Global Management Consulting Market
Estimates of the global management consulting market values range from $139.4 billion, to $200 billion, and to $250 billion. Within that overall market, the HR consulting segment is valued at $31 billion. Below are our research findings about the size of the global management consulting market, including a segment breakdown, and an analysis of whether the industry has declined through disruption.
GLOBAL MANAGEMENT CONSULTING MARKET SIZE, INCLUDING BY SEGMENT
1. Global management consulting industry
Data shows that estimates of the global management market value range from $139.4 billion, to $200 billion, and to $250 billion. According to the source stating that the market's current value is $139.4 billion, the global management consulting market is expected to grow to a value of $183.2 billion by 2024. That growth translates to a compound annual growth rate (CAGR) of 4.7% for the global management consulting industry. The global management consulting industry is significantly controlled by its key players. Data shows that the top three management consultancies together comprise approximately 30% of the industry's market share, with Deloitte at 10.31%, PwC at 9.97%, and Ernst & Young at 9.69%.
2. Global management consulting segments
Within that net industry value, the global strategy consulting segment was valued at $43.07 billion. From 2018 to 2025, the CAGR for the global strategy consulting segment is projected to be 9.9%. If that CAGR indeed occurs, the global strategy consulting segment will attain a value of $91.38 billion by 2025.
Another segment within the global management consulting industry is HR consulting, which is valued at $31 billion. Of that $31 billion, the United States's market share is $17.5 billion. We also found that there are 7,200 HR consultancies in the U.S.
With regard to implementation consulting, we at first couldn't find data that specifically stated its application to implementation consulting. However, we then found an article that explained that implementation consulting is operations consulting (for which global market information was available). Accordingly, the operations consulting segment was valued at $71 billion. From 2018-2023, the operations consulting segment is expected to increase $6.52 billion. That growth translates to a CAGR of 3.26%.
In addition, we also found a comprehensive graph that shows a breakdown of the global management consulting industry by segment with data from 2016. As the graph shows, the HR consulting segment was valued at $31 billion, the operations consulting segment was valued at $71 billion, the strategy consulting segment was valued at $31 billion, the financial advisory consulting segment had a value of $70 billion, and the technology consulting segment was valued at $48 billion. Those values translate into the following segment shares (listed in parentheses) within the global management consulting industry: HR consulting (12%); Strategy consulting (12%); Operations consulting (28%); Technology consulting (20%); and Financial advisory consulting (28%).
3. management consulting by region
From 2012 to 2016, the Europe, Middle East, and Africa (EMEA) region had the largest regional market share for global management consulting at 41%, followed by North America at 40%, Asia Pacific at 16%, and "Other" regions collectively at 3%. The CAGR was largest in Asia Pacific at 6%, followed by "Other" regions collectively at 5.2%, North America at 3.7%, and EMEA at 3.6%.
DISRUPTION OF THE GLOBAL MANAGEMENT CONSULTING INDUSTRY
Disruption has begun impacting the global management consulting industry, albeit to varying degrees. As one source aptly stated: "[W]hile disruptors have emerged, we have yet to see total industry disruption." Despite the disruption, the management consulting industry has remained strong and is projected to continue growing in the years ahead even with the disruption coming. That is clearly demonstrated in the above global market data across the management consulting segments. As such, the short answer is that no, the global management consulting industry has not declined through disruption — at least not yet.
While the disruption has not resulted in decline for global management consulting, it has begun to reshape the landscape of the industry. One way that disruption has begun reshaping the landscape is through the general split that it has created within the industry, which consists of two main categories. The first category is "[l]ow-cost consulting that is ultimately about problems and solutions that clients understand." In contrast, the second category is costly "consulting that is about situations when clients are less confident about the question and the work needed and that is far closer to traditional management consulting and depends of the ability to think and act in a creative and informed way about complex issues."
Another main way that disruption has already impacted/reshaped the global management consulting industry is through the shift from large consultancies to small ones. In 2017, there were more than 700,000 management consultancies worldwide. The use of technology has allowed fewer people to do greater amounts of work than used to be required within the management consulting industry. As an example, in the UK alone from 2011-2016, nearly 50% "of the growth in the number of management consultants and business analysts since 2011 has been among self-employed advisers."
Data analytics has also been instrumental in the disruption that has already transpired within the global management consulting industry and is likely a foreshadowing of the disruption still to come. In support thereof, the amount that corporations devoted to data analytics consulting services in 2017 "soared to $43 billion" across the management consulting segments (operations, strategy, IT, HR, and more). External consultants accounted for half of that spending, while the other half was devoted to in-house capabilities. However, the increase in spending for analytics consulting is projected to increase for both external consultants and in-house capabilities. In fact, among executives surveyed, 91% said they are certain that substantial revenue has already been generated for their firms through data analytics implementations, including through consulting for such.
In conclusion, the market data clearly shows that the global management consulting industry has been strong for many years and is projected to continue growing in the years ahead across its segments. While disruption has begun to occur, it has not yet led to a decline for the industry, as demonstrated through the strong global management consulting industry performance across its sectors. However, disruption has already begun to reshape the landscape of the global management consulting industry by segmenting it into costly and cheap services, through a shift to smaller consultancies, and through increased spending on data analytics, which has already become (and will likely increasingly become) an integral part of global management consulting services across its segments.