Tech Salary Trends: How Emerging Technologies Impact Pay
The tech market has faced severe upheavals in the past few years. The average tech salary has slowed down from $111,348 in 2022 to $111,193 in 2023. Two key factors are influencing the market. They include the rise of emerging technologies and slower growth, which have impacted tech salaries. Between 2019 and 2021, tech salaries saw a sharp increase. However, since then, companies have reduced their tech spending.
Emerging technologies like AI, data science, cloud computing, and cybersecurity have gained traction in recent years and are expected to continue in the future. Emerging technologies require tech professionals to upskill, and skilled tech is scarce. Nearly 4 million tech jobs are available in the US, with 90% of tech managers finding it difficult to hire top talent.
This article discusses the impact of emerging tech, including AI, machine learning, cloud computing, and cybersecurity, on IT tech salary trends. It provides a deeper insight into the tech sector, revealing important trends that IT professionals will find useful.
Overview of IT Tech Salary Trends
Although layoffs continue unabated, the demand for tech talent has not decreased. According to the ProFocus Technology Market Trends Report, the unemployment numbers for tech professionals are very low. The percentage of unemployed software developers is 1.9%, while 1.3% of computer and information systems managers. The report projects a +5% growth for data scientists, data analysts, and cybersecurity analysts.
Region-wise, Colorado and California have the highest tech employment percentages, with salaries above $110,000. Texas, Arizona, and Nevada are other states that show a high tech-employment increase. Average salaries vary based on the tech skills. Here is a table showing the median IT tech salary of software engineers, data scientists, and information security analysts per the US Bureau of Labor Statistics.
Factors Influencing Tech Salaries
Several factors impact the IT tech salary. This makes it important for professionals to know the factors to understand and exploit the sector. Some of the main factors that influence IT engineer salaries include
Sophisticated technologies
The emergence of advanced tech has greatly impacted the IT salary. Increasing demand for people skilled in these technologies results in higher salaries. Some of the technologies that have a major influence include:
- Artificial Intelligence
- Machine learning
- Cloud computing
Location
The location plays a key role in the variation of IT technician salary packages. The salaries are automatically adjusted since remote work is possible in the industry. Factors like living costs and the demand for skilled professionals decide the IT technician's salary.
Company size
Small and medium-scale companies charge less than well-established and large web development companies. Larger companies typically pay higher base IT salaries and offer substantial benefits. Experience and expertise also influence the range.
The Role of Emerging Technologies in Salary Growth
Technologies like machine learning, blockchain, and cloud computing have redefined the tech space. They have created new jobs and require professionals to update their skills. In the United States, the employment of software developers is expected to grow by 17% from 2023 to 2033. Here are the major technologies at a glance.
1. Machine Learning and Artificial Intelligence
AI and ML are modern technologies that have opened up many beneficial applications, such as:
- Natural language processing
- Predictive analysis
- Automation
AI and ML find uses in everyday applications like chatbots, automation, and recommendation systems. Fintech is one of the industries that has benefited from AI and ML. The industry is projected to reach $39.44 billion in 2028 from $14.41 billion in 2024.
2. Cloud Computing
The phenomenal growth of services like Microsoft Azure and Amazon Web Services shows the impact of cloud computing. With scalable cloud computing solutions, companies can function cost-effectively and efficiently.
Banking is an industry that has achieved many benefits from technology. Modernized processes and enhanced customer experiences are some of the crucial benefits. The cloud computing banking sector is predicted to reach $301 billion by 2032.
3. Blockchain
Blockchain can help improve efficiency, trust, and security in industrial operations. The technology's broadening application has resulted in a high demand for experts in the sector, which is reflected in higher IT tech salary packages for professionals. Financial services, healthcare, and supply chain are a few of the many industries that hire blockchain professionals.
Skill-Specific Premiums
Due to the diverse and useful applications, knowledge of emerging tech can impact the pay of software professionals. For instance, a Blockchain developer's IT salary ranges from $75,000 to $245,000, with an average salary of $127,025.
In the United States, blockchain developers earn an additional cash compensation of $6,572. Blockchain developers in New York City earn 35% more than the national average. Their average IT salary is $180,000. Remote developers earn the highest at $217,500.
AI developers also have a high IT salary range, starting from $53,000 up to $99,000 per year. The average pay is $132,338 per year. They also earn additional pay of $70,408 annually as commission, bonus, and profit sharing.
Information technology is the top-paying industry for AI engineers, followed by Media and Communication. Aerospace, defense, and public administration are other sectors that pay high salaries for AI developers.
Regional Variations and Remote Work Trends
Location is an important factor that influences the IT engineer's salary trends. Certain markets offer higher IT engineer salary packages than others. In technologically advanced countries, the salary is higher. For instance, an AI or ML engineer earns an average annual salary of $106,386 in the United States.
