Professional services market to grow by 5.7% to 2028

The global professional services market is projected to grow by a CAGR of 5.7% between 2024 and 2028, according to a recent report from research firm Technavio.

The estimated 5.7% growth represents an expansion of $2.08 trillion.

Major players in the professional services market include Accenture, Deloitte, McKinsey & Company, and Booz Allen Hamilton.

North America will remain the largest regional market, with 36% of growth coming from the continent.

Technavio says professional services growth will be powered by organizational demand for digitalization. AI and cloud technology will be key drivers, with cloud-based accounting software and SaaS solutions becoming increasingly popular.

Increasing digitalization will further the need for cybersecurity – another key consulting area. Service providers will have to bolster security measures and incident response plans – and consulting firms will be there to fill the gap.

Consulting firms will also integrate AI and machine learning into their own operations. Firms such as EY and PwC are using AI applications to amplify productivity and precision in areas such as audit, tax consulting, and financial analysis.

Labor shortage – particularly in technology areas such as AI and analytics – will continue to be a limiter on consulting firm growth. Demand for advanced technologists has grown extremely rapidly in the last five years, far outstripping the available pool and the ability of educational institutions to provide adequate supply.