Press Release:
Market Structure Analysis 2024: Growing Momentum in the Auditing Market

The results of the market structure analysis conducted by the Chamber of Public Accountants (WPK) for 2024 (www.wpk.de/marktstrukturanalyse/) (in German) show an increasingly dynamic development in the German auditing market.

Between 2023 and 2024, the WPK identified 84 auditor changes at capital market-oriented companies within the meaning of Section 264d of the German Commercial Code (HGB). This corresponds to a strikingly higher proportion of 20.4% compared to previous years. In 34 cases, the respective audit mandate remained within the group of the “Big Four” companies Deloitte, EY, KPMG, and PricewaterhouseCoopers. Thirteen mandates remained within the group of medium-sized companies, and another 16 within the group of smaller practices. As in previous years, the number of audits that changed from a larger to a smaller auditing firm exceeded the number that changed in the opposite direction.

In terms of the number of audit mandates and the associated audit and total fees, there continues to be a very high concentration on the four large auditing firms in the capital market-oriented companies segment. However, it is also apparent that their relative shares in all three areas examined are declining year-on-year. There have been shifts in favour of smaller and, in particular, medium-sized auditing firms.

Of the audits of other companies related to the capital market that are not public-interest entities, 55.1% were performed by audit firms that do not belong to the large audit firms or the Next 12 networks (2023: 54.7%; 2022: 51.9%). In contrast to the audit of capital market-listed companies, smaller auditing firms already accounted for the majority of audits in this market segment in previous years. This share has increased steadily in the reporting period.

These findings from the studies in the various market segments underscore the importance and significant contribution that smaller and medium-sized auditing firms also make to the functioning of the capital market.

Further findings:

• The trend of previous years continues in terms of the development of the average share of non-audit services in the total fees earned by capital market-oriented companies: in this market segment, fewer and fewer non-audit services are being provided. The total fees of the auditing firms that audited capital market-oriented companies amounted to around €886 million in 2024. Of this, around €129 million was attributable to non-audit services, which corresponds to a share of 14.6% (2023: 15.4%; 2022: 19.8%).
• The proportion of auditors and public accountants (WP/vBP) working in large auditing firms in the total number of WP/vBP remains almost constant at 19.6% year-on-year. The proportion of WP/vBP working in Next 12 networks is 14.3% and the proportion of WP/vBP working in smaller auditing practices is 66.1%.
• The trend towards greater networking among auditing practices and the establishment of larger entities continues. At the end of 2024, 501 networks (2023: 488; 2022: 480) were registered in the WPK's professional register. These were affiliated with 929 auditing practices (2023: 918; 2022: 921).
• A total of 51 auditing practices audited 912 mandates from companies of public interest within the meaning of Section 316a of the German Commercial Code (HGB) (2023: 51 auditing practices and 938 mandates; 2022: 53 auditing practices and 964 mandates).

The WPK's analysis provides insights into the structure of the auditing market in Germany. It is based on data from the professional register, which is available exclusively to the WPK in this form. This data is supplemented by further empirically determined data. The sources used are publications in the Federal Gazette and the company register, the company lists provided by the Federal Financial Supervisory Authority, and the transparency reports of the auditors of public-interest entities.