2023 Mid-Market Technology Trends Report

Companies of all sizes, in all sectors, are likely pondering the role of technology in their short- and long-term strategies. But many middle-market companies—powerhouses of the U.S. economy—have their own considerations for when, how, and why to adopt certain technologies based on the nuances of this fast-growing segment. How do the challenges and opportunities of middle-market companies inform their technology decisions? What are the trending strategies and investment decisions within this segment?

2023 marks our ninth year surveying representatives within middle-market private and family-owned companies—all with annual revenues of approximately $250 million to $1 billion. This year’s findings had a common theme: Growth ambitions are being powered by industry convergence.

When we talk about industry convergence, what does this look like within the middle market? Let’s head to the apple orchards of Washington state. Currently, orchardists are testing a 14-foot-tall robot with mechanical arms, one that’s capable of picking the ripest apples from the tree. The hope is that one day this robotic picker might help alleviate human labor shortages for agricultural work. This type of precision farming is possible because of the convergence between the high-tech industry and agriculture. By using technologies such as artificial intelligence (AI), robotics, and big data, workers can focus on optimizing the harvesting and distribution of their products.

These survey results indicate that mid-market private companies are currently using industry convergence to power their growth ambitions. Not only are they prioritizing technology investments that reduce time to value, but they’re innovating at an incredible pace—something we haven’t seen in previous surveys. While there are upsides to this shift, navigating blurred sector lines also presents its own challenges. Mid-market companies are now confronting headwinds affecting many parts of their businesses, including evolving cyber threats, changing talent configurations, and the impact of generative AI.

This report takes a look at the challenges facing private and family-owned middle-market companies and the strategies they might consider to pursue their full potential in an era of disruption.