What are the career prospects of consulting in USA, Europe, Australia and Canada?
Management Consulting Industry (2023): US vs. Europe vs UK vs. Canada vs Australia
Management Consulting – the most popular post-MBA industry, is poised to be worth $330 billion in 2023 and, by 2025, reach closer to the $350B mark. While applicants tend to prioritize US schools for their excellent post-MBA placements in the industry, the UK experienced the biggest growth, with an 8% increase to reach £6.79 billion.
The US maintained its dominance as the industry grew at 7.7% to reach $55B.
US Market – 2023 Management Consulting Outlook
The Management Consulting industry in the US serves six major functions: Management, Strategy, Operations, Technology, HR, and Financial Advisory.
Surprisingly – in the US, most consulting firms are solo businesses. There is validity to many applicants’ narrative that their long-term goal is to start a boutique consulting firm in the US. It aligns with the current trends. However, in the short term, a US-based consultant is still much more likely to be found working for a large or mid-sized company. Internal consulting, in which businesses develop their in-house consulting capabilities, is a fast-developing niche in itself. Customers are also beginning to demand that their consultants have specialized knowledge. Disruptive newcomers to the consulting industry are taking full advantage of this perceived market void for specialized knowledge.
The American management consulting services industry is estimated to have earned about 329B in total in 2022.
Financial services, the public sector, and energy are the top 3 sectors in the US where consulting services are provided. For example, the US Energy Consultancy industry is worth $5 billion. The consumer industry, life sciences and health care, and technology, media, and telecommunications are other significant industries where there is consistent demand for consulting services.
EU Market – 2023 Management Consulting Outlook
Along with North America, the consulting markets of Europe, the Middle East, and Africa (the EMEA region) make up the largest consulting markets in the world. According to the latest figures, the EMEA region's market worth is on pace to surpass $100 billion. With more than 95% of the EMEA consulting market coming from Europe, West Europe is the biggest contributor, accounting for 90% of the continent's overall revenue.
Operations Consulting is the largest market in this region, accounting for over 30% of the entire services, similar to other matured markets like the US and Australia. Financial Advice and Technology Consulting follow Operations Consulting. HR Consulting is at the bottom of the table, serving under 10%, while the most prominent segment - Strategy Consulting, maintains a share of less than 15% of the $98 billion European, Middle Eastern, and African consultancy market.
The types (HR, Strategy, and Operations Consulting) and applications comprise the Europe Management Consulting Services Market (IT and Telecommunication, Manufacturing, Energy, Healthcare, Public Sector, Retail, and Healthcare).
Technology, Manufacturing, and Energy are the top three industries that use the services offered by Consulting Industry.
Operations consulting services are mostly required by industries seeking growth, including manufacturing, supply chains, and process management. Some of the most often used operations consulting services are in supply chain and procurement.
UK Market - 2023 Management Consulting Outlook
The UK's management consulting industry, which covers England, Scotland, Wales, and Northern Ireland, is the second-largest in Europe, with a market value of over £10 billion. Recently, the region experienced growth rates between 6% and 10%.
With revenue increases of 11.6% in 2021, the UK consulting market experienced a quick return to growth. The fastest-growing service for consultants is cybersecurity. With increased threats from ransomware and other state-sponsored attacks, customers – many from the government, are increasingly demanding sophisticated countermeasures and comprehensive stress testing for all cybersecurity projects.
Market research - one of the main deliverables within the strategy service, and macro- and microeconomic research services increased by over 20% last year, making research another important source of growth.
Although the market for risk and financial management experts was quite inconsistent in 2020, it was more encouraging last year. After experiencing a double-digit fall in 2020, the demand for financial management knowledge experienced a high single-digit rise in 2021.
Private-sector companies and government agencies are among the clientele of management consultants. The industry is expanding, with sales predicted to rise to £70.2 billion over the next five years at a compound annual rate of 2.2%. Rapid technology advancements fueled demand for IT strategy consulting services. Financial sector regulatory pressure fuelled demand for consultants in banks and insurance firms.
Canadian Market - Management Consulting
Businesses in the Canadian management consulting sector offer advice to for-profit enterprises and local, provincial, and federal governments, as well as to individuals and charity groups. Advisory services also strongly emphasize supply chain, financial, marketing, operational, and strategic management consulting. In addition, companies frequently use consultants to increase operational effectiveness and create fresh short- and long-term growth strategies. As a result, the demand for many of the operators of the service offer is cyclical.
Australian Market - Management Consulting
The management consulting sector's revenue has grown over the past five years. During the last five years, strong corporate confidence has supported business growth and the demand for management consultants. Likewise, the public and private sectors have boosted their capital spending over time, raising the demand for industrial services. Moreover, consulting firms have broadened their integrated services offering, enabling participants to increase revenue through bigger contracts. As a result, throughout the five years through 2022, industry revenue is predicted to grow at an annualized 2.9% rate, reaching $43.4 billion.
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Reference
- Consulting (US), (UK), (EU), (Canada) (Australia)
- Consulting Services (US Stats) (Market Size USA)
- Europe - Management Consulting Services Market
- Management Consulting Industry Overview (UK, Canada, Australia)
- Australia Management Consulting Industry Overview
- UK Consulting Market - 2022
- Consulting Trends - 2023
- Consulting Industry - Market Research, Consulting Services
- Trends in Management Consulting
