As the year heads into its second half, consultants have an opportunity to review their response to the trends shaping the industry in 2025. Julia Gosling, head of marketing at Freshminds, looks ahead to what professionals might expect, both from clients and consulting firms, before the year closes.
Over the past year, trading conditions for consulting firms across the UK and Europe have been nothing short of unpredictable. While 2023 saw MCA member firms experiencing an 11% revenue growth—down from an impressive 23% in 2022—2024’s growth eased to approximately 9%. However, a steadier outlook is expected for 2025, with current growth forecasts for the UK consulting market ranging from 6.4% to 8.7%.
As highlighted by the MCA, sectors such as AI, digital technology, and cost reduction are anticipated to be the primary drivers of growth in 2025. The Energy and Resource sector, Infrastructure, and Digital & Technology are also cited as the top three in terms of sector size.
Given the sporadic demand and the rapidly evolving landscape of work, adaptability is key for consulting firms. The larger players in the market are increasingly finding it essential to become more agile and responsive to meet client needs effectively.
For instance, amid recent layoffs and restructuring, PwC is taking steps to reposition itself by streamlining its advisory arm. Where it once operated with four advisory groups, it will now consist of eight by July 2025. This structural change aims to offer more industry-specific solutions that align with evolving client demands.
Meanwhile, mid-sized and boutique consultancies are capitalizing on their nimbleness. With fewer overheads associated with traditional consulting infrastructures, these firms can pursue smaller, specialized projects, forging relationships that larger firms might deem unprofitable. In a climate where clients are increasingly cautious about expenditures, these lower-cost offerings become more attractive.
Top Trends Shaping the Consulting Industry for 2025
As firms gear up for the second half of the year, several critical business imperatives are catalyzing transformation within the consulting market. The most prominent among them is the accelerated integration of AI.
- AI & Data-Driven Transformation
Consulting firms are aggressively embedding AI into both internal operations and client-facing services. This shift leads to the automation of routine tasks and enhanced decision-making capabilities backed by advanced analytics. Notably, the MCA forecasts that 66% of consulting firms will significantly invest in AI-related services this year, responding to growing client demands for ethically governed and reliable AI frameworks.
- Boutiques & Private Equity-Backed Disruptors
A wave of mid-sized and niche consultancy firms is emerging, frequently led by former Big Four partners, who are frustrated with traditional cost frameworks. Backed by private equity (think Unity Advisory and Veles), these “nimble disruptors” focus on serving mid-market clients with agile and cost-efficient services, prominently leveraging AI for competitive advantage.
- Sustainability & ESG Compliance Wave
With new regulations like the EU’s CSRD and UK sustainability mandates shaping the consulting landscape, demand for ESG advisory services is on the rise. A projected 6%+ CAGR in sustainability consulting indicates that companies are shifting their focus from mere compliance to integrating ESG into core strategies and operations. A recent survey revealed that 80% of employees prefer employers who prioritize sustainability, reflecting a growing societal demand for environmental responsibility.
- Cybersecurity & Resilience
As cyber threats continue to evolve, demand for robust consulting on cybersecurity and risk management is swelling. Regulations such as the UK’s Cyber Security and Resilience Bill are driving organizations to invest in protecting their data and systems. High-profile incidents, like those impacting Marks & Spencer, underscore the urgency of fostering a resilient cyber culture within organizations.
- M&A Rebound & Deal Advisory Demand
Though M&A activity was initially expected to rebound in 2025, geopolitical disruptions, particularly surrounding US tariffs, have stalled further growth after a significant drop in deal numbers in 2024. Nonetheless, consultancies are optimistic about renewed demand for due diligence and integration advisory services. Major investments in sectors like Healthcare are anticipated, particularly from private equity firms eager to deploy their capital.
- Agile, Micro-Engagements & Outcome-Based Models
Firms such as Freshminds are increasingly adopting bite-sized engagement models—proofs-of-concept, sprints, and “try before you buy” formats. These approaches allow clients to quickly realize return on investment, prompting a shift towards fixed-price and value-based pricing models instead of traditional billable hours.
- Regional Expansion & Remote Talent
Many UK consultancies are establishing regional offices to tap into diverse local talent pools and provide tailored services. Concurrently, hybrid and remote work models are reshaping workforce dynamics. Notably, firms are increasingly targeting the Middle East for expansion, driven by regional demand for consulting services, though challenges related to the reliance on local talent remain significant.
- Broadening Talent Pools & Skill-Based Hiring
A shift towards skill-based recruitment is taking hold in consulting, moving the focus away from prestigious academic credentials to core competencies in areas like AI, digital transformation, ESG, and cybersecurity. As a result, flexible working arrangements are becoming a top driver of employee satisfaction, surpassing even salary as a differentiating factor.
What This Means for Clients and Consultancies
As the second half of the year unfolds, clients are expected to benefit from more specialized, technology-enabled, and value-driven consulting options. Traditional consulting firms are streamlining their operations, consolidating services, and doubling down on AI and ESG to cope with increased competition from agile boutiques.
Boutique firms are gaining traction—especially in burgeoning sectors like mid-market consulting, AI applications, ESG, and cybersecurity—but face challenges related to scalability and sustainability. Meanwhile, the shifting focus on skills and flexibility is inviting a broader pool of talent, where expertise may soon outweigh traditional pedigree.
Outlook for the Rest of 2025
In line with these trends, anticipate elevated investments in AI, ESG, cybersecurity, and deal advisory, coupled with the growth of boutique firms and enhanced remote capabilities. The landscape of consulting is rapidly evolving towards lean, agile, and outcome-focused delivery models.
Suzy Lockwood, Freshminds’ Head of Growth, succinctly encapsulates the industry dynamics: “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 organizations to take market share, with business models that offer a more cost-effective alternative.”