Tax Advisory Services Market Expected to Reach $97.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Tax Advisory Services Market," The tax advisory services market was valued at $34.6 billion in 2021, and is estimated to reach $97.1 billion by 2031, growing at a CAGR of 11.2% from 2022 to 2031.

Various companies are expanding their current services to meet the continuous rise in demand with increase in demand for tax advisory services. For instance, in June 2022, Goldman Sachs Asset Management launched its asset management and distribution platform for the State of Arizona’s AZ529, Advisor Plan, the Goldman Sachs 529 Plan. Ascensus College Savings Recordkeeping Services, LLC (Ascensus) will serve as the new program manager. As a global leader in active investing, the company will provide business tax advisory solutions at scale to meet the clients’ evolving needs across all areas of the asset management landscape driving the growth for tax advisory services market.

Furthermore, market players are expanding their business operations and customers by increasing their acquisition. For instance, in June 2021, J.P. Morgan has entered into an agreement to acquire OpenInvest, a leading financial technology company that helps financial professionals customize and report on values-based investments and tax filings. The company will retain its own brand and be integrated into J.P. Morgan’s Private Bank and Wealth Management client offerings.

By industry vertical, the BFSI segment acquired the major share for the tax advisory services market. This is attributed to the fact that tax advisory services are frequently used in the banking, financial services, and insurance (BFSI) sectors to file the returns on client investments and prepare the tax audits. Experienced tax advisory can assist firms in manage taxes over customer investments, which increases the likelihood of financial sector enterprises receiving additional funding and broadening their margins.

Region-wise, North America dominated the tax advisory services market share in 2021. This is attributed to the rising borrowing costs and geopolitical tensions in the region which encourage consumers to consult professional tax consultants.

There has been a significant shift in consumer patterns for tax advisory services industry during the pandemic. In addition, COVID-19 caused a technological disruption; as a result, enterprises are applying artificial intelligence & machine learning technologies to give solutions & services to clients to meet the demands of changing consumer trends resulting in tax advisory services market growth. Furthermore, this boosted the demand for income tax advisory services during the pandemic.    

Key Findings of the Study

• By organization size, the large enterprises segment accounted for the highest tax advisory services market share in terms of revenue in 2021.
• By type, the indirect tax advisory segment is expected to exhibit the fastest growth rate during the forecast period in tax advisory services market trends.
• Region-wise, North America generated the highest revenue in 2021 in tax advisory services market size.  

The key players operating in the tax advisory services market analysis include Accenture Inc., Aon PLC, Bank of America Corporation, Citigroup Inc., CGI, Inc., Cognizant, CSC Consulting Services, CREDIT SUISSE GROUP AG, Deloitte, Goldman Sachs, JPMorgan Chase & Co., Morgan Stanley, Northern Trust Corporation, PwC, Wells Fargo, Tax scouts, and Taxfyle. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.