Public procurement in 2025 is not slowing down. Despite economic headwinds and tighter fiscal controls, tender volumes remain high with over 68,000 contracts published in the first half of 2025 and over 48,000 contracts awarded in the first half of 2025, according to our data. This reflects the large number of procurements taking place across the public sector. But not all sectors are created equal.
Some areas, shaped by policy reform, funding injections, or demographic pressure, are seeing a disproportionate share of procurement activity. High value contracts in these sectors are particularly significant for suppliers seeking growth.
This article unpacks the five most active public procurement sectors in 2025 by tender volume, and what they signal for your business strategy moving forward.
Procurement Process and Stages
The procurement process in the UK public sector is structured to ensure compliance, transparency, and value at every stage. It typically begins with the identification of a need for goods, services, or works, followed by the development of a procurement strategy that sets out the approach to be taken. Contracting authorities then move to the tendering stage, where they publish contract opportunities and invite suppliers to submit bids.
Once tenders are received, they are evaluated against predetermined criteria, such as price, quality, and compliance with relevant regulations. The contract is then awarded to the supplier that best meets the requirements, and the terms are formalised in contract documents. Throughout this process, contracting authorities must adhere to the legal framework established by the Public Contracts Regulations, the Procurement Act, and other relevant legislation. Framework agreements are often used to streamline the procurement process, allowing organisations to procure goods and services efficiently while maintaining compliance with public contracts regulations and ensuring best value for money.
1. Health: A System Under Pressure and in Transformation
Unsurprisingly, Health tops the charts in 2025, with over 6,300 tenders published in the first six months alone. But while the NHS remains the largest public buyer by value, the drivers of health procurement are shifting.
Years of underinvestment, rising demand, and workforce shortages have pushed health systems to the brink. The 2025 Spending Review responded with a £10bn digital transformation package, led by the health department, and billions more in capital funding to modernise estate and improve productivity.
As a result, procurement teams across NHS Trusts and Integrated Care Boards (ICBs) are prioritising:
- Workforce solutions: including agency staffing, recruitment tech, and staff training, to relieve pressure points.
- Digital health infrastructure: like electronic patient records, AI diagnostics, and remote monitoring. Requirements and solutions in this area are often developed through engagement and dialogue with suppliers.
- Estates and facilities upgrades: to improve care environments and reduce energy costs.
- Care at home solutions: including community nursing, domiciliary care, and virtual ward technologies.
What it means for suppliers: Health buyers are under pressure to deliver more with less. Demonstrating ROI, impact on outcomes, and compliance with national frameworks (like NHS SBS or HTE) is crucial. Price is a key evaluation criterion, considered alongside quality and compliance. The assessment process is used to evaluate tenders at various stages and select suppliers who best meet the conditions of participation and offer the most advantageous tender. Suppliers with integrated, interoperable solutions, and a grasp of local ICB dynamics, will be best placed to succeed.
2. Social Care: Early Intervention and Integrated Delivery
With 4,815 tenders issued in the first half of the year, Health and Social Care remains one of the most fragmented but vital sectors in public procurement shown in Tracker’s report on Trends and Oppotunities.
Aging populations, workforce gaps, and funding constraints have pushed local authorities to rethink service delivery. In 2025, the emphasis is on preventative care, digital transformation, and workforce reform.
The 2025 Spending Review earmarked £4bn+ in extra funding for adult social care and £500m in transformation support for children’s services. Much of this is tied to improved commissioning, early intervention, and integrated models of care between health and local government.
Key areas of procurement activity include:
- Domiciliary and community-based care contracts
- Digital care planning platforms and assistive technology
- Children’s residential care and fostering support services
- Workforce training, recruitment, and retention initiatives
- Providing clear details and expected outcomes in social care tender documents to ensure transparency for suppliers
What it means for suppliers: Local authorities remain the key commissioners, but many are under financial strain. Suppliers that can show long-term savings through early intervention, workforce innovation, or digitally enabled delivery have a competitive edge. Social value remains a core criterion, especially partnerships that embed local jobs and community benefit.
3. Technology & Digital: Transformation is No Longer Optional
The public sector’s digital journey has moved from aspiration to imperative.
Over 3,500 tenders were issued in the technology and communications space in early 2025, and investment shows no sign of slowing. The Spending Review reaffirmed £3.25bn for government-wide transformation, plus £2bn for AI and automation deployment across public services.
Departments are being tasked to do more with less, and technology is the lever.
Procurement in this category spans:
- Software and SaaS solutions — including cloud systems, workflow automation, and data platforms
- Cybersecurity and technical resilience upgrades
- AI adoption — for process automation, diagnostics, and analytics
- Shared services platforms for HR, finance, and procurement
What it means for suppliers: Being on the right frameworks is critical. In FY24/25, over £7.4bn of tech procurement flowed through frameworks like G-Cloud, TePAS, and Technology Services 3. Suppliers not listed on this risk missing out entirely. Users can save searches and set up alerts to be notified of relevant technology tenders, streamlining access to new opportunities. Using advanced search features on procurement platforms is essential for identifying the most relevant opportunities quickly and efficiently.
Beyond access, the focus is on delivery. Buyers want partners that can support digital transformation, not just sell software. Demonstrating use-case success, low-risk implementation, and measurable value will set leading vendors apart.
