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Plumbing, Heat & Air Conditioning Installation in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Adriana De Azevedo Adriana De Azevedo London, United Kingdom Last Updated: July 2025 SIC UK-F4322

Revenue

£273.6bn

2025-26

£290.6bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

2m

Businesses

497k

Wages

£XX.Xbn

Plumbing, Heat & Air Conditioning Installation in the UK industry analysis

Plumbing, heating and air conditioning installation revenue is forecast to grow at a compound annual rate of 2.2% over the five years through 2025 to €273.6 billion. The revenue of plumbing and HVAC contractors is closely tied to construction sector cycles and generally aligns with broader economic and investment trends. Since the pandemic, weak economic conditions, highlighted by rampant inflation and supply chain disruptions, have driven up construction material costs, squeezing investment budgets, particularly in the commercial market, as customers aim to conserve cash. Also, persistent inflationary pressures have further constrained revenue opportunities as central banks have raised base rates, leading to increased borrowing costs and further restricting new investments in construction.

Trends and Insights

  • Demand from infrastructure markets remains resilient. Due to the essential nature of infrastructure and the fact that public funding is pre-allocated, infrastructure construction has remained reasonably steady in the face of recent economic hardship.
  • Government funding supports new installations. Funding for the installation of new, more-efficient heating systems has created high-value opportunities for plumbing and HVAC contractors.
  • Many small-scale contractors means a fragmented market. Market concentration is low because many plumbing and HVAC contractors are small, owner-operated businesses serving a limited geographical region.
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Top Questions Answered in this Report

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What is the market size of the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom in 2025?

The market size of the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom is £273.6bn in 2025.

How many businesses are there in the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom in 2025?

There are 497k businesses in the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom, which has grown at a CAGR of 1.8 % between 2020 and 2025.

Has the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom has been growing at a CAGR of 3.3 % between 2020 and 2025.

What is the forecast growth of the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom over the next 5 years?

Over the next five years, the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom is expected to grow.

What does the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom include?

Work involving heating systems and Work involving cooling systems are part of the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom.

How competitive is the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom?

The level of competition is high and steady in the Plumbing, Heat & Air Conditioning Installation industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Plumbing and HVAC contractors must follow building regulations. Building regulations may differ between geographies, but contractors have to make sure that installations meet the specified requirements.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Plumbing, Heat & Air Conditioning Installation in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Competition constrains profitability. The highly competitive nature of the industry means contractors battle on price to win business, but lower prices hinder their returns.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Plumbing, Heat & Air Conditioning Installation in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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