The consulting industry stands as a beacon of innovation and expertise, continuously sculpting the trajectory of diverse sectors. As a nexus of strategy, technology, and business insights, it has not only witnessed substantial growth but also metamorphosed to cater to the ever-changing business ecosystem. Given its importance, it’s no surprise that the consulting sector is frequently sought-after for its adaptability and forward-thinking approach.
In this article, we will delve deeper into the consulting landscape by dissecting the most salient statistics for 2024. We will shed light on market dynamics, delve into growth projections for 2024, and outline the seminal trends and operational strategies that are redefining the industry. Whether you’re an industry professional, an academic, or a curious reader, this exploration promises a comprehensive view into the intricacies of the consulting realm.
Consulting Industry: The Most Important Statistics
- The work-life balance represents a problem for consultants, as they work 50 to 80 hours per week to cover the demand of their role.
- Management consulting is 27% likely to get automated, and consultants must increase productivity through automation to remain competitive and profitable.
- The Consulting Industry’s Compound Annual Growth Rate (CAGR) is expected to reach $1202 billion in 2025.
Size and Growth of the Consulting Industry
The consulting industry has been steadily growing over the past several years.
A Statista report determined that the worldwide consulting sector was worth an estimated $251 billion in 2016, with projections indicating a Compound Annual Growth Rate (CAGR) of 3.3% between 2019 and 2023.
This industry has greatly affected the global economy, with a total value of roughly $250 billion in 2019, as reported by Consultancy.org. This very same report puts the number of individuals employed by this sector worldwide at over 1.5 million.
The consulting industry is made up of many firms of various sizes. A 2023 report by IBISWorld estimates that there are approximately 901,751 consulting firms in the United States alone; however, the vast majority of these firms are small businesses, with only a handful of large consulting firms dominating the industry.
Moreover, it has seen significant growth over the years, although growth rates vary between mature markets and emerging economies. Despite this, the industry has weathered economic downturns and continues to grow.
The global consulting market grew every year between the 1970s and the 1990s, despite two recession periods; the sector experienced its first contraction in 2002, followed by a more significant downturn between 2009 and 2011 in the wake of the global financial crisis.
Global Consulting Trends
The consulting industry is experiencing significant changes on a global scale; some of the major trends impacting the industry include the rise of digital consulting, the increased demand for sustainability and ESG consulting, and the impact of the Covid-19 pandemic on the industry.
According to a report by Statista, the global digital transformation market is projected to grow from $469.8 billion in 2020 to $1009.8 billion by 2025 at a Compound Annual Growth Rate (CAGR) of 16.5%.
As a result, many consulting firms are increasingly shifting their focus to digital consulting services; digital consulting involves helping businesses leverage technology to optimize their operations, increase efficiency and drive growth.
According to a report by Grand View Research, the global sustainability consulting market is expected to grow at a CAGR of 10.8% from 2021 to 2028, driven by the growing demand for sustainable business practices and the need to comply with government regulations.
ESG consulting focuses on environmental, social and governance issues and helps companies integrate sustainable practices into their business strategies.
The Covid-19 pandemic has forced many companies to rethink their business strategies and operations, leading to an increased demand for consulting services; according to a report by McKinsey & Company, the need for consulting services increased by 4% in the second half of 2020 compared to the same period in 2019.
The pandemic has also accelerated the shift towards digital consulting and remote work, as many consulting firms have had to adapt to virtual service delivery.
Consulting Industry Sectors
Management consulting is the largest consulting sector and deals with strategy, organization, and operations. According to a report by Statista, management consulting was worth around $148 billion globally in 2020.
The same report predicts that the market will reach $243 billion by 2027, growing at a compound annual growth rate (CAGR) of 7.1%. The growth is mainly driven by the increasing need for management consulting services in emerging market economies such as Asia and Latin America.
