Demand for environmental consulting services is on the rise, according to a report that says after two years of decline, 2015 saw a 2.1 percent uptick in the global environmental consulting market.
The Environment Analyst report says the global market reached $28.5 billion in 2015 and expects similar growth for 2016 at 2.2 percent. It forecasts the market will reach $32.5 billion by 2019, up 13.8 percent from 2015 and representing a five-year compound annual growth rate of 2.6 percent.
The market received a boost in 2015 from strong demand for infrastructure development in Western Europe, where environmental consulting revenue increased 4.9 percent. Additionally, a return to growth of the largest regional revenue generator North America — accounting for 52.6 percent of the global sector in 2015 — saw a 2.2 percent revenue increase in the market.
Renewables support work, particularly wind and solar, bolstered North American growth, along with increased government activity, the report says.
Twenty-four companies lead the global environmental consulting sector, together accounting for 45 percent of the $28.5 billion market.
The top 10 players, in order of gross global environmental consulting revenues in 2015, were: AECOM, CH2M, Tetra Tech, Arcadis, Environmental Resources Management (ERM), Golder Associates, AMEC Foster Wheeler, RPS Group, Ramboll Environ and WSP|Parsons Brinckerhoff.
The next 14 in order are: GHD, HDR, Sweco (incorporating Grontmij) and MWH Global (now part of Stantec) in joint 13th; Antea Group and Jacobs in joint 15th; Cardno and Mott MacDonald in joint 17th position; ICF International; WorleyParsons, Royal HaskoningDHV and SLR in joint 20th place, Atkins and Coffey International (now owned by Tetra Tech).
Significant merger and acquisition activity and consolidation involving the top end of the industry over the last five years saw the top 10’s combined global market share grow to 32.9 percent in 2015, up from 23.8 percent in 2010.
Market leader AECOM, which acquired fellow US consulting and engineering giant URS for $4 billion in 2014, is reaping the benefits of post-merger synergies and economies of scale, having extended its lead over second-placed CH2M this year and achieving a top-three positioning in three major regions: North America, Asia-Pacific and East Europe/FSU.
Other recent mergers and acquisitions have led to the appearance of both Sweco and Stantec in the Global 24 analysis for the first time thanks to their respective acquisitions of Grontmij and MWH Global. Also appearing for the first time in this report is US-based HDR.
A different market research report published yesterday predicts the environmental monitoring market will reach $19.56 billion by 2021, growing at a compound annual growth rate of 7.7 percent during the forecast period.
The report, published by MarketsandMarkets, says factors such as increasing number of government initiatives to control environmental pollution levels, increasing government funding for pollution control and monitoring, ongoing installations of environment monitoring stations, and growing initiatives for the development of environment-friendly industries will drive the market’s growth.
North America is expected to be the largest regional segment in the global environmental monitoring market in 2016, followed by Europe. However, the Asia-Pacific market is expected to grow at the highest CAGR from 2016 to 2021.
As of 2015, Agilent Technologies (US), Danaher (US), Honeywell International (US), Siemens AG (Germany), Thermo Fisher Scientific (US), TE Connectivity (Switzerland), General Electric (US), Emerson Electric (US), Teledyne Technologies (US), and Merck KGaA (Germany) are some of the key players.