Part
01
of one
Part
01
What is the total market size (revenue) of expert networks?
Hello! Thanks for your inquiry on the market size by revenue of expert networks.
The short version is that the estimated revenue for the expert network industry in the US is $395 million per year. Among the largest expert networks are GLG, which is by far the leading player, Third Bridge, AlphaSights, Guidepoint, and Coleman. Two-thirds of the revenue obtained by the expert network industry comes from the financial sector, one-third from non-financial companies.
Below you will find a deep dive of my research / findings along with all the details for how I came to this answer.
METHODOLOGY
To answer your inquiry I looked into industry market reports, articles on the topic, directories, corporate websites, and available financial reports of the major expert network firms. Based on these sources, I was able to first, estimate the market revenue of the industry; second, identify the leading players; third determine the revenue of the selected major expert network firms, and fourth, establish the breakdown of revenue by financial and non-financial verticals.
EXPERT NETWORK MARKET
A market report by IbisWorld, released in May 2016, estimates the US expert network market at $395 million per year. The revenue has been declining in the last years, with a negative compound annual growth rate of -4.6%.
The reason for the decline lies in legal uncertainties about this activity. There have been well-publicized insider-information lawsuits, especially between 2011 and 2012, and therefore several clients have decided not to use this service anymore. However, due to these insider-trading accusations and the increased government oversight, the industry is improving its compliance standards. Thus, it is possible that in the future this negative trend turns around.
TOP EXPERT NETWORKS
There are many expert networks worldwide, of all sizes. A directory of expert networks lists dozens of them, grouped in various categories. A list of expert networks with links to Wall Street includes nearly 30 firms.
A June 2016 article in the Financial Times on the industry mentions that the top competitors of GLG, the leading player, are Third Bridge, AlphaSights, and Guidepoint. We also add Coleman Research Group, frequently cited in articles on the industry. A short description and the revenue of each of these players are presented below. The company names, revenue and revenue sources are summarized in this Google spreadsheet, as requested.
GLG (Gerson Lehrman Group, Inc.), founded in 1998 and headquartered in New York, is considered the world´s leading expert network with over 425,000 experts available, and 1,200 employees in 22 offices in 12 countries. According to GLG, “clients partner with GLG to address their most complex strategic challenges, make better business decisions, and advance their careers through conversations, mentorships, small group convenings, surveys, and other interactions—all within a rigorous compliance framework.”
According to data from Hoovers, the revenue of Gerson Lehrman Group, Inc., by far the largest expert network in the world, is $257.48 million per year, but they do not say for what year. However, a 2016 article in the Financial Times mentions that GLG revenue rose to $350 million in 2015.
Third Bridge, founded in 2007 and with offices in London, New York, Shanghai, Hong Kong, and Mumbai, is focused on providing private equity firms, hedge funds, and consulting firms information related to investment opportunities.
AlphaSights defines itself as a global leader in the knowledge search industry. Its headquarters are in London, but it has an US branch, located in New York. It has a staff of “several hundred ambitious professionals in 8 offices around the world.”
Founded in 2003 and headquartered in New York, Guidepoint Global has nine offices worldwide, with over 300 employees, and a network of more than 350,000 experts.
Founded in 2003, Coleman Research Group has over 12,000 experts in more than 140 countries. The Coleman network is composed of C-level executives (25%), managing directors (33%), senior managers (22%), and other industry professionals (20%).
BREAKDOWN BY VERTICALS
The breakdown by vertical of the revenue obtained by expert network companies is not normally available. The only mention we found about that distribution is in a Financial Times article of June 2016 in relation to GLG, the largest expert network. According to the article, based on an interview with the CEO of GLG, although the largest share of GLG revenue comes from financial companies, about a third of the revenue is currently originated in non-financial sectors.
Given the weight of GLG, it is reasonable to consider that this breakdown is representative of the industry. Thus, two-thirds of the revenue obtained by the expert network industry comes from the financial sector, one-third from non-financial companies. After extensive searching, no further detail on the breakdown by vertical was found. As a result, there is no spreadsheet with that information included in this report.
CONCLUSION
To sum up, the estimated revenue for the expert network industry in the US is $395 million per year. Among the largest expert networks are GLG, which is by far the leading player, Third Bridge, AlphaSights, Guidepoint, and Coleman. Two-thirds of the revenue obtained by the expert network industry comes from the financial sector, one-third from non-financial companies.
Thanks for using Wonder! Please let us know if we can help with anything else!