Global Accountancy & Corporate Finance Services Industry
The global accountancy sector is expected to reach almost $488 billion in 2015, representing nearly 35% expansion in five years, reports MarketLine. Audit represents the leading segment, exceeding 48% of the overall market in terms of value. Americas cover close to half the global accountancy market.
The four main market segments in the global accountancy industry are corporate finance, audit and accounting, management consultancy, and tax and legal services. Key Note points out that though management consultancy represents the newest market segment, it also generates the greatest revenue.
Regional Market Share
- The EU accountancy sector was worth almost $122 billion in 2010, according to MarketLine. The market recorded yearly growth of close to 3% between 2006 and 2010. Audit represented the leading market segment, generating close to $53 billion in 2010, holding more than 43% of the overall market in terms of value in the same year. Market growth is expected to exceed a yearly rate of 4% for the five-year period ending 2015 to reach almost $149 billion.
- In 2010, the UK accountancy market recovered from the unfavorable climate of 2009, reports Key Note. The market is forecast to grow by 25% in the five-year period ending 2015 to exceed $43 billion. The UK accountancy market is, however, exhibiting signs of limited growth potential. The sector recorded a year-on-year loss in 2009, despite recording double-digit percentage figures for year-on-year growth three years previously.
- The Asia-Pacific accountancy industry exceeded $56 billion in 2010, according to MarketLine. Market growth is expected to reach a yearly rate of close to 6% between 2010 and 2015 to reach almost $74.5 billion. Audit represents the leading segment, generating almost $23 billion in 2010 for over 40% of the overall regional market.
- China’s accountancy sector generated close to $3.5 billion in 2010, reports MarketLine. The audit market segment generated the most revenue, exceeding $1.5 billion for 48% of the overall market. Market expansion is expected to accelerate to a yearly rate of almost 1% between 2010 and 2015 to hit over $3.5 billion.
- The US accountancy industry generated close to $123 billion in 2010, reports MarketLine. The audit market segment generated nearly $63 billion in the same year, adding to more than half of the overall market in terms of value. Market growth is expected to accelerate reach over a yearly rate of 6.5% between 2010 and 2015 to exceed $170 billion.
The four key players operating in the global accountancy industry are Ernst & Young, Deloitte, KPMG and PricewaterhouseCoopers. Ernst & Young operates 700 offices across 140 countries and employs 140,000 people worldwide. It is ahead of KPMG in terms of revenue among the big four. Apart from accounting services, the company also provides advisory services to emerging companies, HR solutions, and legal services.
PricewaterhouseCoopers (PwC) operates more than 770 offices across close to 160 countries. The company employs almost 130,000 people worldwide and recorded a 10% increase in 2011, exceeding revenue of $29 billion. PwC provided services to almost 420 of the Fortune Global 500 in 2011, and to over 440 of the FT Global 500 in the same year.
The global accountancy market is recording moderate growth. This facilitates market entry for new companies but also reduces competition. The industry has experienced a negative impact since 2008 due to the economic recession. As for external resources, the world finance and accounting outsourcing market is expected to reach almost $45 billion by 2015, according to research from Global Industry Analysts. Market growth will be fuelled in large part by the need to cut operational costs, which is aggravated by an unstable economic climate.
Leading Industry Associations