The global management consulting services market size was valued at $316.6 billion in 2021. The global management consulting industry is being driven by the rising competition across business sectors paving the need for consulting and gaining a competitive edge.
consulting basically advises companies on the most optimum ways to handle and operate their businesses. Management consulting firms offer advisory at both local and global level to help the companies build tenable strategies to innovate and grow as well as reduce costs. The management consulting services market will witness a high growth owing to the increased need for operational efficiency, compliance with regulations, and technological advancements. Management consulting companies provide multiple services including corporate recovery auditing, internal auditing, forensic accounting, accounting, and risk management. Few consulting companies also offer integrated services in the areas of employee health and benefit consulting coupled with investing in consulting actuarial services.
The global Management Consulting Services market size is expected to reach close to $ 63,246.1 million by 2029 with an annualized growth rate of 5.7% through the projected period.
The market is witnessing a strong growth on the back of internationalization and the rise of new segments. Additionally, technological advancements that include ERP consulting and IT training is a major contributing factor for the management consulting services market industry growth over the foreseeable years. The continually needed advice on financial management to the companies keeps the market growing which helps in budgeting/financial planning process.
The global management consulting services market is dominated by strategy/operations segment making up for a share of 52.9% in 2017 followed by general business consulting segment. Regional business ranges that demand skill-driven discussions and executions are anticipated to have a huge impact on the development of the strategy/operations segment in the coming years. The general business consulting segment is likely to exhibit a significant CAGR of 3.8% between 2018 and 2025.
Management Consulting Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||$ 63,246.1 million|
|Growth Rate||CAGR of 5.7 % during 2019-2029|
|Segment Covered||By Service, By Organization size, By Vertical, Region.|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Accenture Plc., Bain & Company, Booz Allen Hamilton, Deloitte Consulting, Ernst & Young, International Business Machines Corporation, KPMG, McKinsey & Company, Pricewaterhouse Coopers, Boston Consulting Group.|
Key segments of the global management consulting services market
Service Line Overview, (USD Billion)
- General Business Consulting
Industry Overview, (USD Billion)
- Financial Services
- Healthcare & Life Sciences
- Public Sector
Other Industries Overview, (USD Billion)
- Real Estate
- Private Equity
- Consumerial Industry Products
Solutions Overview, (USD Billion)
- Digital Management Consulting
- IT Management Consulting
- Artificial Intelligence
- Robotic Process Automation
- Block Chain Management Consulting
Regional Overview, (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of MEA
Frequently Asked Questions (FAQ) :
In a time of political and economic uncertainty across the globe, the consulting services outlook is expected to be bright. Although 2016 was politically and economically volatile, governmental policies and plans became transparent due to which various markets witnessed significant disruption, thereby, driving the demand for management consulting services. The upcoming years might either be a boon for the management consulting services with skyrocketing demand propelled by the turmoil in critical industries such as healthcare and media or a bust due to legislative and policy changes. Irrespective of the aforementioned factors, the traditional factors such as opportunities and risks are expected to bring impetus in the demand for management consulting services.
Big Four Takes a Big Piece of the Pie
The big four namely Deloitte, KPMG, EY, and PwC account for a lion’s share in the global market. Rather, the big four companies are witnessing five times faster growth than the relatively wider management consulting services market. Heavy investments in improving processes and organization are one of the key aspects of making these companies leading the global market.
These well-recognized market giants have a strong hold on the global market at a time when stakeholders’ perceptions and reputation of any organization are progressively considered as strategic assets. They are investing heavily in maintaining their goodwill in the market by encroaching on territories usually dominated by local firms. This is clearly evident by the acquisition of UK management consulting firm Regester Larkin by Deloitte, in December 2016.
Strategy/operations consulting holds a lion’s share in the global market at an estimated USD 140 billion, followed by general business consulting and transactions consulting which cumulatively have nearly 120 billion markets. Companies endure seeking consulting services, with their overall expenditures rising by nearly 3% annually over recent years. Though, the market is at a mature stage, abundant prospects remain such as those produced by the ongoing political environment and prolonged focus on areas such as cybersecurity.
Considering industries, the construction segment accounted for 9.3% of the global management consulting services market share in 2017. Increasing governmental and private expenditures on the enhancement of construction and infrastructure activities across the globe makes this a lucrative segment over the forecast period.
By solution, the IT management consulting, for reasons such as increasing demand for efficient IT infra, rising investments in IT industries and the rising number of IT professionals and IT players; holds the largest share of the pie. Although, blockchain management segment is projected to foresee the fastest growth over the forecast period at a CAGR of 4.7%.
Geographically, North America accounted for the highest share of more than 40% in the global market in 2017 and is anticipated to maintain its dominance throughout the forecast period. Europe is expected to exhibit the fastest growth in the global market and is anticipated to register a CAGR of 3.4% over the forecast period owing to evolving features and increasing legislation in management consulting industry in the region. Furthermore, supplier capabilities to cater to complex client requirements in Europe and North America are also high.
The Asia-Pacific market, on the other hand, has a comparatively lesser share. The demand for management consulting services is being fuelled by several elements such as rising needs for operational efficacy, regulation compliance as well as advancements in technology.