IT consulting is a sector that helps businesses improve their use of technology; according to a report by IBISWorld, the IT consulting industry in the US alone was worth around $426 billion in 2020, with an annual growth rate of 3.5% from 2016 to 2021.
The sector is expected to continue growing due to the increasing demand for cloud computing, big data analytics and cybersecurity services.
Financial consulting helps businesses and individuals manage their finances effectively; according to a report by ResearchandMarkets, the global financial consulting market was worth around $38 billion in 2020, and is expected to grow at a CAGR of 6.9% from 2021 to 2028.
The growth is due to the increasing services, such as investment planning, insurance and retirement planning.
Human Resources Consulting helps organizations manage their human resources effectively, such as recruitment, training, and development. According to a report by IBISWorld, the HR consulting industry in the US was worth around $28.6 billion in 2020, with a growth rate of 3.1% from 2016 to 2021.
The sector is expected to continue growing due to the increasing demand for HR consulting services, such as diversity and inclusion training and employee engagement programs.
Consulting Industry Client Base
The consulting industry serves many clients, including small businesses, large corporations, government agencies and non-profit organizations.
Small businesses are a significant client base for the consulting industry; according to a report by the National Small Business Association, small businesses make up 99.9% of all businesses in the United States.
Large corporations are also a major client base for consulting firms; according to a report by Statista, the global management consulting market size for corporate clients was valued at $158.1 billion in 2020. Consulting services for large corporations include strategy consulting, operations consulting and IT consulting.
Consulting firms also work with government agencies at the local, state and federal levels; according to a report by Deltek, the US federal government spent over $11 billion on management consulting services in 2020.
As reported by Grand View Research, the size of the healthcare consulting market reached a value of $14.6 billion in 2020 and is expected to experience a Compound Annual Growth Rate (CAGR) of 10.7% from 2021 to 2028.
The technology consulting market was valued at $48.3 billion in 2020 and is expected to grow at a CAGR of 11.5% from 2021 to 2028, according to a report by Allied Market Research.
Consulting Industry Services
Strategy consulting focuses on helping businesses develop and implement strategies to achieve their long-term goals. According to a report by Statista, strategy consulting was the largest segment of the consulting market, accounting for 32% of the total market share in 2020.
Operational consulting focuses on optimizing business processes and improving efficiency; the global functional consulting market size was valued at $68.9 billion in 2020, according to a report by Grand View Research.
Technical consulting involves providing specialized technical expertise to clients, such as IT consulting or engineering consulting. The global IT consulting market was valued at $48.2 billion in 2020, according to a report by ResearchAndMarkets.
Potential Consulting Industry Challenges
One of the biggest challenges facing the consulting industry is the impact of technology and automation; according to a report by Statista, the global consulting industry is expected to see a Compound Annual Growth (CAGR) of 3.3% between 2019 and 2023.
However, the widespread adoption of digital tools and automation could threaten the traditional consulting business model.
In particular, AI and machine learning can potentially disrupt traditional consulting services, such as data analysis and research.
Clients are increasingly looking for more specialized, focused and customized consulting services that can address specific needs and goals; this trend has led to the growth of boutique consulting firms that specialize in niche areas, such as sustainability or social impact consulting.
According to a report by Source Global Research, the global market for specialist consulting services is expected to grow at a CAGR of 8.3% between 2019 and 2023.
Increasingly, clients are turning to online platforms and crowdsourcing solutions for consulting services. For example, platforms such as Catalan and UpCounsel connect clients with independent consultants who can provide specialized services at a lower cost than traditional consulting firms.
Supplementary Statistics
The global consulting industry was worth $160 billion in 2019.
This serves as a reminder of the immense potential for growth and success that the industry holds. It also highlights the importance of consulting services in today’s economy, as well as the need for businesses to invest in these services in order to remain competitive.
In 2021, the consulting industry is expected to grow by 4%.
Knowing this can help inform decisions about investments, hiring, and other business strategies. Furthermore, it can be used to compare the consulting industry’s growth to other industries, providing valuable insight into the overall economic landscape.
