The Installation Zone

The fastest-growing segment: green installation

Within the broader installation sector, green installation is the standout growth story. Solar PV installation alone is now a £2.1bn UK industry, recording 31% compound annual revenue growth over the past five years. The UK added over 200,000 certified solar installations in 2025 — a 22% year-on-year increase — with the government targeting 45–47 GW of installed solar capacity by 2030, more than double current levels. The solar and battery storage market is forecast to exceed £30 billion annually by 2028.

 

Heat pump retrofit installations reached nearly 52,000 in 2025 — more than four times the 2020 figure — with the government’s Warm Homes Plan targeting 450,000 installations per year by 2030. The EV charging market is growing faster still: valued at around £750 million in 2025 and projected to reach nearly £2 billion by 2030, at a CAGR of over 21%.

 

The structural tailwinds are policy-driven and durable: net-zero legislation, the Future Homes Standard mandating solar on new builds, the Boiler Upgrade Scheme, and £13.2 billion confirmed for the Warm Homes Plan through 2030. This is not a trend — it is a mandated transition with a government-funded demand floor. For installation businesses already operating in this space, or considering entering it, the opportunity window is significant. But so is the operational complexity: scheme-dependent cash flow, MCS certification requirements, rapidly growing teams, and a customer base that needs educating as well as serving.

 

That growth is attracting serious capital.

 

As of late 2024, UK private equity funds held approximately £178 billion in uncommitted capital. Industrials — the category that includes installation and trade businesses — saw PE deal activity rise nearly 50% year-on-year in 2025, as investors prioritised established, cash-generative businesses with strong profitability track records.

 

In construction services globally, deal volume hit 562 transactions in 2025 — an 18.2% increase from 2024 — driven by the sector’s fragmented structure, recurring revenues, and high-growth end markets.

 

Globally, residential and essential services — HVAC, plumbing, electrical, specialist installation — represent a $650 billion market growing at nearly 10% annually. More than 80% of operators remain small, regional, and founder-led. That combination of scale, growth, and fragmentation is precisely what private equity looks for. West Monroe, one of the leading PE advisory firms in this space, describes it as “textbook roll-up conditions.”

 

Labour shortages are accelerating that consolidation. In HVAC alone, the industry faces hundreds of thousands of unfilled roles, with technician demand forecast to grow significantly over the next decade — and trade school output unable to keep pace. Businesses that can attract, retain, and deploy skilled installation teams at scale command a premium. Most can’t, yet.

 

The pattern is well established: private equity identifies a fragmented sector, acquires the best-run businesses, consolidates, and creates outsized returns. Installation is exactly that kind of sector.

 

Most investors see fragmentation and recurring demand. Fewer appreciate the complexity of running these businesses at scale. The winners are the ones who master execution — turning local know-how into platform-level performance. (West Monroe, 2025)

 

That’s the opportunity — and the challenge — facing every installation business owner right now. PE is moving beyond “buy and bundle.” The next wave of value creation will go to businesses with operational infrastructure already in place. The acquirer’s question isn’t just “what are your revenues?” — it’s “can this business run without its founder?”

 

The question isn’t whether consolidation is coming to your market. It’s whether your business will be acquired — or left behind.