Search Engines in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: June 2024
SIC J63.120Revenue
£5.1bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
15,314
Businesses
1,441
Wages
£X.Xbn
Search Engines in the UK industry analysis
The Search Engine industry is highly concentrated, with three companies controlling almost the entire industry; the largest company, Alphabet Inc., has a market share greater than 96%. Search engines provide web portals that generate and maintain extensive databases of internet addresses. Industry companies generate most, if not all, of their revenue from advertising. Technological growth has resulted in more households being connected to the Internet, and a boom in e-commerce has made the industry increasingly innovative.
Trends and Insights
- A hike in digital advertising shapes industry growth. With an increasing number of businesses shifting their services online, demand for digital advertising has spiked. This allowed search engines to collect significant revenues as they are key platforms for online advertisements.
- Search engines are diversifying revenue streams with subscriptions and licensing. They're licensing software to competitors and charging users subscription fees to boost their overall income.
- London emerges as the UK's economic powerhouse for the industry. As the epicentre of the country's financial activity and harbouring a tech-savvy talent pool, London's potential is further heightened by initiatives like the development of the East London Tech City.
- Competition shapes the Search Engines industry. Companies invest hefty sums in technical infrastructure to provide the most related results at the quickest speed, competing against each other in this key user expectation.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.7 % over the past five years, to reach an estimated £5.1bn in 2024.
Trends and Insights
The pandemic provided opportunities for search engines
- Boosted leisure time and remote working promoted the use of search engines and demand from businesses to generate web traffic through online portals. This is because consumer behaviour across online channels surged in 2020-21 amid pandemic-related measures.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Mobile advertising revenue is set to surge
- In the mobile market, advertisers are particularly keen to target users making immediate purchase decisions, like a consumer deciding which restaurant to visit for dinner or which product to buy at a nearby store. According to directors at Bing Mobile, 50% of mobile searches have local intent. Similarly, according to Google, more than 29% of mobile searches are related to restaurants and 15% of searches are related to consumer electronics.
Biggest companies in the Search Engines in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Alphabet Inc | 4,679.2 | |
Microsoft Ltd | 319.5 | |
Ask.com Ltd | N/A |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Search Engines in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Search ads, Display ads and Licensing. Search ads is the largest segment of the Search Engines in the UK.
Trends and Insights
Search ads relates to revenue gained from displaying search results
- After the user enters a search term, advertisements related to that word are displayed alongside the search results.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Advertising Agencies in the UK
Complementors
- Wireless Telecommunications Carriers in the UK
- E-Commerce & Online Auctions in the UK
- Internet Service Providers in the UK
International industries
- Search Engines in the US
- Internet Service Providers and Web Search Portals in New Zealand
- Internet Services in China
Table of Contents
About this industry
Industry definition
This industry covers the operation of search engines and other websites that act as portals to the internet. Typically, these platforms allow users to search through and filter the information available on the internet. Firms generate revenue by selling advertising space or sponsoring search results presented to portal users.
What's included in this industry?
Search adsDisplay adsLicensingSubscriptionCompanies
Alphabet IncMicrosoft LtdAsk.com LtdPurchase this report to view all 3 major companies in this industry.
Related Terms
COST-PER-CLICK COOKIECOST PER IMPRESSIONTRAFFIC ACQUISITION COSTIndustry Code
SIC 63.12 - Search Engines 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
A hike in digital advertising shapes industry growth. With an increasing number of businesses shifting their services online, demand for digital advertising has spiked. This ...
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
Search engines are diversifying revenue streams with subscriptions and licensing. They're licensing software to competitors and charging users subscription fees to boost thei...
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 emerges as the UK's economic powerhouse for the industry. As the epicentre of the country's financial activity and harbouring a tech-savvy talent pool, London's potent...
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
Competition shapes the Search Engines industry. Companies invest hefty sums in technical infrastructure to provide the most related results at the quickest speed, competing a...
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
Alphabet Inc dominates the Search Engines industry. The key to its success is its continually improved search algorithm, diverse free services to drive traffic and effective ...
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 Alphabet Inc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Microsoft Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Ask.com Ltd's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Alphabet Inc, and factors influencing its performance in the industry
- Description and key data for Microsoft Ltd, and factors influencing its performance in the industry
- Description and key data for Ask.com Ltd, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The General Data Protection Regulation (GDPR) significantly impacts search engines. This EU law requires stringent data handling procedures to safeguard personal information,...
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
Search engines display impressive post-pandemic recovery. Dominated primarily by tech titans Google and Microsoft, profitability initially contracted but has since demonstrat...
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 Search Engines in the UK industry in United Kingdom in 2024?
The market size of the Search Engines in the UK industry in United Kingdom is £5.1bn in 2024.
How many businesses are there in the Search Engines in the UK industry in 2024?
There are 1,441 businesses in the Search Engines in the UK industry in United Kingdom, which has grown at a CAGR of 1.4 % between 2019 and 2024.
Has the Search Engines in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Search Engines in the UK industry in United Kingdom has been growing at a CAGR of 4.7 % between 2019 and 2024.
What is the forecast growth of the Search Engines in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Search Engines in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Search Engines in the UK market in United Kingdom?
The biggest companies operating in the Search Engines market in United Kingdom are Alphabet Inc, Microsoft Ltd and Ask.com Ltd
What does the Search Engines in the UK in United Kingdom include?
Search ads and Display ads are part of the Search Engines in the UK industry.
Which companies have the highest market share in the Search Engines in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Alphabet Inc.
How competitive is the Search Engines in the UK industry in United Kingdom?
The level of competition is moderate and increasing in the Search Engines in the UK industry in United Kingdom.
