Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated £127.4bn in 2025.
Trends and Insights
An ageing, expanding and growing population, coupled with inflation, has damaged real-term NHS revenue growth
- Government funding determines NHS hospital budgets for the year, so it forms the foundation for the hospital industry’s revenue, with volatility and growth prospects closely tied to these budget decisions. NHS England has a planned budget of £215.6 billion in real terms in 2025-26, according to The NHS Confederation. However, due to constraints and cost pressures, this budget is still £6.6 billion short for 2025-26 according to NHS England, underscoring the challenges of balancing rising demand with available resources. Given recent pay settlements for consultants and junior doctors, pay will be a big cost pressure for hospitals. Wage costs are likely to eat into revenue in 2025-26 as hospitals depend on staff to work longer hours and hire temporary healthcare professionals to plug workforce shortages.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
New hospitals ease capacity issues, but short-term strains persist
- The New Hospitals Programme, the last government’s initiative to build 40 new hospitals in the 10 years through 2030, was under review by the Labour Government due to a lack of funding. The result in January 2025 is that the programme will go ahead, backed by a £15 billion investment over consecutive five-year waves and there will be 23 projects starting between 2025 and 2035, according to the Department of Health and Social Care. As of July 2025, two new hospitals had been opened: Midland Metropolitan and Dyson Cancer Centre. This will free up capital investments and hospital infrastructure improvements moving forward.
Biggest companies in the Hospitals in the UK
| Company | Market Share (%)
2026 | Revenue (£m)
2026 |
|---|---|---|
National Health Service | 121,970.7 | |
Spire Healthcare Ltd | 1,421.9 | |
Circle Health Group Ltd | 1,267.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Ordinary and planned surgery beds, Day-care and outpatient services and Emergency care beds. Ordinary and planned surgery beds is the largest segment of the Hospitals in the UK.
Trends and Insights
Ordinary and planned surgery beds are full to the brim
- Patients are admitted for scheduled surgery or treatment after a referral from a general or specialist medical practitioner. Treatments related to ordinary and planned surgeries are increasing, extending NHS waiting lists, but more medical services are being performed on a day-care basis, reducing the number of inpatients.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Hospitals provide medical, diagnostic and treatment services at both general and specialised hospitals. General hospitals include civilian and military hospitals, not-for-profit operations and university and prison hospitals. Specialised hospitals include mental health and substance abuse hospitals, hospitals for infectious diseases, maternity hospitals and sanatoriums.
What's included in this industry?
Products and services covered in the Hospitals industry in the United Kingdom include Ordinary and planned surgery beds, Day-care and outpatient services, Emergency care beds and Maternity beds.Companies
Companies covered in the Hospitals industry in the United Kingdom include National Health Service, Spire Healthcare Ltd and Circle Health Group Ltd.Purchase this report to view all 4 major companies in this industry.
Related Terms
Related terms covered in the Hospitals industry in the United Kingdom include inpatient, outpatient, teaching hospital, integrated care systems (ics) and clinical commissioning group (ccg).Industry Code
SIC 86.10/1 - Hospitals in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
NHS Hospitals struggle with inflationary pressures, staff shortages and growing demand. Hospitals are struggling to clear elective backlogs due to workforce shortages and a l...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
A surge in scheduled treatments strains hospital bed capacity. High demand for planned and routine procedures has led to a considerably high bed occupancy rate, challenging t...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London’s array of universities attracts companies to the region. The capital’s connection with teaching institutions like King’s College, University College London and Queen ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each region in 2025
- Number and share of revenue each region accounts for in 2025
- Number and share of wages each region accounts for in 2025
- Number and share of employees in each region in 2025
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Internal competition shapes the Hospitals industry. As private sector participation grows, hospitals must remain competitive in terms of price, quality, facilities and locati...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The NHS guides the UK’s hospital industry. Its extensive public funding, strong oversight functions and critical role in pandemic response render the NHS the industry’s princ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of National Health Service's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Spire Healthcare Ltd's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Circle Health Group Ltd's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for National Health Service, and factors influencing its performance in the industry
- Description and key data for Spire Healthcare Ltd, and factors influencing its performance in the industry
- Description and key data for Circle Health Group Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Care Quality Commission (CQC) regulates all hospitals in England. This vital organisation ensures that hospitals meet strict standards of care, securing patient safety an...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Private hospitals prop up profitability. Demand for private hospitals is climbing amid long waiting lists for NHS services, raising industry revenue and protecting profit mar...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2019-2023)
- Coverage Ratios (2019-2023)
- Leverage Ratios (2019-2023)
- Operating Ratios (2019-2023)
- Assets (2019-2023)
- Liabilities (2019-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
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)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hospitals industry in the United Kingdom in 2025?
The market size of the Hospitals industry in the United Kingdom is £127.4bn in 2025.
How many businesses are there in the Hospitals industry in the United Kingdom in 2025?
There are 246 businesses in the Hospitals industry in the United Kingdom, which has declined at a CAGR of 0.3 % between 2020 and 2025.
How may import tariffs affect the Hospitals industry in the United Kingdom?
The Hospitals industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Hospitals industry in the United Kingdom?
The Hospitals industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Hospitals industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Hospitals industry in the United Kingdom has been growing at a CAGR of 0.4 % between 2020 and 2025.
What is the forecast growth of the Hospitals industry in the United Kingdom over the next 5 years?
Over the next five years, the Hospitals industry in the United Kingdom is expected to grow.
What are the biggest companies in the Hospitals industry in the United Kingdom?
The biggest companies operating in the Hospitals industry in the United Kingdom are National Health Service, Spire Healthcare Ltd and Circle Health Group Ltd
What does the Hospitals industry in the United Kingdom include?
Ordinary and planned surgery beds and Day-care and outpatient services are part of the Hospitals industry in the United Kingdom.
Which companies have the highest market share in the Hospitals industry in the United Kingdom?
The company holding the most market share in the Hospitals industry in the United Kingdom is National Health Service.
How competitive is the Hospitals industry in the United Kingdom?
The level of competition is moderate and increasing in the Hospitals industry in the United Kingdom.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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