PwC is predicting a potential 20-fold increase for the UK’s five most prominent ‘sharing economy sectors’, which includes on-demand professional services, resulting in £140bn of transactions by 2025, and says the UK needs to ensure it holds on to its leading position as a platform provider
The firm’s analysis suggests digital options such as collaborative finance, peer-to-peer accommodation such as Airbnb, peer-to-peer transportation such as Uber, plus on-demand household services like TaskRabbit and on-demand professional services currently represent a £7bn market but are growing strongly.
It says across Europe, sharing economy transactions could rise to €570bn (£473bn) by 2025, up from €28bn (£23.4bn) today.
Over the past year the UK’s sharing economy has grown faster, with the total value of transactions increasing by 92% compared to 77% across Europe from 2014 to 2015. The firm says the amount of capital flowing through collaborative finance platforms is expected to increase to £70bn per year by 2025, up from £3bn today.
Between now and 2025, PwC analysis predicts the sharing economy will grow at over 30% per year, with growth broadly spread across the five key sharing economy sectors.
Rob Vaughan, economist at PwC, said: ‘The rise of the sharing economy is changing the face of European business – creating opportunities for new entrants, challenges for incumbent players, and searching questions for all stakeholders.
‘While our analysis was carried out ahead of the UK’s vote to leave the EU, at present we do not expect the decision to alter our long-term trajectory for the sharing economy's substantial growth by 2025.
‘Although economic and political uncertainty will act as a headwind to growth across every sector of the economy in the short-term, the fundamental drivers of the sharing economy - technological advancements, demographic change and urbanisation - will continue to drive adoption in this space over the long-term.’