Management and Strategy Consulting

The coronavirus pandemic had a substantial impact on the management and strategy consulting industry as the 2020s began. However, consulting services remained in demand as clients required guidance to navigate the health crisis. COVID-19 even created some new opportunities for firms, such as designing vaccination programs. The research group, IBISWorld, estimated that industry revenues increased at a compound annual rate of 3.6 percent between 2019 and 2024, reaching $392.2 billion. Approximately 1 million management consulting businesses operated in 2024, collectively employing 3 million people in the United States. IBISWorld predicted that the market, which expanded 1.8 percent in 2024, would continue to grow through 2029.

Management and strategy consultants will continue to have good job opportunities. The Department of Labor (DOL) forecasts 11 percent employment growth through 2032, which is much faster than the average for all occupations. Organizations in various industries will always seek ways to improve their business operations for greater efficiency and increased revenue. As the economy strengthens, markets become increasingly competitive, which, in turn, creates demand for management and strategy consultants for their expertise in resource management. Demand for consultants will be especially strong at smaller firms, according to the DOL, which explains that expertise in specific industries or business functions, such as human resources and information technology, is needed. Government agencies will also need management and strategy consultants to help improve efficiency and reduce spending.

Opportunities may be best, going forward, for independent, freelance management and strategy consultants due to recent developments in the consulting field. For example, a growing number of companies are using crowdsourcing and consulting services through networks. Crowdsourcing is as its name suggests: the gathering of insights from many sources to solve problems. In 2024, Marketing Scoop noted: “Crowdsourcing has transitioned from an intriguing novelty to a mainstream strategic approach embraced across industries. … As executives recognize crowdsourcing’s immense potential for innovation, productivity, cost savings and beyond, its use will continue rising rapidly.”

Technology will continue to impact the consulting industry, shifting how consultants and their clients access information and work together. The Internet has made it possible for people to access certain types of data and information that previously only business professionals such as consultants and consulting firms could access. As a result, the consulting industry is shifting toward focusing on asset-based consulting, which has been a recent disruptive that is expected to continue gaining ground. With asset-based consulting, tools and products are the priority rather than human capital, meaning the talent of the consultants.

By the mid-2020s, emerging technologies like artificial intelligence were impacting virtually every industry. This especially was true of generative artificial intelligence (GenAI). In a 2024 McKinsey Global Survey, 65 percent of respondents revealed that their organizations were using GenAI on a regular basis, a percentage that had nearly doubled in only 10 months. Subsequently, firms were developing practices to help clients unlock the potential of this new technology. One example was QuantumBlack, AI by McKinsey, which offered guidance regarding artificial intelligence, data transformation, the Internet of Things (IoT), and digital twins. The service included QuantumBlack Labs, the firm’s “center of learning dedicated to driving innovation and experimentation in AI.”

In addition to providing new opportunities for consultants, AI also has the potential to alter their employment situation. Some have suggested that jobs will be lost as firms use AI to solve complex business problems more efficiently, cost effectively, and accurately. However, a Boardroom Advisors article by John Courtney suggests that, while the technology will be used to automate certain tasks and perform deeper data analysis, it cannot compete with the critical thinking skills and creativity that human consultants offer. “The future of consulting lies in the collaboration between AI and human consultants, harnessing the strengths of both to deliver innovative solutions,” Courtney explains. “Staying updated with the latest AI trends and technologies is crucial for consultants to remain competitive in the industry.”

Fact.MR estimated that the global management consulting services market was valued at $298.6 billion in 2023. The firm forecast that this figure would increase at a compound annual rate of 4.8 percent through 2033, reaching $477.3 billion. A variety of trends influenced this optimistic outlook, including an increased focus on corporate social responsibility and sustainability, digital transformation initiatives, globalization, and the never-ending need to outpace the competition. Collectively, factors such as these suggest that demand for management and strategy consultants will remain strong for the foreseeable future.