What is the Biggest Industry in the United Kingdom?
Due to Brexit and the COVID-19 crisis, the UK economy and industry are in a complicated situation. To remain relevant and thriving in these circumstances in the long run, some of the key industries still find a way.
Looking at the UK economy, we can see that it is growing more than ever. It has now reached its lowest unemployment rate since the 1970s. This is obviously good for British industry. The UK market ranks 22nd in terms of GDP per capita only, and is on the list of one of the largest in the world. It has many key sectors because it is quite diverse.
Below you will find the top 10 largest industries and sectors in UK from the Datantify database:
1. Supermarkets
Revenue for 2022: $189.9B The UK grocery supermarket industry has long been dominated by the top four. It includes Tesco, Asda, Sainsbury’s and Morrisons. Two-thirds of the entire grocery retail market is represented by them. A global consumer survey in 2021 found that more than 80% of British people bought food and everyday products from supermarkets on a regular basis. In addition, a third of consumers visit supermarkets up to 3 times a week to do their grocery shopping. A large proportion of consumers say that they also purchase online from individual supermarkets. It is predicted that over the next five years, the sharp increase in competitive forces in the e-commerce market will encourage operators to improve their logistics capabilities, providing consumers with greater convenience and greater savings when shopping in the supermarket and online. The number of supermarkets in the Datantify database: 11 918
2. Pension Funding
Revenue for 2022: $155.9B
This pension fund industry plays a key role in keeping people financially secure. A significant part of citizens believe that the state pension is too small to live on it, therefore they have an occupational pension or a personal deferred contribution. Industry growth is projected to accelerate in the five years to 2026. The growing popularity of Defined Contribution (DC) systems is the main driver of growth in this industry.
The number of pension offices in the Datantify database: 89
3. Construction Contractors
Revenue for 2022: $121.8B The construction industry includes operators active in the construction and civil engineering markets. By definition, operators are remunerated for the implementation of new construction and infrastructure contracts, but the spectrum of services in this industry is multifaceted. The sole contractors are focused on the construction of new housing, and civil engineering specialists provide services along the entire infrastructure chain. The past five-year period has turned out to be difficult for entities from the construction industry. As the COVID-19 immunization program progresses and the economy opens up, it suggests there will be a recovery in the market. The number of construction contractors companies in the Datantify database: 16 578
4. Hospitals
Revenue for 2022: $101.0B
This industry provides medical, treatment and diagnostic services in general and specialist hospitals. The aging population has increased demand, but the public health care budget is not coping with the pace. As a result, the demand for private hospitals has increased, which can be seen in the number of patients choosing private treatment. Industry revenues in reports are a bit inflated as the government made funds available in 2020-2021 to support hospitals, moreover, additional funds are also expected this year.
The number of hospitals in the Datantify database: 3 074
5. Banks
Revenue for 2022: $99.8B Commercial and retail banks generate most of their income from interest on loans. Overdraft and non-interest card fees are a secondary source of income for banks. Industry revenue until 2022 is predicted to decline as low interest rates over the past five years have reduced bank interest rates, reducing their income. The industry is projected to gradually improve over the next five years and pre-pandemic revenues will not return until 2026. The number of banks in the Datantify database: 5 895
6. New Car & Light Motor Vehicle Dealers
Revenue for 2022: $98.4B
An industry specializing in the sale of cars and light motor vehicles. New car registrations have fallen as a result of economic uncertainty. Fuel prices are now rising and the weak pound has pushed the cost of owning new cars up, curbing demand. Registrations of new cars, mainly with a diesel engine, dropped. Industry revenue is expected to grow over the next five years, business and community life recover after closure so New Car Dealers will benefit from the increased flow of people.
The number of cars and light motor vehicle dealers in the Datantify database: 10 506
7. General Insurance
Revenue for 2022: $72.3B
Companies in this industry cover general insurance policies for civil liability, mishaps, motor vehicles, and other general risks. They earn contributions from these activities and are then invested in generating additional income. This broad industry has both commercial and private clients. Annuities and life insurance do not belong to this industry, but health insurance packages do. The industry’s revenues will probably increase in the next five years, as long as no major economic or climatic disruptions have a negative impact on their amount.
The number of Insurance companies in the Datantify database: 1,3 k
8. Management Consultants
Revenue for 2022: $64.1B
Management consultants is an industry covering a wide range of consulting services in the business world, including marketing, IT, human resources consulting and business process management, strategic and organizational planning. Over the past five years, the industry’s revenues have grown, mainly due to the growing demand for IT consulting services. Profits are still projected to rise as the UK economy returns to functioning post the COVID-19 pandemic.
The number of Management Consultants in the Datantify database: 19 048
9. Pharmaceutical Wholesaling
Revenue for 2022: $61.1B
The pharmaceutical and healthcare supply chain is experiencing extreme changes. The stringent regulations introduced increasing pressure to cut prices and encourage more generic use. Despite this situation, there are still opportunities for development on the market. In a context of increasing competitive pressure, some operators have merged to expand their geographic presence and product range, thereby strengthening their role in the healthcare and pharmaceutical supply chain. The expected growth of the industry in the coming years is associated with the need for COVID-19 testing and vaccination, as well as greater awareness of citizens to take care of their health..
The number of Pharmaceutical Products Wholesalers in the Datantify database: 97
10. Computer Consultants
Revenue for 2022: $55.9B
This industry includes companies that provide expert advice and assistance in the planning and design of computer systems, help in adapting to new technologies and facilitate efficiency improvement. These activities include supporting current IT processes and developing new ones. The level of business confidence is of great importance for the industry here. In the five years to 2026-27, industry revenues are expected to grow.
The number of Computer Consultant companies in the Datantify database:
8 312
Conclusion
Since the UK’s decision to leave the European Union was formally implemented and entered into force on January 31, 2020, many NGOs and government agencies have predicted that the ambiguity surrounding the ongoing Brexit negotiations would have a negative impact on the UK industry and economy.
The current situation is such that the actual economic condition is still unclear due to Brexit itself. The temporal connection of events – the outbreak of the pandemic along with the lockdowns and Brexit together had a big impact on the economic event. The governmental institute on the basis of numerous analyzes concluded that most of the forecasts are negative.
The outlook shows less access to foreign markets, from which the exchange rate drops occurred. This raises inflation and reduces consumer incomes. And in most industries, it is consumer spending that is key to income results for economic growth.