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The Consulting Services Segment Market size is forecast to increase by USD 134.9 billion, at a CAGR of 7.2% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and challenges. Companies are continuously launching new services to cater to evolving business needs, thereby expanding their offerings and enhancing their competitive edge. Additionally, consulting firms are increasingly focusing on sustainability, recognizing the importance of environmentally responsible practices in today's business landscape. Cybersecurity issues in professional services continue to be a major concern, with the increasing frequency and sophistication of cyber attacks necessitating security measures. These trends and challenges are shaping the market, presenting both opportunities and challenges for market participants.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The management consulting segment is estimated to witness significant growth during the forecast period. The segment within the market plays a pivotal role in addressing the strategic and operational needs of businesses across various sectors. This segment focuses on enhancing organizational performance by analyzing existing business challenges and proposing effective solutions. Management Consulting encompasses diverse services, including strategy consulting, operations consulting, and Technology Consulting. Strategy Consulting is a crucial sub-segment that aids organizations in defining strategic objectives and charting the optimal paths to attain them.
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The management consulting segment was valued at USD 100.10 billion in 2018. Consultants in this area offer valuable insights on market entry strategies, competitive analysis, and business model innovation. Moreover, technology-driven consulting is gaining traction, with digital transformations, AI, machine learning, automation, virtual reality, and augmented reality becoming increasingly popular. Cloud-based platforms, cybersecurity, remote working, and decarbonization consulting are also significant areas of focus. Operations consulting encompasses supply chain management, process management, and resilient supply chains. Additionally, sectors like human resources, IT and telecommunications, financial services, energy, life sciences, banking, healthcare, and technology rely on management consulting for strategic planning and operational performance improvement. Consulting firms offer technology advisory services, human resource management, and machine learning expertise to help organizations navigate the complexities of their industries.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The IT consulting segment market encompasses independent consultants and boutique businesses that provide expertise in technology development and implementation. Client expectations continue to evolve, driving the need for operational efficiency and technology investment. Cloud computing has become a game-changer, enabling businesses to optimize costs and enhance agility. Independent consultants and boutique businesses play a crucial role in guiding organizations through the complexities of digital transformation. Moreover, there is a growing emphasis on Environmental, Social, and Governance (ESG) activities, with IT consulting firms helping businesses integrate technology solutions that align with their sustainability goals.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture PLC - The company provides strategy, technology, and operations consulting to drive business transformation.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
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Market structure |
Fragmented |
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YoY growth 2023-2024 |
6.5 |
Consulting services play a pivotal role in helping businesses navigate complex strategic decision-making processes. External expertise is increasingly being sought after to drive digital transformations, which are technology-driven initiatives aimed at enhancing operational performance and competitiveness. Digital transformations encompass various technologies such as data analytics, artificial intelligence (AI), machine learning, automation, virtual reality, and augmented reality. Consulting services in IT and telecommunications, financial services, energy, life sciences, and various other industries are witnessing significant growth. Technology advisory services are in high demand, as businesses seek to leverage the latest technology trends to gain a competitive edge. Consulting in areas like cybersecurity, human resources, and legal firms, including labor laws, is also crucial for businesses to stay compliant and efficient.
Moreover, the management consulting, strategy consulting, operations consulting, and technology consulting are the main types of consulting services. These services help organizations in strategic planning, operational performance improvement, and the implementation of new technologies like AI and cloud-based platforms. The banking and healthcare sectors are significant consumers of consulting services, with a focus on improving customer experience, operational efficiency, and regulatory compliance. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Launch of new services by companies is notably driving market growth. The market is witnessing growth due to the increasing demand for external expertise in strategic decision-making and digital transformations. Technology-driven consulting services, including data analytics, artificial intelligence (AI), machine learning, automation, and augmented and virtual reality, are particularly gaining traction. In response, consulting firms are expanding their offerings to cater to these emerging trends. For instance, in September 2023, IBM announced new consulting services to help clients optimize Oracle's cloud applications and technology, integrating generative AI for advanced solutions.
Similarly, in October 2024, Dell Technologies launched new generative AI consulting services, alongside AI laptops and mobile workstations. These developments reflect the growing importance of AI, cloud-based platforms, cybersecurity, remote working, and operational performance in various industries, such as life sciences, financial services, energy, and healthcare. Additionally, consulting services in areas like supply chain management, process management, resilient supply chains, climate control, net-zero strategy, decarbonization consulting, human resources, IT and telecommunications, technology advisory, and strategic planning are also experiencing significant demand. Thus, such factors are driving the market's growth during the forecast period.
