Industries with the Highest Profit Margin in the UK in 2021

1. Electricity Distribution in the UK

Profit Margin 2021: 41.9%

Operators in the Electricity Distribution industry maintain an extensive network of lines and cables across the United Kingdom, carrying electricity from the high voltage transmission grid to end users. Electricity distribution network operators (DNOs) have regional monopolies, so pricing in the industry is heavily regulated by the Office of Gas and Electricity Markets (Ofgem) in the United Kingdom and the Northern Ireland Authority for Utility Regulation (NIAUR) in Northern Ireland. In the United Kingdom, there are currently 15 different DNOs managed by seven operators, and 13 independent distribution network operators (IDNOs) working primarily to connect new housing, commercial and industrial... Learn More

2. Gas Distribution in the UK

Profit Margin 2021: 40.0%

Operators in the Gas Distribution industry maintain a 284,000 kilometre gas pipeline network across the United Kingdom. The industry is comprised of eight Gas Distribution Networks (GDNs) across Great Britain, owned by four companies which operate regional monopolies. To protect consumers, operators are heavily regulated through price control frameworks. There are also nine smaller networks operated by independent gas transporters (IGTs) that primarily connect new build homes and industrial sites to existing networks, while a further two IGTs operate the Northern Ireland distribution network. The Office of Gas and Electricity Markets (Ofgem) is the regulatory body for Great Britain, while... Learn More

3. Immersive Technology in the UK

Profit Margin 2021: 37.9%

Immersive technologies, or extended reality (XR) – an umbrella term for virtual reality, augmented reality, mixed reality and haptics - integrate visual content with the physical environment, ‘immersing' the user of associated devices, such as head-mounted display units, in a simulated setting. Firms in the Immersive Technology industry design and develop immersive visualisation software programs, systems and networks. Players then sell these solutions and the intellectual property to clients under licence. They may also undertake bespoke projects related to the development of XR and associated content on the behalf of clients.

Industry revenue is expected to rise at a... Learn More

4. Search Engines in the UK

Profit Margin 2021: 32.1%

The Search Engine industry is highly concentrated, with three companies controlling almost the entire industry; the largest company in the industry, Alphabet Inc, has a market share greater than 90% in 2020-21. Industry operators provide web portals that generate and maintain extensive databases of internet addresses. Industry participants generate the majority, if not all, of their revenue from advertising. Technological growth has resulted in more households being connected to the internet, and a boom in e-commerce has made the industry increasingly innovative.

Over the past decade, an increase in the percentage of households with internet access has supported revenue growth, while... Learn More

5. Water Collection, Treatment & Supply in the UK

Profit Margin 2021: 31.4%

The Water Collection, Treatment and Supply industry manages, stores and distributes clean water to domestic and industrial customers. Barriers to entry are high in the industry, with large start-up and maintenance costs, and the industry is dominated by regional monopolies. All industry operators are subject to regulation in terms of prices charged and services provided. Companies in the industry submit a breakdown of their performance and five-year business plan to industry regulators, namely the Water Service Regulation Authority (Ofwat), which then set the prices companies can charge. Industry services are essential so demand tends to remain steady from year to... Learn More

6. Legal Activities in the UK

Profit Margin 2021: 31.1%

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2020-21, industry revenue is expected to rise at a compound annual rate of 0.4%. Widespread business uncertainty following the EU referendum, a decline in merger and acquisition activity and falling residential property transactions limited industry growth over the period. In the current year, revenue is anticipated to fall by 3.8% to £35.6 billion due to the negative effects of the COVID-19 (coronavirus) pandemic on the economy. However, this industry is countercyclical, meaning that demand for legal work... Learn More

7. Audiobook Publishing in the UK

Profit Margin 2021: 30.1%

The Audiobook Publishing industry includes businesses involved in the design, marketing and distribution of audiobooks. Audiobook publishers hold rights to book titles and may publish content in solely audio form or, more commonly, in conjunction with print and e-book editions of the work. The industry is growing and its progress in over the past five years is encouraging when taking into account the difficult conditions that have characterised the wider UK Book Publishing industry (IBISWorld report J58.110). Over the five years through 2020-21, industry revenue is expected to grow at a strong compound annual rate of 19%. IBISWorld expects that... Learn More

8. Electricity Transmission in the UK

Profit Margin 2021: 28.5%

The Electricity Transmission industry is responsible for carrying electricity from power stations to the low-voltage distribution network, which delivers the electricity to end users. There are four high-voltage transmission networks in the United Kingdom, owned by four companies: National Grid Electricity Transmission plc, SP Transmission plc, Scottish Hydro Electric Transmission plc, and Northern Ireland Electricity Networks Ltd. Each company operates a regional monopoly on different transmission networks; as a result, the industry is heavily regulated through price controls. National Grid is the largest industry operator and the performance of the company has a significant bearing on the industry as a... Learn More

9. Music Downloading & Streaming Services in the UK

Profit Margin 2021: 28.1%

The Music Downloading and Streaming Services industry provides consumers with a platform to purchase and download or subscription based streaming music-on-demand. These services can be streamed or downloaded to a variety of supported devices and connections. However, the industry excludes those that offer exclusively ad-supported streaming services, as well as revenue derived from ad-supported services if the company provides paid-for services as well. The mixture of industry services has shifted over the five years through 2020-21, with consumers rapidly decreasing the level of expenditure on downloads in favour of streaming services, which is expected to account for approximately 93% of industry revenue in... Learn More

10. Pipeline Transport in the UK

Profit Margin 2021: 28.0%

Operators in the Pipeline Transport industry own, run and maintain pipeline networks used for the transportation of natural gas, fuel, water and other liquids. The transportation of natural gas accounts for the majority of industry demand, which is influenced by electricity production, the share of gas in the energy mix and the amount of gas that is imported. Natural gas produced in the United Kingdom and imported via pipelines from Norway, the Netherlands and Belgium currently enters the National Transmission System through entry terminals and interconnectors and is transported to and enters distribution networks, where it leaves the transmission system.

Industry... Learn More