Professional Services Market to grow by USD 2.07 Trillion (2024-2028), growing focus on digitalizing business processes boosts the market, Report on AI-driven market evolution - Technavio
NEW YORK, Feb. 5, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global professional services market size is estimated to grow by USD 2.07 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 5.7% during the forecast period. Growing focus on digitalizing business processes is driving market growth, with a trend towards growing trend of using AI and ML in professional services industry. However, shortage of skilled professionals poses a challenge. Key market players include Accenture Plc, AECOM, Aon plc, Bain and Co. Inc., Boston Consulting Group Inc., Business Connexion Ltd., Charles Ghadban Accounting, Cleary Gottlieb Steen and Hamilton LLP, Deloitte Touche Tohmatsu Ltd., Dentsu Group Inc., Enviro Analysts and Engineers Pvt Ltd., Ernst and Young Global Ltd., FinExpertiza, Forvis Mazars, Oliver, Wyman & Company, Omnicom Group Inc., PricewaterhouseCoopers LLP, Publicis Groupe SA, Slalom Consulting LLC, and Tata Consultancy Services Ltd..
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Professional Services Market Scope
Report Coverage
Details
Base year 2023
Historic period
2018 - 2022
Forecast period
2024-2028
Growth momentum & CAGR Accelerate at a CAGR of 5.7%
Market growth 2024-2028
USD 2077.8 billion
Market structure
Fragmented
YoY growth 2022-2023 (%) 4.3
Regional analysis
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution North America at 36%
Key countries
US, China, Japan, India, and UK
Accenture Plc, AECOM, Aon plc, Bain and Co. Inc., Boston Consulting Group Inc., Business Connexion Ltd.,
Charles Ghadban Accounting, Cleary Gottlieb Steen and Hamilton LLP, Deloitte Touche Tohmatsu Ltd., Dentsu
Group Inc., Enviro Analysts and Engineers Pvt Ltd., Ernst and Young Global Ltd., FinExpertiza, Forvis
Mazars, Oliver, Wyman & Company, Omnicom Group Inc., PricewaterhouseCoopers LLP, Publicis Groupe SA,
Key companies profiled Slalom Consulting LLC, and Tata Consultancy Services Ltd.
Market Driver
The professional services market is experiencing significant trends, with a focus on digitizing business processes through cloud technology and AI. Large enterprises are increasingly adopting cloud-based accounting software and SaaS solutions for real-time financial transactions and automation. Cyber threats, including cyberattacks and cybercrime, are a growing concern, necessitating security measures and incident response plans. Experience management platforms like Qualtrics enhance customer experience through AI-driven customer feedback analysis. Professional services include advisory support, consulting, design, research, legal, and technical services. Digital transformation is driving the use of automation, real-time data, and remote working. Cybersecurity is crucial, with a focus on data security, NIST Cybersecurity Framework, and incident response plans. Professional service firms are leveraging AI, ML, IoT, and digital media for enhanced customer experience and business strategies. Talent acquisition and resource management are essential for delivering project-oriented services. ITO and cloud computing offer flexible solutions, with on-premise solutions still in use for specific industries. Remote working and business strategies require effective communication and project management tools. Automated billing, invoice management, and expense management streamline operations. Digital Adoption Programs and CDAP facilitate technology adoption and ensure data security.
The professional services industry is undergoing a notable change due to the integration of artificial intelligence (AI) and machine learning (ML) technologies. EY Global Ltd., a leading professional services firm, is utilizing AI to boost efficiency, accuracy, and productivity in sectors such as auditing, tax consulting, and financial analysis. EY's AI applications in professional services aim to enhance business services for clients and internal teams. Similarly, PricewaterhouseCoopers LLP, another prominent professional services firm, is leveraging AI to augment its services, providing improved quality and value to clients. These firms' adoption of AI and ML is revolutionizing the industry, creating new opportunities and efficiencies.
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Market Challenges
-- The professional services market is evolving rapidly with digitizing
business processes becoming a top priority. AI and cloud technology are
key drivers, enabling real-time data processing and automation of
financial transactions. However, these advancements bring challenges
such as cyberattacks and cybercrime. Service providers must implement
security measures and incident response plans to mitigate risks.
