ENERGY CONSULTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Energy Consulting Market Size and Trends

The global energy consulting market is estimated to be valued at USD 17.16 Bn in 2024 and is expected to reach USD 24.56 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.

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There is an increase in focus on renewable energy resources coupled with stringent government regulations regarding carbon emissions. Consulting companies help organizations adapt to the changing energy landscape by assisting them in the development of effective strategies. They provide services like managed services, compliance consulting, carbon management, and renewable energy consulting. Significant investments are being made for the modernization of infrastructure and transition to cleaner sources of energy which acts as a growth opportunity for market players in the coming years. However, global economic slowdowns pose a challenge for market.

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Insights By Service Type - Advisory Services Contributes the Highest Share Due to Demand for Strategic Guidance

In terms of service type, the advisory services segment is estimated to contribute 40.5% share of the global energy consulting market in 2024, due to robust demand from clients seeking strategic guidance. With the energy sector transforming rapidly, organizations need advisory support to navigate regulatory changes, adopt technologies, and optimize operations. Consulting firms provide expertise in strategic planning, investment evaluation, project management, and addressing critical challenges, enabling clients to adapt and thrive in a dynamic energy landscape.

Insights, By End-use Industry – Transition to Renewable Energy drives Adoption in Power Generation Industry

In terms of end-use industry, the power generation segment is estimated to contribute 35.6% share of the global energy consulting market in 2024. Utilities and power producers rely on consulting expertise to transition thermal assets to renewable energy and distributed generation models. Consultants assist with strategic network planning, resource optimization, and regulatory compliance, helping clients navigate environmental standards, evaluate policies, and make timely investments in sustainable energy solutions.

Regional Insights

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Regional Analysis:

Dominating Region: North America

North America is projected to lead the global energy consulting market in 2024, capturing 45.5% of the market share. This dominance stems from its robust oil and gas sector and progressive renewable energy policies. With a diverse energy portfolio and key industry players, the region demands consulting services for energy strategy, regulatory compliance, and infrastructure optimization, driving market growth.

Fastest-Growing Region: Asia Pacific

The Asia Pacific region exhibits the fastest growth in the energy consulting space. Governments across Southeast Asia are strongly supporting investments in clean energy technologies to meet economic and sustainability goals. As developing nations look to transition to greener sources, there is heightened need for advisory services to navigate the transformation of their energy landscapes.

Energy Consulting Market Outlook for Key Countries

Bridging Oil & Gas and Renewable Energy Transition in the U.S.

The U.S. energy consulting market continues to be driven by the prominent oil and gas sector as well as initiatives to incorporate alternative fuels. Leading consultancies help operators address regulatory changes and harness digitization. Consulting services are in demand for renewable energy integration, energy storage solutions, and navigating complex regulatory landscapes. The oil and gas sector faces stringent environmental regulations such as methane emission reductions outlined by the U.S. Environmental Protection Agency (EPA). Consultancies like Deloitte and McKinsey are assisting operators in compliance efforts and optimizing operations to meet these requirements.

Driving Growth through Renewable Investments and Decarbonization Strategies in China

The China energy consulting market is rapidly growing, driven by massive renewable energy investments and climate commitments. As the world's largest renewable energy investor, with US$ 546 billion allocated in 2022 (BloombergNEF), China focuses on decarbonization and energy efficiency. The National Energy Administration aims to expand offshore wind capacity to 50 GW by 2025, creating demand for consultants like TUV Rheinland, specializing in renewable integration, grid modernization, and policy advisory. Local firms contribute technological expertise, supporting infrastructure, and clean energy projects aligned with China's carbon neutrality goals.

Empowering Growth through Renewable Expansion and Energy Access Initiatives

India's rapidly growing economy and increasing energy demand have heightened the need for energy consulting services. The government's initiatives to expand renewable energy capacity and improve energy access are driving the demand for expertise in project development, policy formulation, and energy efficiency improvements. Under the Jawaharlal Nehru National Solar Mission, India is promoting solar energy adoption. Companies like Tata Power Solar have been working with energy consultants to expand their solar installation capacities across the country, particularly in rural areas.

Advancing Renewable Integration and Green Hydrogen Initiatives

The Canada energy consulting market is expanding as the country emphasizes renewable energy integration and energy efficiency. The government's commitment to reducing greenhouse gas emissions and transitioning to a low-carbon economy has increased the demand for consulting services in energy management, policy development, and technological innovation. Canada is focusing on green hydrogen as a key component of its low-carbon energy transition. Consulting firms are advising on pilot projects and large-scale production facilities, like the Air Products hydrogen plant in Alberta, Canada.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Energy Consulting Market Players

• The established players in this market focus on extensive research and development to stay ahead of competition. Companies like AES, Wood Group, and Emerson invest heavily in innovating solutions related to renewable energy integration, energy efficiency, and carbon management. They also pursue strategic partnerships with major utilities, technology providers, and engineering firms to offer end-to-end services and consolidate their presence.
• Mid-sized players emphasize delivering cost-effective energy consulting solutions to attract price-sensitive clients from sectors like manufacturing, commercial real estate, and transportation. They collaborate with local implementers, technology startups, and utility providers to augment their project execution capabilities and market reach. Some focus on niche technologies like energy storage, microgrids, or demand response to gain foothold in specialized domains.
• The smaller players look at specializing in services for targeted industry verticals or geographical regions with customized energy optimization or governance solutions. They also leverage latest digital technologies like IoT, cloud, AI, and Blockchain through tie-ups with startups and research institutions to analyze data pools and unlock deeper insights for clients.

