Environmental Consulting Services Market size is estimated at USD 43.6 billion in 2024 and is predicted to exceed USD 134.6 billion by the end of 2037, witnessing over 9.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of environmental consulting services is assessed at USD 47.5 billion.
The environmental consulting services market growth is attributed to increasing regulatory compliances on sustainable practices which is pushing various sectors to seek expert guidance in minimizing their ecological footprint.
Environmental advisory services provide expertise in areas such as sustainability strategies, environmental assessments, pollution control, regulatory compliance, waste management, etc. Consultants actively assist governments and private entities in reducing adverse ecological impact, while adhering to local, national, and international environmental laws. The demand for environmental consulting is projected to boom as the global environmental crisis worsens and calls for swift action to tackle ecological hazards intensify. In July 2023, Thames Water was fined USD 4.3 million for polluting the river Thames by the Lewes Crown Court signifying the rising costs of environmental non-compliance.
It is observed that a growing number of companies in scientific, construction, agriculture, and other sectors are actively hiring environmental consulting services. Companies are identifying green marketing as a viable tool for greater customer loyalty and a positive brand reputation. For instance, in August 2024, Emeritus published a report stating Patagonia and The Body Shop as two companies that have benefitted from green marketing. Additionally, running an eco-friendly business can lead to tax breaks and government subsidies. Globally, environmental laws are becoming more stringent due to increasing concerns about lack of sustainable practices. In January 2023, the European Commission announced the Corporate Sustainability Reporting Directive (CSRD) that strengthened the rules regarding the social and environmental information that companies have to disclose. CSRD requires companies, including small and medium-sized enterprises (SMEs), to provide sustainability reports annually.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.8% |
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Base Year Market Size (2024) |
USD 43.6 billion |
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Forecast Year Market Size (2037) |
USD 134.6 billion |
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Regional Scope |
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Service Type (Monitoring & Testing, Investment Assessment & Auditing, Permitting & Compliance, Project & Information Management)
The monitoring and testing segment in the environmental consulting services market is projected to account for significant revenue share of 15.3% during the forecast period. The segment involves measuring, assessing, and analyzing environmental conditions to ensure business compliance with regulations. A wide range of services fall under this segment such as air quality monitoring, water quality testing, soil analysis, noise measurement, wildlife surveys, formaldehyde monitoring, etc. The segment is poised for growth owing to increasing demand for reliable and accurate data, coupled with the rapid technological advancements that are improving the efficacy of monitoring systems. For instance, in April 2023, Bain & Company backed a new artificial intelligence integrated data management solution called ESG Flo that provides more transparent, traceable, and efficient data helping businesses achieve their ESG goals.
The investment assessment and auditing segment in the environmental consulting services market is poised to increase its profit share during the forecast period as the rate of businesses seeking expert analysis and evaluation to support sustainable investment decisions increase. Environmental consulting services can offer B2B solutions for green finance consulting and sustainability assessments. The segment assists in stabilizing a robust sustainable supply channel by assessing corporate transactions and mergers. For instance, in February 2024, Walmart announced their Project Gigaton a success for reducing one billion metric tons of greenhouse gas emissions from their suppliers much ahead of the 2030 target. In March 2022, the British Safety Council announced a 5-star environmental sustainability audit to help companies improve their sustainability performance.
Application (Water Management, Waste Management)
The water management segment is projected to hold the lion’s share of revenue during the forecast period in the larger environmental consulting services market. The segment provides services such as water quality assessments, water resource management, wastewater treatment, flood risk assessment, etc. The growth of the segment is attributed to the rising water scarcity driven by climate change and rapid population growth leading to increasing demands for water management solutions. In March 2024, the UN World Water Development Report stated 2.2 billion people globally living without access to safe water highlighting the importance of water management by governments and corporations alike.
In May 2020, the UK government environment agency selected Jacobs in collaboration with JBA Consulting to develop and implement a National Flood Risk Assessment system. As regulatory requirements intensify globally, environmental consulting services are geared to provide customized water management solutions to businesses and governments leading to considerable environmental consulting services market growth. The waste management segment is poised to have a rapid growth during the forecast period to cater to needs of effective waste management solutions. Waste management services include waste audits, waste minimization strategies, waste segregation and collection, landfill management, hazardous waste management, etc.
In February 2024, the UN report on Global Waste Management Outlook 2024 projects municipal solid waste generation to reach 3.8 billion tons by 2050 and estimated the global cost of waste management at USD 252 billion in 2020. The report indicates urgent action on waste management to reduce the waste management costs. This puts further impetus on businesses to find effective waste management solutions to reduce costs as well as comply with the stringent environmental regulations leading to growing demands for professional environmental consulting services.
