein

15 years ago, tech companies still played a small role in the ranking of the highest market capitalization. In 2005, only Microsoft could join the ranks of financial, retail and oil giants. At that time, General Electric was the most valuable company in the world with a market capitalization of around $382 billion.

As the graphic shows, the corporate landscape in 2020 will be dominated by tech giants and the amounts from 2005 appear minuscule. Microsoft alone has increased its value sixfold to $1.6 trillion in the last 15 years. Bill Gates' company is even trumped by Amazon, Saudi Aramco and Apple. The latter company was only recently able to exceed the two trillion mark and replace the Arab oil giant Saudi Aramco as the most valuable company in the world.

The boom in the tech industry is primarily due to advancing digitalization and the development of smartphones. In 2005, cell phones as we know them today and use them every day were unthinkable. Young tech companies in particular, such as Facebook (founded in 2004), have benefited significantly from the rapid development and ability to connect people around the world.

15 years ago, tech companies played a small role in the ranking of the highest market capitalization. In 2005, only Microsoft was able to place itself among the big players in finance, retail and oil. At that time, General Electric was the most valuable company in the world with a market capitalization of around 382 billion US dollars.

As the chart shows, the corporate landscape in 2020 will be dominated by tech giants, and the 2005 figures appear to be negligible. Microsoft alone has increased its value six-fold over the last 15 years to 1.6 trillion US dollars. But Bill Gates' company is even trumped by Amazon, Saudi Aramco and Apple. The latter company recently broke the two trillion barrier and replaced the Arab oil giant Saudi Aramco as the most valuable corporation worldwide.

The boom in the tech industry is mainly due to the advancing digitalization and the development of smartphones. In 2005, cell phones as we know them today and use them every day were still out of the question. Young tech companies such as Facebook (founded in 2004) in particular have benefited significantly from the rapid development and opportunities for networking people around the world.