Professional Services Market to grow by USD 2.08 Trillion (2024-2028), driven by the growing focus on digitalizing business processes, AI-powered market evolution - Technavio

NEW YORK, Jan. 27, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global professional services market size is estimated to grow by USD 2.08 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.7%  during the forecast period. Growing focus on digitalizing business processes is driving market growth, with a trend towards growing trend of using ai and ml in professional services industry. However, shortage of skilled professionals  poses a challenge. Key market players include Accenture Plc, AECOM, Aon plc, Bain and Co. Inc., Boston Consulting Group Inc., Business Connexion Ltd., Charles Ghadban Accounting, Cleary Gottlieb Steen and Hamilton LLP, Deloitte Touche Tohmatsu Ltd., Dentsu Group Inc., Enviro Analysts and Engineers Pvt Ltd., Ernst and Young Global Ltd., FinExpertiza, Forvis Mazars, Oliver, Wyman & Company, Omnicom Group Inc., PricewaterhouseCoopers LLP, Publicis Groupe SA, Slalom Consulting LLC, and Tata Consultancy Services Ltd..

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Market Driver

The professional services market is experiencing significant trends as businesses digitize their operations. AI and cloud technology are key drivers, with cloud-based accounting software and SaaS solutions becoming increasingly popular. Automation, real-time data, and financial transactions are now standard in many industries, from legal and consulting to scientific services. Cyber threats, including cyberattacks and cybercrime, are a growing concern. Service providers must implement security measures and incident response plans to protect client data. AI and machine learning are essential tools for enhancing customer experience through platforms like Qualtrics, while automation streamlines business processes. Professional services firms offer advisory support, specialized technical services, design services, research services, and promotional services. Large enterprises require hybrid services, combining online and offline solutions. Remote working and business strategies are shaping the industry, with IT services playing a crucial role in digital transformation. Cyber breaches, identity theft, and the NIST Cybersecurity Framework are critical issues for data security. Project-oriented services, Information Technology Outsourcing (ITO), and cloud computing are essential components of digital adoption programs. CDAP and data security are essential for managing financial data and experience management (XM). Environmental consulting, management consulting, tax preparation services, financial auditing, translation services, and IT services are all part of the professional services industry. Digital media and IoT are transforming the sector, with AI and ML providing enhanced customer experiences and automating communication. 

The professional services industry is undergoing a notable shift with the integration of artificial intelligence (AI) and machine learning (ML). This transformation is bringing about new possibilities and enhancements across various sectors within the industry. For instance, Ernst and Young Global Ltd. (EY), a leading professional services firm, employs AI to boost its business services. EY's AI application in professional services aims to amplify efficiency, precision, and productivity in areas such as auditing, tax consulting, and financial analysis. EY has engineered AI-driven tools to bolster its clients and internal teams, thereby improving the standard of services delivered. Likewise, PricewaterhouseCoopers LLP, another prominent professional services company, utilizes AI to amplify its offerings. 

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 Market Challenges

• The professional services market is evolving rapidly with digitizing business processes becoming a key trend. Artificial Intelligence (AI) and Cloud technology are transforming industries like accounting, legal, consulting, and IT services. However, these advancements bring new challenges such as cyberattacks and cybercrime. Service providers must prioritize security measures, including incident response plans, to protect financial transactions and real-time data. Professional services firms offer advisory support, specialized technical services, design services, research services, and promotional services. Large enterprises increasingly rely on online services, but hybrid services remain essential. Digital transformation through automation, AI, and ML enables enhanced customer experience and improved business strategies. Professional services software, including cloud-based accounting software and SaaS, streamlines invoice management, expense management, resource allocation, and project management. Automated billing and communication are essential for efficient operations. Cyber threats, including cyber breaches and identity theft, require data security measures. Adherence to frameworks like the NIST Cybersecurity Framework is crucial. Project-oriented services, Information Technology Outsourcing (ITO), and cloud computing offer solutions for businesses. Remote working and talent acquisition are critical in today's business landscape. Resource management and digital adoption programs ensure optimal utilization of resources. Professional services firms must adapt to these changes and provide expertise in areas like environmental consulting, financial data management, and experience management (XM) to stay competitive.
• The professional services industry faces a pressing issue: a shortage of skilled professionals, particularly in technology areas like artificial intelligence, machine learning, and data analytics. This talent gap hinders firms from meeting client demands, preserving service quality, and fostering growth. The root cause is the swift technological progression. While the industry adopts advanced technologies, the availability of proficient professionals has not matched the demand, resulting in a substantial skill deficit. For example, in the manufacturing sector, this scarcity is evident, making it a significant challenge for businesses to stay competitive.

