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2022 Professional Services & Management Consulting Industry Report

Posted on May 3, 2022 By
The Professional Services Market
In 2022, the global professional services market is forecast to grow to $6697.56 billion, up from $6040.91 billion in 2021. That is at a compound annual growth rate (CAGR) of 10.9%. This growth is mainly due to companies’ urgent need to reorganize operations while recovering from the effects of the COVID-19 pandemic, which led to operational challenges because of lockdowns and restrictions. As a result, the global professional services market is forecast to grow at a CAGR of 9.6% to reach $9651.77 billion in 2026. 
 
Among the main categories of professional services are: 
 Accounting
Legal
Design
Research
Promotional and consulting services
All other professionals, scientific, and technical services
 
The largest region in the professional services market last year was North America, followed by Western Europe. Growth in the professional services market has been boosted by stable GDP growth in several countries and recovering commodity prices, both of which are forecasted to continue in 2022. In addition, emerging markets in the particular sector are predicted to continue to grow, such as China and India. 
 
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Mergers and acquisitions in the professional services industry have been on the rise. Data from PitchBook shows steady growth in investment in the sector over the past decade. In 2019, there were 3,677 deals at a median value of $26 million. That’s a significant increase from 2,398 deals and a median value of $18.02 million in 2012. The COVID-19 pandemic paused M&A activity for part of 2020, but there were still 3,499 deals at a median value of $28.13 million. And last year, M&A volume increased to 5,075 deals at a $45 million median value. Three of the main drivers of recent M&A activity in the industry are private equity’s new role as a key investor, supportive market conditions, and shifting labor markets. Private equity firms have also been motivated to capitalize on recent economic growth and low-interest rates. 
 
Small and mid-size professional services firms have also been in a good position to take advantage of intense interest by strategic buyers in add-ons. For buyers, it is often preferred that they can acquire a business to quickly expand capabilities rather than try to grow them organically. Buyers also know that professional services companies usually have solid operational outlooks, which correlates to increased value. 
 
Trends for the Market in 2022
Increasing Digital Transformation
Cloud-based Accounting Software
Blockchain and Artificial Intelligence 
Hybrid Workplaces
Improved Data Analytics for Decision-Making
Competitive Customer Service
24/7 Customer Service 
Workflow Automation 
More Personalization
Enhanced Recruitment Techniques
Multigenerational Workforces
Upskilling
Improved Diversity Initiatives
 
The Management Consulting Services Market
The global management consulting services market is forecast to grow from $891.88 billion in 2021 to $973.67 billion in 2022. That is at a CAGR of 9.2%. This growth is also primarily due to companies shifting operations to recover from operational challenges stemming from COVID-19 restrictions. By 2026, the market is expected to reach $1320.94 billion, growing at a CAGR of 7.9%. The area of financial consulting services is expected to see the highest rate of growth. 
 
The main categories of management consulting services are: 
Financial advisory
Operations advisory
HR advisory
Technology advisory
Strategy advisory
Other consulting services
 
The United States is home to the world’s largest revenue-generating consulting service market and top global consultancy firms. The US market also plays a significant role in expanding technological consulting services worldwide. The number of people employed in management consulting in the US has grown in the past five years. In 2020, there were around 734,000 management consultants. 
 
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Globalization is having a significant impact on the management consulting services market. Many clients are expanding globally, therefore needing more sophisticated, internationally focused services. In addition, the industry is seeing growing demand due to continued rapid growth in the Internet, automation of processes, and advancements in data security. This trend is expected to lead to more joint ventures, foreign investments, mergers and acquisitions, and multinational companies moving into high-growth areas. More and more companies are forming joint ventures with firms in other countries, and some are seeking acquisitions of established companies in new markets to lower risk. Also, many domestic firms are entering into new markets, teaming up with foreign groups to provide services in more countries.
 
Many companies aim to cut costs and boost efficiency to pass cost savings on to their customers, which enables them to survive in a highly competitive market. Because of this, there is an increase in the demand for consulting that focuses on operational efficiency and business process improvisations.
 
Additional Trends for the Market in 2022
Continued Digitization and Digital Integration
Artificial Intelligence and Automation of Data
Increased Recruiting Efforts and Crowdsourced Talent Amid Labor Shortages
Regulatory Changes Increasing the Need for Consulting Services
Demand for Fail Fast Methodology
More Strategic Partnerships
Hybrid Work Models
Multi-sourcing Modes
On-Demand Consulting Services
Consulting Firm Selection Processes
Continued Education
Improved Sustainability Efforts
 
Schedule A Call
 

Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com

Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com 

ABOUT BENCHMARK INTERNATIONAL

Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $8.25B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 14 offices across the world, have assisted thousands of owners with achieving their personal objectives and ensuring the continued growth of their businesses.

Website: http://www.benchmarkintl.com
Blog: http://blog.benchmarkcorporate.com

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