Business is never consistent from year to year and industry demand changes rapidly. It is important for you to know which industries are growing, which industries are in decline, and which industries are steady so that you can run your business with confidence.
Following the uncertainties of Brexit, along with the upheaval of COVID-19, the business landscape has changed drastically in the last year. Although some of these changes are likely to be fairly transient – with the hope of many struggling industries gaining traction again quickly in the year ahead – a lot of economic changes are likely to be retained.
We look at the fastest growing industries, as well as those most likely to grow in the coming years, to help you understand the economy and make informed decisions.
What is the fastest growing industry?
Due to the unexpected global pandemic, certain industries grew out of necessity and are likely to decline again rapidly as soon as life returns to a semi-normal state. Other industries have grown despite current events and are likely to either stay relatively strong over the coming months and years or continue to grow. Carefully bear in mind the impact of both Brexit and COVID-19 when considering the past year’s industry growth.
Safety Equipment and Supplies Wholesale
The fastest growing industry in the UK was in safety equipment and supplies wholesale with an industry revenue growth of 78% between 2019 and 2020. Although some of this can be attributed to COVID-19 related industry growth, this sector is still expected to grow over the next few years as it provides for specialist needs in occupational health and other workplace health and safety regulations.
As legal requirements become more comprehensive and better regulated regarding employee and workplace health and safety, businesses are spending more money to ensure they are compliant and to minimise risk of both injury and potential legal action brought against them. Huge growth is unlikely in the years ahead, simply because PPE will be in less demand, but the construction sector is growing and is responsible for a lot of the demand for safety equipment and supplies.
CRM System Providers
CRM System Providers saw a 49.1% revenue growth since 2019 and is unlikely to see a decline in growth anytime soon.
CRM (Customer Relationship Management) systems have been widely used in businesses to help them handle customer information in line with GDPR and the Data Protection Act. CRM systems have also been customised to streamline many office roles and automate office work, saving businesses time and money in processing large batches of data.
As artificial intelligence and automated business practices are likely to be improved upon in the future, CRM system providers are likely to maintain a top spot in the fastest growing industry list.
Online Food and Alcohol Ordering and Delivery
An unexpected, but potentially short-lived industry boost was in the Online food and alcohol delivery industry. As hospitality was forced to close, many businesses turned to online services for ordering and delivering, providing a revenue growth of between 42-45% for the industry.
Only time will tell if this industry continues to see an increase. There is a good chance that when hospitality opens again the demand for food and alcohol delivery will decrease as people choose to go out and enjoy socialising again.
Language Learning Software Development
This is a relatively new industry and that could be a big contributor to its successful 39.5% revenue growth. The Language Learning Software being developed includes online tutoring platforms, language learning games, speech recognition, and language exchange platforms. Globalisation has played a part in encouraging the public to learn new languages or improve their existing knowledge, and the convenience of digital learning is a big drawcard.
As this industry ages it is likely to stabilise, but for now it’s a rapidly growing industry
Precious Metals Production
The Precious Metal Production industry contributes to industrial manufacturing, investment, and retail. Gold, silver and platinum are all used in the production of certain automotive, catalytic converters, and other manufacturing. In addition to being in high demand for manufacturing, precious metals are also highly sought as investments as they are viewed as safe investments that are unlikely to see a decline in worth.
The sector grew 35.9% in 2019-2020 but COVID-19 is believed to be a big contributor to this growth as precious metals were used in the manufacturing of essential respiratory machinery.
Which industries will grow in the future?
With talk of the “new normal” and “getting back to normal” it is important to remember that trends in industry growth could still change drastically and quickly. There is no more normal in business and every industry has had to adjust in some way.
With that in mind, here are a few predictions on the industries that are most likely to grow despite changing circumstances.
The focus for many governments, businesses, and individuals has shifted over the past few years to renewable energy sources. Energy already holds a large market share, but with the climate emergency and the UK government’s green initiatives, the renewable energy market has seen steady growth and is likely to continue growing over the years to come.
London is recognised as the second most influential city for financial technology companies, second only to New York. With technology and finance being so important in global markets it makes sense that this sector is growing steadily and unlikely to stop anytime soon. Financial technologies have seen a rise in job opportunities as well as creating spaces for new entrepreneurial ventures.
Although Brexit was considered a threat to the construction industry, it has survived and continued to grow over the past years. There doesn’t appear to be any decline in the demand for construction and although ongoing Brexit complication may still jeopardise industry health, indicators point to future growth.
Tech is now the main method of engagement with potential customers and clients. With a more tech-savvy audience, companies are on the lookout for more immersive ways to engage and entice potential clients. This takes the form of virtual reality, artificial intelligence, and augmented reality. This is another industry that is likely to continue growing steadily as tech use and development grows.