The global tax advisory market is experiencing a dramatic surge, with growth rates set to nearly double this year, propelled by geopolitical friction and the trade policies of the Trump administration. According to a new analysis, this boom is transforming the sector into a nearly $64 billion (£48.4 billion) industry.
A Perfect Storm for Tax Complexity
After two years of subdued expansion, the tax advisory services sector is booming amidst global political and economic headwinds. The primary catalyst is the series of trade wars and tariffs implemented by US President Trump's administration, which have injected significant uncertainty into international business. A report from the research-led advisory firm Source Global Research reveals that the market is expected to grow by a further 6 per cent in 2026, reaching $67.4 billion.
The report underscores that a staggering 81 per cent of respondents stated that Trump's tariffs have made traditional tax planning impossible due to their disruptive impact. For clients in financial services, the complexities of the OECD’s Pillar Two framework are also generating substantial work.
Regional and Sectoral Hotspots
Growth is not uniform across the board. The research pinpoints transaction tax, transfer pricing, and international taxes as the top services driving expansion. From an industry perspective, the fastest-growing client sectors are forecast to be healthcare, energy and resources, and pharma and life sciences, with revenues climbing between nine and ten per cent.
Geographically, the Middle East is poised to be the fastest-growing tax advisory market, with a remarkable 10 per cent growth rate forecast for 2025. This region is projected to surpass $1 billion in revenues by 2026.
Rising Fees and Client Expectations
This surge in demand is already reflected in the financial results of industry giants. Both EY and Deloitte have reported positive growth in their tax divisions. Consequently, tax advisory is bucking a broader trend by making clients more accepting of price increases; the report highlights that over half (54 per cent) of clients expect prices to rise.
Two key reasons are driving this expectation: a shortage of specialist expertise and the high return on investment that these services deliver. This comes at a time when companies across the professional services sector are scrutinising costs more closely due to economic challenges and the implications of AI.
Tony Maroulis, principal consultant at Source Global Research, commented on the dynamic, stating, “While uncertainty and unpredictability often act as a brake on investment plans for companies, when it comes to tax, it can sometimes have the opposite effect.”
He added a note of caution for advisors, however: “Although price rises will be music to the ears of many tax advisors, raising fees is unlikely to be a walk in the park. Companies are unlikely to straightforwardly accept higher prices for the same service as before, as they want to understand the value that they are getting.”