In Germany, the average pay is €75,000 euro, while in China, the average pay is $61,800. In India, the average salary is $13,000 per year.
The average salary for blockchain developers in different regions of the world is given below:
- United States: $146,250
- United Kingdom: $92,232
- Germany: $84,314
- Singapore: $180,000
- India: $12,161
The high cost of living and a competitive market result in higher IT tech salary packages in countries like the USA and the UK. These locations can be expensive for small and medium enterprises looking to hire developers skilled in emerging technologies. Hiring remote professionals is a good alternative in such cases.
Impact of remote work
Remote work has become a staple in the tech industry as it offers many advantages to professionals, such as:
- Flexible work
- Reduce the stress of commuting
- Positive work-life balance
Remote working has influenced pay scales and salary negotiations for tech professionals. They can demand a higher IT engineer salary by working for companies located in high-paying locations. For instance, 30% of data scientist roles are remote, with the IT engineer salary packages of more than $108,000 per year. Similarly, cybersecurity analysts earn 16% higher with remote working. On average, remote workers report $4,000 higher annual income when compared to their in-office peers.
Impact on Established vs. Emerging Roles
The IT industry introduced several benefits after the digital revolution in the late 20th century. Efficient business operations, effective communication, and successful commerce were possible. The changes are even more revolutionary with the introduction of emerging technologies like AI, ML, and blockchain.
Software professionals must stay relevant and updated to keep up with the quickly changing tech landscape. According to the Bureau of Labor Statistics, the job outlook for network engineers is expected to decline by 3% in the decade from 2023 to 2033. The median annual IT salary that system administrators earn is $95,360.
Roles such as data scientists, machine learning engineers, and AI specialists are in high demand now. Emerging technologies have disrupted the conventional job market, creating new jobs with lucrative IT tech salary packages. Here are the pay packages for DevOps engineers, data engineers, and Blockchain developers.
- DevOps Engineer: The IT technician's salary in the United States is $137,748 annually.
- Data Engineer: The average IT tech salary of a data engineer in the US is $125,073, with an additional compensation of $24,670.
- Blockchain professional: A blockchain developer's average IT tech salary is $127,025, with an additional compensation of $6,572.
The high pay packages for professionals skilled in emerging tech show the influence they wield. This trend is unsurprising, as technology has radically changed many industries. For instance, automation and artificial intelligence are used to:
- Ensure seamless supply chain management
- Enhance customer service
Blockchain offers significant advantages in finance and logistics, among other industries. Its robust security and transparency make it a much sought-after technology. Technologies like machine learning and big data analytics provide fresh avenues to businesses.
Due to the streamlining of business operations, they help to increase productivity and profitability. The higher demand for such technologies has impacted the established IT roles. The IT engineer salary for established roles like network engineer and system administrator is lower than for roles that require advanced tech like AI and ML.
Impact of AI and Automation on Salaries
AI and ML are high-performance technologies that many sectors covet. Marketing, education, healthcare, and financial services are a few industries that find the technologies useful. Applications include image processing, automation, and speech recognition. Experts in AI/ML are, therefore, in high demand. The global AI market is predicted to reach $184 billion in 2024. By 2030, it is expected to reach 826.70 billion USD.
AI-Driven Automation and Job Market
As per McKinsey Global, AI can increase economic activity globally to around $13 trillion. By 2030, it can increase the global GDP by 1.2% annually to 16%. The key influencing factors are substituting labor with automation and increasing the number of innovative products. As per a recent Goldman Sachs report, the technology can increase annual global GDP by 7%.
Nearly 300 million jobs can be impacted by AI. While sectors like mining and agriculture have the least impact, information processing sectors like Information Technology are the most affected. A recent study by the University of Pennsylvania indicates that automation will most likely impact white-collar workers with a salary of up to $80,000 per year.
Pew Research also indicates that 1 in 5 workers were exposed to Artificial Intelligence tech and were at risk of being replaced. This is because although AI-driven automation increases productivity for companies, it does not increase the salary of workers proportionately. The gap in tech skills is dominant in the AI sector, giving experts in the field great job opportunities. Independent and freelance professionals who adapt to the evolving technology and reskill will flourish.
The Cloud Computing Revolution
Of the various emerging technologies, cloud computing is a notable one. The IT engineer salary package for professionals with cloud computing skills is high. This is because many organizations use advanced technology for their daily tasks and to accomplish business goals.
Conventional system administrators specialize in cloud engineering. These professionals design, implement, and manage cloud infrastructure. Firms use these professionals to ensure they get the maximum benefits from cloud solutions.
By using cloud services, companies need not invest expensively in physical infrastructure. They can use the cloud to scale their operations as needed. This shift to the cloud has resulted in new IT roles such as DevOps Engineers, Cloud engineers, and cloud network experts. According to Statista, the cloud computing applications market is predicted to reach $168.6 billion by 2025.
