Design, Research, Promotional And Consulting Services Are Leading The Professional Services Market
The global professional services market can be segmented by service type into design, research, promotional and consulting services, legal services, accounting services, and all other professional, scientific, and technical services. The individual markets within professional services are defined on the basis of the particular expertise and training of the services provider.
The global design, research, promotional and consulting services market was the largest segment of the professional services market in 2018, accounting for 72.8% of the total share. It grew from $3,092.9 billion in 2014 to $4,150.7 billion in 2018 at an annual growth rate of about 7.6%. The market is expected to grow to more than $5,900 billion in 2022 at an annual growth rate of above 9%. Driving the market will be the increasing investments in smart city projects in many countries globally. Smart city technologies use information and communication technologies to efficiently manage and operate urban services including transportation systems, water supply, and law and order. These technologies are enabled through IoT technology. IoT is a convergence of computing devices, mechanical and digital objects. This system facilitates the transfer of data over a network without human interaction and minimal human-to-computer interaction. Smart city technologies are integrated with electrical and electronic components, benefitting the companies operating in this market. In 2018, APG Algemene Pensioen Groep N.V. announced an investment of €250 million in the “Smart City Infrastructure Fund,” for the development of smart city projects across North America, Europe, Australia and other major urban areas in the world. The concept of smart cities is becoming popular in developing nations, too. For instance, more than 1,000 smart city pilot projects are either ready or are under construction globally, and around 500 of these projects are in China.
Activities included in the design, research, promotional and consulting services market are architectural, engineering, design services, research services, advertising services, photographic services, translation, interpretation and other design, research, promotional and consulting services. Design, research, promotional and consulting establishments undertake processes where human capital is the major input. These establishments make available the knowledge and skills of their employees, often on an assignment basis, where an individual or team is responsible for the delivery of services to the client.
Companies in the design, research, promotional and consulting services market are shifting from the traditional per-hour and per-month revenue model to a value-oriented revenue model. In line with increasing wages and pressure from clients to decrease pricing, many companies are shifting towards value-oriented billing. Value-oriented billing is easy to apply in markets such as management consulting and market research since the value (such as tax savings, damage awards, ad placements or the size of an acquisition or merger) is often explicit. It is expected that more design, research, promotional and consulting service providers will shift to value-based pricing as they try to become “advisors” rather than just service providers.
General professional service providers are opting for online revenue models in order to cater to people across markets and segments. Companies in the design, advertising, PR and photographic services markets are gradually moving towards online sharing websites and photo storage portals to showcase and promote their work and portfolios. Moreover, they are increasingly making use of social media and blogging to market their services to potential customers. For instance, Shutterstock has a range of subscription plans that provides access to about 70 million pictures to customers worldwide, without having to pay royalty to the picture owner.