Family Business Services Market Size, Share, Growth, and Industry Analysis, By Type (Succession Planning, Family Management and Conflict Management), By Application (Small and Medium Family Business and Large Family Business), Regional Insights, and Forecast To 2032

• 

   Request a Free Sample To Get More Information on this Market

FAMILY BUSINESS SERVICES MARKET REPORT OVERVIEW

The Family Business Services Market size was valued at approximately USD 1.5 billion in 2023 and is expected to reach USD 2.8 billion by 2032, growing at a compound annual growth rate (CAGR) of about 7.8% from 2023 to 2032

The term ‘Family Business Services’ often stands for different types of industry-specific services, all intended to help the individual business and management needs of family-owned companies. These services — such as consulting firms, financial institutions, and specialized advisors who have the insights and understanding of the complexities and dynamics of a family business are normally provided.

COVID-19 IMPACT

"Market Growth increased by Pandemic due to Increased Need for Succession Planning"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The crisis has underpinned the necessity of an orderly replacement of family business something that most family businesses have been made to face unexpected leadership transfers because of illness or other disruptions. Due to this, there is a bigger need for advisory services that address and solve transaction succession and continuity problems respectively.

LATEST TRENDS

"Succession Planning and Next-Generation Development to Drive Market Growth"

Speaking of family businesses, a massive portion of this population is faced with generational succession as baby boomers retire, giving birth to the necessity of succession planning and training the millennials to take the next position in charge. Due to the expansion of the family business services sector, some players are developing specific programs and advice services to carry out a smooth and competent transition among family leaders and help them gain the necessary skills. With the baby boomer generation reaching retirement age a lot of family businesses are being exposed to the process of “transfer of business generations.” Succession planning is no longer a matter of choice to these businesses, but rather a requirement for their survival in the business environment where leaders’ credentials are so important.

FAMILY BUSINESS SERVICES MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Succession Planning, Family Management and Conflict Management.

• Succession Planning- the professional counsels the families to craft governance structures and procedures that seek to provide clarity on the transition plan, such as the creation of the family assembly, committees, and charter.

• Family Management- The Advisor gives different strategies and directions regarding lots of family business becoming issues, including growing management effective operation, and market expansion.

• Conflict Management- Coordinators organize family gatherings and off-sites, designed to enable open intercommunication, build a consensus, and resolve conflicts in a structured and fruitful way.

By Application

Based on application the global market can be categorized into Small and Medium Family Businesses and Large Family Businesses.

• Small and Medium Family Business- Grooming the family for leadership roles, as well as assessing them. Well-developed and streamlined governance structures tailored to the size of the organization are paramount for creating a successful start-up.

• Large Family Business- Establishing a well-rounded approach for succession of ownership and branch supervision across all generations of the family. Building efficient and aligned principal mechanisms, such as the family offices, advisory committees, and family regulations.

DRIVING FACTORS

"Social Responsibility and Sustainability to Boost the Market"

One of the key driving factors in the global Family Business Services market growth is Social Responsibility and Sustainability. Due to the fact of the fact that a lot of family businesses today are becoming more socially responsible and sustainable businesses by means of their core values they, in turn, are affecting their business strategies, operations, and decision-making processes. Professional services in relation to impact investing, ESG integration, and these sustainable business practices are high in demand. Often, family businesses view their values as defining and attribute this to the family-held honor, community, environment, and the well-being of society. Ethical behavior combined with environment-protecting approaches into the business culture is consistent with stakeholder values, driving the demand for advisory services that help integrate these principles into the strategy of the business.

"Generational Transitions to Expand the Market"

Another driving factor in the global Family Business Services market is the Generational Transitions. The growth of senior family business operators retiring or stepping aside creates the ultimate requirement of management succession, generation success, and governance frameworks which will maintain the continuity and sustainability of the business. The wave of the upcoming retirements among the first generations belonging to the family businesses is requisite for succession and leadership to be passed on to the younger generation to succeed smoothly. The fact that family businesses usually have to tackle succession planning that involves determining appropriate successors, developing the leadership competencies required, as well as developing the governance systems represents a good reason for them to seek advisory services.

RESTRAINING FACTORS

"Lack of Awareness and Understanding to Potentially Impede Market Growth"

One of the key restraining factors in the global Family Business Services market is the Lack of Awareness and Understanding. The family businesses’ knowledge about gains and potential from family business services might not be done. They will risk doing all those things and rely majorly on personal advice and not the expertise of professionals such as succession planning, provision of good governance, and conflict resolution. A lot of family enterprises can lack this complexity and consider themselves as not facing problems when in reality complexity of the business continues to grow. These individuals hold a view that professional advisory services are not worth it and their satisfaction can be derived from hiring them for succession planning, governance, and conflict resolution among other issues.

• 

   Request a Free Sample To Get Analysis on Major Geographic Market

FAMILY BUSINESS SERVICES MARKET REGIONAL INSIGHTS

"North America Region Dominating the Market due to the Presence of a Large Number of Family-Owned Businesses "

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global Family Business Services market share due to several factors. According to the 2012 pertaining to information given by Census Bureau, 90% of Businesses are family-owned in the United States. Being the owners of the family enterprises, they encounter a lot of problems in the areas of strategic and financial management. Therefore, the operations of these types of companies are being supported by these service providers who offer both managerial and financial services. This phenomenon has certainly pervaded the business consultancy market in the country with the concomitant demand for family business consultancy. Additionally, the special government assistance to family-owned businesses in the US also led to a push for the development of advisory services for family enterprises and family business owners. This initiative mirrored ones for tapping oil reserves, where the former energized the American economy.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Family Business Services market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of Family Business Services options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Family Business Services, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List Of Top Family Business Services Companies

• EY (U.K.)
• PwC (U.K.)
• KPMG (Netherlands)
• Deloitte (U.K.)
• Dixon Hughes Goodman LLP (U.S.)

INDUSTRIAL DEVELOPMENT

August 2022: The Dubai International Financial Center (DIFC)’s flagship bringing this up is a Global Family Business & Private Wealth Center in the leading financial center of the Middle East. The initiative is narrowly focused and is totally determined to back the next generation of the nation’s economic stability.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.