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Segment Overview 

This professional services market report extensively covers market segmentation by  

1. Industry Application
• 1.1 Financial services
• 1.2 Technology
• 1.3 Healthcare
• 1.4 Manufacturing
• 1.5 Others
2. Delivery Mode
• 2.1 On-site services
• 2.2 Remote services
• 2.3 Hybrid models
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Financial services-  The financial services segment within the professional services market is experiencing significant growth, driven by regulatory changes, technological advancements, and evolving customer expectations. Financial institutions require professional services to navigate complexities of regulatory compliance, risk management, and cybersecurity. Fintech and digital banking have accelerated demand for specialized consulting services, helping traditional banks and financial institutions adapt to digital transformation. AI, blockchain, and big data analytics integration into financial operations create opportunities for professional services firms. Mergers and acquisitions increase the need for due diligence, integration, and strategic planning expertise. Customer-centricity and personalized financial services drive demand for professional guidance on customer engagement strategies and service delivery. The market consists of multinational firms, boutique consultancies, and technology-driven startups, competing to offer innovative solutions. The financial services sector's transformation requires professional services to provide comprehensive, tailored, and forward-thinking solutions, positioning firms well for growth. The market's positive outlook remains, with sustained growth expected as financial systems adapt to regulatory requirements, technological advancements, and customer needs.

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Research Analysis

The professional services market is experiencing a significant shift as businesses digitize their operations. Artificial intelligence (AI) and cloud technology are key drivers of this transformation, enabling automation, enhanced customer experience, and remote working. However, this digital evolution also brings new challenges, such as cyberattacks and cybercrime. Service providers offer advisory support, specialized technical services, design services, research services, promotional services, consulting services, legal services, accounting services, scientific services, and technical services to help businesses navigate these complexities. Cloud-based accounting software and Software-as-a-Service (SaaS) solutions are becoming increasingly popular. Security measures and incident response plans are essential to mitigate cyber threats. Blockchain technology adds an additional layer of security and transparency. Professional service firms must stay updated on the latest business strategies and technologies to remain competitive.

Market Research Overview

The Professional Services Market is experiencing a significant shift towards digitizing business processes with the integration of advanced technologies like Artificial Intelligence (AI), Cloud Technology, and Blockchain Technology. These technologies are revolutionizing various industries, including Legal Services, Consulting Services, Accounting Services, Scientific Services, and IT Services, among others. Digitization is enabling automation of business processes, providing real-time data access, and enhancing customer experience through platforms like Qualtrics for Experience Management. AI and Machine Learning (ML) are being used to analyze customer feedback and financial transactions, offering valuable insights for business strategies. However, with the increasing digitization comes the threat of cyberattacks and cybercrime. Service providers must implement security measures, including incident response plans, cloud-based accounting software, and SaaS solutions, to protect financial data management and mitigate risks. Professional service firms are also adopting remote working and hybrid services, requiring effective talent acquisition and resource management. Digital transformation is a key business strategy, with technologies like Cloud Computing, ITO, CDAP, and Digital Adoption Programs driving innovation. Environmental consulting, financial auditing, tax preparation services, and translation services are also part of the Professional Services Industry, all benefiting from digitization and technology adoption. Despite the challenges, the future of professional services is bright, with a focus on enhanced customer experience, data security, and automation.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Industry Application
• Financial Services
• Technology
• Healthcare
• Manufacturing
• Others
• Delivery Mode
• On-site Services
• Remote Services
• Hybrid Models
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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