Least Risky Industries in the UK in 2020

1. App Development in the UK

2020 Overall Risk Score: 2.72

The App Development industry comprises companies that write, design and test mobile application software. Since the release of the first iPhone in 2008, and with it the launch of Apple’s App Store, the App Development industry has gone from practically non-existent to an established segment of software development. The rapid penetration of smartphones equipped with internet connectivity and powerful processors has facilitated significant industry expansion. In the space of a decade, apps have integrated themselves into a variety of functions, becoming an indispensable feature of modern life. Industry revenue is expected to grow at a compound annual rate of 23.8% over... Learn More

2. General Secondary Education in the UK

2020 Overall Risk Score: 2.98

Industry operators generally provide education to students between 11 and 18 years of age. The majority of schools are funded by the government or local education authorities, although the industry also includes privately funded independent schools, which are expected to be the main driver of industry growth over the five years through 2019-20. The majority of secondary schools are either academies, which are state-funded but operate independently of local authorities, or maintained schools, which are controlled by local authorities. Both operate according to government guidelines and are therefore directly influenced by government policy.Industry operators rely heavily on government funding, which has remained fairly... Learn More

3. Chemical & Fertiliser Mineral Mining in the UK

2020 Overall Risk Score: 3.13

The Chemical and Fertiliser Mineral Mining industry has been subject to volatile conditions over the past five years. The industry transitioned to the production of polyhalite which led to a substantial reduction in potash prices and significant revenue decline. As a result, industry revenue is forecast to decrease at a compound annual rate of 16.2% to reach £88.5 million over the five years through 2019-20. This includes an expected decline of 5% in the current year.The industry has undergone considerable changes as the largest industry operator focuses solely on the production of polyhalite, an organic fertiliser which requires no further... Learn More

4. Financial Technology in the UK

2020 Overall Risk Score: 3.27

Operators in the Financial Technology (FinTech) industry integrate finance and technology in ways that provide a variety of new services to businesses and consumers. Many of the services offered by FinTech companies had previously been delivered by traditional financial institutions such as banks. The UK FinTech industry is highly fragmented and expanding rapidly. Over the past five years, areas such as peer-to-peer lending, money transfer, and digital banks have performed well.The industry relies heavily on third-party financing. Despite volatile economic conditions over the past five years, funding from both private and public sources to the industry has been formidable. Government initiatives... Learn More

5. Cyber Security Software Development in the UK

2020 Overall Risk Score: 3.35

Operators in the Cyber Security Software Development industry create algorithms designed to be installed onto internet-connected networks to prevent unauthorised use. From undertaking businesses online to transferring financial information via online data packets, the Internet of Things has changed how society operates. However, the digital age has also allowed for cyber-attacks and the use malware to gain unauthorised access to computer networks for financial gain or personal data, threatening businesses and public resources. According to specialised global insurer, Hiscox, UK small businesses are the target of an estimated 65,000 cyber-attacks every day.Over the past decade, the volume and sophistication of... Learn More

6. Railway Equipment Manufacturing in the UK

2020 Overall Risk Score: 3.36

The industry relies heavily on long-term rolling stock replacement contracts. These contracts have long lead times and involve periodic payments throughout the manufacturing process, followed by a balloon payment when the project reaches completion. This creates revenue and profit volatility. Over the five years through 2019-20, industry revenue is forecast to increase at a compound annual rate of 13.7% to reach £2.8 billion.The industry’s performance is heavily dependent on the performance of Bombardier and Hitachi, as in 2019-20, these two firms are estimated to account for 54.8% of industry revenue between them. Bombardier managed to secure some important contracts, especially a £1 billion Crossrail... Learn More

7. Audiobook Publishing in the UK

2020 Overall Risk Score: 3.57

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 2019-20, industry revenue is expected to grow at a strong compound annual rate of 13.9%. Audiobooks were first introduced... Learn More

8. Software Publishing in the UK

2020 Overall Risk Score: 3.58

Businesses operating in the Software Publishing industry publish ready-made, non-customised computer software. Industry firms may also translate or adapt software for a particular downstream market or a slightly different application. Operators in the industry provide a wide range of software, such as operating systems, applications and middleware, to businesses across a range of industries as well as software for household use.

Over the past five years, industry growth has been driven by rising IT and telecommunications adoption and technological developments. The industry has been characterised by acquisitions, as larger operators have sought to remain on top of market trends and protect... Learn More

9. Online Women's Clothing Retailing in the UK

2020 Overall Risk Score: 3.60

Industry operators sell women's clothing using online retail platforms. This includes online-only retailers and excludes bricks-and-mortar stores that have an online presence. Over the five years through 2019-20, the Online Women's Clothing Retailing Industry has thrived. Industry revenue is anticipated to increase at a compound annual rate of 11.8%. Strong growth has been encouraged by the proliferation of the internet and mobile devices. Secure payment methods and a focus on value-added services have changed consumer attitudes towards online purchases, and innovative marketing and promotional efforts have also increased the industry's consumer base.

Despite the overall positive outlook, the industry faces intense... Learn More

10. Search Engines in the UK

2020 Overall Risk Score: 3.62

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 2019-20. 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