Least Risky Industries in the UK in 2020

1. Cyber Security Software Development in the UK

2020 Overall Risk Score: 2.30

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 cyber-attacks... Learn More

2. E-Commerce & Online Auctions in the UK

2020 Overall Risk Score: 2.47

Operators in the E-Commerce and Online Auctions industry sell a wide variety of goods through online portals only. Over the past decade, the industry has undergone considerable change. Formerly a declining industry that focused on mail orders and direct sales via TV, radio and telephone, the industry has been reinvigorated by the growth of internet services and rising online spending. According to the Office for National Statistics, total online expenditure as a proportion of all retailing has increased from an average of 6.2% in 2009 to 18.2% in August 2019.

Technological developments in internet-enabled devices, increasing internet access and faster internet... Learn More

3. Audiobook Publishing in the UK

2020 Overall Risk Score: 2.49

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

4. Pre-Primary Education in the UK

2020 Overall Risk Score: 2.59

Pre-primary education is offered to children up to the age of five to introduce them to a school-type environment before they begin primary school. Nursery education is provided by each of the constituent governments of the United Kingdom, and may also be provided by privately funded schools or for-profit private enterprises. Demand for the industry’s services is largely dependent on the number of children under five years old in the United Kingdom, the level of female participation in the workforce, the working hours of parents, and changes in household disposable income.Despite increasing government funding over the second half of the period, many operators have faced... Learn More

5. App Development in the UK

2020 Overall Risk Score: 2.62

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

6. General Secondary Education in the UK

2020 Overall Risk Score: 2.71

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

7. Online Women's Clothing Retailing in the UK

2020 Overall Risk Score: 2.74

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 2018-19, the industry has thrived, and revenue is expected to increase at a compound annual rate of 13.4%. 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, while innovative marketing and promotional efforts have also increased the industry’s consumer base. However, the industry faces intense external competition from traditional retail outlets, department stores and international online retailers.Despite... Learn More

8. Railway Equipment Manufacturing in the UK

2020 Overall Risk Score: 2.80

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

9. Child Day-Care Centres in the UK

2020 Overall Risk Score: 2.84

Operators in the Child Day-Care Centres industry provide childcare services, primarily to children aged 12 and under, in a non-domestic setting. Falling unemployment over much of the past five years has contributed to rising demand for services. However, this trend reversed in 2018-19 and unemployment is set to increase in the current year also. Despite this, a rising number of children aged 10 and under has added to childcare requirements in recent years, which has caused strong growth in enterprise and establishment numbers. Over the five years through 2019-20, industry revenue is projected to grow at a compound annual rate... Learn More

10. Primary Education in the UK

2020 Overall Risk Score: 3.04

The Primary Education industry consists of approximately 26,500 schools. Approximately 93% of primary school pupils attend state-funded schools and academies, with the remainder enrolled at independent schools. Industry revenue is mostly derived from government funding, either distributed directly to establishments or via local education authorities, with the remainder consisting of tuition fees and donations from children enrolled in privately funded independent schools. IBISWorld expects industry revenue to decrease at a compound annual rate of 1.8% over the five years through 2019-20 to £31.2 billion. This can be attributed to declines in government spending on education in 2015-16, 2017-18 and 2019-20, as well as... Learn More