Industries with Least Risky Business Environments in the UK in 2023

1. Renewable Electricity Generation in the UK

Business Environment Risk for 2023: 2.74

Increased awareness about the effects of climate change has driven an aggressive decarbonising strategy, spearheaded by renewables. Government targets and incentives spur major investment in renewable assets among UK energy giants, while technology developments boost potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. Government data shows that the share of electricity generated from renewables surged from 29.2% in 2017 to 39.6% in 2021.

Renewable generators' revenue has increased at a compound annual rate of 6.9% over the five years through 2022-23, reaching £8.5 billion. Growth has been underpinned by the unrelenting expansion... Learn More

2. Cyber Security Software Development in the UK

Business Environment Risk for 2023: 3.35

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, small UK businesses are the target of an estimated 65,000 cyber-attacks every day.

High-profile cyber breaches have accelerated investment in intrusion prevention systems and given rise to innovation-led cyber start-ups that are pioneering a new era of security software. Over the five years... Learn More

3. Precision Agriculture Systems & Services in the UK

Business Environment Risk for 2023: 3.39

Companies in the Precision Agriculture Systems and Services industry serve the downstream agricultural sector. The industry's products and services aim to increase the efficiency and yields of arable land and livestock. This is achieved through soil mapping, variable-rate application technology, Global Navigation Satellite System services, guidance systems and livestock management.

The industry has performed well in recent years. Over the five years through 2022-23, industry revenue is expected to expand at a compound annual rate of 1.3% to reach £114.6 million. Growth has been primarily driven by agricultural income, business capital expenditure and the deprecation of the pound. Nonetheless, fluctuating fertiliser... Learn More

4. 3D Printing & Rapid Prototyping Services in the UK

Business Environment Risk for 2023: 3.51

The rising adoption of 3D printing from the automotive aftermarket, aircraft manufacturers and a wide range of sectors is boosting performance. 3D printing and rapid prototyping enhance the product development process while producing highly complex parts at a lower cost. Many start-ups and consumers are using 3D printing to develop prototypes and different product versions.

Revenue is forecast to rise at a compound annual rate of 9.2% over the five years through 2023-24 to £653 million, including forecast growth of 14.4% in 2023-24. Travel and supply chain disruption following the COVID-19 outbreak slumped automotive and aircraft component production using 3D printing... Learn More

5. Payment Systems in the UK

Business Environment Risk for 2023: 3.56

The Payment Systems industry in the United Kingdom operates payment network infrastructure. These networks facilitate riskless transfers of money. Payment and exchanges of cryptocurrencies are not included in the industry. Additionally, the largest publicly owned payment system, the Clearing House Automated Payment System is also not included in the industry. The industry mainly caters to downstream Payment Service Providers (PSPs) that provide aggregated payment solutions to consumers, businesses and other institutions. The rapid growth of contactless payment over the past five years has benefited the industry by increasing the volume of debit card payments made. Low unemployment levels have also... Learn More

6. Biscuit Production in the UK

Business Environment Risk for 2023: 3.68

The Biscuit Production industry makes a range of grain-based snack foods. Its main products are bakers' wares, biscuits, savoury snacks and preserved cakes. Demand from supermarkets, grocery wholesalers and bakery retailers is the predominant driver of the industry, which is underpinned by consumer demand. The industry is fairly fragmented, with only three companies holding market shares of more than 5%. Industry revenue is expected to rise at a compound annual rate of 0.2% over the five years through 2022-23 to £3.3 billion as the industry has suffered thanks to supermarket pricing pressures, rising competition and changing consumer preferences. However, revenue... Learn More

7. Non-Alcoholic Beer Production in the UK

Business Environment Risk for 2023: 3.72

Per-capita alcohol consumption, income, price, health consciousness and consumer preferences drive non-alcoholic beer producers' performance. Over the five years through 2022-23, revenue is set to grow at a compound annual rate of 30% to £807.6 million, including growth of 34.2% in 2022-23, with the average industry profit margin hitting 19.7%.

Shrinking alcohol consumption per capita alongside growing health consciousness is paving the way for industry growth. Popular craft beer producers are rapidly introducing no-alcohol and sustainable beer varieties, driving growth in the non-alcoholic beer industry. During the COVID-19 pandemic, many consumers stuck at home cut out booze, dabbing into non-alcoholic beer... Learn More

8. Cinemas in the UK

Business Environment Risk for 2023: 3.74

Cinemas earn their income mostly through box office sales, with blockbuster films being especially lucrative, but food and beverage sales and screen advertising also offer fairly strong revenue streams. The industry is highly concentrated, with the top four chains expected to control for 82.6% of the market in 2022-23.

High cinema admissions and a strong film slate helped UK cinemas grow for much of the past decade. The release of highly anticipated films and the popularity of major film franchises (think the Marvel Cinematic Universe) pushed admission numbers to a decades-long peak of 177 million in 2018, according to the UK... Learn More

9. Motor Vehicle Parts Wholesaling in the UK

Business Environment Risk for 2023: 3.76

The Motor Vehicle Parts Retailers industry's performance has been restricted in recent years. Falling new car sales and declining car production activity have lowered demand for premium parts, squeezing revenue growth. The total number of vehicles on UK roads is rising, sustaining downstream demand. The cost-of-living crisis means customers are shunning new car sales for used cars, raising the average age of the UK fleet. Lower production volumes are reducing parts sold for car assembly. Revenue is projected to swell at a compound annual rate of 0.3% to £17.6 billion over the five years through 2022-23, including an expected growth... Learn More

10. Shipbuilding in the UK

Business Environment Risk for 2023: 3.77

Industry operators build military vessels for the Royal Navy and foreign governments. Industry revenue is anticipated to expand at a compound annual rate of 1.5% over the five years through 2022-23 to reach £6.3 billion. This includes revenue growth of 0.5% in 2022-23. Import competition in the passenger ship segment has remained intense over the past five years due to lower production costs in Europe and Asia. Nevertheless, exports are expected to account for 19.5% of industry revenue in 2022-23.

Industry revenue growth has been supported by the construction of Queen Elizabeth class aircraft carriers. The weak pound also led to... Learn More