The global business management consulting services market is estimated to grow at a CAGR of 4.3% from 2024 to 2029 and be worth USD 1148 bn by 2029 from USD 930.15 bn in 2024.
The demand for consulting services is fuelled by the need for outside help from several enterprises, charitable organizations, and government agencies. Business management consulting advises organizations on the best ways to manage and operate their company. Management consulting organizations provide recommendations on a local and worldwide level to assist businesses in developing acceptable strategies to launch, evolve, and cut costs. The business management consulting service market comprises entities that sell management consulting and related goods and provide advice and assistance on organizational planning, financial budgeting, marketing strategies, human resource practices, administration policies, and production and logistics scheduling.
Global Business Management Consulting Service Market Drivers:
Organizations continuously attempt to cut expenses and improve efficiency so that cost savings can be passed on to customers to stay competitive. As a result, demand for business process improvements and operational efficiency consultancy is increasing. Agile, Artificial Intelligence, and analytics are three technical skill sets that MNCs actively seek consulting advice. In addition, corporate buyers are increasingly interested in digital marketing and transformation consulting as product and service companies invest more in user experience design, customer-focused data analytics, and customer engagement tactics.
Regulatory developments such as the US Tax Reform, BREXIT, the EU GDPR (General Data Protection Regulation), and others have resulted in a rise in consulting demand across all main service lines. Multinationals will seek high-value assistance to be compliant with regulations, fuelling demand for management and law consulting.
Global Business Management Consulting Service Market Restraints:
The significant growth of the freelance consulting industry can be attributed to the pricing and flexibility afforded by independent/freelance consultants. For instance, separate consulting accounts for 10% of the £10 billion consulting sectors in the United Kingdom. As a result, traditional consulting firm/industry revenues are projected to be eaten up by the consulting freelance industry soon. Large corporations are forming in-house consulting units and promoting former consultants to senior roles, reducing their need for outside consultants. Time constraints for cultivating client relationships, consultants' desire to give more value to clients at the exact cost, and insufficient time to adequately respond to client RFIs/RFPs are a few more factors limiting consulting sector growth, revenues, and clientele. In the internet age, consultants' tools, templates, and models, considered intellectual capital, can no longer be kept private. In addition, the consulting industry is affected by the democratization of knowledge.
The market's growth may also be hampered by rising costs and shrinking margins and improvements in artificial intelligence with the idea to replace management consultants.
Impact of COVID-19 on the global business management consulting service market:
In 2020, amidst the COVID-19 pandemic, the Business Management Consultancy Service market experienced a contraction due to the abrupt shutting down of operations, which was turbulence due to widespread panic in various industries. However, the pandemic has created firms' opportunities to provide financial crisis and recovery advisory services.
REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
4.3% |
Segments Covered |
By Type, Target and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Bain & Co, Boston Consulting Group, McKinsey & Company, EY, Kearney, L. E. K. Consulting, Oliver Wyman, Roland Berger, Accenture, Booz Allen Hamilton, KPMG and PwC Consulting. |
This research report on the global business management consulting service market has been segmented and sub-segmented based on type, target and region.
Global Business Management Consulting Service Market - By Type:
During the forecast period, strategy advisory segment is expected strong growth. Depending on the organization's demands, the service comprises providing advice on strategy concepts such as business strategy and operational approaches, all while maintaining adequate time management. In addition, professionals in the industry are attempting to determine the best course to adapt to emerging developments such as artificial intelligence, analytics, cybersecurity, and digital transformation.
Global Business Management Consulting Service Market - By Target:
The target market is bifurcated into the first tier, second tier, and third tier. Customers in the first tier, those with revenues of more than $3 million, are more accustomed to outsourcing and may feel more at ease employing Growth Management and Strategies on a retainer basis. Strategically, a retainer helps sustain steady cash flow, even if these customers require more services than they have paid for in any given month. This issue will be discussed further in the Personnel section.
