By Davide Baptiste
Digitalisation in its many forms is transforming industries across Scotland and beyond, creating both winners and losers as technology reshapes the economic landscape. While sectors like agriculture, fishing, and manufacturing are leveraging digital tools to become more efficient and sustainable, other industries and traditional businesses are facing significant decline as consumer habits and business models shift. It can be argued that the consumer wins in either scenario.
But in certain sectors, the move to internationally available products and services at the cost of the disappearance of certain well-loved brands, local businesses, habits and practices, is seen as being regrettable by many. The high street has changed, things seem further away in some respects and yet more accessible in other ways. We look at how digitalisation is impacting Scotland’s business landscape.
The Disruption of Traditional Sectors
Photography: Film and Film Processing
The photography industry has been upended by digitalisation. The advent of digital cameras and, later, smartphones equipped with high-quality cameras has rendered traditional film and film processing businesses largely obsolete. Kodak, once a global leader, failed to adapt to the digital revolution despite inventing the first digital camera, eventually declaring bankruptcy in 2012. The demand for film and related services on a local level has collapsed as consumers opt for instant, digital photography, causing a ripple effect that has wiped out many businesses built around film development and sales.
Gambling: Betting Shops and Casinos
One of the most visible casualties of digitalisation is the traditional gambling sector. Consumers are rapidly moving from betting shops and physical casinos to online gambling platforms, drawn by convenience, greater choice, and technological innovation. Online platforms allow users to access a wide range of games and place bets from anywhere, at any time, without being restricted by location or opening hours.
The integration of mobile technology has been a game-changer—58% of online gambling revenue in Europe now comes from mobile devices, with forecasts suggesting this will rise to 67% by 2029. Online gambling at non-UK casino sites is also growing, as these sites generally offer competitive bonuses and better odds than local UK-based sites, giving consumers more value and control.
These advantages have led to a clear market shift away from local service providers: online gambling accounted for 39% of all gross gaming revenue in Europe in 2024, up from 37% the previous year, while the share of land-based gambling continues to fall. As a result, many betting shops and casinos are closing, unable to compete with digital-native operators who outpace them in innovation and customer reach.
Retail: Department Stores and Physical Retailers
The retail sector has experienced profound disruption. The rise of e-commerce and digital shopping platforms has fundamentally altered consumer behaviour, leading to the decline of many traditional department stores and high street retailers. Major names have struggled or disappeared entirely as shoppers migrate online for convenience, broader product selection, and often lower prices.
This trend is echoed in Scotland, where numerous well-known brands have vanished from the high street, unable to adapt quickly enough to the digital era. Often, those local household names are the first to fall, and these changes can have a significant emotional impact on a community.
Digitalisation Drives Growth and Innovation
Fishing Industry
Digitalisation is reshaping Scotland’s fishing sector. Technologies like satellite tracking systems enable fleets to monitor fish movements, weather, and vessel locations in real time, improving decision-making, resource management and even better management of fish stocks. Automation and AI-driven solutions are also optimising feeding regimes and water quality in aquaculture, resulting in higher yields and more efficient operations.
Agriculture
Scottish farmers are adopting digital tools such as drones, GPS systems, and sensors to enhance crop management and livestock monitoring. Precision agriculture allows for optimised irrigation, soil health monitoring, and more effective use of fertilisers and pesticides, reducing costs and environmental impact while boosting yields. For livestock, RFID tags and biometric sensors provide real-time data on animal health, supporting better herd management and productivity.
Manufacturing
Manufacturing in Scotland is undergoing a digital revolution, with companies introducing automation, AI, and 3D printing to improve production lines and supply chains. Robotics reduce human error, speed up production, and enhance product quality. Advanced digital systems help optimise energy use, minimise waste, and improve inventory tracking, supporting sustainability and operational efficiency. The Digital Process Manufacturing Centre (DPMC) in North Ayrshire exemplifies this trend, providing manufacturers with access to expertise and facilities for testing and adopting new technologies.
Challenges and Adaptation
Despite the benefits, digitalisation presents significant challenges. The upfront cost of digital solutions and a workforce skills gap can be barriers, while cybersecurity becomes more critical as businesses rely on connected devices and cloud computing. Addressing these issues requires collaboration between industry, technology providers, educational institutions, and government, with public-private partnerships playing a key role in supporting investment and workforce development.
Conclusion
Digitalisation is a double-edged sword. It is driving growth, innovation, and sustainability in many traditional Scottish industries, but it is also accelerating the decline of those who can’t adapt quickly enough. As winners and losers emerge, the ability to embrace change, invest in new skills, and leverage technology will determine which businesses thrive in the digital age.
