UK cybersecurity firms pulled in £13.2 billion in revenue during 2024, up 12% year on year. AI startups raised a record $2.4 billion in venture capital in the first half of 2025. Renewable electricity supplied over 54% of the national grid in Q3 2025. These numbers define the fastest growing business sectors in the UK heading into 2026, backed by government data, industry bodies, and market research firms.
Fastest Growing Business in the UK 2026: Key Statistics
- UK cybersecurity sector revenue reached £13.2 billion in 2024, with 21% GVA growth year on year (GOV.UK)
- UK AI market is projected to reach $26.89 billion by 2030 at a 27.6% CAGR (Statista)
- Renewable electricity hit 54.7% of UK generation in Q3 2025 (DESNZ)
- UK e-commerce is worth $265.14 billion in 2025 and is expected to reach $906.25 billion by 2030 (Mordor Intelligence)
- 73,450 new businesses were registered in Q3 2025 alone (Inter Departmental Business Register)
Fastest Growing Business Sectors in the UK by Revenue Growth Rate
IBISWorld tracks over 600 UK industries and publishes annual data on those with the strongest compound annual growth rates. Five sectors recorded the highest five-year revenue growth through the 2025–26 financial period.
Language learning software led the pack at 17% CAGR. Most platforms in this category are less than a decade old, and consumer preference for app-based alternatives to classroom courses keeps driving adoption. Contract catering came in at 12.3%, pushed up by return-to-office mandates and a recovery in live events. That sector’s revenue reached £8.7 billion.
Renewable electricity generation crossed £14.5 billion in 2025 revenue, with installed capacity expanding from under 48GW in 2019–20 to over 57GW by the end of 2023–24. Government data from the Department for Energy Security and Net Zero confirmed renewables supplied a record 50.8% of UK electricity in 2024, up from 46.4% in 2023.
| Sector | 5-Year CAGR | Key Benchmark |
|---|---|---|
| Language Learning Software | 17.0% | App-based consumer demand |
| Contract Catering | 12.3% | £8.7bn revenue |
| Renewable Electricity | 8.7% | £14.5bn revenue (2025) |
| Banking | 4.8% | £136bn revenue |
| Construction Contracting | 3.0% | £196.6bn revenue |
Fastest Growing Small Business Types in the UK
Protectivity, a UK business insurance provider, tracks the types of businesses registering for insurance each year. Their 2024–2025 data captured the sharpest spikes in new entrants at the grassroots level.
Reformer Pilates instructors saw a 948% year-on-year increase in insurance applications. That figure reflects growing demand for small-group, studio-based fitness outside the traditional gym model. Multi-purpose cleaning services were up 201%, and carpet and upholstery specialists rose 170%. Both categories share the same attributes: low startup costs, recurring household revenue, and minimal infrastructure requirements.
Craft businesses (169%) and cake making (198%) follow a similar pattern. These are home-based operations that typically scale through online platforms and local markets. Sole proprietorships still account for 56% of all UK businesses as of 2025.
UK Cybersecurity: Fastest Growing Business Sector by Government Data
The UK government’s Cyber Security Sectoral Analysis 2025, compiled by Ipsos and Perspective Economics for the Department for Science, Innovation and Technology, put hard numbers on the sector’s growth.
Total revenue reached £13.2 billion, up 12% year on year. Gross value added climbed 21% to £7.8 billion. Employment grew 11% to 67,300 full-time equivalents. Each cybersecurity employee contributed an average of £116,200 in GVA, up from £106,300 the prior year.
AI-driven security solutions now appear in 52% of the products delivered by UK cybersecurity companies, and 14 specialist firms focus entirely on AI security. The government has since pledged £14 million for its CyberASAP program, which converts academic research into commercial cybersecurity businesses, plus £8 million earmarked for startup and SME support.
UK Artificial Intelligence Market Size and Growth
Multiple research firms track the UK AI market. Statista values it at $7.95 billion in 2025 and projects $26.89 billion by 2030, at a 27.6% CAGR. IMARC Group uses a narrower methodology and pegs the 2024 figure at $3.3 billion, projecting $20.5 billion by 2033 at a 22.56% CAGR.
UK AI startups raised $2.4 billion in venture capital during the first half of 2025. That accounted for 30% of all VC funding in the country, up from 13% a decade earlier. The government has committed over £1 billion to AI research and development through its AI Sector Deal.
