Economy · Data

UK industry concentration is lower than in 2010

Average concentration in the non-financial business economy was lower in 2025 than in the early 2010s, the ONS says.

Elias North · Published · Updated Primary source: ons.gov.uk · Explore evidence and context

In this story

  • The Office for National Statistics published a bulletin on October 13, 2026, on turnover concentration in UK industries from 2007 to 2025, and says the figures are official statistics in development.
  • The ONS says that fall is one indication of a more competitive economy, because a smaller share of turnover sat with the largest firms.
  • The median rose from 0.42 to 0.44, and the 90th percentile eased from above 0.90 to 0.88.
  • The ONS says there were 2.73 million such businesses in 2025, about half of all UK businesses once microbusinesses are included.

The Office for National Statistics published a bulletin on October 13, 2026, on turnover concentration in UK industries from 2007 to 2025, and says the figures are official statistics in development. Average concentration in the non-financial business economy was lower in 2025 than in the early 2010s, the ONS says.

The turnover-weighted average share of the five largest firms in each industry, called CR5, fell from 0.45 in 2010 to 0.38 in 2025. The Herfindahl-Hirschman Index, which uses the turnover shares of all firms, fell from 1,075 points in 2010 to 700 points in 2025. The ONS says the largest drop came between 2014 and 2017, and that the averages then fluctuated around the 2017 level. The average share of the ten largest firms fell from 0.54 to 0.47, and the share of the twenty largest from 0.61 to 0.55, between 2010 and 2025.

The ONS says that fall is one indication of a more competitive economy, because a smaller share of turnover sat with the largest firms. It also says concentration measures do not necessarily imply market power. It cites the Competition and Markets Authority's State of UK Competition Report 2024, which treats an index below 1,500 as a relatively unconcentrated market and an index above 2,500 as a highly concentrated one.

Mining, energy, and utilities stayed the most concentrated group. Their average CR5 fell from 0.77 in 2010 to 0.66 in 2025. Construction stayed the least concentrated, at 0.14 in 2025 after a peak of 0.19 in 2018. Manufacturing was relatively stable at 0.56 in 2025. Business and consumer services were 0.36. Education, health, arts, and other services fell from 0.36 in 2010 to 0.25 in 2025. Electricity, gas, steam, and air conditioning supply had the highest section average in 2025, at 0.74. Real estate activities had the lowest, at 0.10.

The unweighted mean CR5 across four-digit industries was 0.47 in both 2010 and 2025. The median rose from 0.42 to 0.44, and the 90th percentile eased from above 0.90 to 0.88. A larger share of non-financial turnover was in industries with a CR5 below 0.60 in 2025 than in 2010. Wholesale of solid, liquid, and gaseous fuels accounted for most of the 19.2 percent of turnover in the 0.70 to 0.79 band in 2010. That industry's CR5 was 0.57 in 2025.

The ONS calculates these measures inside four-digit Standard Industrial Classification 2007 industries and weights broader groups by turnover. The Inter-Departmental Business Register covers businesses registered for value-added tax or Pay As You Earn. The ONS says there were 2.73 million such businesses in 2025, about half of all UK businesses once microbusinesses are included.