In order to make better decisions, give better advice, and verify their opinions, CEOs, advisors, consultants, and other decision-makers are constantly looking for information. Over the past few decades or so, they have undergone a significant evolution in how they gather information. Prior to the invention of the internet, any information, whether it came from a faxed report, a talk with a broker, or a roadshow, was reliable.

Emergence Of Expert Network Industry

We live in a world today where information is all around us. Google will return hundreds of pages of articles, blogs, and website pages with many viewpoints and unreliable "facts" when you enter any question. As a result, the difficulty now lies in sorting through the clutter to uncover the information that really matters. The info that completes the picture of reality and helps you make a decision with greater knowledge.

This opened the door for the Expert Network industry to develop in the early 2000s. The industry, which originated in the US in the late 1990s, offers access to Expert insights in a number of different industries. Direct communication with individuals involved in industries is possible between investors, consultants, and industry leaders through the use of their own distinct lines of questioning.

All of this is done inside a solid compliance framework that complies with both financial and competition regulation requirements. An expert in the field can help you sort through the noise and determine what information is crucial and what information doesn't matter.

Technology Will Be a Crucial Determinant

Technology will be crucial in identifying the industry's leading players and accelerating growth. The industry as a whole currently has mediocre technological capabilities. With companies like Third Bridge, AlphaSights, and GLG, large, high-quality human research teams are becoming important due to rapid development and inelastic demand.

There are some market leaders in this space, including Inex One, an aggregator platform that offers clients quick, flexible, and worldwide access to expert network consultants. As well as a few companies working on AI matching technologies. The dominant determinant in identifying the market leaders of the future will be technology. Those who continue to invest in cutting-edge features that automate many of the complicated and labor-intensive procedures in the industry will be well-positioned.

Naturally, players outside of the top 5 are showing this skill more successfully. The question that remains is: What will be the industry's next driving force? We take two things for granted. First, rather than relying on outside factors to influence clients to use the industry, the sector has enough exposure to drive its own growth. Second, growth will be accompanied by a changing environment.

Emergence Of Strong Local Players

Market consolidation is unavoidable, and the industry has already begun to show a new receptivity to non-organic growth. For instance, in 2021 Coleman, an American-headquartered provider, was acquired by VisasQ, a Japanese-based Expert Network, for $102 million. The number of Expert Networks increased by 30% in 2019, and some regional companies in places like Southeast Asia, Australia, Africa, and South America created a strong local offering that was competitive with the offerings of the global giants.

Strong local players' emergence, the expansion of 100 providers to 200 since 2019; and the first significant purchase in the industry. All point to some consolidation of the market through M&A activity as well as the eradication of players that were performing at a standstill.

Varied Customer Base For Expert Services

Moreover, we expect a much more varied customer base for Expert Network services.  Management consulting and private equity firms used these services in the early phases of the industry. Later, we saw the emergence of asset managers, hedge funds, and superannuation funds. Now, we are witnessing expansion in the corporate sector as businesses use these services to learn about potential new markets, diversification opportunities, and technological developments.

The corporate segment's compliance requirements are more sensitive. But with the appropriate framework and procedures, a compliant and useful service may be delivered. This market segment can end up being the key factor in pushing the market size to $6 billion by 2030.

Conclusion

Who knows what will be the next important driver? Few people outside of the industry would have predicted a global pandemic or recognized it as a growth engine for the Expert Network Industry. The next growth element could be driven by another macroeconomic event, pandemic, or macropolitical situation, or it could be the opposite. Nevertheless, the aforementioned factors will be crucial in deciding the space's environment and the subsequent stage of evolution over the course of the following five years. To make a conclusion, the one thing that is very obvious is that, the industry is on a trajectory to take up a significant portion of the Information and Research Services market and shows no indications of slowing below double-digit CAGR.