The U.S. management consulting industry employes approximately 684,470 people in 2021.
On this, we can see the sheer number of people employed in the industry, and the impact it has on the economy. It also serves as a reminder of the importance of consulting services in helping businesses succeed.
In 2019, the largest consulting market was North America with 43% of the global market share.
It highlights the fact that North America is the dominant player in the consulting market, with a commanding 43% of the global market share. This is a powerful reminder of the importance of the region in the consulting industry, and serves as a reminder of the potential opportunities that exist for those looking to break into the consulting industry.
Strategy consulting services accounted for 14% of the global consulting market in 2019.
This demonstrates that strategy consulting services are a major player in the consulting industry, and that they are a key factor in the success of the global consulting market. This statistic is a valuable insight into the current state of the consulting industry, and it is essential for anyone looking to gain a better understanding of the industry.
The Big Four consulting firms (Deloitte, PwC, EY, KPMG) earned a combined $146 billion in revenue in 2020.
There is a clear indication of the power and influence of these firms in the consulting industry, and serves as a reminder of their importance in the global economy.
In 2020, Deloitte was the largest consulting firm by revenue at $37.7 billion.
The fact that Deloitte was the largest consulting firm by revenue in 2020 speaks volumes about the success of the consulting industry. It shows that consulting firms are thriving and that businesses are increasingly turning to them for advice and guidance. This statistic is a testament to the power of the consulting industry and its ability to generate significant revenue.
The Asia-Pacific consulting market has seen an 8.2% growth since 2018.
With this, we have a testament to the success of the Asia-Pacific consulting market, indicating that it has seen a steady increase in growth since 2018. This is an important indicator of the health of the consulting industry in the region, and provides valuable insight into the current state of the market.
The European consulting industry grew by 7% in 2019, reaching a value of €34.9 billion.
It highlights the immense value of the industry, with €34.9 billion being a significant amount of money. This statistic is an important indicator of the health of the consulting industry in Europe and provides valuable insight into the industry’s performance.
McKinsey & Company is considered the most prestigious strategy consulting firm, according to a 2020 survey.
The fact that McKinsey & Company is considered the most prestigious strategy consulting firm according to a 2020 survey speaks volumes about the company’s reputation and influence in the consulting industry. This is a testament to the firm’s commitment to excellence and its ability to consistently deliver top-notch services to its clients. It also serves as a reminder that the consulting industry is constantly evolving and that staying ahead of the curve is essential for success.
In 2020, 75% of consulting work was delivered remotely due to the pandemic.
Despite the disruption caused by the pandemic, the consulting industry was able to quickly adapt and shift to a remote delivery model, allowing them to continue to provide valuable services to their clients. This statistic highlights the industry’s ability to remain agile and responsive to changing circumstances.
The healthcare consulting market was valued at $10.1 billion in 2019.
Thus, healthcare consulting is a major player in the consulting industry, and that it is a lucrative and growing sector. This statistic is a valuable insight into the consulting industry, and is essential for anyone looking to gain a better understanding of the industry.
In 2019, the global HR consulting market was worth $32 billion.
It is a reminder of the importance of HR consulting services, as businesses around the world are investing billions of dollars into the sector. This statistic is a powerful indicator of the current state of the consulting industry and its future prospects.
42% of consulting firms expect an increase in mergers and acquisitions (M&A) activity in 2021.
This statistic is indicative of the consulting industry’s outlook for 2021, suggesting that a significant portion of consulting firms anticipate an uptick in M&A activity. This could have far-reaching implications for the consulting industry, as M&A activity often leads to increased demand for consulting services. As such, this statistic is an important indicator of the potential opportunities and challenges that consulting firms may face in the coming year.
In 2019, the financial services consulting sector accounted for 28% of the UK consulting market.
This highlights the sector’s importance and reveals the potential for growth in the industry. Furthermore, it provides insight into the current state of the consulting market and can be used to inform decisions about the future of the industry.
