While headlines often focus on economic uncertainty, the UK consulting industry is quietly powering ahead, with the market surging to £16.8 billion in fees billed in 2023 and projected to hit £20.1 billion by 2027.
Key Takeaways
- The UK management consulting market was valued at £14.5 billion in 2022, marking a 7.5% increase from the previous year
- UK consulting revenues reached £12.9 billion in 2021, with a compound annual growth rate (CAGR) of 4.2% from 2017-2021
- The overall UK professional services market, including consulting, grew to £152 billion in 2023, up 5.1% YoY
- UK consulting employment contributed to 1.2% of total UK jobs in 2023, with 450,000 professionals
- Number of management consultants in UK reached 120,000 in 2022, up 4.5% from 2021
- UK consulting firms employed 380,000 full-time equivalents in 2023
- Total revenue of top 10 UK consulting firms reached £9.8 billion in 2023
- Average profit margin for UK consulting firms: 18.2% in 2022
- PwC UK consulting revenue: £4.3 billion in FY2023, up 12%
- The Big Four firms hold 55% market share in UK consulting revenues in 2023
- McKinsey & Company UK market share: 7.2% in strategy consulting 2023
- Deloitte commands 15% of total UK consulting market in 2023
- 68% of UK consulting firms report increased AI adoption demand in 2024 surveys
- Sustainability consulting demand up 35% in UK from 2022-2023
- 45% of UK firms plan to outsource more to consultants post-2023 recession fears
The UK consulting industry is experiencing strong, steady growth driven by digital transformation.
Employment and Workforce
- UK consulting employment contributed to 1.2% of total UK jobs in 2023, with 450,000 professionals
- Number of management consultants in UK reached 120,000 in 2022, up 4.5% from 2021
- UK consulting firms employed 380,000 full-time equivalents in 2023
- 25% of UK consulting workforce are women as of 2023
- Average salary for UK management consultants: £65,000 in 2023
- 15,000 new consulting jobs created in UK in 2023, growth rate 3.8%
- UK consulting sector had 2.1% unemployment rate in 2023, below national average
- 40% of UK consultants hold MBA degrees in 2023 survey
- Partner-level consultants in UK Big Four firms: average 1,200 per firm in 2023
- Remote working in UK consulting rose to 55% of workforce in 2023
- UK consulting apprenticeships grew 18% to 5,200 in 2023
- Diversity: 12% ethnic minorities in UK consulting workforce 2023
- Average tenure for UK consultants: 3.2 years in 2023
- 28,000 freelancers in UK consulting market in 2023, up 22%
- UK consulting firms with over 1,000 employees: 45 in 2023
- Youth employment (under 30) in consulting: 35% of total workforce 2023
- Consulting job vacancies in UK: 12,500 unfilled in Q4 2023
- Big Four UK consulting staff: 65,000 total in 2023
- Attrition rate in UK consulting: 14.5% annually in 2023
- UK consulting firms' training spend: £1.2 billion in 2023
Employment and Workforce Interpretation
While consulting may only make up 1.2% of UK jobs, its influence is outsized, as evidenced by a booming, youthful, and well-paid workforce where high turnover, intense training, and a growing freelance army coexist with stubborn diversity gaps and more than half the professionals now working remotely.
Major Firms and Market Share
- The Big Four firms hold 55% market share in UK consulting revenues in 2023
- McKinsey & Company UK market share: 7.2% in strategy consulting 2023
- Deloitte commands 15% of total UK consulting market in 2023
- PwC UK consulting market share: 14.8% in 2023 revenues
- EY's share in UK advisory services: 12.5% in 2023
- KPMG holds 11.3% of UK consulting market in 2023
- Accenture UK market share in IT consulting: 18% in 2023
- Capgemini UK presence: 9% market share in digital consulting 2023
- BDO UK consulting arm market share: 2.1% overall in 2023
- Oliver Wyman UK market share in financial services consulting: 8.5% 2023
- Top 50 UK consulting firms generated 72% of total industry revenue in 2023
- Strategy& (PwC) UK share: 4.2% in strategy segment 2023
- Roland Berger UK market penetration: 1.8% in operations consulting 2023
- Grant Thornton UK consulting share: 1.5% in mid-market 2023
- AlixPartners UK restructuring market share: 22% in 2023
- Number of UK consulting firms: over 25,000 registered in 2023
- FTSE 100 clients represent 65% of revenues for top UK consultancies in 2023
- IBM Consulting UK market share: 6.3% in tech services 2023
- Atos UK share in outsourcing consulting: 7.1% 2023
- Top 20 firms control 82% of UK strategy consulting market in 2023
Major Firms and Market Share Interpretation
The UK consulting landscape resembles a meticulously catered gala where the Big Four take more than half the buffet, a few strategic gatecrashers nab key platters, and over 25,000 hopeful guests are left politely sharing the remaining canapés.
