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Most Profitable Industries in the UK in 2023

Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Most Profitable Industries in the UK in 2023

The 10 Most Profitable Industries in the UK

Industry
Total Profit for 2023
1.

Banks in the UK

$24.9B
2.

Construction Contractors in the UK

$14.4B
3.

Legal Activities in the UK

$12.9B
4.

Computer Consultants in the UK

$10.6B
5.

Management Consultants in the UK

$10.6B
6.

Building Project Development in the UK

$8.1B
7.

Supermarkets in the UK

$8.0B
8.

New Car & Light Motor Vehicle Dealers in the UK

$7.3B
9.

General Insurance in the UK

$5.9B
10.

Software Development in the UK

$5.2B

Want to see more most profitable industries?

View a list of the Top 25 most profitable industries

Most Profitable Industries in the UK in 2023

  • 1. Banks in the UK

    Total Profit for 2023: $24.9B

    Over the five years through 2022-23, UK banks' revenue is expected to decline at a compound annual rate of 0.5% to £109.6 billion, including anticipated growth of 14.8% in the current year. Low interest rates after the financial crisis limited the interest earned by banks from loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of lots of branches and made substantial job cuts.

    The COVID-19 outbreak triggered a dramatic decline in revenue... Learn More

  • 2. Construction Contractors in the UK

    Total Profit for 2023: $14.4B

    Operators in the Construction Contractors industry are active across the building construction and civil engineering markets. Despite operators being remunerated for completing new building and infrastructure construction contracts or fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus on new dwellings construction, while civil engineering specialists afford clients services across the infrastructure value chain. Moreover, some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale maintenance contracts in local markets.

    Over the two years through 2019-20, revenue grew,... Learn More

  • 3. Legal Activities in the UK

    Total Profit for 2023: $12.9B

    Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2022-23, industry revenue is expected to rise at a compound annual rate of 0.7% to reach £40.2 billion. Widespread business uncertainty following the EU referendum and the COVID-19 (coronavirus) outbreak has limited industry growth. However, the industry is countercyclical, meaning that demand for legal work in certain areas, such as litigation and insolvency matters, grows in times of economic downturn. This is expected to mitigate steeper declines. In 2022-23, revenue is expected to fall by 2.1% due... Learn More

  • 4. Computer Consultants in the UK

    Total Profit for 2023: $10.6B

    The Computer Consultants industry is composed of businesses that provide expert advice and assistance in planning and designing computer systems that integrate computer hardware, software and communication technologies. Computer consultants provide services to clients in all sectors of the economy, although the financial services and public sectors are particularly important markets. Demand for industry services is largely influenced by business confidence levels, which typically rise and fall in line with general economic conditions, and technological advancements, particularly those that are beneficial to businesses.

    Over the five years through 2022-23, industry revenue is forecast to grow at a compound annual rate of... Learn More

  • 5. Management Consultants in the UK

    Total Profit for 2023: $10.6B

    The Management Consultants industry covers a broad range of consulting services, including strategic and organisational planning, marketing, IT, human resource consulting and business process management. Over the five years through 2022-23, industry revenue is expected to grow at a compound annual rate of 2.2% to reach £70.2 billion. This growth has largely been driven by rising demand for IT consulting services. In addition, regulatory changes in the financial services sector, the industry's largest downstream market, have benefited the industry, as banks and other financial institutions have required assistance to reformulate business strategies and operations in order to comply with new... Learn More

  • 6. Building Project Development in the UK

    Total Profit for 2023: $8.1B

    The financial and operational performance of development markets rests on a number of economic and socio-economic factors, ranging from property valuations and price movements to market sentiment and credit conditions. Over the five years through 2022-23, industry revenue is forecast to increase at a compound annual rate of 0.5%, reaching £36.4 billion. While the EU referendum dampened investor sentiment and cooled property markets, the collective performance of UK property developers remained resilient before the COVID-19 (coronavirus) pandemic. Against a backdrop of policy support, high levels of housebuilding investment translated into strong demand for development solutions. Moreover, select growth markets in... Learn More

  • 7. Supermarkets in the UK

    Total Profit for 2023: $8.0B

    Industry revenue is expected to grow at a compound annual rate of 0.5% over the five years through 2022-23 to reach £190.8 billion. Changing shopping habits, the aggressive expansion of discount supermarkets and increased external competition have influenced industry performance over the past five years. The largest operators have cut prices to attract greater loyalty from their customers. The Big Four's grip on the industry has weakened because of intense price competition on profit margins. Supply chains have also been disrupted due to a shortage of heavy goods vehicles drivers, which has inflated purchase costs. Nevertheless, supermarkets have been expanding... Learn More

  • 8. New Car & Light Motor Vehicle Dealers in the UK

    Total Profit for 2023: $7.3B

    New car dealers' revenue is anticipated to fall at a compound annual rate of 5.9% over the five years through 2022-23 to £101.9 billion. New car registrations have been inching downwards – the result of skyrocketing fuel prices and a weak pound restricting sales. At the same time, weak consumer confidence disposable incomes, caused by Brexit, the COVID-19 pandemic and the ongoing cost-of-living crisis – curbed spending on big-ticket discretionary products, like new cars. Many have been drawn to the used car market instead.

    In 2020-21, the COVID-19 outbreak decimated the industry. Car dealers were forced to close their doors for... Learn More

  • 9. General Insurance in the UK

    Total Profit for 2023: $5.9B

    Over the five years through 2022-23, the General Insurance industry's revenue is forecast to edge downwards at a compound annual rate of 1.5%. After Solvency II regulations were brought in at the start of 2016, buffer requirements constricted capital. More recently, the COVID-19 pandemic severely disrupted insurance patterns and claims, with some lines (like car insurance) becoming considerably more profitable, with the opposite true for others (like income protection).

    Following what looked like a strong recovery in 2021-22, the Russian invasion of Ukraine has created yet more disruption the insurance sector, especially for aviation and maritime insurance, pressured by war-related risks... Learn More

  • 10. Software Development in the UK

    Total Profit for 2023: $5.2B

    The Software Development industry has made considerable progress over the past 10 years, as businesses and individuals have become reliant on electronic devices in many aspects of everyday lives. Online access to news, social media, video and other websites, and automated client-relationship and advertising software are now integral components of modern culture. Software developers' revenue is expected to grow at a compound annual rate of 5.3% over the five years through 2022-23 to £41.4 billion.

    The rapid increase in IT and telecommunications adoption, most notably the adoption of smartphones and tablet computers, has driven the industry's growth over the decade. Economy-wide... Learn More

More Industry Trends

Fastest Growing Industries in the UK in 2023

Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Fastest Growing Industries in the UK by Revenue Growth (%) in 2023

VIEW ARTICLE

Biggest Industries by Revenue in the UK in 2023

Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Biggest Industries by Revenue. in the UK in 2023

VIEW ARTICLE

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