US market analysis highlights immense opportunities for consultants
Environment Analyst Global
Connecting the environmental, ESG and professional services community, and providing the intelligence to deliver a sustainable transition
Our first standalone assessment of the US market finds a resilient and thriving industry post-pandemic thanks to the evolving regulatory framework, albeit one that is undergoing significant structural change.
Despite recession risk and volatile partisan politics, the US environmental & sustainability (E&S) consulting market is experiencing a period of unprecedented strength, according to Environment Analyst’s latest research report.
At just over $14.1bn, it is the largest single market for these services worldwide, accounting for 36% of global E&S consulting revenues, according to our industry figures (which are based on a comprehensive survey of the leading firms’ performances in FY20/21).
Major legislative successes and the re-emergence of the US as a global climate action player are helping create a burgeoning pipeline of projects across multiple industries and sectors. Large-scale renewable energy generation and transmission architecture are helping drive demand for environmental permitting and impact assessment services. Oil and gas firms are opting to channel soaring profits into the remediation and sale of non-strategic assets. In the water and wastewater industry, the looming PFAS problem is forcing local governments and utilities to engage with solutions for testing and clean-up.
Meanwhile, an ever-expanding array of regulatory initiatives and an increasingly vocal client base are pushing companies hard on ESG. Here the playing field is becoming very crowded, even though it is still a relatively nascent part of the E&S services space. Tech firms are offering sophisticated solutions for emissions measurement and life-cycle assessment. Management consultants still have the ear of C-suite executives eager for cutting-edge sustainability strategies. But, as the report suggests, environmental consultants from the traditional engineering and design ilk still have ample opportunity to leverage their implementation expertise to earn a seat at the table and compete with higher margin solutions.
Despite an optimistic outlook, with overall market growth projected at 7-8% in both 2022 and 2023, there are clear challenges on the horizon.
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