Professional Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC M6900Revenue
$263.2bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
953k
Businesses
250k
Wages
$XX.Xbn
Professional Services in Australia industry analysis
The Professional Services subdivision provides various professional, scientific and technical services to a range of markets. The subdivision's performance is largely linked to overall economic conditions, which often determine business confidence and capital expenditure. Over the past five years, greater business profit and rising capital expenditure by the public sector have supported subdivision demand. However, demand for architectural services, and surveying and mapping services has fallen over the past five years, as many construction projects were delayed or cancelled, particularly during the COVID-19 lockdown periods. This factor has dampened overall subdivision performance, contributing to the subdivision revenue only growing by 0.5% over the past five years, to $263.2 billion. This trend includes a 3.4% decrease in the current year, as economic uncertainty and negative business confidence discourage significant discretionary spending among many client firms.
Trends and Insights
- Tenured professional service workers are leaving established companies to operate as sole proprietors. This trend is driving growth in enterprise numbers and the prevalence of small boutique consulting firms.
- Tax and audit services are independent of wider economic conditions. Most downstream businesses are legally obligated to seek out these services, providing a stable revenue stream for accounting firms.
- Proximity to downstream clients is essential for professional services firms. Professional services often need face-to-face communication and as most Australian businesses are located around New South Wales and Victoria, industry firms are concentrated in these states.
- Subdivision competition is on the rise. Professional services firms need to compete with each other based on reputation, quality of service and price, on top of external competition from multinational firms and downstream businesses' in-house capabilities.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated $263.2bn in 2024.
Trends and Insights
Growth in primary industries drives overall subdivision expansion
- Over 75% of subdivision revenue is derived from the Engineering Consulting, Management Consulting, Legal Services and Accounting Services industries. These industries' growth over the past five years has therefore supported subdivision growth.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growing business confidence will boost spending on professional services
- The Scientific Research Services industry is projected to rely more on private investment in research and development (R&D) over the next five years, due to limited government funding. However, investment in medical research is set to rise, as the Federal Government pushes for greater investment in this field.
Biggest companies in the Professional Services in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
EY | 2,914.9 | |
Deloitte Touche Tohmatsu | 2,850.0 | |
KPMG | 2,553.0 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Scientific and environmental research services, Architectural and surveying services and Engineering consulting services. Scientific and environmental research services is the largest segment of the Professional Services in Australia.
Trends and Insights
Major infrastructure projects increasingly being outsourced is boosting demand for engineering consulting services
- Engineering consulting firms provide a range of services, including designing, developing and optimising infrastructure projects, machinery, processes and systems, in addition to inspecting and evaluating construction and engineering projects.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Scientific Research Services in Australia
- Architectural Services in Australia
- Engineering Consulting in Australia
- Environmental Science Services in Australia
- Legal Services in Australia
- Accounting Services in Australia
- Finance in Australia
- Management Consulting in Australia
International industries
- Global Management Consultants
- Professional, Scientific and Technical Services in the US
- Scientific & Economic Consulting in Canada
- Scientific Research Services in New Zealand
- Legal Activities in the UK
Table of Contents
About this industry
Industry definition
The Professional Services subdivision consists of industries that primarily provide services to other businesses and households. These services include scientific research; architectural, engineering and technical; legal and accounting; advertising; market research and statistics; management and related consulting; veterinary; and other professional services.
What's included in this industry?
Consulting servicesScientific research servicesAdvertising, design and public relations servicesArchitectural and landscape planning servicesLegal servicesAccounting servicesMarket research and statistical servicesVeterinary servicesCompanies
EYDeloitte Touche TohmatsuKPMGPurchase this report to view all 5 major companies in this industry.
Related Terms
OUTSOURCINGINHOUSEMYTAX TOOLIndustry Code
ANZSIC 69 - Professional Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Tenured professional service workers are leaving established companies to operate as sole proprietors. This trend is driving growth in enterprise numbers and the prevalence o...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Tax and audit services are independent of wider economic conditions. Most downstream businesses are legally obligated to seek out these services, providing a stable revenue s...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Proximity to downstream clients is essential for professional services firms. Professional services often need face-to-face communication and as most Australian businesses ar...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Subdivision competition is on the rise. Professional services firms need to compete with each other based on reputation, quality of service and price, on top of external comp...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Numerous sole proprietors and small business with fewer than 20 staff characterise the Professional Services subdivision. No company has significant market share in the subdi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of EY's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Deloitte Touche Tohmatsu's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of KPMG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for EY, and factors influencing its performance in the industry
- Description and key data for Deloitte Touche Tohmatsu, and factors influencing its performance in the industry
- Description and key data for KPMG, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The level of regulation differs for each professional services segment. Legal, accounting and engineering consulting firms are heavily regulated, while specialised design ser...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Technology developments have increased operating efficiencies. A greater focus on high value-added services has also been supporting subdivision profit margins.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Professional Services industry in Australia in 2024?
The market size of the Professional Services industry in Australia is $263.2bn in 2024.
How many businesses are there in the Professional Services in Australia industry in 2024?
There are 250k businesses in the Professional Services industry in Australia, which has grown at a CAGR of 1.9 % between 2019 and 2024.
Has the Professional Services industry in Australia grown or declined over the past 5 years?
The market size of the Professional Services industry in Australia has been growing at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Professional Services industry in Australia over the next 5 years?
Over the next five years, the Professional Services industry in Australia is expected to grow.
What are the biggest companies in the Professional Services market in Australia?
The biggest companies operating in the Professional Services market in Australia are EY, Deloitte Touche Tohmatsu and KPMG
What does the Professional Services in Australia include?
Consulting services and Scientific research services are part of the Professional Services industry.
Which companies have the highest market share in the Professional Services in Australia?
The company holding the most market share in Australia is EY.
How competitive is the Professional Services industry in Australia?
The level of competition is high and increasing in the Professional Services industry in Australia.
