- With the highly dynamic nature of several industries and markets, especially after the COVID-19 pandemic, companies prefer to consult management consulting firms for a deeper and more assured insight into the markets and other purposes to ensure well-thought-out and data-backed decisions.
- Management consulting firms provide services that help organizations improve their efficiency. The firms analyze the operations and understand the existing organizational inefficiencies, ranging from the high cost of raw materials to HR policies in the organization. The firm uses its expertise to develop a plan to tackle all the issues in the best possible way. With growing competition in the market in various industries, profit margins are shrinking, and one of the best ways to improve profits is through increasing organizational performance.
- Companies in the United States are using management consulting services because they want to cut down on operational costs and make their operations run better.
- The United States has the highest business intensity in the world. The country benefits from the size of its economy and the fact that most of the largest global consultancies are headquartered there, including mckinsey, BCG, and Bain, and three of the "Big Four" companies, including Deloitte, EY, and pwc.
- The "new" generation of market research firms has grown in prominence in the last decade. One of the major factors is that management consulting firms are becoming increasingly expensive to partner with. The growth of "new" research firms and the availability of various databases have resulted in the rise of business analytics tools. Businesses can now collect important and actionable data at a fraction of the cost that management consulting firms would charge.This could act as a huge disrupter in the management consulting market.
- However, management consultancies still have their niche, as the majority of Fortune 500 companies would still prefer partnering with a management consulting firm over a market research firm, citing credibility and the fact that these firms act as a one-stop destination for all their consulting needs, ranging from strategy consulting to legal consulting.
- Various factors hamper the growth of the management consulting market in the United States, such as cyberattacks and data breaches.
US Management Consulting Services Market Trends
Strategy Consulting Segment is Expected to Drive the Market Demand
- Strategic consulting refers to forming enterprise- and business-wide strategies and goals. Corporate strategy, business model transformation, economic policy, mergers and acquisitions, organizational strategy, functional strategy, strategy and operations, and so on are examples of these services.
- The growth of strategy as a function is forcing enterprises to develop their internal strategy teams. These teams heavily rely on consulting services and an array of offerings. Some large-market vendors have started offering data-driven strategy services, promoting asset-based consulting models.
- The research sector, including market and economic research, is rapidly growing, and businesses across many industries are increasing their investment in R&D to make better strategic decisions. This will drive significant growth in the market for strategy consulting services, reflecting how client organizations respond to the prospect of recovery by rethinking their business models, particularly in scenarios such as the COVID-19 pandemic.
- Strategy consultants assist companies in formulating and executing their business strategies. They provide expertise in market analysis, competitive intelligence, and strategic planning, helping organizations identify opportunities, assess risks, and develop long-term plans to achieve their objectives.
- The United States has a robust M&A market, and companies often seek strategy consultants to support them in M&A transactions. Consultants assist with due diligence, integration planning, synergy assessment, and post-merger integration, ensuring a smooth transition and maximizing the value of the deal.
- The number of management consultants in the United States has grown over the past few years. In the year 2022, the number of employees in management consulting firms reached 8,08,860, which was 40,140 more than the previous year, registering strong growth in the studied market.
Healthcare Drives the Market Growth
- A healthcare consulting firm operates as a contracted third-party consultant for businesses operating in the healthcare sector. Every healthcare institution could employ one of these advisory firms to enhance organizational competency, including healthcare providers such as hospitals, doctor's offices, pharmaceutical companies, medical equipment companies, and others.
- The healthcare consulting firm helps in optimizing efficiency, making structural improvements, and generating revenue. This can take many forms, with various specializations growing within the healthcare consulting sector.
- Healthcare plays a significant role in driving the growth of the management consulting services market in the United States. The healthcare industry is complex, rapidly evolving, and highly regulated, which creates a demand for specialized expertise to navigate its challenges effectively.
- Management consulting services provide valuable insights, strategic guidance, and operational support to healthcare organizations, including hospitals, clinics, pharmaceutical companies, insurers, and government agencies.
- The healthcare industry faces numerous regulations and compliance requirements, such as HIPAA (Health Insurance Portability and Accountability Act) and the Affordable Care Act. Management consultants help healthcare organizations understand and adhere to these regulations, minimizing risks and ensuring compliance.
- Healthcare organizations often require strategic guidance to adapt to changing market dynamics, identify growth opportunities, and expand their services. Management consultants provide market research, competitive analysis, and strategic planning to help healthcare organizations make informed decisions and seize growth opportunities.
US Management Consulting Services Industry OverviewThe United States management consulting services market is semi-consolidated, with local and international players having decades of industry experience. The vendors are incorporating a powerful competitive strategy by leveraging their expertise and spending significantly on advertising. Quality certification, service offerings, costs, and technical capabilities are important factors for attracting new contracts in the market. Some of the major players in this market are Deloitte, Ernst & Young, KPMG, PwC, and McKinsey.
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Table of Contents
1.2 Scope of the study
4.2 Market Drivers
4.2.1 Adoption Of Advanced Data Management Strategies
4.2.2 Growing Investment In Analytical Solutions is Surging Companies Growth
4.3 Market Restraints
4.3.1 Project Complexities and Shift In Consulting Marketplace
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Current Trends and Innovations in the Market
4.6 Impact of COVID-19 on the Market
5.1.1 HR Consulting
5.1.2 Strategy Consulting
5.1.3 Operations Consulting
5.2 By End-User Industry
5.2.1 IT & Telecommunication
5.2.5 Public Sector
5.2.7 Other End-User Industries
6.2 Company Profiles
6.2.6 Boston Consulting Group
6.2.7 A.T Kearney
6.2.8 Booz Allen Hamilton
6.2.9 Bain & Company
6.2.10 Accenture Strategy*
A selection of companies mentioned in this report includes:
- Boston Consulting Group
- A.T Kearney
- Booz Allen Hamilton
- Bain & Company
- Accenture Strategy*