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The professional services market size is forecast to increase by USD 2077.8 billion at a CAGR of 5.7% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing focus on digitalizing business processes to enhance efficiency and productivity. This trend is particularly prominent in industries such as finance, healthcare, and consulting. Another key trend is the growing use of artificial intelligence (AI) and machine learning (ML) technologies to automate routine tasks and provide insights-driven solutions. However, this market faces challenges, including the shortage of skilled professionals with expertise in emerging technologies, which can hinder market growth. To remain competitive, professional services firms must invest in upskilling their workforce and leveraging technology to deliver innovative and value-added services to clients. The market report forecast market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The professional services market is experiencing significant transformation as businesses digitize their operations to enhance customer experience and increase efficiency. Artificial intelligence (AI) and cloud technology are key drivers in this digital transformation. AI is being integrated into various professional services, including consulting, design, research, and accounting, to automate routine tasks and provide more accurate and data-driven insights. Cloud technology, particularly Software as a Service (SaaS), is enabling remote working and access to specialized technical services from anywhere. However, this increased reliance on technology also brings new challenges, such as cyberattacks and cybercrime. Service providers are responding with security measures, including incident response plans and cloud-based accounting software, to mitigate these risks. Professional service firms are also leveraging blockchain technology for secure data sharing and enhanced security. IT services are a critical component of this digital transformation, with large enterprises investing in automation and business strategies to remain competitive. Professional services encompass a wide range of offerings, including advisory support, consulting, legal, accounting, scientific, and promotional services, among others. The market is expected to grow significantly as businesses continue to adopt technology to streamline operations and improve service delivery.
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 financial services segment is estimated to witness significant growth during the forecast period. The market is undergoing a significant transformation as businesses increasingly digitize their processes. Artificial intelligence (AI) and cloud technology are driving this change, enabling real-time data analysis, automation, and financial transactions. However, with the increasing use of digital platforms comes the risk of cyberattacks and cybercrime. Consequently, service providers are focusing on implementing security measures, including incident response plans, to mitigate these threats. Cloud-based accounting software and Software as a Service (SaaS) solutions are becoming increasingly popular in the professional services industry. These platforms offer real-time data access and automation, making financial data management more efficient. AI and generative models are also being used to enhance experience management through platforms like Qualtrics, providing valuable customer feedback.
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The financial services segment accounted for USD 1.62 billion in 2018. Professional services encompass a wide range of offerings, including legal, consulting, specialized technical, design, research, promotional, accounting, scientific, and technical services. Large enterprises are increasingly relying on these services to gain advisory support and expertise in specific areas. Online and offline services, as well as hybrid models, are being adopted to cater to diverse client needs. In conclusion, the professional services market is evolving rapidly, with a focus on leveraging technology to enhance efficiency, security, and client experience.
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North America is estimated to contribute 36% 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.
Professional service firms play a pivotal role in helping businesses optimize their operations and navigate complex challenges. These firms offer a range of specialized services, including business processes consulting, environmental consulting, management consulting, tax preparation services, financial auditing, translation services, and IT services. In today's digital age, enhanced customer experience, remote working, and business strategies are key priorities. Technology is a critical enabler, with professional services firms providing expertise in talent acquisition, resource management, and professional services software. IT services span from invoice management and expense management to resource allocation, project management, automated billing, communication, digital transformation, and cybersecurity. With the increasing threat of cyber breaches, cloud-based services and identity theft are becoming essential. Professional services firms are helping businesses adopt the NIST Cybersecurity Framework and leverage technologies like artificial intelligence, machine learning, and the Internet of Things. Project-oriented services, Information Technology Outsourcing (ITO), cloud computing, and on-premise solutions are also popular offerings. A Digital Adoption Program, CDAP, and Data security solutions ensure seamless implementation and protection.
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.
The growing focus on digitalizing business processes is notably driving market growth. The professional services industry is undergoing a digital transformation, with a growing emphasis on automating business processes and enhancing collaboration through technologies such as artificial intelligence (AI), cloud technology, and blockchain. These advancements enable real-time data access, streamlined communication, and improved security measures, including incident response plans and financial data management. Cloud-based solutions, such as accounting software and Software-as-a-Service (SaaS), are increasingly popular, offering scalability, flexibility, and cost savings. Data analytics and business intelligence tools are essential for gaining insights from customer feedback, market trends, and operational metrics. In addition, specialized services like legal, consulting, design, research, and technical support continue to be in demand.
Further, firms must remain vigilant against cyber threats, implementing security measures and incident response plans to protect sensitive data and maintain client trust. Experience management platforms, like Qualtrics, are also gaining traction, enabling firms to gather and analyze customer feedback to enhance service delivery and overall customer experience (CX). The professional services industry encompasses a wide range of online and offline services, from advisory support and financial transactions to scientific research and promotional services. Firms must adapt to the evolving market dynamics and technological advancements to remain competitive and responsive. Thus, such factors are driving the growth of the market during the forecast period.
