Environmental Consulting Services

Environmental Consulting Services Global Market Outlook

• The global demand for environmental consultancy services in 2021* was estimated to be $56.1 Billion. It is expected to grow in 2022 at a CAGR of 7 percent because of increasing environmental consciousness and ways to combat climate change

• Due to the COVID-19 pandemic's effects, the market growth was affected in 2020, but this seems to have recovered and increased due to the CoP26 conference, where most countries have obliged to go carbon neutral by 2050

Environmental Consulting Services Global Supply and Demand

Market by End User (2021*)

• The ECS was worth $56.1 in 2021, and this figure is expected to reach $63.4 billion in 2022

• The market growth can be attributed, due to the increasing environmental conscious businesses and the  decision by global governments to go carbon neutral by 2050

• Environmental consultancy services was the seventh largest segment within the consultancy services sector

• The ECS sector is set face unprecedented growth, as the need for companies to shift to a more sustainable and green-model is growing. The growth is expected to be conservatively 7–10 percent  CAGR

Porter’s Five Forces Analysis on Environmental Consulting Services

Supplier Power

• Supplier power is low to medium globally, as there are many local firms, which offer ECS in addition to international firms

• The market is dominated by a number of companies and not dominated by a limited few

• Involvement of highly qualified employees, coupled with good track record, could increase the buyer power

Barriers to New Entrants

• This market is a fast growing one and yet to reach market saturation

• The firms looking to enter this field have low to medium barriers, as the firms are lacking qualified candidates in the developing markets

• The firms require less capital, as this is a service oriented field

Intensity of Rivalry

• There is a medium to high intensity of rivalry, as there are a number of companies, which offer ECS

• The global companies need to compete with local firms, in addition to competition from other international firms

Threat of Substitutes

• The threat of substitutes is low, as ECS is highly favored by companies globally, due to the shift in governmental policies towards environmental friendly ones around the globe

• This market is forecasted to grow rapidly in the next five years, as sustainability has been brought to the fore front in the recent years

Buyer Power

• Buyer power is medium to high, as the changing government regulations has prompted companies to move to more sustainable methods of operations

• The presence of multiple players in the field will also add to a stronger buyer power