Strategy Advisory Global Market Report 2024

The strategy advisory market size has grown strongly in recent years. It will grow from $137.78 billion in 2023 to $146.81 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The expansion witnessed in the historical period can be ascribed to factors such as globalization and market dynamics, mergers and acquisitions activity, competitive pressures, and industry disruptions. Additionally, regulatory changes and compliance challenges, along with economic uncertainty and market volatility, have played significant roles in shaping this growth.

The strategy advisory market size is expected to see strong growth in the next few years. It will grow to $198.29 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be linked to imperatives surrounding digital transformation, considerations for sustainability and ESG (Environmental, Social, and Governance), resilience planning, and risk management. Furthermore, shifts in consumer behavior, global economic trends, and geopolitical factors are expected to contribute to this growth. Noteworthy trends during the forecast period encompass strategies for supply chain resilience, human capital and talent management, customer-centric business approaches, strategic partnerships, and M&A advisory, as well as strategies addressing data privacy and compliance.

In the forecast period, the growth of the strategy advisory market will be supported by the increasing number of startups globally. As of August 2022, India ranked as the third-largest startup ecosystem worldwide, with over 77,000 DPIIT-recognized startups across 656 districts, according to Invest India. The State of Indian Start-up Ecosystem Report, 2022, by Inc42, projected that the cumulative funding raised by Indian startups would reach $180 billion by 2023. Consequently, the burgeoning startup landscape in various industrial and financial sectors is expected to drive the demand for growth in the strategy advisory market.

The ongoing digital transformation across industries is anticipated to propel the growth of the strategy advisory market. Digital transformation involves the comprehensive integration of digital technologies, strategies, and solutions into different facets of organizational operations, business models, and culture to enhance performance, efficiency, and competitiveness. Organizations seeking to navigate the complexities of digital change, formulate effective digital strategies, manage cultural shifts, mitigate risks, and gain a competitive edge require strategy advisory services. Strategy advisors provide expertise, customization, and guidance in optimizing digital investments, making data-driven decisions, and ensuring successful digital transformations. For instance, a report by Alkami Technology Inc. in May 2023 highlighted that mid-size banks and credit unions significantly increased digital transformation investments in fiscal year 2022, reaching nearly $425,000 per $1 billion in assets compared to $200,000 per $1 billion in assets in fiscal 2021. Additionally, the adoption of Peer-to-peer (P2P) payments among digital banking users increased from 12% to 25% in 2022. Thus, the growing digital transformation across industries is a key driver for the strategy advisory market.

The high cost associated with strategic advisory services is expected to impose limitations on the market's growth. Strategic advisory firms offer different services and functions as part of an expensive package, with a typical strategy case costing between $500,000 and $1.2 million. The variations in cost are influenced by factors such as the brand's premium, the case's duration, and the number of consultants required. Consequently, the elevated cost of engaging strategic advisors is such as ly to have a negative impact on the growth of the strategy advisory market.

The adoption of artificial intelligence (AI) is gaining momentum in the strategy advisory market, with many companies exploring the integration of AI into their operations. The global AI market is poised for rapid growth, with an expected market value of $190.61 billion by 2025. The annual growth rate of AI is projected to be 33.2% between 2020 and 2027. The introduction of AI holds positive implications for the future of strategic advisory, and if leveraged effectively, AI has the potential to significantly enhance how these firms operate and the services they offer to clients.

Leading companies in the strategy advisory market are actively developing digital transformation solutions to maintain a competitive edge. As businesses seek to adapt to the digital era, there is a growing demand for advisory services that focus on digital transformation strategies and technologies. For example, in December 2022, Boston Consulting Group, Inc. (BCG), a US-based management consulting company, unveiled BCG X, a transformative tech build and design unit, as a comprehensive solution addressing challenges associated with digital transformation. BCG X, leveraging the expertise of nearly 3,000 technologists, builders, and designers, provides a unique toolbox for accelerated digital transformation, business innovation, AI, and advanced analytics solutions at scale. The initiative aims to empower clients to achieve substantial and rapid impact from digital transformation while overcoming common challenges.

In December 2021, EY-Parthenon, a US-based management consulting company, acquired CMA Strategy Consulting for an undisclosed amount, enhancing its joint Internet of Things (IoT) offerings. This strategic acquisition positions EY-Parthenon to strengthen its digital infrastructure and technology, media, and telecommunications (TMT) consulting services. CMA Strategy Consulting, based in the US, specializes in providing services to the telecommunications, media, and related technology industries.

Major companies operating in the strategy advisory market report are Dell Technologies Inc., Deloitte Touche Tohmatsu Limited, Accenture PLC, IBM Corporation, PricewaterhouseCoopers International Limited, Ernst & Young Ltd., KPMG International Limited, Fujitsu Ltd., Capgemini SE, Tata Consultancy Services Limited, Infosys Limited, The Boston Consulting Group, McKinsey & Company, Booz & Co., Grant Thornton International, Gartner Inc., Bain & Company, FTI Consulting, Oliver Wyman Group, Mercer LLC, ZS Associates, A.T. Kearney Inc., Huron Consulting Group, Roland Berger Group, Simon-Kucher & Partners, L.E.K. Consulting, AlixPartners, HCL Technologies Limited, The Bridgespan Group, Neo-concept (BVI) Limited. North America was the largest region in the strategy advisory market in 2023. Western Europe was the second largest region in the global strategy advisory market share. The regions covered in the strategy advisory market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary services offered by strategy advisory include corporate strategy, business model transformation, economic policy, mergers and acquisitions, organizational strategy, functional strategy, strategy and operations, and digital strategy. Corporate strategy entails a distinctive, long-term plan or framework designed to attain a competitive advantage over other market participants while fulfilling both customer and stakeholder commitments, including the creation of shareholder value. Organizations of various sizes, ranging from large enterprises to small and medium enterprises, utilize these services across diverse industries such as IT and telecommunications, healthcare, BFSI, retail, manufacturing, and others.

The strategy advisory market research report is one of a series of new reports that provides strategy advisory market statistics, including strategy advisory industry global market size, regional shares, competitors with a strategy advisory market share, detailed strategy advisory market segments, market trends and opportunities, and any further data you may need to thrive in the strategy advisory industry. This strategy advisory market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the strategy advisory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The strategy advisory market consists of revenue earned by entities by providing consulting services that aim to increase client’s revenues, profit margins, market share and competitive advantage. Clients consult strategy advisors to seek advice on developing new markets, market entry and expansion strategies, and on reimagining their business models. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.