The World’s Largest Environmental Consulting FirmsDec 30th, 2011 | By Michael Bittner | Category: Featured Articles
Although the environmental consulting market remains highly fragmented, a dozen large firms are spearheading the globalization of the environmental consulting industry to meet the demands of their multi-national customers and capture market share. According to research published by Environment Analyst, these “Global 12” firms accounted for more than 24 percent of the industry’s US$ 25 billion in annual revenue in 2009/2010. Although 2009/2010 showed a 1 percent revenue decline compared with the previous year, the companies’ combined revenues have grown by more than 50 percent since 2005/2006. Environment Analyst estimates the global environmental consulting market will grow to US$ 30 billion in the next five years.
The Global 12
In order of global gross environmental consulting revenues, the world’s largest consulting firms are
- URS Corporation
- CH2M Hill
- Golder Associates
- Environmental Resources Management (ERM)
- MWH Global
- RPS Group
- Parsons Brinckerhoff (Balfour Beatty)
- WSP Environment & Energy
Behind the Numbers
Engineering and construction services company URS leads the pack with more than a five percent market share thanks largely to its strong position in the dominant North American sector. URS significantly expanded the international reach of its environmental consulting business with its acquisition of Scott Wilson in September 2010, and it has the largest contaminated land practice. URS also benefits from a strong public sector client base, deriving 45 percent of its total environmental consulting revenue from governments and regulatory agencies.
Revenue by practice area of the Global 12 is estimated as follows:
- Contaminated land – 41 percent
- Water and waste management – 22 percent
- Environmental impact assessment and sustainability – 14 percent
- Environmental management, compliance, and due diligence – 13 percent
- Climate change and energy – 5 percent
- Other – 5 percent
The Global 12’s leading client sectors by revenue spend are as follows:
- Government and regulators - 32 percent (US$ 8 billion)
- Utilities and energy – 24 percent
- Mining, manufacturing, and process industries – 24 percent
- Construction, property, and transportation – 14 percent
- Financial, professional, service sector – 4 percent
- Other – 2 percent
According to Liz Trew, editor of the Environment Analyst Market Intelligence Service, future growth in the environmental consulting industry will be much more sector-specific than in the years before the global economic downturn. Climate change and energy services are expected to grow significantly thanks to the strong underlying legislative and political drivers. “Regionally, economies that are led by natural resource industries rather than manufacturing or services will be more buoyant. This is reflected in the significant levels of investment we have seen recently from the Global 12 in countries such as Australia, Brazil, Canada and South Africa.”
About Environment Analyst
Environment Analyst Ltd is a publishing and market research organization focusing on the environmental consulting and support services sector. It collects and analyzes information from the industry for the benefit of the industry. Environment Analyst’s Global Environmental Consulting Strategies and Competitor Analysis 2011 provides a strategic assessment and competitor analysis of the world’s top environmental consulting companies.
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Image: Global Environmental Consulting Market Leaders by Environment Analyst.