Consulting Services Market Size, Share, Industry Analysis, Trends, Growth, 2030

Consulting Services Industry Prospective:

The global consulting services market size was worth around USD 198.76 billion in 2022 and is predicted to grow to around USD 290.86 billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.87% between 2023 and 2030.

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Consulting Services Market: Overview

Consulting services deal with undertaking services from an independent body or a third party with expertise in a specific field or area of interest. These services are taken in exchange for a nominal fee or amount. For instance, the human resource team of a company may seek consulting services from a legal firm to understand the dynamics of regional labor laws especially when handling sensitive cases. Similarly, the industry for consulting services is filled with several companies that provide research and fact-based solutions to firms across industries.

A key aspect of the consultation is that the service provider must remain bias-free and make decisions or provide advice that is right or ethical for the business in the long term. The emergence of modern consulting services originated in the US and steadily spread to other countries. At present times, numerous firms have come up offering solutions some of which are mainstream while certain consulting services providers cater to a niche industry or business. Currently, around 6 main functional segments exist in the market.

Key Insights:

• As per the analysis shared by our research analyst, the global consulting services market is estimated to grow annually at a CAGR of around 4.87% over the forecast period (2023-2030)
• In terms of revenue, the global consulting services market size was valued at around USD 198.76 billion in 2022 and is projected to reach USD 290.86 billion, by 2030.
• The consulting services market is projected to grow at a significant rate due to the growing level of globalization
• Based on end-user industry segmentation, IT & telecommunications were predicted to show maximum market share in the year 2022
• Based on service type segmentation, technology advisory was the leading segment in 2022
• Based on region, North America was the leading revenue generator in 2022

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Consulting Services Market: Growth Drivers

Growing level of globalization to impact market growth

The global consulting services market is expected to witness a high growth rate due to the rising level of globalization worldwide. Businesses across the globe are expanding at a faster rate. The ongoing shift of power between national economies has encouraged more companies to diversify market groups by entering countries that are currently registering high growth rates. Emerging nations in Asian and African regions are witnessing a drastic rise in foreign investments as well as the entry of new players from the international market. However, these regional markets are governed by strict regulatory laws that allow equal growth opportunities to all the parties involved in the transactions. The laws and regulatory guidelines are extremely complex and require mandatory compliance. Consulting services play a crucial role in ensuring that any new firm entering a new region completely understands the laws of the country and adheres to these laws to avoid any form of penalty.

For instance, in December 2023, China announced that it was imposing sanctions on Kharon, a US data company. The news came just after the US criticized human rights violations in Chinese territory. In October 2023, the Reserve Bank of India (RBI) penalized Larsen & Toubro (L&T) Finance with a fine of INR 2.5 crore for non-compliance with regional provisions such as the ones belonging to Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Company - Systemically Important Non-Deposit taking Company. Compliance plays a key role in ensuring that the hosting country and new entrants both benefit from the deal. It reduces or eliminates any risk of resource exploitation. As international regulatory laws become more complex, the demand for consulting services across the board will rise since businesses will require the help of experts to navigate through the complex and ever-evolving web of international laws.

Consulting Services Market: Restraints

High cost of services to restrict market expansion

The global consulting services market will be restricted due to the high cost of services. Consulting firms are run and dominated by industry experts with years of knowledge and experience. Additionally, consulting services employ several field experts and do not rely solely on a team of few people. The entire process is lengthy as it deals with multiple interactions between the service provider and the clients. It enlists detailed study, research, fact-checking, and cross-checking all available information to avoid any errors or misjudgment.

The drafting process of final solutions can take months and sometimes years depending on the complexity of the business issue. These factors drastically increase the overall expense of consulting services thus restricting adoption among players with limited budgets.

Consulting Services Market: Opportunities

Rising demand for IT-based consulting services may deliver higher revenue

The global consulting services market is likely to benefit from the increasing demand for consulting services in the IT sector. This is especially applicable at present times since several breakthrough technologies have been introduced in the IT industry. Artificial Intelligence (AI) and the development around it have the potential to reshape the modern world. In June 2023, technology giant Google announced that it will launch 4 new-age generative AI consulting offerings as it intends to help its customers smoothly manage AI deployments.