Our in-depth analysis of the environmental consulting services market includes the following segments:
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Service Type |
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Application |
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Vertical |
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North America Market Analysis:
North America environmental consulting services market is expected to account for 46.5% of revenue share during the forecast period owing to stringent environmental regulations and regular audits of businesses to provide sustainability reports. The robust regulatory ecosystem prompts businesses to hire environmental consultancy services to ensure their reports adhere to sustainability guidelines. Additionally, there are high penalties associated with non-compliance to environmental regulations putting the onus on businesses to seek sustainable solutions. For instance, in December 2023, truck engine maker Cummins was fined USD 1.6 billion for violation of the Clean Air Act by installing devices on engines allowing them to emit excess pollution.
The U.S. environmental consulting services market is poised to lead the revenue share in North America owing to strict enforcement of environmental regulations, rising public awareness on sustainability, growing demands to hold corporations liable for non-sustainable practices, and technological advancements improving the efficacy of environmental monitoring. Additionally, U.S. companies are subject to ESG disclosures which fuels the demand for environmental consulting services. For instance, in October 2023, two new laws i.e. Climate Corporate Data Accountability Act (SB 253) and Greenhouse Gasses: Climate related Financial Risk (SB261) came into effect and became the first government mandated ESG reporting requirements for companies in U.S.
The laws are projected to affect a significant number of corporations as they will be required to release ESG reports and disclosures. The complex regulatory infrastructure is added to by the Securities and Exchange Commission (SEC) and Federal Acquisition Regulations (FAR) Council proposing their own mandates requiring ESG disclosures. Investors and businesses seeking environmental consulting solutions to navigate the complex and strict regulatory framework is projected to increase the market share of U.S. during the forecast period.
Canada is projected to increase its revenue share in the larger North America environmental consulting services market during the forecast period owing to strict enforcement of non-compliance penalties on corporations for regulatory violations, growing demands for ESG reporting by investors and stakeholders, and robust technological advancements facilitating accurate collection and interpretation of data. ESG disclosures are not yet mandatory in Canada but the government plans to implement ESG disclosures from large Canadian banks, finance companies, and federally regulated financial institutions from 2024 stoking a trend where complete ESG disclosures may become mandatory for companies of other sectors in the future.
Additionally, Canada has imposed strict fines on businesses violating environmental laws that has led to growing demands for environmental consulting solutions. For instance, in February 2024, Suncor was fined USD 10 million for air pollution violations. In December 2023, Manitoba Paper Mill was fined USD 1 million for leaking toxins in the Saskatchewan river.
Europe Market Analysis
Europe environmental consulting services market is projected to have the fastest growth in revenue share during the forecast period. The market’s rapid rise is owing to rising investments owing to proactive measures to achieve sustainability goals and growing public demand for corporations to adhere to environment friendly practices. For instance, the Corporate Sustainability Reporting Directive (CSRD) came into effect from January 2023 and the companies subject to it will have to report as per the European Sustainability Reporting Standards (ESRS). The directives will also be subjected to companies outside Europe but having a presence in the European environmental consulting services market. Proactive measures as such lead the drive for environmental consulting services to help businesses navigate the stringent regulatory ecosystem in the region.
Germany is poised to register a dominant revenue share in the Europe environmental consulting services market. The robust regulatory ecosystem of Germany for ESG disclosures leads to businesses seeking environmental consulting solutions to effectively navigate the stringent rules. Germany aims at becoming carbon neutral by 2045 by investing massively in decarbonization which puts impetus on various sectors to reduce carbon emissions. In January 2023, Germany passed the Supply Chain Due Diligence Act for ESG disclosures by companies with more than 3000 employees.
The act prompts businesses in Germany to invest in building sustainable supply chains requiring expert environmental consultancy services. In June 2024, the Federal Statistical Office of Germany reported the environmental protection sector to be booming with the climate protection sector registering a turnover of USD 120 billion. The high rate of growth is conducive for environmental consulting services to increase the revenue share of the environmental consulting services market.
France is poised to increase its revenue share in the environmental consulting services market in Europe during the forecast period. France imposes stringent regulations on companies to follow sustainability guidelines. For instance, the French Commercial Code requires certain companies to disclose a non-financial performance statement on the social and environmental consequences of their activities.
The environmental consulting services market in France is also boosted by the European Union directives such as CSRD coming into practice from 2024. In June 2024, the French Competition Authority announced an open-door policy to support companies seeking to pursue sustainable development projects. In recent market developments, in June 2022, management and technology consultancy BearingPoint acquired the sustainable strategy development consultancy firm I Care.
Environmental consulting services market is estimated for a rapid growth during the forecast period. The sector is competitive with global, national, and local players vying to increase their market share. Key market players are investing to improve the efficacy of their services, engaging in acquisitions, and launching customized services for businesses to cater to growing requirements for adhering sustainable guidelines.
Some of the key players in the market are:
Author Credits: Abhishek Verma
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