The growing demand for Climate Change Vulnerability Assessments is anticipated to openup the new avanue for Climate Change Consulting Market.
The Climate Change Consulting Market is estimated to be valued at US$ 6.82 Bn or in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Climate change consulting involves advising corporate and government clients regarding the risks and opportunities posed by climate change. Consulting firms help organizations understand how climate change may impact their operations, supply chains, and strategic planning over the short, medium and long term. They assist in developing mitigation and adaptation strategies as well as quantifying and reporting on carbon footprints. Common tools used include climate change vulnerability assessments, carbon accounting, climate risk analysis and development of decarbonization roadmaps.
Market Dynamics:
Two major drivers for the climate change consulting market are stringent climate change regulations and the increasing focus on environmental, social and governance (ESG) factors by investors and other stakeholders. Firstly, regulations such as carbon pricing and emissions reporting requirements are prompting companies to better understand and mitigate their climate change risks. They seek expertise from consultants to navigate the complex compliance landscape. Secondly, demand for ESG advisory is surging as more mainstream investors require portfolio companies to demonstrate their climate action and resilience. Consultants help organizations set science-based targets, align reporting with frameworks like TCFD and improve their ESG ratings and sustainability credentials. Additionally, physical impacts of climate change like rising sea levels and extreme weather events have made both private and public organizations to assess vulnerabilities and build adaptive capacity.
Segment Analysis
The climate change consulting market is dominated by the carbon management segment. Since carbon emissions continue to be a major cause of global warming, the carbon management consulting segment provides a wider scope for services like assessing carbon footprints, recommending strategies to optimize resource use and reduce emissions, carbon offset programmes, etc. This segment has witnessed growth due to stringent regulations and reporting requirements around carbon emissions.
PEST Analysis
Political: Stricter climate change policies and carbon pricing mechanisms by governments across regions have increased compliance requirements for industries, driving demand for expert climate change consulting services.
Economic: Higher investments required towards climate change adaptation and mitigation efforts are opening new opportunities. The economic cost of climate change and carbon footprints are also boosting the market.
Social: Rising public and private awareness about threats of climate change has increased focus on sustainability. Social responsibility and ethical consumerism are positively impacting the industry.
Technological: Advancements in areas such as greenhouse gas modeling tools, remote sensing, and cloud-based data management solutions are enhancing consultation capabilities.
Key Takeaways
The Global Climate Change Consulting Market Growth is expected to witness high, exhibiting a CAGR of 5.7% over the forecast period, due to increasing climate change concerns and stringent regulations worldwide. The market size for 2023 is estimated to reach US$ 6.82 Billion.
On the regional front, North America dominates currently due to stringent carbon emission standards. However, Asia Pacific is anticipated to emerge as the fastest growing regional market owing to rapidly evolving climate change policies and greater investments in renewable energy sectors across major economies like India and China.
Key players operating in the climate change consulting market include 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. These players are focused on expanding into new markets and offering differentiated services to address the diverse needs of countries and industries.