Western Europe Leads The Global Management Consulting Market
29 Aug, 2019
Western Europe was the largest region in the management consulting market in 2018, accounting for $330 billion or 33.8% of the market. This is mainly due to growing consulting markets in Germany and the UK, and demand for services such as digital consulting, and digitalization. The region’s management consulting market is expected to grow at an annual rate of 10.1% to 2022.
The management consulting market is well developed in Western Europe. German-speaking countries (Germany, Austria and Switzerland) account for a large share of the Western Europe management consulting market. The technology consulting segment is the largest segment in the UK management consulting market, while the largest end-industries in Germany are the automotive and financial service industries. Digitalization supports the management consulting market in Western Europe. Leading German consulting firms acquire digital consultancies to meet rising demand and strengthen digital capabilities, but in the UK, business investment decisions are negatively affected by political and economic uncertainty regarding Brexit.
Split by country, the management consulting market was the second largest in the UK, accounting for $113.4 billion or 11.6% of the market, following the USA’s management consulting market which was the largest, valued at $229.7 billion in 2018. The UK’s management consulting market growth is due to rising uncertainty due to Brexit-talks, which drove many companies to opt for management consulting and increasing number of consulting contracts given by the UK government. High demand for consulting activity in retail and leisure, with London seeing the most brand arrivals, supports the management consulting market in the country. A wave of digitalization also supports the management consulting market.
The UK is also the country which presents significant business opportunities to be gained by competitors in the next five years, putting on the most value at $57.61 billion by 2022.
The largest player in the management consulting market, Deloitte Touche Tohmatsu Limited, is also based in Western Europe. Deloitte generated revenues of $25.10 billion for the financial year 2018 from the management consulting market, which was a 13.1% increase from the previous year. In 2018, Deloitte held more than 2.5% of the total market share. The company along with its subsidiaries provides audit, tax, consulting, risk advisory and financial advisory services worldwide. Deloitte offers its services to a wide range of industries including consumer and industrial products, energy and resources, life sciences and healthcare, public sector, and technology, media, and telecommunications industries in more than 150 countries worldwide. The company was founded in 1845 and is currently headquartered in London, United Kingdom. The company had 286,000 employees as of 2018.