The Climate Change Consulting Market is estimated to be valued at US$ 6.5 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Climate change consulting refer to advisory services provided by consulting firms to help organizations understand climate-related risks and opportunities, develop mitigation and adaptation strategies, and implement solutions to reduce GHG emissions and build climate resilience. The need for climate change consulting is increasing as governments and organizations aim to reduce their environmental impact and comply with stringent climate regulations.

Market key trends:
One of the key drivers of the climate change consulting market is the increasing focus on reducing carbon emissions and complying with stringent regulations. Governments across the globe are introducing policies and regulations such as carbon pricing and emission trading schemes to drive down emissions from key industries. For example, the European Union has pledged to cut its net greenhouse gas emissions by at least 55% by 2030 from 1990 levels. Similarly, many countries have committed to achieve carbon neutrality by 2050 under the Paris Agreement. This is increasing the need for organizations to assess climate risks and develop long-term mitigation strategies, thereby driving demand for climate change consulting services. Consulting firms help organizations understand upcoming regulations, implement compliance strategies, and also provide advisory services to capitalize on green opportunities.

Porter's Analysis

Threat of new entrants: Low cost of providing climate change consulting services enables new players to easily enter the market. However, presence of large consulting firms with global presence and expertise poses barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute offerings from various consulting firms. However, switching costs involved provide some advantage to existing consulting firms.
Bargaining power of suppliers: Consulting firms face low threat from suppliers as inputs required are generic in nature.
Threat of new substitutes: Emergence of alternate offerings like sustainability consulting poses threat of substitution to climate change consulting services.
Competitive rivalry: Intense competition exists between existing large players dominating the market.

SWOT Analysis

Strength: Strong domain expertise and insights on climate change issues. Global presence enabling servicing of multi-country projects.
Weakness: High dependence on project-based revenues exposes firms to demand fluctuations. Lack of differentiated offerings limits pricing power.
Opportunity: Increasing spending by governments and private sector on climate adaptation and mitigation creates opportunities. Growth in carbon markets offers new avenues.
Threats: Economic slowdowns lower investments impacting demand. Difficulty in accurately assessing physical and transition risks associated with climate change.

Key Takeaways

The Global Climate Change Consulting Market is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing awareness and government policies promoting carbon neutral goals. North America dominates currently due to stricter climate regulations and active involvement of private sector in reducing carbon footprint. However, Asia Pacific is likely to experience fastest growth owing to rapid industrialization and expanding manufacturing sector initiating climate actions.

Regional analysis: Europe is another major regional market for climate change consulting driven by the European Union’s ambitious ‘European Green Deal’ initiative targeting carbon neutrality by 2050. Major European countries like Germany and U.K. have also announced plans to achieve net-zero emissions, boosting consulting demand.

Key players: Key players operating in the climate change consulting market are ICF International, Inc., A.T. Kearney, Inc., McKinsey & Company, Inc., PricewaterhouseCoopers LLP (PwC), ERM Group, Inc., KPMG International, Coastal Risk Consulting, LLC, CH2M HILL Companies, Ltd. (Jacobs Engineering Group), Deloitte LLP, Ramboll Environ, Inc. ICF, McKinsey, and PwC dominate currently leveraging integrated service portfolio and global network.

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