In addition to this, the introduction and evolving nature of artificial intelligence has several concerns as well. It has fueled debates at international and national levels due to the threat posed by AI in replacing human power. The advanced technology can also be used for other hostile activities such as terrorist activities. Hence, governing bodies are taking the aid of AI experts to understand and control the future of AI in the IT industry.

Increasing collaboration for consultation related to environment and sustainability may impact market demand

The global consulting services industry will be impacted by the increasing collaboration undertaken by companies by guidelines related to the environment and sustainability.

In March 2023, IBM, a global technology firm, and Ernst & Young Global Limited (EY), a professional services provider, announced a partnership focusing on environmental, social, and governance (ESG) solutions. The companies will work toward developing sustainability-oriented and value-led solutions for businesses globally.

Consulting Services Market: Challenges

Skill gaps within the industry may challenge the expansion trend

The global consulting services market growth rate will be challenged by the growing skill gap within the industry. As customers' expectations and requirements become more complex in the backdrop of highly complex projects, the growth of a consulting service provider depends on the service quality it can provide. The quality depends on the expertise of the human power employed and their knowledge base. However, there is a significant skill gap that exists in the industry which could lead to a loss of revenue.

Consulting Services Market: Segmentation

The global consulting services market is segmented based on end-user industry, service type, and region.

Based on the end-user industry, the global market segments are life sciences, financial services, government, IT & telecommunications, energy, and others. In 2022, the highest growth rate was observed in the IT & telecommunications services led by increasing investments in the sector across the globe. The emergence of 5G connectivity as well as advanced technologies such as AI and machine learning (ML) have been crucial in triggering segmental growth rate. As per official reports, in the last few years, around USD 25 billion has been invested annually in the Chinese market for IT and telecom. Energy is a growing market especially since the global energy industry is witnessing multiple changes simultaneously.

Based on service type, the global market segments are strategy consulting, operations consulting, technology consulting, and others. In 2022, the highest demand was observed in technology advisory followed by strategy consulting. The latter type of consultation is most important when a company is entering a new market or targeting new consumer groups. The initial strategy has to be well planned and executed to ensure long-term survival. It includes lengthy drafts related to product launches, marketing, advertisement, and post-sale services. By 2030, the technology advisory segment will grow at a CAGR of over 28.4%.

Consulting Services Market: Report Scope

Consulting Services Market: Regional Analysis

North America to emerge as the highest revenue generator

The global consulting services market is expected to be dominated by North America during the forecast period. The US enjoys a mature regional market since the concept and practice of professional consulting began in the US and spread to other countries. The country is home to several global giants that provide consulting services for all industries including IT, manufacturing, retail, defense, and other important sectors. In August 2023, US-based companies Microsoft and IBM announced a partnership to improve the adoption rate of AI systems. Europe is a fast-growing region with significant contributions in the consulting services sector. London-based E&Y announced the inauguration of a new delivery center in Hungary.

The law consulting firm aims to increase its employee strength by 500 employees in the coming years. Regional labor law as well as business-related regulations are extremely complex. Companies tend to take the help of expert professionals to ensure compliance. Moreover, the changes in regulations are frequently followed by strict penalties in case of non-compliance. In 2023, Meta, the parent company of Facebook, was fined €1.2 billion by Ireland's supervisory authority as the company was found guilty of violating General Data Protection Regulation laws.

Consulting Services Market: Competitive Analysis

The global consulting services market is led by players like:

• Boston Consulting Group (BCG)
• McKinsey & Company
• Accenture
• Bain & Company
• IBM Global Business Services
• Deloitte
• Booz Allen Hamilton
• PricewaterhouseCoopers (PwC)
• Infosys Consulting
• KPMG
• Oliver Wyman
• EY (Ernst & Young)
• Cognizant
• A.T. Kearney
• Capgemini

The global consulting services market is segmented as follows:

By End-User Industry

• Life Sciences
• Financial Services
• Government
• IT & Telecommunications
• Energy
• Others

By Service Type

• Strategy Consulting
• Operations Consulting
• Technology Advisory
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa