Least Risky Industries in the UK in 2020

1. App Development in the UK

2020 Overall Risk Score: 2.86

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: 3.09

The General Secondary Education industry provides education to students between 11 and 18 years of age. Most schools are funded by the government or local education authorities (LEAs), although the industry also includes privately funded independent schools, which are likely to drive industry growth over the five years through 2020-21. The majority of secondary schools are either academies, which are state-funded but operate independently of LEAs, or maintained schools, which are controlled by LEAs. 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 safeguarded from... Learn More

3. Intercity Passenger Rail Transport in the UK

2020 Overall Risk Score: 3.12

The Intercity Passenger Rail Transport industry includes large multinational rail companies that operate mainline rail services, in addition to a number of smaller operators that run and maintain heritage and tourist railways. Performance as a whole is affected by many different factors, including the total number of passenger rail journeys made each year, government subsidies, regulatory changes, the rate of unemployment and the relative cost of travelling by rail as opposed to by alternative modes of transport. The latter variable is principally influenced by fuel costs; when these are high, people tend to opt for public transport over car usage.

Over... Learn More

4. Cyber Security Software Development in the UK

2020 Overall Risk Score: 3.30

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.

During the past five years, high-profile cyber breaches, including... Learn More

5. Financial Technology in the UK

2020 Overall Risk Score: 3.42

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

6. Chemical & Fertiliser Mineral Mining in the UK

2020 Overall Risk Score: 3.55

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

7. Primary Education in the UK

2020 Overall Risk Score: 3.58

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 1.2% over the five years through 2020-21 to £32.8 billion. This can be attributed to declines in government spending on education over some years of the... Learn More

8. Urban Passenger Rail Operations in the UK

2020 Overall Risk Score: 3.60

The Urban Passenger Rail Operations industry includes businesses that operate passenger rail networks through urban, suburban or metropolitan areas. London is the largest market for industry services, accounting for more than 90% of passengers. Consequently, Transport for London (TfL) dominates the industry through its ownership of the London Underground, the Docklands Light Railway and the London Overground. Industry performance is largely contingent on the number of passengers using these services, which is determined by several demographic and social factors, including the size of the urban population, the rate of employment and competition from alternative forms of transport.

Industry revenue is expected... Learn More

9. Software Publishing in the UK

2020 Overall Risk Score: 3.63

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

10. Railway Equipment Manufacturing in the UK

2020 Overall Risk Score: 3.63

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