Rise of renewables is a boon for consultants


- Digital initiatives and the rise of renewables drive up global energy & resources consulting revenues past US$16bn

- Energy companies spend over US$10bn on consulting

- India’s energy & resources consulting market is the fastest growing in the world

Digital initiatives and the rise of renewables have led to strong growth in the global energy & resources consulting market in 2018, with global revenues increasing 6.2% to US$16.9bn.

Utilities was once again the fastest-growing consulting market in the sector (up 6.7% to US$4.2bn) amid strong demand for business model restructuring expertise from companies seeking to offer more services in response to the rise of distributed generation and growing competition.

These figures are published today in a new report, The Energy & Resources Consulting Market in 2019, from Source Global Research, the leading research and strategy firm for the global professional services industry. The Source report says that the global energy & resources sector is experiencing significant disruption amid a growing focus on the environment and the need for improved sustainability, and this focus has been something of a boon for consultants serving this sector as companies pursue extensive transformation and diversification programmes.

Companies across the sector also required consulting support in dealing with the impact of shifting to a decentralised and low-carbon market. The gradual transition away from combustion engines to EVs was also the subject of much discussion, and generated a growing volume of work, with clients across the market exploring how the changes will impact on their businesses.

With oil prices remaining relatively stable throughout much of 2018, consultants also saw a healthy uptick in demand in the energy industry (revenues up 6.3% to US$10.5bn) with energy companies eager to continue their diversification programmes.

In addition, the Source report revealed that the demand for digitisation expertise was also high as companies explored how new and emerging technologies can improve their operations and as smart grids and smart meters generated an unprecedented volume of data.

Ashok Patel, Editor at Source Global Research, said:

“The rise of renewables was a boon for consultants, particularly in the energy industry, as clients sought consultants’ help in diversifying their portfolios and restructuring their businesses. Demand for digitisation expertise continued to accelerate with energy & resources companies eager to catch up with their peers in other sectors. Data & analytics is becoming a particularly strong driver of demand in the front office as clients strive to improve the customer experience.”

On the sector’s increasing focus on the environment and the need for improved sustainability, Regina Mayor, Energy & Natural Resources National Sector Leader at KPMG, said:

“We see a growing need for companies to decarbonise their own operations. It’s not enough to change their energy production portfolios—clients need to change how they do things, not just what they do.”

From a geographic perspective, the Source report reveals that India was the fastest-growing energy & resources consulting market in the world, with revenues rising 9% to US$223.8m, followed by Africa, which grew 7.9% in 2018.

The US—the sector’s largest consulting market—grew 6% to US$8.3bn, with the three next biggest markets all growing at a fairly similar pace. The smallest energy & resources market—the Nordics—continued to recover following its contraction in 2016.

Consultants are optimistic about their prospects through 2020, as clients continue to pursue transformative initiatives amid an ongoing rise in renewables, the continued decentralisation of the utilities market, and growing concerns over the impact of EVs on business models throughout the sector.

For more information on Source reports contact ella-sian.jolley@sourceglobalresearch.com, telephone +44 (0)20 3478 1204, or visit www.sourceglobalresearch.com.