Professional help: Expenditure on private research and development has boosted demand

The Professional Services subdivision provides various professional, scientific and technical services to a range of markets. The subdivision has moderately expanded over the past five years. This is largely attributed to the robust performance of the Scientific Research Services industry, which has exhibited the strongest industry growth in the subdivision. Additionally, the subdivision's largest industries, the Engineering Consulting, Management Consulting, Legal Services and Accounting Services industries have all modestly grown over the past five years, supporting the subdivision. As a result, subdivision revenue is expected to increase at an annualised 1.6% over the five years through 2017-18, to reach $156.9 billion. This includes an expected revenue increase of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Professional service providers have benefited from largely positive business confidence
  • Profit margins have increased, largely due to the growing range of value-added services
  • Forecast positive business confidence will drive demand for professional services
  • Industry Report - Industry Key Buyers Chapter

    The Professional Services subdivision exhibits low market share concentration. The four largest companies in the subdivision are expected to account for less than 40% of subdivision revenue in 2017-18. The subdivision's low concentration is attributable to the significant number of sole proprietors and boutique firms within individual industries. Over 95% of all subdivision firms employ less than 20 people, with over half of these firms being non-employing businesses.The prevalence of sole-proprietors and boutique firms is due to the low barriers to entry associated with the majority subdivision industries. Add...purchase to read more.

    Additional Insights for the Professional Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Professional Services Industry are

  • Access to highly skilled workforce
  • Ability to effectively communicate and negotiate
  • Well-developed internal processes
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Private non-residential construction capital expenditure in the Professional Services industry impact industry performance..

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    What's in this report

    What is the Professional Services Industry?

    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.

    Industry Products
  • Scientific and environmental research services
  • Architectural and surveying services
  • Engineering consulting services
  • Management consulting services
  • Legal services
  • Accounting services
  • Advertising and market research services
  • Other professional services
  • Industry Activities
  • Consulting services
  • Scientific research services
  • Advertising, design and public relations services
  • Architectural and landscape planning services
  • Legal services
  • Accounting services
  • Market research and statistical services
  • Veterinary services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Private non-residential construction capital expenditure
  • Capital expenditure by the public sector
  • Total business profit
  • Private research and development expenditure

  • Current Performance
  • High growth industries
  • Primary industries
  • Subdivision weaknesses
  • Subdivision structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Competition and industry structure
  • Globalisation trends
  • Table: Professional Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Professional Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Construction
  • Retail Trade
  • Financial and Insurance Services
  • Professional, Scientific and Technical Services
  • Public Administration and Safety
  • Consumers

  • Key Selling Industries
  • Professional Services
  • Telecommunications Services

  • Products & Services
  • Engineering consulting services
  • Management consulting services
  • Legal services
  • Accounting services
  • Advertising and market research services
  • Scientific and environmental research services
  • Other professional services
  • Architectural and surveying services
  • Chart: Professional Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Finance and services industries
  • Building and construction industries
  • Other divisions
  • Public sector and utilities
  • Mining industries
  • Households
  • Chart: Major Market Segmentation for the Professional Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent
  • Depreciation and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Professional Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Professional Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Professional Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Professional Services Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computer-Aided Design Software
  • Software that allows firms to create detailed digital models and drawings.
  • Inhouse
  • When a company performs an activity or function internally as opposed to outsourcing it.
  • Outsourcing
  • The use of outside service providers to perform various non-core activities.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Professional Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Professional Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Professional Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Professional Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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