Lincoln International's occupational health and safety (OHS) share insights into the growth of the OHS market

Driver 1

In the 27 EU member states, a legal framework of regulations and guidelines covers roughly 220 million workers. As macroeconomic forces like immigration and lower unemployment rates, as well as the trend toward more second- and part time jobs, increases workforce numbers across Europe, the demand for tailored OHS solutions grows. Specific worker demographics such as aging employees face unique workplace risks, increasing their likelihood of accidents. Additionally, workers in high-risk, low-skill jobs are more prone to workplace hazards, necessitating targeted prevention and health interventions.

Despite the growing workforce, the number of OHS professionals remains stable yet below market demand. This imbalance presents an opportunity for OHS suppliers to capitalize on increased demand and higher service volumes, leading to improving margins and stable revenue streams.

As the workforce evolves, OHS providers must adapt to meet the diverse needs of expanding worker groups, ensuring safety, health and wellbeing of workers across all sectors.

Driver 2

Europe’s ongoing transition from an industrial to a service-based economy mirrors the shift seen during the Industrial Revolution, which moved workers from agricultural to manufacturing roles. This modern transformation has profound implications for OHS, necessitating a reevaluation of service demands. Two key changes are shaping the OHS landscape:

1. Shifts in risks for employees: As employment moves from physical and safety-intensive industries to service sectors, the focus shifts to psychosocial and emotional risks. These new challenges require innovative, preventive approaches to address issues such as stress and physical inactivity.
2. Value focused services: While EU-27 member states mandate OHS, more companies recognize the need for elective OHS programs, such as mental-health programs, to expand preventive measures, increase employee satisfaction and ultimately reduce churn and boost attractiveness to prospective employees.

As Europe’s economy grows, OHS providers must innovate to protect workers’ wellbeing, ensuring that institutional and customized solutions evolve with changing employment dynamics to offer value-added services for clients.

Driver 3

• Technology is revolutionizing the OHS sector, driving operational efficiencies and enhancing service quality. The deployment of advanced technologies has increased the number of billable hours for providers while simultaneously improving training effectiveness and communication. These innovations contribute to better outcomes for employees and heightened demands for service providers by further shifting safety and health from reactive to preventive. Some of these innovations include:Tele-OHS, automation and self-service portals cut the cost to serve while additionally speeding case resolution
• Integrated compliance workflows and audit-ready reporting reduce regulatory risk
• A mobile, personalized experience boosts engagement, return-to-work speed and satisfaction
• Scalable platforms support multi-site and hybrid workforces and integrate cleanly with HR, EHS and payroll systems
• Providers also unlock new revenue through data-driven services; continuous monitoring, advanced analytics and immersive training, while proving ROI with clearer KPI improvements

As technology continues to shape end markets, OHS providers must adapt their offerings to meet the evolving needs of employees, ensuring safety and wellbeing in both remote and physical work environments.

Driver 4

The European Union has established a comprehensive legal framework for OHS regulations over the years, adapting to new challenges and safeguarding workers across diverse industries. Regulatory requirements vary significantly by geography, with Germany recognized for its comparatively extensive regulations. France, the Netherlands and Belgium also impose comprehensive legal demands on OHS practices. Meanwhile, the Nordic countries prioritize value alongside compulsory OHS regulations, particularly in services addressing mental health.

Service providers must remain vigilant to changes in local frameworks as ongoing regulatory efforts continue to evolve. Understanding these geographic nuances is crucial for providers to effectively navigate the regulatory landscape and ensure compliance while delivering high-quality OHS services.

Driver 5

Europe’s OHS landscape shows the highest professionalization in Northern and parts of Western Europe where service standards and operating models are more mature. Fragmentation, however, varies sharply by country: Germany, the U.K. and Italy remain highly fragmented with many small providers, while Spain and the Netherlands show meaningfully higher consolidation.

Degree of Professionalism by Country

Consolidation momentum is building across the continent as investors target scale benefits, national coverage and broader service portfolios. Spain already displays advanced consolidation, reflecting a large protected workforce and rising spend per employee. The Netherlands sits mid-pack: Regulation is strict, professional standards are high and the market has been steadily consolidating. Germany’s large market remains the most fragmented, with many physician-owned centers and regional providers creating ample roll-up opportunities. The U.K. is also fragmented, with demand influenced by absence trends and mixed public–private purchasing dynamics, leaving room for platform expansion. Italy’s fragmentation persists despite tougher enforcement since 2023, offering scope for tuck-ins and regional build-outs.

Overall, the most attractive markets combine robust regulation, sizeable protected worker bases and clear room for consolidation—conditions that support stable demand today and value creation through scale over the coming years.

Consolidation Opportunities by Geography

Strategic acquirers and sponsors are expected to continue pursuing attractive assets across European geographies, driving further consolidation in the OHS sector. Understanding the regional nuances and market dynamics is essential for stakeholders looking to capitalize on these consolidation opportunities.

Looking Ahead with Lincoln

As the OHS sector continues to experience strong deal momentum and evolving industry trends, outsourced service providers are positioned as attractive assets for both private equity and strategic buyers. Lincoln International’s team of cross-border healthcare experts is adept at guiding European providers through the full credit cycle, from raising capital to identifying opportunities and executing a well-structured sale process.

The dynamic landscape of OHS presents numerous opportunities for growth and consolidation, driven by technological advancements, regulatory changes and shifting workforce dynamics. By leveraging Lincoln’s expertise, providers can navigate these complexities and maximize their strategic potential.

Reach out to Lincoln International today to explore how our team can support your organization and portfolio in capturing these growth opportunities and achieving sustainable success in the OHS sector.