Industries with the Biggest Increase in Profit Margin in United Kingdom in 2026

• 1. Pension Funding in the UK

  Percentage Point Increase for 2026: 116.9pp

  Pension funds are undergoing a period of change. The past decade has marked a shift from defined benefit (DB) to defined contribution (DC) schemes dominating the industry, due to the financial burden DB schemes place on employers. Growing longevity risk, stemming from rising life expectancy has also been a contributing factor. Revenue is expected to fall by 8.5% over the five years through 2024-25 to £125 billion, including estimated growth of 3.1% in 2024-25, while the average industry profi...

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• 2. Pipeline Transport in the UK

  Percentage Point Increase for 2026: 15.6pp

  Pipeline transport revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2025-26, reaching £1.7 billion. A sharp spike in demand for UK natural gas surged following Russia’s invasion of Ukraine in 2022, with Europe seeking alternatives to Russian supplies, increased throughput in UK pipelines and boosted revenue. Higher gas wholesale prices from supply chain disruptions also ratcheted up revenue, as companies were able to recover higher shrinkage costs. How...

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• 3. Urban Passenger Rail Operations in the UK

  Percentage Point Increase for 2026: 15.0pp

  Over the five years through 2025-26, revenue is projected to soar at a compound annual rate of 31% to £5.1 billion. TfL dominates the urban rail industry, accounting for around 90% of total passenger income, largely due to London’s substantial urban population, which requires an expansive transport system to meet its varied travel needs. All urban passenger rail companies are publicly owned, meaning their growth and expansion heavily depend on government funding, which is crucial for implemen...

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• 4. Electricity Transmission in the UK

  Percentage Point Increase for 2026: 13.1pp

  The UK's electricity transmission network is made up of four high-voltage onshore transmission networks owned by the National Grid Electricity Transmission plc, SP Transmission plc, Scottish Hydro Electric Transmission plc and Northern Ireland Electricity Networks Ltd. Each company operates a regional monopoly on different transmission networks and is heavily regulated through price controls. The tight oversight by Ofgem keeps profit in check to ensure suitable investment in the network and f...

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• 5. Painting in the UK

  Percentage Point Increase for 2026: 11.2pp

   The UK painting industry is entering a new phase of opportunity, buoyed by government-backed housebuilding schemes and an expanding commercial property market. Over the five years through 2025-26, revenue is anticipated to slump at a compound annual rate of 2.9%, with revenue expected to drop by 5.4% in the current year to £3.5 billion. Subdued activity in the wake of higher inflation, contracting real disposable incomes and a slump in residential property transactions are threatening revenu...

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• 6. Electricity Supply in the UK

  Percentage Point Increase for 2026: 9.7pp

  The Electricity Supply industry has developed considerably since its liberalisation in 1999. Following a period in which the Big Six suppliers dominated, energy regulator Ofgem endeavoured to introduce greater competition to the market as part of attempts to drive down energy bills. Major mergers and acquisitions effectively brought the dominance of the former Big Six suppliers to an end at the end of 2019-20. Along with weakening electricity consumption, swelling competition has applied furt...

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• 7. Motion Picture Production in the UK

  Percentage Point Increase for 2026: 9.0pp

  The film production industry is volatile, as it relies on investments in the production of feature films, particularly from the US. This means external factors significantly sway the industry's success, like the USD-GBP exchange rate, film tax incentives and credit availability. Advances in film production and creative developments worldwide also affect the industry. The global film market has been curbed by the weak performance of cinemas since the pandemic, with UK attendance struggling at ...

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• 8. Medical Malpractice Insurance in the UK

  Percentage Point Increase for 2026: 6.8pp

  The private healthcare market heavily drives the medical malpractice insurance industry. Under the Medical Act 1883, all healthcare professionals practising in the UK must hold clinical negligence cover. Insurers' revenue has increased at a compound annual rate of 2.3% over the five years through 2025-26. Given the nature of medical practice insurance, it's no surprise insurers contend with intense competition from state indemnity cover, and stringent regulatory hurdles.

  A surge in pri...

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• 9. Sea & Coastal Passenger Water Transport in the UK

  Percentage Point Increase for 2026: 6.7pp

  Over the five years through 2025-26, revenue is anticipated to climb at a compound annual rate of 20.5%. Revenue is expected to grow by a modest 0.2% in 2025-26 to £2.8 billion. The UK Sea and Coastal Passenger Water Transport industry has demonstrated surprising resilience and growth despite several headwinds, most notably persistently high fuel prices and growing regulatory pressures. However, passenger numbers have climbed steadily as travellers return after the pandemic and cruises have g...

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• 10. General Insurance in the UK

  Percentage Point Increase for 2026: 5.8pp

  Over the five years through 2025-26, the General Insurance industry's revenue is forecast to grow at a compound annual rate of 2.6% to £89.3 billion, including estimated growth of 4.6% in 2025-26. After Solvency II regulations were brought in at the start of 2016, buffer requirements constricted capital.

  Following a solid recovery in 2021-22, the Russian invasion of Ukraine created yet more chaos in the insurance sector, especially for aviation and maritime insurance – these have been ...

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