German Consulting Market Faces Stagnation and Transformation
The German management consulting market experienced minimal growth in 2025, reaching a volume of 51.4 billion euros – a mere 2.8% increase from the previous year, according to a recent analysis by the Wissenschaftliche Gesellschaft für Management und Beratung (WGMB) . This marks a significant slowdown compared to previous years, signaling a shift in the industry landscape.
The End of the Consulting Boom?
Dietmar Fink, professor specializing in consulting and scientific director of the WGMB, states unequivocally, “The sector is no longer developing across the board; the boom is over.” The traditional consulting model is reaching its limits, impacting even the most influential international firms like McKinsey, Boston Consulting Group (BCG), Bain & Company, and the German market leader, Roland Berger.
This slowdown represents the third consecutive year of decelerating growth in the sector. Single-digit growth is now considered precarious, potentially leading to a crisis.
Shifting Demand and the Decline of Strategy Projects
Weak economic conditions, increasing bankruptcies, cost-cutting programs, and fiscal prudence have dampened demand for traditional consulting services. Specifically, design and planning projects have faced significant pressure. The strategy consulting segment in Germany even experienced a 2% decline in 2025, mirroring a similar trend in France.
The Rise of Long-Term Support and New Service Areas
Consulting firms are adapting by shifting their focus from short-term strategy development to long-term client support. Bianka Knoblach, Associate at WGMB, notes that simply developing major strategies is no longer sufficient. Firms must now support clients “often over several years, from reorientation to implementation, management and operation.”
Demand is increasing in areas driven by technology and restructuring. Transformation activities saw a growth of 9% in 2025, while turnaround and restructuring missions jumped by over 20%. Firms specializing in these areas, such as AlixPartners and Alvarez & Marsal, are experiencing substantial growth – 40% and 25-30% respectively.
The Impact of AI and the Transformation into Technology Companies
Artificial intelligence is emerging as a key driver of demand, prompting consulting firms to transform into technology companies. Firms are establishing partnerships with tech giants and developing specialized entities, such as McKinsey’s Quantum Black, BCG’s BCG X, and Bain’s Vector. Roland Berger has even launched an AI start-up with AI pioneer Jonas Andrulis.
Looking Ahead
The German consulting market is undergoing a significant transformation, driven by economic pressures, evolving client needs, and the rise of artificial intelligence. Firms that adapt to these changes and embrace new service areas will be best positioned for success in the years to arrive.