Fastest Growing Industries in the UK by Revenue Growth (%) in 2023

1. Travel Agencies in the UK

2023-2024 Revenue Growth: 176.0%

Travel agencies provide booking, reservation and information services to UK residents travelling domestically and internationally. Industry revenue is anticipated to dip at a compound annual rate of 5.1% over the five years through 2022-23 to £28.5 billion.

The weak value of the pound and uncertainty relating to Brexit has plagued travel; for instance, in 2018-19, many people replaced overseas holidays with cheaper staycations because of the weak pound. More and more bookings are being made online, cutting out high-street agencies and putting pressure on their finances. Rising external competition has led to the exit of more bricks-and-mortar travel agencies, including the... Learn More

2. Conference Centres Letting & Operating in the UK

2023-2024 Revenue Growth: 132.2%

Over the five years through 2023-24, revenue is projected to contract at a compound annual rate of 2.8% to £778.5 million. This contraction was mostly driven by COVID-19 disruptions causing revenue to plummet, which conference centres are yet to fully bounce back from. The EU referendum drove volatility in business markets, with many companies holding off on spending while market conditions were uncertain. However, conference centres continued to attract bookings; they drew in demand by investing in improving venues (renovating spaces, introducing new technologies, etc.). At the same time, the government was promoting the UK's reputation for hosting quality events... Learn More

3. Bowling Alleys in the UK

2023-2024 Revenue Growth: 109.9%

Bowling alleys revenue is anticipated to jump at a compound annual rate of 4.1% to £495.6 million over the five years through 2023-24. The industry is dominated by two major chains, Hollywood Bowl and Ten Entertainment. As a result, the industry's performance is heavily tied to their performance. Nonetheless, the industry has trended upwards, as bowling is a diverse out-of-the-house leisure activity, offering a competitively priced experience and broad appeal. The two major chains have expanded their number of UK bowling centres by over 10% between 2017 and 2022, fuelling revenue growth.

While the industry was near-enough halted during 2020-21 owing... Learn More

4. Corporate Travel Services in the UK

2023-2024 Revenue Growth: 95.3%

Interest in corporate travel deals is sensitive to business confidence. A poor economic situation and multiple shocks like the pandemic and Brexit have contributed to the contracting revenue for agencies. Demand for travel services is also influenced by the cost of travel, which has risen due to the low value of the pound and rising prices. However, the pandemic was the most significant factor contributing to the fall in revenue. Travel restrictions domestically and internationally during the pandemic caused the industry to come to a standstill, which it has struggled to recover from.

Demand from the industry's largest downstream market, the... Learn More

5. Scheduled Passenger Air Transport in the UK

2023-2024 Revenue Growth: 66.9%

Over the five years through 2023-24, scheduled passenger air transport revenue is anticipated to contract at a compound annual rate of 3.6% to £24.1 billion. The COVID-19 outbreak has had a devastating effect on airlines. Strict public health restrictions significantly cut demand for air travel during the first quarter of 2020-21. Despite showing signs of recovery during the second quarter of 2020-21 with the easing of travel restrictions, the re-implementation of domestic and international restrictions spurred a renewed slump in passenger numbers in the latter half of 2020-21.

Although passenger numbers remain fairly robust during weak economic conditions, changes in consumers'... Learn More

6. Sea & Coastal Passenger Water Transport in the UK

2023-2024 Revenue Growth: 64.6%

Over the five years through 2023-24, sea and coastal passenger water transport revenue is anticipated to drop at a compound annual rate of 6.6% to £2.3 billion. The industry is heavily reliant on domestic and international tourism. Cruise ships have performed robustly over most of the period and have expanded by marketing value, including all-inclusive holidays. However, demand for international ferry services has wavered as a result of intense competition from air and rail transport. Travel restrictions in response to the COVID-19 outbreak caused passenger numbers to plummet during 2020-21.

Changing tourist trends and technological developments have maintained a strong demand... Learn More

7. Non-Scheduled Passenger Air Transport in the UK

2023-2024 Revenue Growth: 64.4%

Over the five years through 2023-24, non-scheduled passenger air transport revenue is anticipated to decline at a compound annual rate of 3.5% to £3 billion. The industry has exhibited a poor performance owing to weak consumer and business demand. Although the industry may be perceived as providing tailored travel services for the wealthy, the bulk of revenue is generated by transporting customers to holiday destinations as part of a travel package. Revenue has fluctuated significantly, largely because of the COVID-19 outbreak, which led to a sharp drop in passenger numbers during 2020-21 and 2021-22.

Low-cost carriers (LCCs) have expanded their services... Learn More

8. Gas Supply in the UK

2023-2024 Revenue Growth: 62.2%

The gas supply industry has experienced a period of significant volatility in recent years. Industry regulator Ofgem encouraged greater competition in the industry prior to the pandemic, leading to a rapid rise in the market share of independent suppliers. This culminated in the effective break-up of the former Big Six energy suppliers in January 2020, following OVO Energy's acquisition of SSE's domestic customer book. However, record-high wholesale prices have reversed the upward trend in market participation since the pandemic, forcing 31 energy suppliers out of the industry.

Revenue is forecast to increase at a compound annual rate of 4.7% to reach... Learn More

9. Solar Panel Installation in the UK

2023-2024 Revenue Growth: 59.2%

The UK solar market has exploded over the past 15 years, with more than 14,000 megawatts of capacity installed in 2022, a huge jump from less than 15 megawatts in 2007. The majority of this growth occurred prior to cuts to government incentives in January 2016, though renewed government support has driven an uptick in installations over the last couple of years. Variations in the level of government support for solar power have spurred significant volatility for solar panel installers. Solar panel installation revenue is projected to surge at a compound annual rate of 8.6% to £1.1 billion over the... Learn More

10. Budget Airlines in the UK

2023-2024 Revenue Growth: 58.1%

The Budget Airlines industry has benefitted from consumers increasingly seeking value for money. The industry is highly concentrated, consisting of only four airlines. External factors, including business and consumer confidence, household disposable income, and outbound and international tourist numbers, determine demand for budget airlines. Shocks like natural disasters, terrorist attacks and disease outbreaks also affect demand. Revenue is expected to rise at a compound annual rate of 0.3% over the five years through 2023-24 to £10.1 billion.

Before the COVID-19 outbreak, subdued confidence and weak growth in household disposable income due to Brexit supported demand for budget airlines' services from... Learn More