Architectural Services Market Outlook(2022-2032)
The architectural services market reached a valuation of US$ 292.0 Billion by 2021, and is likely to register a Y-o-Y growth rate of 3.0% in 2022, closing at US$ 302.2 Billion. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 3.5% CAGR, reaching US$ 426.3 Billion.
Rising urban population has put the real estate industry under pressure to come up with a sustainable solution to the rising demand for residential buildings. Suitable macroeconomic factors such as rising employment, low-interest rate, and increase in disposable income have also led to a rise in the demand for residential housing, ultimately leading higher demand for architectural services. The architecture industry is adopting technological trends that help them provide the best services to clients. Architect jobs are becoming more and more difficult as a result of complex demands from the client’s end and surging architectural technologies.
Advancements in technology will play a pivotal role in the dissemination of architectural services. The implementation of BIM or advanced designing techniques/software will provide an edge over the competitors. Standardization of policies governing the architectural services industry will help foster market growth globally. Policies will help streamline guidelines concerning complex design or engineering requirements, creating a level playing platform for service providers across the globe.
| Report Attributes |
Details |
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Anticipated Base Year Value (2021)
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US$ 292.0 Billion
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Expected Market Value (2022)
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US$ 302.2 Billion
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Projected Forecast Value (2032)
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US$ 426.3 Billion
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Global Growth Rate (2022-2032)
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3.5% CAGR
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Expected Growth Rate of the Chinese Market (2022-2032)
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3.3% CAGR
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Anticipated Growth Rate of the Indian Market (2022-2032)
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3.2% CAGR
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Prominent Architectural Services Service Players
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- Aecom
- Aedas
- Arcadis NV
- ATP Architects Engineers
- Dar Al-Handasah
- DLR Group
- DP Architects
- ForrestPerkins LLC
- Gensler
- gmp Architekten
- Haeahn Architecture
- HDR
- Heerim Architects & Planners
- HKS
- HOK
- Nihon Sekkei
- SmithGroup
- Stantec Inc.
- Sweco
- The Cannon Corporation
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2017-2021 Revenue Analysis of Architectural Services Market vs. Growth Outlook 2022-2032
According to Fact.MR’s report, Architectural Services demand exhibited a CAGR of over 2.1% from 2017 to 2021. Demand for architectural services has increased over the past decade owing to rising application of Architectural Services in automotive and appliances and furniture manufacturing industries.
Use of architectural services for consumer goods, namely automobiles, refrigerators, water heaters, dishwashers, microwaves, and industrial machinery has been on the rise. Growing demand on account of increasing purchasing power of consumers in developing economies is cited as the main factor that will influence sales of Architectural Services over the coming years. Also, attributable to their versatility and widespread usage, sales of Architectural Services will increase over the next ten years.
Key Market Drivers Influencing Architectural Services Industry Expansion
Cotemporary Practices within Architecture to Fuel the Market Growth
Some of the leading architects across the world are focusing on designs that require minimal felling of trees and disruption of the natural elements. Environmental planning has emerged as an important discipline within architecture, and it focuses on creating designs that cause no harm to the natural ecosystem.
This factor, coupled with the responsiveness of the masses to green designs, has given a thrust to market growth. Planning of green fields and gardens also comes under the ambit of architectural services. Considering the factors mentioned above, it is safe to predict that the global architectural services market would tread along a robust growth rate.
Increasing Need for Green Architecture to Propel Market Growth Prospects
With growing focus on energy-optimization technologies, the need for green planning and architecture has gathered momentum. Several architects have joined the quest for fostering environment-friendly construction practices. Furthermore, the need for a well-managed constructions industry that follows a predefined route of administration has also generated huge-scale revenues.
There is no contention about the need for better infrastructural planning in the industrial sector. The energy-intensive nature of the industrial sector necessitates the development of distinct designs that can minimize emissions. Architects are making extensive efforts to come up with distinct designs that fit the needs of the industrial sector.
Key Challenges encountered by Architectural Services Industry
Stringent Government Regulations to Hamper the Market Growth
Stringent government regulations against the harmful VOCs emitted by certain architectural coatings, is one of the major factors that is expected to obstruct the growth of the Architectural Services Market during the forecast period.
