UK Consulting Market Faces First Decline Since 2020

UK Consulting Market Faces First Decline Since 2020

By
Isabella Gregorová
1 min read

The UK consulting market is projected to face its first decline since 2020, attributed to concerns over the economy's resilience, an impending election, and geopolitical tensions. Sectors such as retail, telecoms, pharmaceuticals, and manufacturing are anticipated to reduce spending on consultancies, posing pressure on the almost £16bn market. The report from Source Global Research, involving input from major consulting firms, highlights how higher inflation and geopolitical uncertainty had slowed the market's growth in the previous year. This hesitancy is expected to persist in 2024, influenced by the upcoming general election and the continued wait-and-see approach adopted by companies. The challenges facing the dominant Big Four firms in the market are underscored by the forecast, indicating a tightening and more competitive market landscape. The anticipated slowdown in growth across sectors emphasizes the need for consulting firms to demonstrate added value. Furthermore, the report reveals insights into the sectors dominating the market, with financial services accounting for a significant portion and cyber security emerging as the fastest-growing business line. The impact of uncertainty over the impending election on public sector growth is also highlighted, along with insights from a separate consultant survey estimating a decrease in market activity compared to the previous year.

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