Hospitals in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: September 2024
SIC Q86.101Revenue
£115.1bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
904k
Businesses
244
Wages
£XX.Xbn
Hospitals in the UK industry analysis
Hospital services are currently being stretched at the seams as they struggle to navigate financial constraints and workforce shortages while appointment waiting times remain high. Hospitals faced unrivalled pressure during the COVID-19 outbreak and this necessitated the release of significant government funding to help hospitals boost their capacity to treat afflicted patients. According to the King’s Fund, NHS funding rose from £148.9 billion in 2019-20 to £191 billion in 2020-21. Hospitals are still facing a long elective backlog, growing by around 100,000 cases monthly, according to the BMA. Over the five years through 2024-25, industry revenue is therefore expected to marginally rise at a compound annual rate of 0.2% to reach £115.1 billion.
Trends and Insights
- NHS Hospitals struggle with inflation, staff shortages and growing demand. Hospitals are struggling to clear elective backlogs due to workforce shortages and a lack of real-term funding growth in 2024-25.
- 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 the safe threshold in hospitals nationwide.
- London's array of universities attracts players to the region. The capital's connection with teaching institutions like King's College, University College London and Queen Mary fuels a vibrant research sector, boosting the appeal of hospital set-ups in London.
- Internal competition shapes the hospitals industry. As private sector participation grows, hospitals must remain competitive on price, quality, facilities and location, thereby increasing competitive pressures within the industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.2 % over the past five years, to reach an estimated £115.1bn in 2024.
Trends and Insights
An ageing and growing population coupled with inflation is damaging real-term NHS revenue growth
- NHS England has a planned budget of £165 billion in real terms in 2024-25, which, compared to 2023-24, only represents a small growth of 0.2%, according to the King's Fund. Given ongoing strike action and a pay settlement for consultants, pay will be a big cost pressure for hospitals in 2024-25.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Funding for medical school places and training courses will be needed to address staff shortages
- The 2023 NHS workforce plan estimates the staff shortfall number will grow to 571,000 staff by 2036-37 unless there’s substantial investment in training and recruitment. That shortfall would equal more than a third of the healthcare service’s existing 1.6 million workforce.
Biggest companies in the Hospitals in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
National Health Service | 93,045.7 | |
Spire Healthcare Ltd | 1,371.4 | |
Circle Health Group Ltd | 1,126.7 |
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
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- General Medical Practices in the UK
- Specialist Medical Practices in the UK
- Dental Practices in the UK
- Diagnostic & Ambulance Services in the UK
- Residential Nursing Care in the UK
International industries
- Psychiatric Hospitals in the US
- Specialty Hospitals in the US
- Urgent Care Centers in the US
- Children's Specialty Hospitals in the US
- Hospitals in Canada
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. Medical nursing homes and ambulance transport services are not part of the industry.
What's included in this industry?
Ordinary and planned surgery beds Day-care and outpatient servicesEmergency care bedsMaternity bedsCompanies
National Health ServiceSpire Healthcare LtdCircle Health Group LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
INPATIENTOUTPATIENTTEACHING HOSPITALINTEGRATED CARE SYSTEMS (ICS)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 inflation, staff shortages and growing demand. Hospitals are struggling to clear elective backlogs due to workforce shortages and a lack of real-t...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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 players to the region. The capital's connection with teaching institutions like King's College, University College London and Queen Ma...
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 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
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 on price, quality, facilities and location, there...
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 2019-2024
- 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 as the industry's pr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of National Health Service's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Spire Healthcare Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Circle Health Group Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- 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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
High inflation is stifling hospitals' profit growth. Private hospitals, designed to be profitable, face growing expenditures such as increasing costs for qualified nursing st...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hospitals in the UK industry in United Kingdom in 2024?
The market size of the Hospitals in the UK industry in United Kingdom is £115.1bn in 2024.
How many businesses are there in the Hospitals in the UK industry in 2024?
There are 244 businesses in the Hospitals in the UK industry in United Kingdom, which has declined at a CAGR of 1.0 % between 2019 and 2024.
Has the Hospitals in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Hospitals in the UK industry in United Kingdom has been growing at a CAGR of 0.2 % between 2019 and 2024.
What is the forecast growth of the Hospitals in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Hospitals in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Hospitals in the UK market in United Kingdom?
The biggest companies operating in the Hospitals market in United Kingdom are National Health Service, Spire Healthcare Ltd and Circle Health Group Ltd
What does the Hospitals in the UK in United Kingdom include?
Ordinary and planned surgery beds and Day-care and outpatient services are part of the Hospitals in the UK industry.
Which companies have the highest market share in the Hospitals in the UK in United Kingdom?
The company holding the most market share in United Kingdom is National Health Service.
How competitive is the Hospitals in the UK industry in United Kingdom?
The level of competition is moderate and increasing in the Hospitals in the UK industry in United Kingdom.
