As we head into H2, it’s opportune to review what’s been shaping the consulting industry in 2025, and what we can expect, both from clients and consulting firms.
Over the past 12 months, trading conditions for consulting firms in the UK and Europe have been unpredictable. In 2023, MCA member firms saw 11% revenue growth, down from 23% in 2022. Through 2024, growth eased further to around 9% but with a steadier path predicted in 2025. Current growth forecasts for the UK consulting market range from 6.4% to 8.7%.
According to the MCA, consulting services in AI, digital technology and cost reduction are expected to help drive the greatest growth in 2025. The Energy and Resource sector, Infrastructure and Digital and Technology were also cited as the top three, by sector size.
Specialism Looks More Attractive
With demand being sporadic and the world of work changing so rapidly, the more adaptable a consulting firm is, the more successful it will be. The consulting heavyweights are having to limber up and become more agile, and more reactive, to cater to client demands.
As an example, following a series of layoffs and restructuring, PwC now looks to be repositioning accordingly. Its advisory arm, which previously consisted of four advisory groups, will consist of eight under the reorganisation, which is due to take effect in July 2025. Those advisory platforms will be: Deals; Cyber Data and Tech Risk; Risk & Regulatory; Strategy; Commercial & Service Excellence; Business & Supply Chain Operations; Digital Core Modernisation; and Cloud, Engineering, Data and Analytics
This approach is designed to offer more industry-specific solutions to meet client demand.
Meanwhile, the mid-sized and boutique consultancies are snapping at the heels of the Big 4, already able to pick up smaller, more specialised briefs and build relationships without the fixed infrastructure and costs that have been associated with consulting in the recent past. Especially where there is a heightened risk not to overspend by clients, these lower-cost pieces are attractive for the smaller organisations to bid for, and less of interest to the larger ones.
Top Trends Shifting the Consulting Industry for 2025
Whatever the size of the firm, there are a number of business imperatives that are fuelling change and transformation within the consulting market, headed up, of course, by the ubiquitous take-up of AI.
We take a look at the 8 most prominent changes shaping the consulting industry as we head into H2.
1. AI & Data-Driven Transformation
Consulting firms are aggressively embedding AI into both internal operations and client-facing services, resulting in the automation of routine tasks, AI-augmented decision‑making, and advanced analytics. Of course, organisations wish to live and breathe what they sell, so we are seeing both actions happen in parallel.
The MCA forecasts that 66% of consulting firms will significantly invest in AI-related services this year.
Firms are also stepping into AI ethics and governance, helping clients tackle this area with responsible, unbiased AI frameworks.
2. Boutiques & Private Equity‑Backed Disruptors
Mid-size and niche consultancy firms - often led by former Big Four partners - are expanding rapidly to serve mid-market clients with more agile, cost-efficient services. Why? Top billing partners from Bain, McKinsey and others have become frustrated by rigid cost frameworks, and the rise in quality in freelance consultants is also a factor.
Backed by private equity (e.g., Unity Advisory, Veles), these “nimble disruptors” are leveraging AI to stay lean and competitive.
3. Sustainability & ESG Compliance Wave
New regulations, such as the EU’s CSRD and UK sustainability mandates, are fuelling demand for ESG advisory, with a projected 6%+ CAGR in sustainability consulting.
The focus is expanding from compliance to integrating ESG into core strategy and operations. Sustainability is becoming a priority for employees and consumers alike:
A US-based survey showed that 80% of employees want their employers to prioritise sustainability.
67% of workers report that their companies consider sustainability practices when selecting vendors and suppliers.
ESG (Environmental, Social, and Governance) policies influence the job choices of 38% of workers, with some ranking these policies as highly as salary.
These statistics reflect a growing expectation for businesses to integrate environmental responsibility into their operations. Poor sustainability initiatives are more than a reputational risk – they are proven to affect recruitment, retention and customer loyalty too.
