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Summary<\/p>\n
\nEnergy and utilities was the fastest growing sector in 2023.
\nRevenue from government and regulator clients grew by 11% in 2023 but is projected to contract by 2028.
\nInfrastructure and development client spending rebounded after the pandemic and is forecast to grow the fastest through to 2028.
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The US environmental and sustainability (E&S) consulting market expanded by 20% in 2023, according to\u00a0Environment Analyst\u2019s latest US Environmental & Sustainability Consulting Market Assessment<\/a>.<\/p>\n Growth in 2023 was almost three times larger than in previous forecasts, which projected a mere 7%.<\/p>\n This was largely driven by federal investment in the energy transition and infrastructure resilience, accelerated by rapid advances in AI and the subsequent emergence of energy- and resource-intensive technologies.<\/p>\n Energy utilities, industrial operations and infrastructure clients led this surge, each recording double-digit spending growth.<\/p>\n Fastest growing sectors<\/p>\n The energy and utilities (including waste) client sector became the largest contributor to the E&S market in 2023, growing by 33%, gaining well over a third of the market share.<\/p>\n Work for energy transmission clients (a subsection of the wider energy and utilities sector) rose sharply, increasing its market share by four percentage points.<\/p>\n This was driven by soaring power demand linked to AI expansion, large-scale renewable integration and generous federal clean energy funding from 2020, through programmes like the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).<\/p>\n Yet, the buildout of transmission infrastructure still lags behind clean energy targets.<\/p>\n And the energy sector more broadly faces uncertainty as Trump\u2019s administration shifts focus to domestic fossil fuel production, affecting future project pipelines for certain technologies, like wind farms.<\/p>\n Despite this, the energy and utilities client sector is projected to grow at an 8% compound annual growth rate (CAGR) by 2028, as energy demand, regardless of source, is set to increase.<\/p>\n The extractive, manufacturing and processing industries recorded the second-fastest growth in US E&S advisory spending in 2023. With a 32% increase versus 2022, the sector now accounts for the market share of 14%.<\/p>\n The sector is forecast to grow at 10% CAGR through to 2028, supported by policies favouring domestic manufacturing and mining.<\/p>\n Infrastructure and development ranked third in growth, with client spending rising 12% in 2023, gaining just over a tenth of the total market.<\/p>\n This rebound follows pandemic-induced contractions in 2020 and 2021. Federal stimulus and green economy initiatives like the IIJA and IRA reignited spending, particularly in rail, aviation and public transport projects.<\/p>\n Environment Analyst forecasts this sector will see the fastest growth over the next five years, with an 11% CAGR by 2028, as consultancies report strong proposal activity.<\/p>\n Government and regulator spending at risk<\/p>\n In 2023, work for government and regulatory clients made up almost a third of the US E&S consulting market. This is slightly lower when compared with 2022, as most of this funding stemmed from Biden-era federal programmes enacted earlier in his term.<\/p>\n With Trump\u2019s administration cutting these funds and shifting focus away from green policies, the sector\u2019s spending on E&S advisory is expected to decline at a -2% CAGR through to 2028. That said, it is forecast to remain the second largest market contributor after energy and utilities.<\/p>\n Consultancies heavily reliant on federal projects face increased business uncertainty, but many maintain long-standing relationships with public sector clients. Ongoing and new multi-year contracts offer a degree of stability despite shifting political priorities.<\/p>\n Tetra Tech is a great example, recently adding over $1bn of new contract capacity. This covered water supply and flooding infrastructure projects, through partnerships with the US Army Corps of Engineers and the Office of Land and Emergency Management.<\/p>\n Big players strengthen dominant positions<\/p>\n The largest client vertical, energy and utilities (including waste), is primarily dominated by AECOM and Tetra Tech. These two companies account for 15% and 13%, respectively, of the total revenue generated by the top 27 US consultancies in this sector.<\/p>\n Alongside TRC, Burns & McDonnell and WSP, these firms accounted for nearly 63% of the total US 27 generated revenue from this client sector in 2023.<\/p>\n Tetra Tech also leads the second largest client vertical \u2013 government and regulators \u2013 holding alone almost a third of the US top 27 generated revenue from this client vertical.<\/p>\n AECOM is the second largest player, with under a fifth market share in this segment.<\/p>\n WSP\u2019s dominant position in the US E&S consulting market is driven by the extractive, manufacturing and processing sector. It holds 30% of revenue generated by the US top 27 from this segment through high-value, multi-year contracts. This growth reflects a 40% expansion in the company\u2019s Earth and Environment division.<\/p>\n HDR secured almost a fifth of the US top 27 infrastructure and development revenue in 2023, largely by winning $1.6bn in federal grants under the IIJA for projects in freight rail, aviation, public transit, highways and maritime sectors.<\/p>\n Stantec led the professional services segment, contributing around 30% of the total revenue generated by the top firms.<\/p>\n \u00a9 Environment Analyst. You may circulate web links to our articles, but you may not copy our articles in whole or in part without permission<\/p>\n CORRECTIONS: We strive for accuracy, but with deadline pressure, mistakes can happen. If you spot something, we want to know, please email us at: news@environment-analyst.com<\/a>![\"\"\/](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/07\/change-client-verticals-non-member.png\")
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Energy and utilities was the fastest growing sector in 2023.
Revenue from government and regulator clients…\n","protected":false},"author":2,"featured_media":20403,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":{"0":"post-20402","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/20402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=20402"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/20402\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/20403"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=20402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=20402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=20402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}