Following the financial crisis within the European consulting market, the consulting industry managed to recover and return to modest growth. The industry has grown at 3-4% on average since then. The Eastern Europe market is growing twice as fast as the Western market making differences between the 2 markets more apparent.
In Spain, the management consulting industry has seen recovery, but with a CAGR of less than 1%. The Financial Services sector continues to dominate the Spanish market followed by the Energy and Resources sector.
In Italy, the market returned to growth after a significant contraction due to sluggish Italian economy. Financial Services remained the largest and fastest growing sector due to demand from regulation, modernization, and digitization projects.
Due to crisis in Ukraine and instability in Russia, the Eastern market has contracted significantly after having quadrupled over the last few years. The Industry is dominated by companies with more than 100 employees. Due to slowing economic growth and decreasing oil prices in the country, business enterprises are increasingly seeking cost-cutting strategies and operational efficiency. A particularity of the market is an appetite for Western European but non US based companies.
In United Kingdom, the growth in the management consulting industry is fueled by the growing popularity of digital and risk management. Large companies grow fastest among all local provider groups, indicating growing concentration in the industry. From a sector perspective, all industries performed well, with retail and pharmaceuticals leading the way.
Nordic countries continue to grow at a high single digit rate with digital, retail, paper and financial services and public sector leading the demand. Despite the oil and gas crisis, Norway has had the largest growth of the last years on the management consulting market.
French consulting companies, due to a difficult economic situation in the country, are increasingly focusing on foreign clients. Consulting to the Aeronautics and Defense, healthcare, and retail industries are the fastest growing areas. The insurance sector is also particularly active due to the ongoing consolidation. Last, the digital wave has started and is growing everyday stronger.
Germany remains the largest European market and German consulting companies are becoming increasingly demanded by foreign clients. The market is driven by the growing number of enterprises aiming to enter new markets and striving to optimize operating costs. From an industry perspective, the financial services and energy and utilities sectors are expected to be the key growth drivers.