Management Consulting in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: December 2023
ANZSIC M6962aRevenue
$51.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
166k
Businesses
99,890
Wages
$XX.Xbn
Management Consulting in Australia industry analysis
The Management Consulting industry is benefiting from mostly favourable operating conditions. Climbing total business profit has buoyed business expansion and overall demand for management consulting services. Even so, fluctuating business confidence has subdued industry growth. The pandemic wreaked havoc on management consultants in 2019-20, as many downstream clients sought to limit discretionary spending because of economic uncertainty and government restrictions. Nonetheless, private and public capital expenditure recovered over the four years through 2023-24, spurring demand for management consultants. Overall, industry revenue is expected to climb at an annualised 1.9% over the five years through 2023-24 to an estimated $51.0 billion. This trend includes an anticipated 0.4% hike in the current year as business confidence improves but remains negative.
Trends and Insights
- Growth in total business profit has supported business expansion activities and demand for management consultants. Greater capital expenditure by the private and public sectors has encouraged uptake of management consulting services.
- Management consulting firms provide a range of advisory services to businesses to help improve a client's business performance. Key industry service segments include consulting on financial performance, corporate operations, business strategy, human resource optimisation, sustainability issues and digital growth.
- New South Wales and Victoria have the highest proportion of management consulting firms. The need for face-to-face communication to develop client relationships means that consulting firms are largely located in these cities to ensure close contact with clients.
- Competition among management consultants is on the rise. Consultants compete with each other based on reputation, quality of service, specialised expertise and price, on top of external competition from downstream clients’ in-house capabilities.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated $51.0bn in 2023.
Trends and Insights
Consulting services’ diverse nature buttresses management consultants' revenue
- Companies hire management consultants to solve complex business problems or to help improve their overall performance. Growing total business profit in recent years has encouraged uptake of management consulting services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising private sector capital expenditure and positive business confidence are projected to boost demand
- Rising capital expenditure by the private sector will continue to encourage uptake of management consulting services as companies seek advice before committing to major capital spending in projects.
Biggest companies in the Management Consulting in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Deloitte Touche Tohmatsu | 1,837.7 | |
KPMG | 1,754.3 | |
EY | 1,693.8 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Financial consulting, Strategy consulting and Operations consulting. Financial consulting is the largest segment of the Management Consulting in Australia.
Trends and Insights
Greater equity capital raising is buttressing demand for financial consulting
- Financial advisory services aim to optimise a company's use of its finance functions to help provide deeper insight, support better decision-making and add value to a business.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Accounting Services in Australia
- Market Research and Statistical Services in Australia
- Employment Placement and Recruitment Services in Australia
Complementors
- Engineering Consulting in Australia
- Computer System Design Services in Australia
International industries
- Global Management Consultants
- Management Consulting in the US
- HR Consulting in the US
- Expert Networks in the US
- Occupational Health & Workplace Safety Services in the US
Table of Contents
About this industry
Industry definition
Industry firms provide clients with advice and strategies to solve a range of complex business issues. These issues include financial performance, business strategy and operational structure. Management consultants aim to improve a client’s overall business performance.
What's included in this industry?
Financial consultingStrategy consultingOperations consultingHuman resources consultingSustainability consultingCompanies
Deloitte Touche TohmatsuKPMGEYPurchase this report to view all 7 major companies in this industry.
Related Terms
INSOURCINGANALYTICSOUTSOURCINGIndustry Code
ANZSIC 6962 - Management Consulting in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Growth in total business profit has supported business expansion activities and demand for management consultants. Greater capital expenditure by the private and public secto...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Management consulting firms provide a range of advisory services to businesses to help improve a client's business performance. Key industry service segments include consulti...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales and Victoria have the highest proportion of management consulting firms. The need for face-to-face communication to develop client relationships means that co...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition among management consultants is on the rise. Consultants compete with each other based on reputation, quality of service, specialised expertise and price, on top ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No single management consulting firm has a market share of more than 5%. Management consulting firms will remain fragmented as more firms enter the industry.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Deloitte Touche Tohmatsu's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of KPMG's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of EY's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Deloitte Touche Tohmatsu, and factors influencing its performance in the industry
- Description and key data for KPMG, and factors influencing its performance in the industry
- Description and key data for EY, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Management consulting firms don’t receive any direct assistance from the government. However, firms can still benefit from being awarded government contracts.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Management consulting firms typically have low fixed costs as they’re service-oriented. Wages account for the largest cost as firms must attract highly qualified and skilled ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Management Consulting industry in Australia in 2024?
The market size of the Management Consulting industry in Australia is $51.0bn in 2024.
How many businesses are there in the Management Consulting in Australia industry in 2023?
There are 99,890 businesses in the Management Consulting industry in Australia, which has grown at a CAGR of 4.9 % between 2018 and 2023.
Has the Management Consulting industry in Australia grown or declined over the past 5 years?
The market size of the Management Consulting industry in Australia has been growing at a CAGR of 1.9 % between 2018 and 2023.
What is the forecast growth of the Management Consulting industry in Australia over the next 5 years?
Over the next five years, the Management Consulting industry in Australia is expected to grow.
What are the biggest companies in the Management Consulting market in Australia?
The biggest companies operating in the Management Consulting market in Australia are Deloitte Touche Tohmatsu, KPMG and EY
What does the Management Consulting in Australia include?
Financial consulting and Strategy consulting are part of the Management Consulting industry.
Which companies have the highest market share in the Management Consulting in Australia?
The company holding the most market share in Australia is Deloitte Touche Tohmatsu.
How competitive is the Management Consulting industry in Australia?
The level of competition is high and increasing in the Management Consulting industry in Australia.