Emerging Startups in the Global Energy Consulting Market

New age startups are introducing innovative technologies to disrupt the energy consulting landscape. Companies like Sparkcognition and AutoGrid are deploying artificial intelligence and smart sensor systems for advanced energy usage monitoring, fault detection, and predictive maintenance of grids and plants. Their solutions will greatly enhance the ability to optimize energy infrastructure.

Rising focus on sustainability has also encouraged the growth of startups providing consultancy for clean energy transitions and carbon footprint reduction. Firms like Carbon Lighthouse and Ameresco guide clients on implementing renewable energy projects, retrofitting buildings for efficiency and utilizing carbon credits to contribute towards decarbonization goals. Their customized strategies address critical sustainability challenges of industries and cities. By collaborating with governments, utilities and research institutes, startups additionally unlock pathways to enter new opportunities and cater to previously unmet niches in consulting.

Energy Consulting Industry News

• In January 2024, SLR Consulting, a U.K.-based provider of environmental and advisory solutions, acquired ITPEnergised for an undisclosed sum. This acquisition combines ITPEnergised's technical advisory capabilities with SLR's environmental and technical consultancy expertise, creating one of the largest consultancies focused on supporting the renewable energy sector.
• In July 2023, GE Vernova, a U.S.-based energy consulting services company, introduced an upgraded version of its Positive Sequence Load Flow Analysis (PSLF) software. This enhanced software provides customers with a faster and more efficient tool for power system modeling. By leveraging PSLF in energy consulting, engineers can analyze transfer constraints, perform economic dispatch, simulate power flow across transmission grids, and study power system behavior under various scenarios.

Key Takeaways from Analyst

• North America currently dominates the market. However, Asia Pacific is likely to emerge as the fastest growing region. Increasing investments in renewable energy generation such as solar and wind power will drive the demand for energy consulting services. Rising focus on operational efficiency and optimized energy usage across industries will further support market growth.
• Governments worldwide are promoting renewable energy sources to reduce reliance on fossil fuels. This is positively impacting the energy consulting industry as more advisory work will be required for effective transition. Macroeconomic factors including industrialization, growing population, and rapid urbanization in developing nations are propelling energy demand. Established players are expected to gain more clients and increase their geographic footprint.
• High initial costs associated with renewable energy projects and changing regulatory frameworks pose challenges to consulting companies. Lack of skilled workforce and technical expertise also restrains the market to some extent. However, focus on reducing carbon emissions and reaching sustainability targets are significant opportunities. Emergence of new technologies including energy storage, smart grids and microgrids will give rise to expanded scope of work.

Market Report Scope

Market Dynamics

Market Driver - Growing demand for sustainable energy solutions and renewable energy sources

As climate change concerns rise to the forefront of global discussions, governments and corporations alike are striving to transform their energy portfolios towards more sustainable options. Renewable sources of energy such as solar, wind, hydro, and biomass are seen as environment-friendly alternatives to conventional fossil fuels and have potential to reduce carbon emissions at scale. This accelerated transition towards clean energy is driving increased demand for experienced consultants who possess cross-functional expertise in project management, engineering, financing, and regulatory compliance.

Market Challenge - High costs associated with consulting services limiting access for smaller companies

One of the major challenges faced by this market is the high costs associated with retaining consulting services. As consulting requires specialized expertise and experience, top tier consulting firms usually charge premium rates for their services. While this pricing makes business sense for large energy companies with significant resources, it could limit access to consulting for smaller and medium scale energy businesses. High consulting fees put the services out of reach for many startups and smaller operators struggling with limited budgets.

Market Opportunity - Technological advancements creating new consulting opportunities in energy efficiency and management

Rapid technological changes in the energy industry are throwing open new opportunities for consulting firms. Advancements in smart grids, renewable energy sources, energy storage, digitalization, and IoT solutions are driving the need for specialized advisory support. As technologies evolve, energy companies now require strategic guidance and implementation expertise to effectively leverage innovations and stay ahead of the curve. This is creating a substantial demand for consulting services focused on energy management, optimization of generation, and distribution, integration of renewables, demand forecasting using analytics and improving efficiency.

Market Segmentation

•  Service Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Advisory Services
  • Management Consulting
  • Technical Consulting
  • Regulatory Consulting
•  End-use Industry Insights (Revenue, USD Bn, 2019 - 2031)
• • Power Generation
  • Oil & Gas
  • Renewable Energy
  • Utilities
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Deloitte Consulting LLP
  • Accenture plc
  • McKinsey & Company
  • Boston Consulting Group (BCG)
  • Wood Mackenzie
  • IHS Markit Ltd.
  • Navigant Consulting, Inc.
  • KPMG International
  • Jacobs Engineering Group
  • Golder Associates
  • RINA S.p.A.
  • Enviros Consulting Ltd.
  • Ecofys (a Navigant company)
  • SgurrEnergy (a Wood Group company)
  • Eversheds Sutherland