The growing trend of using AI and ML in professional services industry is the key trend in the market. The market is undergoing a major transformation as businesses digitize their processes through the adoption of advanced technologies such as artificial intelligence (AI), cloud technology, and blockchain. AI is being integrated into various sectors of the professional services industry to enhance efficiency, accuracy, and productivity. For instance, professional services firms like Ernst and Young Global Ltd. (EY) and PricewaterhouseCoopers LLP are leveraging AI to offer more value-added services in areas such as auditing, tax consulting, financial analysis, and advisory support. EY's AI-powered tools help clients and internal teams manage real-time data, automate financial transactions, and respond to cyber threats with incident response plans.
Similarly, PricewaterhouseCoopers LLP uses AI to augment its consulting services, design services, research services, and legal services. The integration of cloud technology and SaaS solutions, such as cloud-based accounting software, is enabling professional service providers to offer online and offline services, as well as hybrid services, to large enterprises. Furthermore, experience management platforms like Qualtrics are being used to gather customer feedback and generate AI-driven insights to improve service delivery. The professional services industry is also focusing on security measures, including cybersecurity, to protect financial data management and mitigate cybercrime risks. Overall, these technological advancements are revolutionizing the professional services industry, offering new opportunities and efficiencies. Thus, such trends will shape the growth of the market during the forecast period.
A shortage of skilled professionals is the major challenge that affects the growth of the market. The market is experiencing a significant challenge due to the growing shortage of skilled professionals capable of managing advanced technologies. This issue is hindering firms' ability to meet client demands, maintain service quality, and drive growth. The root cause of this talent gap is the rapid digitization of business processes through technologies such as artificial intelligence (AI), cloud technology, and blockchain. These innovations have transformed industries, from legal and consulting to accounting and scientific services, creating a growth in demand for professionals with expertise in AI, machine learning, and data analytics. Large enterprises are increasingly relying on service providers for advisory support, specialized technical services, design, research, and promotional services.
However, the supply of skilled professionals has not kept pace with this demand. Furthermore, cyber threats such as cyberattacks and cybercrime are adding to the complexity, necessitating incident response plans and security measures. Cloud-based accounting software, SaaS, and real-time financial data management are becoming standard, making proficiency in these areas essential. Experience management (XM) platforms like Qualtrics are revolutionizing customer feedback collection and analysis, requiring professionals versed in generative AI and data analytics. In summary, the professional services industry must adapt to these technological advancements while addressing the talent gap to remain competitive. Hence, the above factors will impede the growth of the market during the market forecast period.
The market forecasting report includes the adoption lifecycle of the market, 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
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 professional services such as strategy and consulting services for a wide range industries.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The professional services market is experiencing significant transformation as businesses digitize their processes to enhance efficiency and productivity. Artificial intelligence (AI) and cloud technology are key drivers in this digital transformation. AI is being integrated into various professional services, including legal and consulting, to provide advanced analytics and automation. Cloud technology, particularly Software as a Service (SaaS), is enabling the delivery of online services for accounting, design, research, and other professional services. However, the increasing use of technology also brings new challenges, such as cyberattacks and cybercrime. Service providers must implement security measures and incident response plans to protect financial transactions and real-time data. Blockchain technology and cloud-based accounting software are essential tools in ensuring secure financial data management. The professional services industry includes advisory support, specialized technical services, and experience management (XM) providers. XM, powered by generative AI and customer feedback platforms like Qualtrics, is revolutionizing the way businesses manage customer experience. The market for professional services is vast and diverse, catering to large enterprises, small and medium-sized businesses, and individual clients. It includes online, offline, and hybrid services, with cyber threats and incident response being critical concerns for all.
Market Scope |
|
Report Coverage |
Details |
Page number |
218 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.7% |
Market growth 2024-2028 |
USD 2,077.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.3 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, AECOM, Aon plc, Bain and Co. Inc., Boston Consulting Group Inc., Business Connexion Ltd., Charles Ghadban Accounting, Cleary Gottlieb Steen and Hamilton LLP, Deloitte Touche Tohmatsu Ltd., Dentsu Group Inc., Enviro Analysts and Engineers Pvt Ltd., Ernst and Young Global Ltd., FinExpertiza, Forvis Mazars, Oliver, Wyman & Company, Omnicom Group Inc., PricewaterhouseCoopers LLP, Publicis Groupe SA, Slalom Consulting LLC, and Tata Consultancy Services Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Industry Application
9 Market Segmentation by Delivery Mode
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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