Global enviro consultancy market worth $25bn

12 top players claim c25%; market forecast to grow 18% by 2014/15

The value of the global environmental consultancy (EC) market was US$25.4 billion (£15.7bn) in 2009/10 and is forecast to reach $30 billion (£18.6bn) by 2014/15, according to ground-breaking research by Environment Analyst presented in its newly-released report, Global Environmental Consulting Strategies and Competitor Analysis 2011.

Although the global EC market is highly fragmented, twelve international consultancies accounted for just under a quarter of its value – or $6.2 billlion (£3.8bn) – in 2009/10. While these twelve players collectively recorded a 1% decline in EC revenues in 2009/10, they have nevertheless achieved an impressive combined average growth of 51% over the past four years with further expansion on the cards.

The twelve firms ranked in terms of gross global EC revenue are: URS Corporation, CH2M Hill, Arcadis, Golder Associates, Environmental Resources Management (ERM), MWH Global, RPS Group, AECOM, Parsons Brinckerhoff (Balfour Beatty), Environ, WSP Environment & Energy and WorleyParsons. Detailed profiles of the EC activities of each of the twelve top players are included in the report.

Commenting on future growth of the global EC market, editor of Environment Analyst's Market Intelligence Service, Liz Trew, said: “Growth will be much more sector-specific than in the environmental consulting boom years prior to the global economic downturn, with climate change and energy services driving market recovery thanks to strong underlying legislative and political drivers. Growth in this sub-sector is expected to be around 50% over the next five years”.

Considering EC market growth on a regional basis, Trew added: “Economies that are led by natural resource industries rather than manufacturing or services will be more buoyant. This is reflected in the significant levels of investment we have seen recently from the Global 12 in countries such as Australia, Brazil, Canada and South Africa”.

Winning multi-year, multidisciplinary framework contracts has become increasingly important for consultancies operating internationally. Such contracts reflect demand from large private sector clients for “seamless global service provision”, provided by a select list of suppliers. Despite this trend the top twelve's largest client group remains governments and regulators (31%), with the second-largest client group utilities and energy companies (24%), closely followed by mining, manufacturing and process industries (24%). Clients operating within the construction, property and transportation sectors were the source of 14% of the total EC market spend last year, while financial, professional and service sector clients accounted for 4%.

Judging the value of the global EC market by service area, contaminated land services accounted for 41% - or $10.5 billion (£6.5bn) - of the top twelve's combined EC revenues in 2009/10. The second-largest source of revenue was water and waste management (22%), followed by environmental impact assessment and sustainable development advisory work (14%). Environmental management, compliance and due diligence accounted for a further 13%. Meanwhile, climate change and energy services consultancy generated 5% of the top twelve's EC revenue in 2009/10, with 50% growth for this service area forecast for the coming five years.

• Global Environmental Consulting Strategies and Competitor Analysis 2011
• EA news release