The U.S. operations consulting market was valued at $4.4 billion in 2017.
Therefore, the consulting industry is a major player in the economy, and it is a lucrative field for those looking to make a career out of it. It also serves as a reminder that the consulting industry is constantly evolving and growing, and that it is an important sector to keep an eye on.
In 2019, digital consulting services made up 5% of the total management consulting market.
Digital consulting services are becoming increasingly sought after, and that companies are recognizing the value of incorporating digital solutions into their business strategies. This statistic is a valuable insight into the current state of the consulting industry, and provides a useful benchmark for understanding the direction of the industry in the future.
The consulting industry’s average billing rates across all specialties range from $125 to $400 per hour in 2021.
This is indicative of the cost of services, and can help potential clients understand the financial commitment they may need to make when engaging with a consultant. It can also help consultants understand the market rate for their services, and how they can adjust their rates to remain competitive. Ultimately, this statistic is an important factor in understanding the consulting industry in 2021.
The global consulting industry was worth $160 billion in 2019.
This statistic is a testament to the immense size and scope of the consulting industry. It serves as a reminder of the immense potential for growth and success that the industry holds. It also highlights the importance of consulting services in today’s economy, as well as the need for businesses to invest in these services in order to remain competitive.
In 2021, the consulting industry is expected to grow by 4%.
It is an important piece of information for anyone interested in the consulting industry, as it can help inform decisions about investments, hiring, and other business strategies. Furthermore, it can be used to compare the consulting industry’s growth to other industries, providing valuable insight into the overall economic landscape.
The U.S. management consulting industry employes approximately 684,470 people in 2021.
This speaks to the sheer number of people employed in the industry, and the impact it has on the economy. It also serves as a reminder of the importance of consulting services in helping businesses succeed.
In 2019, the largest consulting market was North America with 43% of the global market share.
This statistic highlights the fact that North America is the dominant player in the consulting market, with a commanding 43% of the global market share. This is a powerful reminder of the importance of the region in the consulting industry, and serves as a reminder of the potential opportunities that exist for those looking to break into the consulting industry.
Strategy consulting services accounted for 14% of the global consulting market in 2019.
It demonstrates that strategy consulting services are a major player in the consulting industry, and that they are a key factor in the success of the global consulting market. This statistic is a valuable insight into the current state of the consulting industry, and it is essential for anyone looking to gain a better understanding of the industry.
The Big Four consulting firms (Deloitte, PwC, EY, KPMG) earned a combined $146 billion in revenue in 2020.
This is a clear indication of the power and influence of these firms in the consulting industry, and serves as a reminder of their importance in the global economy.
In 2020, Deloitte was the largest consulting firm by revenue at $37.7 billion.
The fact that Deloitte was the largest consulting firm by revenue in 2020 speaks volumes about the success of the consulting industry. It shows that consulting firms are thriving and that businesses are increasingly turning to them for advice and guidance. This statistic is a testament to the power of the consulting industry and its ability to generate significant revenue.
The Asia-Pacific consulting market has seen an 8.2% growth since 2018.
This is a testament to the success of the Asia-Pacific consulting market, indicating that it has seen a steady increase in growth since 2018. This is an important indicator of the health of the consulting industry in the region, and provides valuable insight into the current state of the market.
The European consulting industry grew by 7% in 2019, reaching a value of €34.9 billion.
Thus, there is an immense value of the industry, with €34.9 billion being a significant amount of money. This statistic is an important indicator of the health of the consulting industry in Europe and provides valuable insight into the industry’s performance.
McKinsey & Company is considered the most prestigious strategy consulting firm, according to a 2020 survey.
The fact that McKinsey & Company is considered the most prestigious strategy consulting firm according to a 2020 survey speaks volumes about the company’s reputation and influence in the consulting industry. This is a testament to the firm’s commitment to excellence and its ability to consistently deliver top-notch services to its clients. It also serves as a reminder that the consulting industry is constantly evolving and that staying ahead of the curve is essential for success.