UK Fintech Sector: Market Size and Fastest Growing Segments
The UK fintech sector includes roughly 3,000 firms generating about £11 billion in economic value, according to HM Treasury. It remains the second-largest fintech market globally behind the United States. Lloyds Banking Group launched a £300 million fintech venture arm in January 2025, targeting AI, cybersecurity, and embedded-finance startups.
Mordor Intelligence values the market at $18.57 billion in 2025 and projects $43.92 billion by 2031 at a 15.42% CAGR. Neobanking is the fastest-expanding sub-segment, projected at 19.18% CAGR through 2031. Seven million consumers were actively using open banking services by 2024, and mandatory data-sharing regulations drove a 30% rise in account-to-account transactions. The wider UK banking industry continues to adapt, with traditional players accelerating digital investment.
UK E-Commerce Market: Third-Largest Globally
The UK holds its position as Europe’s largest e-commerce market and third-largest worldwide, behind China and the United States. Online spending grew 5.0% in Q3 2025 compared with Q3 2024, according to the ONS. The market is worth $265.14 billion in 2025 and is projected to reach $906.25 billion by 2030 at a 22.73% CAGR. Amazon remains the dominant marketplace, though UK-based retailers have been growing their direct online sales.
Online retail’s share of total spending currently sits at 28%, up from about 20% before the pandemic in 2019. Mobile commerce now accounts for over 55% of all transaction value and crossed the $100 billion threshold in 2025. The UK has 62.1 million e-commerce users as of 2025.
Fastest Growing UK Renewable Energy Investment
Renewables accounted for 54.7% of UK electricity generation in Q3 2025, the second-highest share on record. Solar PV showed the strongest gains: 16% capacity growth and 26% generation growth between Q3 2024 and Q3 2025.
| Metric | Value |
|---|---|
| Renewable Electricity Revenue (2025) | £14.5 billion |
| Renewables Share of Electricity (Q3 2025) | 54.7% |
| Installed Renewable Capacity (2025) | 65.99 GW |
| Projected Capacity (2030) | 118.87 GW |
| UK Renewable Energy Market Size (2024) | $23.86 billion |
| CAGR (2025–2030) | 20.6% |
The government’s Clean Energy Industries Sector Plan, published June 2025, aims to double clean energy investment to over £30 billion annually. Public capital will flow through Great British Energy (armed with £8.3 billion), the National Wealth Fund, and the British Business Bank. Enterprise software providers are also building tools to help UK firms manage energy procurement and compliance reporting.
Fastest Growing UK Companies by Revenue (2025 Rankings)
Business Leader’s Growth 500, an inaugural ranking, measured UK companies by three-year revenue growth. Marshall Arts, an entertainment and music promotion company, topped the list with over 24,000% growth and £68 million in revenue. Green Create, a renewable energy and biogas firm, followed with over 1,800% growth. Every company on the list exceeded 1,800% revenue growth over three years.
Separately, the Sunday Times Hundred (compiled using Beauhurst data) ranked the 100 fastest growing companies by three-year sales CAGR. Property development, construction, restaurants, and application software dominated across all four UK nations. Company formations fell slightly from 879,000 in 2023 to 846,000 in 2024, while closures edged up from 666,000 to 688,000.
FAQ
What is the fastest growing business sector in the UK in 2026?
Cybersecurity, with £13.2 billion in revenue (up 12%) and 21% GVA growth in 2024. AI and renewable energy also recorded strong double-digit expansion.
How big is the UK AI market in 2025?
Statista values the UK AI market at $7.95 billion in 2025. It is projected to reach $26.89 billion by 2030 at a 27.6% compound annual growth rate.
What small businesses are growing fastest in the UK?
Reformer Pilates instructors (948% growth), artists (238%), multi-purpose cleaners (201%), and cake making businesses (198%), based on insurance application data from Protectivity.
How much of UK electricity comes from renewables?
Renewables supplied 54.7% of UK electricity in Q3 2025, according to DESNZ Energy Trends data. Solar PV capacity grew 16% year on year in the same period.
How large is the UK e-commerce market?
The UK e-commerce market is worth $265.14 billion in 2025, making it the third-largest globally. It is projected to reach $906.25 billion by 2030.