High Cost of Software and Service to Hinder the Market Growth
The high software and service costs, unstable economic situations, and tight federal regulations are other major factors that are estimated to limit the global architectural services market's growth over the analysis period.
Country-wise Analysis
How will China Perform in the Global Architectural Services Industry Landscape?
Stable Economic Condition to Boost the Market Growth in China
Continuous economic growth over the last two decades has opened a sea of opportunities for infrastructure development in China. Economic development creates a lot of opportunities, not only for the architecture industry but also for related industries such as real estate, steel, and manufacturing, among others.
With increased spending power, the demand for architectural services from the residential end has been on the rise. As businesses are growing and the employment scenario is improving, it is expected that there will be an abundance of opportunities for the architectural industry.
Government spending on the development of road, rail, and other infra projects has led to high demand for services provided by architecture firms. The Chinese Architectural Services market is expected to expand at a CAGR of 3.3% across the forecast period.
How will the Growth of Architectural Services Market Escalate across India?
Expansion of Architectural Industry to Enhance the Market Prospects
India's culture and tradition are significantly influenced by architecture. However, the country is now in need of skilled and efficient architects more than ever. Expansion of the architectural industry has been driven by the rise of the middle class. Demand for new residential complexes with better planning, and quality, and efficient amenities has placed the role of architects at the center of the industry.
The need of the hour is efficient architecture services as more and more people move to cities and space is shrinking. Architects must plan in such a way that more amenities can be provided in less space without there appearing to be a space crunch. Rising population will also drive the demand for architectural services, mostly from the middle-class income population where a house is seen as a symbol of pride. The market in India is expected to expand at a CAGR of 3.2% over the next ten years.
Country-wise Forecast CAGRs for the Architectural Services Market
| Country |
CAGR |
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China
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3.3%
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India
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3.2%
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Japan
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3.2%
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Germany
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2.8%
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UK
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3.0%
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Category-wise Insights
Which is the Most Sought-after Service Category?
Increased Demand for Construction & Project Management to Boost the Segment’s Growth
According to Fact.MR’s data, preference for construction & project management services is expected to expand at a CAGR of 3.3% over the forecast period. As a majority of the demand for architectural services is coming for the construction of new projects, the demand for construction & project management services is huge. Construction companies are now looking at firms that can manage and analyze the project life cycle along with providing design and advisory services.
Nowadays, real estate companies have multiple projects going on simultaneously and they need such companies who can manage and deliver all the projects on time. Besides providing design and advisory services, architectural firms need to look after the ongoing project assigned by the client. The firm needs to look after each segment of construction, from raw material to labor management to project progress. In between, architectural firms also have to provide interim reports consisting of the progress of the project and any feedback that a construction company may need to have.
Which Segment to Remain Dominant in the End-User Category?
Residential Sector to Enhance Growth Prospects
According to Fact.MR’s data, preference for Residential Sector is expected to expand at a CAGR of 3.3% over the forecast period. Across the globe, urbanization is happening at an unprecedented pace. Earlier, people used to live in shared flats/apartments; however, with an increase in disposable income, people are demanding individual houses/apartments. People are now looking for independent houses that come with personalized designs and layouts.
The entry of new market players has led to an increase in the demand for architectural services. Enabled with new advanced technology, these firms can provide instant services to their target clients, which are mostly residential clients. Changes in work cultures across the globe have also led to an increase in the demand for architectural services. People are reaching out to these firms to design their houses in such a way that they can also work from there.
Architectural Services Market- Competitive Landscape
Prominent players in the Architectural Services Industry are taking advantage of the rapidly increasing demand for the Architectural Services in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale vendors. Some prominent market developments are as follows :
- In September 2021, Colliers, a professional services and investment management company, partnered with Bergmann, a design and architecture service provider. Through this partnership, Colliers aimed to enhance its geographic footprint.
- In June 2021, Sweco agreed to acquire Belgian consultancy Boydens Engineering. Belgian consultancy Boydens Engineering has a strong reputation in the field of sustainable design.
- In February 2021, Arcadis NV acquired a 70% stake in HydroLogic Research B.V. HydroLogic Research provides hydroinformatics, data science, modeling, and optimization for climate-resilient water management.