Increased focus of consulting firms on sustainability is the key trend in the market. The market is experiencing a notable transition towards sustainability, as businesses increasingly prioritize eco-friendly practices. This trend is reflected in the strategic expansions of consulting firms in the sustainability domain. In September 2024, CBRE Romania strengthened its Environmental, Social, and Governance (ESG) and Sustainability Solutions division through a partnership with Access4you, a Hungarian company specializing in building accessibility certification. Similarly, global professional services firm EY broadened its sustainability consulting capabilities with the acquisition of Denkstatt in April 2024. This acquisition equips EY with extensive expertise in sustainability issues, from business alignment to technical and scientific proficiency.
Moreover, the consulting industry's focus on sustainability encompasses various sectors, including strategic planning, human resource management, IT and telecommunications, technology, banking, healthcare, energy, life sciences, financial services, and operations consulting. Areas of expertise span digital transformations, technology-driven consulting, data analytics, AI, machine learning, automation, virtual reality, augmented reality, cloud-based platforms, cybersecurity, remote working, supply chain management, process management, resilient supply chains, climate control, net zero strategy, and decarbonization consulting. Thus, such trends will shape the growth of the market during the forecast period.
Cybersecurity issues in professional services are the major challenge that affects the growth of the market. The market encompasses strategic decision-making, external expertise, and various domains such as digital transformations, technology-driven consulting, and operational performance improvement. With the increasing adoption of digital technologies like AI, machine learning, automation, virtual reality, and augmented reality, consulting firms play a pivotal role in guiding businesses through technology-led transitions. Additionally, consulting services are essential for sectors like life sciences, financial services, energy, banking, healthcare, and IT and telecommunications in their net zero strategy and decarbonization consulting. However, the market faces significant challenges, particularly in cybersecurity.
However, the cybersecurity threats pose a significant risk to consulting services, given the sensitive information handled, including intellectual property, legal documents, and client personally identifiable information (PII). Breaches can result in financial losses, reputational damage, operational disruptions, employee stress, and regulatory scrutiny. Consulting firms, in particular, encounter unique cybersecurity challenges due to intricate company ecosystems and stringent regulatory requirements. These challenges are further compounded by the shift to remote working and the increasing use of cloud-based platforms. To mitigate these risks, consulting firms must prioritize cybersecurity in their operations consulting, supply chain management, process management, resilient supply chains, climate control, and technology advisory services. Hence, the above factors will impede the market's growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Consulting services play a pivotal role in helping businesses navigate complex strategic decision-making processes. External expertise is sought after to drive digital transformations, with technology-driven consulting becoming increasingly popular. Digital transformation initiatives encompass various areas such as data analytics, artificial intelligence (AI), machine learning (ML), automation, virtual reality, and augmented reality. Cloud-based platforms are essential for enabling remote working and operational efficiency.
Further, cybersecurity is a critical concern for businesses undergoing digital transformations, making it a priority for consulting firms. Consulting services also extend to operational areas like supply chain management, process management, and resilient supply chains. Climate control and net zero strategy consulting are emerging areas of focus, particularly in industries like life sciences, financial services, energy, and banking. Human resources, IT and telecommunications, and technology advisory are other key consulting segments. ML and AI are transforming consulting services, enabling better operational performance and strategic planning in various industries, including healthcare.
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Market Scope |
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Report Coverage |
Details |
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Page number |
222 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.2% |
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Market Growth 2024-2028 |
USD 134.9 billion |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 38% |
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Key countries |
US, China, Japan, Germany, UK, France, South Korea, Spain, India, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture PLC, Bain and Co. Inc., Boston Consulting Group Inc., Capgemini Services SAS, CGI Inc., Cognizant Technology Solutions Corp., Deloitte Touche Tohmatsu Ltd., Ernst and Young Global Ltd., FTI Consulting Inc., Gartner Inc., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., KPMG International Ltd., McKinsey and Co., NTT DATA Corp., PricewaterhouseCoopers LLP, Roland Berger Holding GmbH and Co. KGaA, Tata Consultancy Services Ltd., and Wipro Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Consumer
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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