Customers in the second tier, with revenues ranging from $501K to $3 million, are often ecstatic to have progressed from the home office stage to a new level of stability. These businesses can be the most difficult to work with if they are self-funded because they are typically unwilling to part with company shares and don't yet understand what kind of marketing expenditure is required to expand a business at this time. Based on a bid cycle and a needs study, the company will serve these small enterprises.
Customers on the third tier are more accessible to spot and more common than the others. These small firms make between $200K and $500K in revenue, are generally run from home, and have a piece of solid knowledge regarding their market and potential but struggle to execute their plans successfully or follow through on wealth-generating growth initiatives. To maintain a steady revenue stream, the idea is to supply these enterprises with a quick needs analysis and focus on such clients.
Global Business Management Consulting Service Market – By Region:
Western Europe dominated the worldwide management consulting services industry in 2020, accounting for 45 percent of the total. The second-largest area, North America, accounted for 29% of the worldwide management consulting services market. In the global management consulting services market, Africa was the smallest region.
During the forecast timeline, the APAC Business Management Consulting Services market is expected to increase at a compound annual growth rate (CAGR) of 2.8 percent, reaching US$106.4 billion. China, closely followed by Australia, was the largest market for consulting services in the Asia-Pacific region. The Chinese market was estimated to be worth 5.9 billion dollars, while the Australian market was worth 5.8 billion dollars. Beyond 2021, Japan will be the second-largest country, with a market share of 28.8%, followed by India with an 8.5 percent market share. The growing e-commerce industry has increased the need for hardware and software solutions in the IT and telecom industries, resulting in the growth of the system design and integration market. Furthermore, the rise of local specialized suppliers, combined with the growing presence of global technology vendors, would propel the system design and integration market forward.
The European consulting market is expanding healthily, with management consulting services in Eastern Europe seeing increasing uptake. In the previous five years, lesser-known European countries such as Romania, Ukraine, Bulgaria, and Poland have experienced rapid growth. In comparison to Western countries, the market in these countries has roughly doubled. The realization of the high-value proposition of management consulting even in countries with limited financial resources is a significant element. Financial consultancy is the region's fastest-growing industry, as large corporations compete for the net tax credit.
Brazil is by far the most critical market in South America. However, due to recent political and economic difficulties, the market has grown slower than the rest of the continent. As a result, the growth of the much smaller markets of Argentina, Chile, and Colombia has surpassed that of Brazil.
The United States (US) is the world's largest revenue-generating consulting service market because it is home to top global consultant companies that serve a wide range of end-user verticals. Furthermore, the highly unpredictable market across the US economy, combined with ongoing government regulatory reforms, is leading corporations to seek aid in their financial operations across the country from management consulting firms. As a result, there will be approximately 734,000 management consultants in 2020. The most pressing issue in the regional industry is attracting and creating new enterprises, with 40% of senior executives considering this a top challenge.
KEY MARKET PLAYERS:
Companies playing a leading role in the global business management consulting service market include Bain & Co, Boston Consulting Group, McKinsey & Company, EY, Kearney, L. E. K. Consulting, Oliver Wyman, Roland Berger, Accenture, Booz Allen Hamilton, KPMG and PwC Consulting. Deloitte is the most prominent consulting firm in the world, with annual revenue of $47.6 billion.
RECENT HAPPENINGS IN THIS MARKET:
FAQ's
The global business management consulting service market was valued at USD 891.8 bn in 2023.
Major regions contributing significantly to the global business management consulting service market include North America, Europe, Asia-Pacific, and regions with emerging economies like Latin America and the Middle East.
The growth of the global business management consulting service market is primarily driven by increasing complexities in business operations, globalization, digital transformation, and the need for strategic guidance amidst competitive landscapes.
Bain & Co, Boston Consulting Group, McKinsey & Company, EY, Kearney, L. E. K. Consulting, Oliver Wyman, Roland Berger, Accenture, Booz Allen Hamilton, KPMG and PwC Consulting are some of the notable players in the global market.
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