Innovation Consultancies

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Innovation Consultancies - Market Size

The size of the innovation consulting market in the United States is $670 million and the share of mid-sized innovation consultancy firms in the market is $78.5 million.

Market Size of Innovation Consulting in the US

  • According to Forrester, estimating the size of the innovation consulting market is challenging because of its various definitions. However, it estimates the global "innovation consulting revenues excluding traditional, pure-play strategy or digital projects" to be $1.3 billion and $2.3 billion.
  • Assuming that the size of the market is the average of the lower and upper limits of the range, the global innovation consulting market is worth $1.8 billion (($1.3B+$2.3B)/2).
  • North America accounts for 40% of the global management consulting revenues and the United States accounts for 93% of North America's management consulting market.
  • Assuming that the United States' share of the innovation consulting market is the same as its share in the global consulting market, the size of the United States' innovation consulting market is $670 million ($1.8B*40%*93%).

Market Size of Mid-Sized Innovation Management Consultancy Firms

  • There are 876,300 management consultants/ management analysts in the United States. The average salary of a management consultant is $83,610.
  • The NAICS code for management consultancy firms is 541618. It is a sub-category of "Professional, Scientific, and Technical Services".
  • The revenue per employee of a management consultancy firm is $200,000.
  • Therefore, a firm with revenues between $10 million and $30 million is likely to have 50 ($10M/$200,000) to 150 ($30M/ $200,000) employees.
  • The total annual payroll of the "Professional, Scientific, and Technical Services" industry is $720,298,848,000.
  • The total annual payroll of "Professional, Scientific, and Technical Services" companies with 50-149 employees is $84,450,604,000.
  • Therefore, mid-sized firms--those with between $10 million and $30 million in revenue--account for 11.72% ($84,450,604,000/$720,298,848,000) of the total payroll in the "Professional, Scientific, and Technical Services" industry.
  • Mid-sized firms' share of revenues will be the same as their share of payroll. Assuming that this holds true for innovation consulting, the size of the mid-sized firms in the US innovation consultancy market is $78.5 million (11.72%*$670 million).
  • As the market size information available in the public domain was limited, and there was no indication that mid-sized consulting firms or boutique firms were dominant in the innovation consulting space (leading players in the industry being the same as those in management consulting), there was reasonable basis to make the above assumptions.

Key Players in Innovation Consulting

  • "Accenture, BCG, Capgemini, Deloitte, EY, KPMG, McKinsey, and PwC" are key players in the innovation consulting market. All the leading players have "dedicated innovation practices".
  • Accenture, Deloitte, and EY have strong innovation consulting revenues and are leaders in the space; PWC, KPMG, BCG, and McKinsey are strong performers, and CapGemini is a contender.
  • Culture, strategy, structure and governance, ecosystems, and "dedicated innovation technologies" define an organization's "innovation maturity".