Most Profitable Industries in the UK in 2022

1. Pension Funding in the UK

Total Profit for 2022: $24.1B

The Pension Funding industry comprises defined benefit (DB) schemes and defined contribution (DC) schemes. Over the past decade, the industry has been transformed by the ongoing shift from DB to DC schemes, which in 2021-22 are estimated to account for 61% and 39% of total industry assets respectively. Industry revenue, which is calculated by combining contributions and investment returns, has increased over the past five years. The increase in contributions was fuelled by the phased introduction of automatic enrolment in pension schemes, which began in October 2012 and was fully phased in by February 2018. Record high levels of employment... Learn More

2. Banks in the UK

Total Profit for 2022: $17.4B

Over the five years through 2022-23, industry revenue is expected to decline at a compound annual rate of 2.1% to £101 billion. The low-interest-rate environment of the past five years has limited the interest earned by banks from loans, negatively affecting income. A stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constrained lending activity. To protect profit margins, industry operators have implemented significant branch rationalisation programmes and made substantial job cuts.

The outbreak of the COVID-19 (coronavirus) pandemic had a significant effect on the industry, with industry revenue falling by 14.2% in... Learn More

3. Legal Activities in the UK

Total Profit for 2022: $12.4B

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. Management Consultants in the UK

Total Profit for 2022: $10.2B

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

5. Computer Consultants in the UK

Total Profit for 2022: $9.8B

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

6. Construction Contractors in the UK

Total Profit for 2022: $9.6B

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

7. Security & Commodity Contracts Brokerage in the UK

Total Profit for 2022: $8.2B

Brokers in the Security and Commodity Contracts Brokerage industry deal in financial markets on the behalf of others. Industry operators do not deal in markets on their own account or manage portfolios. Volatility in financial markets has been high over the past five years, which has at times benefited the industry. Most significantly, the COVID-19 (coronavirus) pandemic and the recent Ukraine-Russia conflict have generated extreme volatility over the final two years of the period, increasing trading volumes and thus fees generated by industry operators. Industry revenue is expected to grow at a compound annual rate of 2.4% over the five... Learn More

8. General Insurance in the UK

Total Profit for 2022: $7.1B

Businesses in this industry underwrite general insurance policies relating to property, casualty, liability, motor vehicles and other general risks. The premiums they earn from these activities are then invested to generate additional income. The industry provides services to both private and commercial clients. Underwriting life and disability do not fall within this industry, although general health insurance does.

Over the five years through 2021-22, industry revenue is expected to increase at a compound annual rate of 0.2%. At the start of the period, investment income faltered as bond yields were constrained due to Bank of England interest rate decreases and corporate... Learn More

9. New Car & Light Motor Vehicle Dealers in the UK

Total Profit for 2022: $6.9B

Industry revenue is anticipated to fall at a compound annual rate of 5.9% to reach £101.9 billion over the five years through 2022-23. New car registrations have declined as a result of a period of economic uncertainty after the electoral decision to leave the European Union. Rising fuel prices and a weak pound have inflated the cost of new car ownership, restricting demand. Profit margins are expected to rise slightly over the five years through 2022-23, to reach 7.2%. The propensity of consumers to spend on discretionary items has been curbed by constrained consumer confidence and an anticipated decline in... Learn More

10. Building Project Development in the UK

Total Profit for 2022: $6.8B

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