MEA Management Consulting Services Market Size

MEA Management Consulting Services Market Analysis

The MEA Management Consulting Services Market was valued at USD 9.34 billion the previous year and is expected to grow at a CAGR of 4.20%, reaching USD 11.98 billion by the next five years. There is an increased need for management consulting services due to strong economic development, regulatory changes in the financial sector, outsourcing back-end operations to low-cost economies, and public investments. Faster economic growth, the introduction of digital consulting, and the increase of globalization are expected to accelerate the Market's growth in the region.

• Growing investments in emerging technologies are boosting companies' growth strategies, which is acting as a primary driver for the management consulting market in the region. These technological advancements in end-user industries such as energy, financial services, telecom, government, and healthcare are driving the demand for management consulting firms to support these companies by offering operations, technology, and strategy services to help them with their growth strategy and provide value. As organizations in the MEA region embrace digital technologies, management consulting firms must keep pace with these changes and develop new expertise and skills in areas such as AI, big data, and automation, which are expected to drive the demand for management consulting services at a rapid pace in the forecast period.
• Several consulting businesses in the Middle East & African region seek to expand their skills in the industry 4.0 sector, including artificial intelligence, machine learning, the Internet of Things, and data analytics. The rising demand for such services represents a significant business opportunity. As climate change activists and volatile oil prices pressure government budgets, Gulf countries, particularly Saudi Arabia, have begun to stimulate the non-oil sector's growth and lessen reliance on crude oil. The country has made significant investments in technology. According to the Digital Government Authority of Saudi Arabia, the country's technology spending is among the highest in the world, accounting for 21.7% of the overall technology investment. The Saudi government's technology spending is estimated to reach SAR 93 billion (almost USD 24.7 billion) by 2025.
• Business management consultants are still figuring out new business models and digital technology. To retain a positive market outlook, consultancies plan to implement comprehensive digital strategies and remodel existing business and operational techniques. For instance, in April 2023, Varri Consultancy announced that the company had signed a partnership agreement with Clausematch, a technology company developing solutions for regulatory compliance. This is the first collaboration with a business in the Middle East for Clausematch. This partnership combines the companies' expertise with modern technology to help clients provide more effective advisory services.
• The consulting services business is undergoing a digital transformation. There are several opportunities to improve client experience. Educating customers on using analytics is becoming a vital component of modern consulting. Consultants are learning new skills to keep ahead of the disruption. Some larger healthcare organizations have a consulting firm on retainer and continuously receive evaluation and advisory benefits to improve performance over a more extended period. This is especially the case with large healthcare organizations with the financial power to employ a vast supply of consulting services. Cloud computing, machine learning, artificial intelligence, big data analytics, and high-speed connectivity have created unprecedented market growth opportunities. According to Philips, the adoption rate of predictive analytics in healthcare organizations is 48% in Saudi Arabia.
• New consulting firms are emerging where virtual business models are being used, supported by advanced technology that enables them to accomplish more with less. Simultaneously, as technology advances, corporate clients are increasingly eager to solve more complex problems in-house, providing new difficulties for global consulting companies as outsourcing becomes less required. Clients may increasingly grasp better how their profession operates in real-time, free, or at a much-reduced cost.
• Moreover, the region's technical progress reached a particular level during the COVID-19 pandemic. The technological revolution has affected every job, from management to operations. Management and project teams can spend less time and money on meetings, logistics, resources, and processes with assistance from consulting services. In the post-pandemic situation, industry participants are expected to be assisted in optimizing resources through management consulting services. Post the pandemic, businesses in the MEA region seek strategies to retain customers, rebuild inventories, and restructure operations to fit the new business environment, coupled with the growth in adopting digital tools to streamline daily operations. These complex challenges are expected to drive the demand for management consulting firms to assist various companies in rethinking and restructuring their organization and workforce.