In 2020, 75% of consulting work was delivered remotely due to the pandemic.
Despite the disruption caused by the pandemic, the consulting industry was able to quickly adapt and shift to a remote delivery model, allowing them to continue to provide valuable services to their clients. This statistic highlights the industry’s ability to remain agile and responsive to changing circumstances.
The healthcare consulting market was valued at $10.1 billion in 2019.
Healthcare consulting is a major player in the consulting industry, and that it is a lucrative and growing sector. This statistic is a valuable insight into the consulting industry, and is essential for anyone looking to gain a better understanding of the industry.
In 2019, the global HR consulting market was worth $32 billion.
This proves the immense size of the HR consulting market, highlighting the immense potential for growth and success within the industry. It also serves as a reminder of the importance of HR consulting services, as businesses around the world are investing billions of dollars into the sector. This statistic is a powerful indicator of the current state of the consulting industry and its future prospects.
42% of consulting firms expect an increase in mergers and acquisitions (M&A) activity in 2021.
Therefore, it could have far-reaching implications for the consulting industry, as M&A activity often leads to increased demand for consulting services. As such, this statistic is an important indicator of the potential opportunities and challenges that consulting firms may face in the coming year.
In 2019, the financial services consulting sector accounted for 28% of the UK consulting market.
It highlights the sector’s importance and reveals the potential for growth in the industry. Furthermore, it provides insight into the current state of the consulting market and can be used to inform decisions about the future of the industry.
The U.S. operations consulting market was valued at $4.4 billion in 2017.
Thus, it is a lucrative field for those looking to make a career out of it. It also serves as a reminder that the consulting industry is constantly evolving and growing, and that it is an important sector to keep an eye on.
In 2019, digital consulting services made up 5% of the total management consulting market.
This statistic is a telling indication of the growing importance of digital consulting services in the management consulting market. It shows that digital consulting services are becoming increasingly sought after, and that companies are recognizing the value of incorporating digital solutions into their business strategies. It is also a valuable insight into the current state of the consulting industry, and provides a useful benchmark for understanding the direction of the industry in the future.
The consulting industry’s average billing rates across all specialties range from $125 to $400 per hour in 2021.
The consulting industry’s average billing rates provide a valuable insight into the current state of the industry. This statistic is indicative of the cost of services, and can help potential clients understand the financial commitment they may need to make when engaging with a consultant. It can also help consultants understand the market rate for their services, and how they can adjust their rates to remain competitive.
Conclusion
The consulting industry is an ever-evolving field, with new trends and technologies emerging every day. The statistics presented in this blog post demonstrate the growth of the industry and the potential for continued success in the future.
As the industry continues to expand, it is important for companies to stay up-to-date with the latest trends and technologies to remain competitive. With the right strategies and tools, companies can capitalize on the opportunities that the consulting industry provides and ensure their success.
References
Runn: “The Ultimate List of Consulting Statistics, Trends & Facts for 2023” cited in February 2023 (Source)
Consultancy.org: “Consulting Industry” cited in February 2023 (Source)
The Business Research Company: “Management Consulting Services Global Market Report 2023 – By Type” cited in February 2023 (Source)
Globenewswire: “The World’s Digital Transformation Industry 2020-2025: Trends, Opportunities and Competitive Landscape” cited in February 2023 (Source)
IBISWorld: “Industry Statistics-United States” cited in February 2023 (Source)
Quixy: “80+ Digital Transformation Statistics and Trends To Help You Navigate it in 2023” cited in February 2023 (Source)
Forbes: “How Small Businesses Drive The American Economy” cited in February 2023 (Source)
Linkedin: “Growth Analysis Report 2023-2030 | KPMG, Bain & Company, Deloitte” cited in February 2023 (Source)
ZipDo, cited June 2023: Consulting Industry Statistics