According to ZipRecruiter, the average annual salary for a cloud specialist is $86,316.
Skilled and experienced professionals earn up to $150,000. The IT engineer's salary can vary based on the location. In New York, the IT engineer's salary is $77,717, while it is $81,095 in San Francisco. The variations are mainly due to the cost of living.
The higher the skills and certifications a cloud engineer acquires, the higher the pay. Some of the skills that cloud computing professionals need to have include:
- Expertise in Java and Python.
- Familiarity with cloud platforms like Microsoft Azure and Amazon Web Services (AWS).
- Manage databases and be familiar with security best practices.
Certifications in the technology include:
- IBM Certified Technical Advocate-Cloud v3
- Microsoft Certified Azure Fundamentals
- Amazon Web Service solutions architect
A cloud engineer with two to four years of experience can earn from $153,000 to $270,000. The average IT engineer salary for cloud engineers in the United States is $201,700 up to a maximum of $269,525.
The widespread use of cloud services has resulted in increased demand for cloud-native developers. The market size was valued at $547.61 billion in 2022 and is expected to reach $2348.40 billion by 2029.
Developers with strong knowledge of cloud platforms and automation tools are in high demand. They help to bridge operations and development, resulting in smooth software application delivery.
The increasing need for scalable applications and digital transformation of various industries has led to a high demand for cloud-native developers. Quicker time-to-market and better use of resources are key benefits of using the technology.
The Future of Tech Salaries
Artificial Intelligence is not the only emerging technology that is gaining attention globally. Technologies like Blockchain, Augmented reality, virtual reality, and the Internet of Things are also gaining popularity.
The high IT tech salary that professionals excelling in these technologies earn is proof enough. On average, the IT salary of a blockchain developer in the United States is $127,025.
Blockchain technology streamlines operations and improves trust. Logistics and finance are two main sectors in which technology is widely used. Virtual reality helps create simulated environments for an immersive experience.
Entertainment and education are two sectors that find VR beneficial. With continued advancements, these technologies can greatly impact IT tech salary packages for software professionals.
With continuous learning and upskilling, tech professionals can successfully navigate the changing tech space. They must embrace new technologies and invest in improving their skills by pursuing certifications and training programs.
This will help them gain the skills to find high-paying jobs in a competitive market. Further, these advanced technologies are creating newer fields and industries, opening up more job opportunities.
Geographical variation in IT salary packages
The IT technician salary for blockchain developers varies by location. The average IT technician salary in the United States starts at $90,000 per year. The salary also depends on the developer's experience and seniority level. Differences in salary are present based on the state.
Developers in California earn $9400 per month; in Virginia, the salary is $11,600. In Europe, the IT technician salary for blockchain developers varies by country. It is $3500 per month in Germany and $3800 per month in France.
In Denmark, blockchain developers earn $5000 per month, while it is $2600 in Portugal. In China, the salary is $3800, while it is $6000 per month in Japan. Blockchain developers earn $1000 in India, while the IT technician's salary is $6600 in Singapore.
Industry-Specific Trends
IT tech salary trends vary by industry. Sectors like defense and aerospace offer the US's highest IT tech salary packages. Other industries with high IT technician salaries include retail, government, software, and non-profit. However, IT tech salary packages decreased by 5% year over year in the entertainment industry.
The IT tech salary in the US based on different sectors are as follows:
- Finance and insurance: $121,190
- Motor Vehicle Manufacturing: $133,360
- Healthcare: $110,473
- Travel: $89,478
The IT technician's salary is higher for certain specializations. For instance, cybersecurity in finance is an important aspect. Cybersecurity analysts are critical to safeguarding financial data and demand high pay. The salary for cybersecurity analysts can be up to $118,000 per year.
For IoT engineers, the IT technician salary can vary based on their industry. They get a higher IT salary in sectors like Aerospace and defense. Pharmaceuticals and Insurance are other sectors where they earn a high salary.
A Pharmaceutical technologist can earn from $47,000 to $124,000.
The manufacturing sector is another area where their pay is high. They earn an average pay ranging from $70,000 to $110,500.
Conclusion
The IT sector is undergoing a major shift with the emergence of advanced technologies. Newer technologies like artificial intelligence, Machine learning, blockchain technology, and more have redefined the tech space.
Their impact on tech salaries has been beneficial for tech talent in the United States and other parts of the world. Technology is a driving force for change and has consistently disrupted conventional models.
Adaptability to the changing landscape is important for tech professionals. Individuals looking to succeed in the field need to upskill and specialize in emerging technologies. They should identify lucrative opportunities in high-demand sectors to capitalize on the rapidly developing tech landscape.
