KBS - Environmental Services - Market Insight

MARKET INSIGHT • The UK environmental services sector is a critical part of the green economy, encompassing businesses that provide solutions for managing, protecting and restoring the natural environment. This includes waste management and recycling, water and wastewater treatment, environmental consultancy, remediation, air quality management, renewable energy support services and ESG/sustainability advisory. • The sector serves industries such as construction, utilities, energy, manufacturing, real estate, government and infrastructure. It plays a critical role in helping organisations comply with environmental regulations, achieve sustainability targets and transition towards circular economy models. • The environmental services sector is currently estimated to generate annual revenues exceeding £35bn, contributing around £20bn in GVA to the UK economy. It employs over 400,000 people, representing a key component of the UK’s net-zero transition and sustainable infrastructure agenda. Revenue Waste-to-Energy Plant Operation in the UK Total value (£) and annual change from 2012 - 2030. Includes 5-year outlook

3

32%

Forecasted

2025 Annual Revenue (£bn) 1.9 2025 Change 4%

2.4

24%

1.8

16%

1.2

8%

0.6

0%

0

-8%

2012

2014 2016 2018 2020 2022

2024 2026 2028 2030

Annual Revenue (£b)

Change (%)

Source: IBISWorld

• The market has grown steadily at 4-6% annually over the past five years, driven by stricter environmental regulation, corporate ESG compliance and rising investment in circular economy initiatives. The UK government strategy of net-zero by 2050 and policies on waste reduction, biodiversity and use of sustainable resources continue to act as catalysts for structural growth. • The UK also plays a major role in the European Environmental Goods and Services (EEGS) market, exporting technical expertise in environmental consultancy, waste technologies and renewable resource solutions to global markets. Major export partners include EU member states, the United States, and Asia-Pacific economies seeking to align with international sustainability standards. • Geographically in the UK, environmental service activity is widespread but with clusters of strength in the South East (consultancy and compliance services), Scotland (renewables and waste-to-energy) and the Midlands and North West (waste management, recycling and water treatment).

• Segment breakdown: • Waste management and recycling: 35–40% of output • Water and wastewater services: 25–30%

• Environmental consulting and monitoring: 20–25% • Remediation and pollution control: 10–15%