Market Size and Growth
- The UK management consulting market was valued at £14.5 billion in 2022, marking a 7.5% increase from the previous year
- UK consulting revenues reached £12.9 billion in 2021, with a compound annual growth rate (CAGR) of 4.2% from 2017-2021
- The overall UK professional services market, including consulting, grew to £152 billion in 2023, up 5.1% YoY
- UK strategy consulting segment expanded by 9.8% in 2022 to £3.2 billion
- Total UK consulting market projected to hit £20.1 billion by 2027, with 6.3% CAGR from 2023-2027
- In 2023, UK consulting industry saw 8.4% growth, fueled by post-pandemic recovery
- UK IT consulting market valued at £8.7 billion in 2022, growing 10.2% YoY
- Professional, scientific, and technical services sector (incl. consulting) contributed £92 billion to UK GVA in 2022
- UK consulting market share in Europe stood at 12.5% in 2022, with £15.2 billion revenue
- From 2020-2023, UK consulting grew at 5.7% CAGR despite COVID disruptions
- UK management advisory services market reached £4.1 billion in 2023, up 6.8%
- Overall UK consulting fees billed totaled £16.8 billion in 2023
- UK consulting market expanded 11.3% in H1 2023 alone
- Projected UK consulting market size for 2025: £18.9 billion
- UK consulting industry GVA growth rate: 7.1% in 2022 vs. 2021
- Europe-wide consulting growth at 6.2% in 2022, with UK leading at 8.1%
- UK consulting market post-Brexit recovery: +9.2% growth in 2023
- Digital consulting subset in UK grew to £5.4 billion in 2023, +12.5% YoY
- UK consulting market concentration: top 10 firms hold 45% share in 2023
- Annual growth forecast for UK consulting 2024-2028: 5.9% CAGR
Market Size and Growth Interpretation
Apparently, UK businesses spent over sixteen and a half billion pounds last year to be told they should probably do more digital stuff and maybe think about their strategy.
Revenue and Financial Performance
- Total revenue of top 10 UK consulting firms reached £9.8 billion in 2023
- Average profit margin for UK consulting firms: 18.2% in 2022
- PwC UK consulting revenue: £4.3 billion in FY2023, up 12%
- Deloitte UK consulting billings: £3.9 billion in 2023
- EY UK consulting revenue grew 11% to £2.8 billion in 2023
- KPMG UK consulting fees: £2.4 billion in 2023, +9.5% YoY
- Accenture UK revenue from consulting: £2.1 billion in FY2023
- Average billing rate for UK partners: £1,200 per day in 2023
- UK consulting EBITDA margins averaged 22.4% for top firms in 2022
- M&A consulting fees in UK: £1.1 billion in 2023
- Tax advisory consulting revenue in UK: £850 million in 2023, up 7%
- Risk consulting segment revenue: £2.3 billion in UK 2023
- UK consulting firms' total profits: £3.2 billion in 2022
- Hourly billing rates for junior consultants in UK: £450 average in 2023
- Sustainability consulting revenue in UK: £650 million in 2023, +25% growth
- Public sector consulting contracts value: £4.5 billion in UK FY2023
- Private equity consulting fees: £1.4 billion across UK firms in 2023
- Tech implementation consulting revenue: £3.1 billion in 2023 UK
- Overall UK consulting profitability index rose 5.2% in 2023
- McKinsey UK revenue estimated at £1.2 billion in 2023
- BCG UK consulting fees: £850 million in 2023, +10.5%
- Bain UK revenue: £620 million in 2023
Revenue and Financial Performance Interpretation
The UK consulting industry's £9.8 billion top-line is a masterclass in turning client anxiety into a 22.4% margin, proving that the most valuable advice is often on how to pay for the advice.
Trends, Challenges, and Future Outlook
- 68% of UK consulting firms report increased AI adoption demand in 2024 surveys
- Sustainability consulting demand up 35% in UK from 2022-2023
- 45% of UK firms plan to outsource more to consultants post-2023 recession fears
- Cyber security consulting projects in UK rose 28% in 2023
- Hybrid cloud adoption driving 22% of UK IT consulting spend in 2024 forecast
- Regulatory compliance challenges affect 62% of UK consulting projects in 2023
- Generative AI expected to transform 30% of consulting services by 2027 in UK
- Net zero commitments boost ESG consulting by 41% in UK 2023
- Talent shortage cited as top challenge by 71% of UK consulting leaders in 2023
- Digital transformation projects comprise 55% of UK consulting pipeline in 2024
- Inflation impacted 48% of UK consulting contracts with fee adjustments in 2023
- Supply chain resilience consulting demand up 19% post-Ukraine crisis in UK
- 52% of UK consultants predict slower growth in 2024 due to economic uncertainty
- Automation tools reducing junior consultant roles by 15% in UK firms 2023-2025
- Public sector spend on consulting down 8% in UK FY2023 amid scrutiny
- Health & life sciences consulting growth at 14% CAGR to 2028 in UK
- 37% of UK consulting deals now include success fees in 2023
- Brexit-related consulting peaked then declined 25% by 2023 in UK
- Future outlook: UK consulting to grow 7.2% in 2025 driven by tech
- Mental health support initiatives adopted by 80% of large UK consultancies in 2023
Trends, Challenges, and Future Outlook Interpretation
The UK consulting industry is frantically trying to save the world, secure it, and comply with its new rules, all while being short-staffed, squeezed by inflation, and nervously wondering if a robot will soon be doing its job.
Sources & References
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