People sometimes wrongly assume that generating loads of revenue is the key to making money. However, it’s actually about maximising your profit and minimising your overheads. For example, though a smartphone costs hundreds of pounds for consumers to purchase, not much of this goes to the company. Instead, the money is spent on manufacturing, marketing, taxes, employee payment, ectara. As such, in our article today, we are going to be looking at some of the most profitable industries in the United Kingdom, as opposed to those with the highest revenue. Keep reading and you might even be surprised by what you find on our list.
Pension Funding
The pension funding industry has a market size of £166 billion and supports over 55,000 businesses. Essentially, pension funding is about providing people with retirement benefits after they have finished working. This includes personal pension schemes (which people themselves pay into over the years) and occupational pension schemes (which the employer pays towards). However, state pensions are not accounted for in the pension funding industry. These businesses are profitable in the UK partially because they have attracted a lot of highbrow investors, such as Lloyds Bank and the Royal Bank of Scotland.
Online Gaming
The online gaming industry has grown exponentially in recent years, thanks to the internet and introduction of mobile gaming. For those who aren’t aware, online gaming consists of things like online gambling, online casinos, esports betting and virtual bingo rooms. This industry has even started becoming more popular than land-based gaming. Consumers enjoy the convenience of hopping onto their smartphones and playing on sites like gamified casino, as opposed to travelling however many miles to their local arcade. As large expenses (like paying for business premises) aren’t an issue with online gaming, this industry is rather lucrative.
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Immersive Technology
Immersive technology is one of the most profitable industries in the world, let alone the UK. Immersive tech ranges from augmented reality and virtual reality to mixed reality and haptic technologies. The entertainment industry has made the best use of immersive technology so far, but now this industry is being eyeballed by the healthcare sector, too. For example, virtual reality is being employed to train surgeons, while augmented reality could be used to superimpose x-rays onto patients’ bodies. Being such an innovative and exciting industry, immersive technology has attracted a lot of investors.
Electrical Distribution
In the modern world, electricity is an absolute necessity for living – almost as much as eating and drinking are essential – and so it makes sense that the electrical distribution industry would be highly profitable. As such, it has a market share of £7 billion. Some of the biggest businesses in this sector include Scottish Power and Western Power, who ensure that high-voltage electricity can be transferred safely into the user’s home.
These are some of the most profitable industries in the United Kingdom currently. As the business landscape grows and consumer patterns change, we’ll be interested to see what happens to these industries.