Global Economy: The Age of the Tech Giants

Published on: September 6, 2020 / Updated on: September 6, 2020 – Author: Konrad Wolfenstein

Global Economy: Tech Giants @shutterstock | Maksim Shmelev

Fifteen years ago, tech companies played a minor role in the ranking of the highest market capitalization. In 2005, only Microsoft managed to rank among giants from finance, retail, and oil. At that time, General Electric was the world's most valuable company with a market capitalization of around 382 billion US dollars.

As the graphic shows, the corporate landscape in 2020 is dominated by tech giants, and the figures from 2005 seem vanishingly small. Microsoft alone has increased its value sixfold in the last 15 years to $1.6 trillion. However, Bill Gates' company is even surpassed by Amazon, Saudi Aramco, and Apple. The latter recently crossed the two trillion mark, replacing the Arab oil giant Saudi Aramco as the world's most valuable company.

The boom in the tech industry is primarily due to advancing digitalization and the development of smartphones. Mobile phones as we know and use them daily were unimaginable in 2005. Young tech companies like Facebook (founded in 2004) have particularly benefited from the rapid development and the possibility of connecting people worldwide.

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.

You can find more infographics at Statista