4. Facilities Management: Maintaining the Public Estate
With more than 2,900 tenders issued in the first half of 2025, facilities management (FM) continues to be one of the public sector’s most procurement-intensive categories. It spans a wide variety of services essential to the upkeep, functionality, and safety of government buildings and infrastructure.
But it’s not business as usual. A wave of capital investment, from the NHS estate to school buildings, is driving new FM needs, alongside evolving priorities around security, hygiene, decarbonisation, and flexible space management.
Organisations are not just looking for reliable service delivery, but for providers who can help meet wider public sector targets on carbon reduction, social value, and resilience.
Key trends shaping the FM market in 2025 include:
- Increased outsourcing in the healthcare and education sectors, driven by cost pressures and the need for specialist capabilities in clinical and high-traffic environments.
- Energy-efficiency upgrades and retrofit programmes, aligned with the government’s net zero targets. FM contracts increasingly include lighting, insulation, and HVAC improvements.
- Bundled FM contracts combining multiple services (e.g. cleaning, security, and building maintenance) to achieve economies of scale and streamline management. Clearly defined contract terms with more detail in specifications are essential in these bundled contracts to ensure effective service delivery and transparent evaluation of supplier performance. Providing detail in evaluation criteria is also crucial for assessing supplier performance accurately.
- Digitisation of FM services, including IoT-enabled monitoring, automated scheduling, and data-driven asset management.
What it means for suppliers: FM providers must show versatility, compliance, and measurable social impact. Experience in secure or clinical environments (like hospitals, prisons, or courts) is particularly valuable given the complexity and sensitivity of these settings.
Demonstrating capability in delivering sustainability goals – through green cleaning products, energy-efficient equipment, or carbon footprint reporting – is increasingly a differentiator.
Successful suppliers are using market intelligence platforms to anticipate demand, refine their bidding strategies, and identify which frameworks (such as Facilities Management Marketplace, NHS SBS Hard/Soft FM, or Crescent Purchasing Consortium) are being used most actively by their target buyers.
Success Story
Tracker’s powerful visibility tools enabled AGM Service Group, part of Fluid Water Group, to identify new opportunities aligned with their niche expertise in pressurised and boosted water systems. With tailored alerts and clear insight into government direction, they’ve shifted from reactive bidding to strategic planning. targeting the right sectors and expanding their service potential. Hear more Jason Beyers, National Business Development Manager at AGM here.
5. Construction & Engineering: Growth, Infrastructure, and Net Zero
Finally, Construction and Engineering rounds out the top five, with over 2,700 tenders in early 2025. From housing and transport to defence and decarbonisation, capital projects are at the heart of the government’s long-term strategy.
The 2025 Spending Review reaffirmed this, locking in:
- £39bn for affordable housing
- £15.6bn for city-region transport
- £14.2bn for clean energy infrastructure
- Billions more for schools, prisons, and local roads
The pipeline spans national infrastructure and hyper-local delivery, but it’s all framed by a push for efficiency, modern methods of construction, and social value integration. For greater transparency, providing direct links to procurement data and contract notices is increasingly important, allowing stakeholders to easily access and verify information. The timely publication of tender notices and contract award notices is essential to ensure open competition and compliance. This is particularly relevant for contracts subject to public procurement policy and regulation, where publication of procurement information supports accountability and oversight.
What it means for suppliers: Construction buyers are under pressure to deliver more, faster, while embedding local economic benefit. This creates new opportunities for firms that can deliver offsite manufacturing, decarbonised building methods, and strong regional supply chains. Registers for supplier and contract performance data are now widely used, helping buyers and suppliers track opportunities and monitor contract outcomes. These registers also support tracking the full life cycle of contracts, from award to completion, ensuring transparency at every stage. Monitoring the life cycle of each contract subject to public procurement is vital for value for money and accountability when procuring goods and services.
Framework positioning is again essential, particularly for repeat buyers like local authorities, NHS Trusts, and housing associations. Suppliers who invest in understanding early pipeline signals, and engage buyers before the tender stage, are already pulling ahead.
Key Takeaways and Recommendations
Transparency, accountability, and value for money are the cornerstones of effective public procurement. Contracting authorities must have a thorough understanding of procurement legislation and regulations, and consistently apply best practices to ensure compliance and deliver high-quality services. Suppliers, in turn, should be proactive in understanding their responsibilities and the requirements of the procurement process.
To further improve outcomes, it is recommended that both contracting authorities and suppliers invest in detailed guidance and training, ensuring all parties are equipped to navigate the procurement process effectively. The UK government should continue to refine procurement legislation and regulations to keep pace with changing needs and promote fair competition, innovation, and social value. Digital tools are invaluable for accessing contract opportunities and supplier information, supporting a more open and competitive procurement environment. By following these recommendations, public sector organisations can maximise value for money and deliver outstanding services to local communities.
Final Thoughts: Where Strategy Meets Opportunity
The public procurement landscape in 2025 is shaped by more than just tender volumes. Policy reforms, capital funding, digital ambitions, and demographic trends are reshaping what’s being bought, and how.
For suppliers, this means one thing: strategic focus is more important than ever.
Being early to spot shifts, knowing which frameworks matter, and positioning around buyer goals (not just your own offering) will be the defining traits of growth-minded businesses.
Tracker Intelligence is designed to help you do just that. From tender alerts and market data to pipeline visibility and competitor insight, we equip you with the tools to take a smarter, faster, more confident approach to public sector growth.
