The digital and technology industries are set to add £2 billion to the region's economy and create 14,000 jobs, according to a new report into the sector.
The study, entitled 'Tech and Digital: Deep Dive Report', has been compiled by Birmingham City University and the Regional Observatory and suggests the sector will become increasingly vital to a thriving West Midlands economy over the coming decade.
Among its key finding are that tech and digital will add £2.2 billion in GVA to the West Midlands economy by 2025 and boost the sector's job tally by 20 per cent to 84,000 roles.
The report says 91 per cent of the new jobs will be in highly skilled professional and technical roles, a significant increase on its current position of 55 per cent.
Supporting this recruitment will be the West Midlands' existing workforce and up-and-coming talent studying at the region's universities with 89 per cent of recruitment coming from these two sources, it claims.
Last year, tech and digital was the fifth biggest sector in the West Midlands Combined Authority area, accounting for nearly 14,000 businesses.
A wave of companies from this sector have located to the West Midlands including US fintech specialist Lombard Risk Management, a move which has created 140 jobs, and HR software specialist Allegis Global Solutions - both of which are based in Alpha Tower in the city centre.
The report will be launched at Innovation Fest, at Millennium Point in Birmingham on May 26.
The one-day event is a competition which allows students to showcase their technological creations in front of a panel of judges and industry leaders.
Heike Schuster-James, senior development manager at Birmingham City University, said: "This report really outlines just how important this kind of innovation and creativity can be to our region and to have it launched alongside such inspiring work makes it all the more fitting."
Nicola Hewitt, commercial director at the West Midlands Growth Company which operates the Regional Observatory, added: "The West Midlands is home to one of the UK's most vibrant digital and tech clusters.
"From world-renowned brands to creative start-ups, the industry supports more than 70,000 jobs in the region.
"Increasing numbers of tech and digital firms are locating and expanding here, attracted to the region's talented workforce and accessibility to other growth sectors such as financial services and life sciences.
"It is critical for the future economic growth of the West Midlands to support our tech and digital companies, through local universities, incubator programmes, science parks and business networks, and ensure that this sector continues to thrive here."