Consulting sector trends: Where are the hidden gems?
Halfway through 2024, it’s a good time to step back and assess the performance of the consulting market so far. We take a look at which sectors are rewarding firms’ investment, but also explore where consultants may unearth hidden rewards if they dig a little deeper.
Source’s latest data indicates that the global consulting market will reach a value of $US263bn in 2024. This signals growth of 6% on 2023’s disappointing market, with much of this year’s rise forecast to occur in the second half of 2024.
But what will this look on a sector-by-sector basis, and where are smart firms prospecting?
In plain sight
Energy and resources
When it comes to growth, energy & resources remains the top performing sector in today’s consulting market. Having hit a revenue total of $US21.5bn in 2023, it is set to grow at a market-topping 10% in 2024.
What is driving this investment in consulting by energy & resources clients? Put simply, they have the money (particularly within the energy sub-sector), so they are spending it. High commodity prices, investment into the energy transition, and the global rise in energy consumption have generated cash and clients are keen to invest: They want to create future-proof business models and stay ahead of their competitors.
Cybersecurity and data & analytics work are outperforming most services in the E&R sector, with growth rates forecast for 2024 of 12% and 14% respectively. Technology is the single-largest source of work, with the focus moving from strategy to implementation in 2024. There is also likely to be high demand for help navigating regulatory needs, with risk—where this sits in Source’s line of business model—set to be the second-fastest growing E&R service this year.
Finally, there is likely to be cross-business demand for consultants to help fill the skills gaps in larger incumbents that are finding it hard to attract the best new talent to a sector with ESG-related image problems.