Professional services include advisory support, consulting, design,
research, legal, accounting, scientific, technical, and promotional
services. Large enterprises rely on a mix of online, offline, and hybrid
services from service providers. Digital transformation is essential,
with cloud-based accounting software and SaaS solutions increasingly
popular. AI and machine learning (ML) are transforming industries like
legal services, management consulting, and financial auditing through
enhanced customer experience and improved business strategies. However,
challenges persist, including cyber threats, data security, and identity
theft. Professional service firms must adopt the NIST Cybersecurity
Framework and focus on project-oriented services, IT outsourcing (ITO),
and digital adoption programs. Remote working and communication are
crucial in today's business landscape. Talent acquisition and resource
management are also essential components of successful professional
services firms. Technology trends like cloud computing, IoT, and CDAP
are shaping the future of professional services. Firms must stay
informed and adapt to remain competitive.
-- The professional services industry faces a pressing issue: a shortage of
skilled professionals, particularly in technology areas like artificial
intelligence, machine learning, and data analytics. This talent gap
negatively impacts firms' ability to meet client demands, maintain
service quality, and drive growth. The root cause is the industry's
rapid technological advancement, which has outpaced the supply of
qualified professionals. For instance, in the manufacturing sector, the
demand for tech-savvy experts is high but the availability remains
limited. Bridging this gap requires strategic workforce planning and
investment in training and education.
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Segment Overview
This professional services market report extensively covers market segmentation by
-- Industry Application
-- Financial Services
-- Technology
-- Healthcare
-- Manufacturing
-- Others
-- Delivery Mode
-- On-site Services
-- Remote Services
-- Hybrid Models
-- Geography
-- North America
-- Europe
-- APAC
-- South America
-- Middle East And Africa
1.1 Financial services- The financial services segment of the professional services market is experiencing significant growth due to regulatory changes, technological advancements, and shifting customer expectations. Financial institutions require professional services to navigate complexities in regulatory compliance, risk management, and cybersecurity. Fintech and digital banking's rise has boosted demand for specialized consulting services, helping traditional banks and financial institutions adapt to digital transformation. AI, blockchain, and big data analytics integration into financial operations create opportunities for professional services firms. Mergers and acquisitions in the sector necessitate due diligence, integration, and strategic planning expertise. Customer-centricity and personalized financial services require professional guidance for redesigning customer engagement strategies and improving service delivery. The market comprises multinational firms, boutique consultancies, and tech-driven startups, all competing to offer innovative solutions. The financial services sector's evolution necessitates professional services, with comprehensive, tailored, and forward-thinking solutions in high demand. The market's positive outlook remains, with sustained growth expected as financial systems worldwide adapt to regulatory changes, technological advancements, and customer needs.
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Research Analysis
The professional services market is experiencing a significant shift as businesses digitize their operations using advanced technologies like Artificial Intelligence (AI), Cloud technology, and Blockchain. AI is revolutionizing industries by automating routine tasks and enhancing customer experiences. Cloud technology is enabling remote working and scalability for both small and large enterprises. However, this digital transformation also brings new challenges, such as cyberattacks and cybercrime. Service providers offer advisory support, specialized technical services, design services, research services, promotional services, consulting services, legal services, accounting services, scientific services, and technical services to help businesses navigate these complexities. Cloud-based accounting software and Software as a Service (SaaS) solutions are becoming increasingly popular. Security measures and incident response plans are essential to mitigate cyber threats. Business strategies and IT services are crucial for successful implementation of these technologies. Professional service firms are essential partners in this digital journey, providing expertise and guidance to help businesses adapt and thrive.
The Professional Services Market is experiencing significant transformation as businesses digitize their operations using advanced technologies like Artificial Intelligence (AI), Cloud Technology, and Blockchain. These technologies are revolutionizing business processes, enabling real-time data analysis, automation of financial transactions, and enhanced customer experience. However, this digital shift also brings new challenges, including cyberattacks and cybercrime. Service providers must implement security measures, incident response plans, and cloud-based accounting software to mitigate risks. SaaS solutions, automation, and remote working are becoming increasingly popular, while professional services firms offer advisory support, specialized technical services, design services, research services, and promotional services. The industry includes large enterprises, online and offline services, hybrid services, and professional services software for invoice management, expense management, resource allocation, project management, and automated billing. Digital transformation is a key business strategy, with a focus on cyber threats, data security, and the NIST Cybersecurity Framework. The use of AI, ML, IoT, and digital media is also driving innovation in areas like experience management (XM) and environmental consulting. Management consulting, tax preparation services, financial auditing, translation services, and IT services are also essential components of the Professional Services Industry.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
-- Industry Application
-- Financial Services
-- Technology
-- Healthcare
-- Manufacturing
-- Others
-- Delivery Mode
-- On-site Services
-- Remote Services
-- Hybrid Models
-- Geography
-- North America
-- Europe
-- APAC
-- South America
-- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
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