4. Cybersecurity & Resilience
Heightened regulation in the UK via the Cyber Security and Resilience Bill, paired with increasing cyber threats, is boosting demand for robust consulting in cybersecurity, risk, and client cyberculture (the “human firewall”). Recent high-profile examples, such as the damaging disruption to Marks & Spencer, mean this will continue to be of interest to organisations, especially as threat actors’ methods are becoming significantly more advanced and sophisticated in nature.
5. M&A Rebound & Deal Advisory Demand
M&A activity was originally expected to pick up through 2025, although geopolitical disruption, notably around the US tariffs, has slowed expected growth. This comes after the number of M&A deals worldwide hit a nine-year low in 2024, according to the London Stock Exchange Group.
Nonetheless, major consultancies are optimistic about renewed demand in due diligence and integration advisory in the second half of 2025. Significant capital is ready to deploy, particularly in Healthcare and from private equity firms, which are experiencing mounting pressure to put money to work. The Man Group looks at this.
6. Agile, Micro‑Engagements & Outcome‑Based Models
Firms, including Freshminds, are offering bite‑sized engagements - proofs‑of‑concept, sprints, or “try before you buy” models - to demonstrate quick ROI.
There's a growing shift towards fixed‑price and value/outcome‑based pricing models instead of traditional billable hours. This is in reaction to lower risk and tighter budgets, but also acknowledgement from clients that it is possible to gain consulting value at a lower price point.
7. Regional Expansion & Remote Talent
UK consultancies are opening more regional offices to tap into diverse talent pools and offer local services – according to MCA research, 40% of firms anticipate expanding outside London.
On top of this, hybrid and remote operating models continue to reshape workforce dynamics. Read our take on flexible working in 2025.
Further afield, many consulting firms are also targeting the Middle East for expansion, rather than focusing on the UK and Europe, with new offices being established in Bahrain, Dubai, Saudi Arabia and elsewhere. Demand for consulting services is rising in this region, with growth and investment driving the change; however, with a limitation in favour of home-grown talent, as we’ve seen with the recent fallout of PwC and Saudi Arabia’s PIF.
8. Broadening Talent Pools & Skill-Based Hiring
Consulting is embracing skill-based recruitment, taking the focus away from elite university credentials in favour of AI, digital, ESG, or cybersecurity skills. The traditional model of “generalist” consulting is giving way to a demand for experts.
As alluded to above, as highly skilled workers tend to know their value, flexible working arrangements continue to be in demand. This is now the top driver of employee satisfaction, outpacing salary. Vencon Research explores this in more detail here.
What This Means for Clients and Consultancies
In conclusion, as we look towards H2 and beyond, it’s likely that clients will benefit from more specialised, tech‑enabled, and value‑focused consulting options.
"The mid-sized and boutique consultancies are snapping at the heels of the Big 4, already able to pick up smaller, more specialised briefs and build relationships without fixed infrastructure and costs."
Legacy firms are streamlining, consolidating, and doubling down on AI and ESG as they face competition from nimble boutiques.
Boutique firms and flexible talent pools have momentum - especially in mid-market, AI, ESG, and cyber - but face scalability and sustainability challenges.
And there’s plenty of talent to call upon. Skills and flexibility are likely to trump pedigree and location.
Outlook for the Rest of 2025
Expect continued high investment in AI, ESG, cyber, and deal advisory, along with the growth of boutique firms, increased remote/regional capabilities, and transformation in consulting delivery, focusing on lean, agile, and outcome-driven models.
Freshminds’ Head of Growth Suzy Lockwood comments:
“The consulting industry is having to undergo a significant, forced transition to adapt to client demands and risk appetite – specialisms are in demand, and they are not often found on an average Big Four bench without significant internal investment in upskilling. This creates an opportunity for smaller, more dynamic organisations to take market share, with business models that offer a more cost-effective alternative.
It is likely restructures loom in the near future for the bigger players – if not already in process – and demand will increase for hiring and internal upskilling that will create a USP for today’s client needs.”
