Management Consulting Services Market Research, 2031
The global management consulting services market was valued at $316.5 billion in 2021, and is projected to reach $811.3 billion by 2031, growing at a CAGR of 10.2% from 2022 to 2031.
The term “management consulting,” often known as "business consulting," refers to advice or implementation services provided to an organization's management with the goal of enhancing the efficiency of its business strategy, organizational performance, and operational procedures. In addition, decision-makers seek management consultants for guidance on a variety of topics, including strategy and organizational issues. For instance, they may be commissioned to provide advice on cost-cutting or innovation methods, or they may be requested to create a new strategy plan to achieve more growth.
Increase in adoption of management consulting services for reducing operational costs and optimizing operations is driving the growth of management consulting services market. In addition, globalization in the management consulting services industry, penetration of high-speed internet, and automation of consulting processes are accelerating the management consulting services market growth. However, risks of data breaches,cyber-attacks and intricacy of the project hamper the growth of the management consultancy services market. On the contrary, developing economies offer significant opportunities for management consulting services companies to expand their offerings, owing to factors such as rapid urbanization, rise in resource spending by SMEs, and technological advancements. Moreover, growth in developments & initiatives toward digitalized services is anticipated to provide a potential growth opportunity for the market.
The report focuses on growth prospects, restraints, and trends of the management consulting services market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers; competitive intensity of competitors; threat of new entrants; threat of substitutes; and bargaining power of buyers on the management consulting services market outlook.
The management consulting services market is segmented into Type, Organization Size and Industry Vertical.
The management consulting services market is segmented into type, organization size, industry vertical, and region. By type, the market is differentiated into strategy consulting, operations consulting, financial advisory, technology consulting, and human resources consulting. Financial advisory is further segregated into corporate finance, accounting advisory, tax advisory, transaction services, risk management, and others. The tax advisory is further segmented into direct tax services and indirect tax services. Depending on organization size, it is fragmented into large enterprises and small and medium-sized enterprises. The industry vertical segment is segmented into BFSI, IT and telecom, manufacturing, retail and e-commerce, public sector, healthcare, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By type, the operations consulting segment is estimated to acquire the highest share of management consulting services market size in 2021. This is attributed to the fact that the increased demand from SMEs to manage their operations, especially during a pandemic, is driving the growth of the market. Furthermore, operations consultants offer detailed strategies to overcome a given problem. To optimize the business operations of their clients, they use measurements, advanced research, and problem-solving expertise.
Region-wise, North America dominated the management consulting services market share in 2021. This is attributed to the fact that rise in borrowing costs and geopolitical tensions are anticipated to encourage consumers to consult professional consultants. Furthermore, with surge in importance of management consulting firms in the region have started acquiring local firms to expand their market reach.
The key players operating in the global management consulting services market include A.T. Kearney, Inc., Accenture, Aon Plc, Bain & Company, Inc., Booz Allen Hamilton Inc., Boston Consulting Group, CGI Inc., Cognizant Technology Solutions, CSC Consulting Services, Deloitte, Ernst & Young, KPMG International Limited, McKinsey & Company, Mercer LLC, PwC, Strategyn LLC, and Sia Partners. These players have adopted various strategies to increase their market penetration and strengthen their position in the management consulting services industry.
COVID-19 Impact Analysis
COVID-19 pandemic has a negative impact on the management consulting services industry, owing to drop in demand for management consulting services globally. However, management consulting services providers have taken numerous steps to position themselves for the post-COVID future as they begin their recovery. Moreover, the COVID-19 pandemic increased the importance of digital transformation systems in management consulting services. Technology-driven management consulting services startups are increasingly offering clients digitized and long-term management planning through robo-advisors.
Top Impacting Factors
Growth in demand for management consulting services among SMEs
Management consulting services are the best way to provide value for SMEs as it can maximize their pricing by the value, they deliver to their small business clients. Moreover, according to a recent Accounting Today survey, 78% of small businesses want a consultant who’s a trusted advisor.
Furthermore, during the COVID-19 pandemic, SMEs were experiencing lack of proper management strategies. Therefore, some major banks collaborated to provide proper management consulting services for SMEs. For instance, Gulf Bank collaborated with Balance Business Advisory, a Kuwaiti SME, to provide financial advisory services to entrepreneurs and SMEs as part of their continued commitment to their clients in this segment. This collaboration is rooted in the Bank’s strategy toward providing financial and advisory services to the SMEs sector. Thus, growth in demand for management consulting services is driving the growth of the market.
Aids clients in taking important decisions
The adoption of management consulting services can save clients’ time as some of the business management functions are dealt with by consultants. They do not do deep research, as management consultants have the expertise to dig for information fast. In this way, clients are able to save their time and focus on other business operations. Moreover, the fact that management consulting services improve operational efficiency and provide better insights helps the growth of the market. In addition, increase in adoption of management consultancy services for taking important business decisions is fueling the growth of the market.
Digitalization in management consulting services
Integration of analytics, cloud, media, and social media with business models is driving the growth of management consulting market. In addition, management consulting firms are providing IT transformation services to businesses, and banks to overcome challenges such as rise in stakeholder expectations and declining budgets. Such services include identifying critical technologies, setting an IT agenda, and consolidating, standardizing, & harmonizing IT solutions across business divisions in a cost-effective manner. Moreover, the digitalization of the management services enables the consultants to use various advance tools such as artificial intelligence (AI) prediction and machine learning (ML) in providing advice to the customers. This has resulted in providing effective and efficient services to the customers. Thus, the digitalization of management consultancy services is propelling the growth of the market.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the management consulting services market forecast from 2021 to 2031 to identify the prevailing market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities of management consulting services market overview.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the management consulting services market segmentation assists in determining the prevailing management consulting services market opportunity.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes an analysis of the regional as well as global management consulting services market trends, key players, market segments, application areas, and market growth strategies.
Management Consulting Services Market Report Highlights
By Organization Size
By Industry Vertical
Key Market Players
PwC, McKinsey & Company, Cognizant Technology Solutions, A.T. Kearney, Inc., KPMG International Limited, Sia Partners, CSC Consulting Services, Booz Allen Hamilton Inc., Ernst & Young, CGI Inc., Boston Consulting Group, Mercer LLC, Aon Plc, Bain & Company, Inc., Deloitte, Strategyn LLC, Accenture
The management consulting services industry plays a major role in economic growth by providing operational efficiency to individuals and businesses in various events such as identifying issues and provide solutions, prepare business proposals and presentations and others. Hence, management consulting services have become a massive contributor toward development of a country. Furthermore, development of SMEs in developing nations such as China and India is expected to provide lucrative opportunities for the market growth.
The COVID-19 outbreak had a negative impact on the management consulting services market owing to drop in demand due to highly unpredictable market conditions. However, digital transformation in management consulting services market has helped the market demand to grow during the pandemic. This, as a result, promoted the demand for management consulting services, thereby accelerating the revenue growth.
The management consulting services market is fragmented with the presence of regional vendors such as A.T. Kearney, Inc., Accenture, Aon Plc., Bain & Company, Inc., Booz Allen Hamilton Inc., Boston Consulting Group, CGI Inc., Cognizant Technology Solutions, CSC Consulting Services, Deloitte, Ernst & Young, KPMG International Limited, McKinsey & Company, Mercer LLC, PwC, Strategyn LLC, and Sia Partners. Major players operating in this market are adopting various strategies that include business expansion and partnerships to reduce supply and demand gaps. With increase in awareness and demand for management consulting services across the globe, major players are collaborating on their product portfolio to provide differentiated and innovative products.