ID: MRFR/ICT/5124-HCR | 100 Pages | Author: Ankit Gupta | May 2023
Architectural Services Market Size was valued at USD 325.3 Billion in 2022. The Architectural Services market is projected to grow from USD 360.4 Billion in 2023 to USD 630.4 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.32% during the forecast period (2023 - 2030). The development of 3D printing and rising cases of infrastructure development are some of the major factors which would boost the market growth during the forecast period.
Rising cases of infrastructure development boosts market growth
The market for architectural services is rising rapidly due to increased spending on improving the infrastructure facilities of various industrial sectors. Currently, many developing countries are focusing on modernizing their infrastructure facilities. For instance, to ensure the nation's growth is sustained, the Indian government plans to invest $777.73 billion in infrastructure construction by the end of 2023. Also, the Chinese government invests $551 Billion annually in intelligent transportation systems. By making this kind of investment, the market for architectural services will have new opportunities.
The adoption of 3D printing is driving the market. Additive manufacturing is increasingly being used in the field of architecture. The most direct path from on-screen visual representation to touch and-feel portrayal may be through 3D printing. Technology is developing quickly, and prices are coming down.
Figure 1: Revenue of Architectural services in the U.S.
Source: U.S. Census Bureau, Secondary Research, Primary Research, MRFR Database and Analyst Review
U.S. market has shown a great surge from 2020 to 2021 and registered a growth of 10.3% which is highest in past five years. This demand is supported by the population moving from central states to west states. Also, adoption of prefabricated homes based on cross laminated timbers and other recyclable concepts due to government support is changing dynamics of the architectural services in the U.S. The same trend is followed in Canada as well as Mexico. Increasing purchases by expatriates after COVID period also support architectural services market to increase exponentially. Other factor which is expected to support growth of market in Europe is the redevelopment of Ukraine in coming years.
Based on service type, the architectural services market is segmented into architectural advisory services, engineering services, urban planning services, and others. The construction and project management segment dominated the market with a share of 35.4% in 2022 and is expected to grow at a CAGR of 7.64% through the forecast period. A project's administration and construction are crucial components. Construction and project management services are more frequently needed as construction activity grows for duties like project life cycle management, cost control, scheduling, and risk management.
Due to all the mentioned factors the sales of architectural services are expected to grow significantly. The hospitality industry is also involved in using architectural services for the reorganization of their existing medical spaces to provide patients with better healthcare facilities. The seamless treatment of patients is made possible by the efficient use of the infrastructure and space accessible to a medical facility. Many companies use architectural services like interior design, space planning, and schematic design to increase consumer attraction and improve the customer experience.
Figure 2: Architectural Services Market, by Service Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising focus of architectural firms on designing smart structures with better space utilization is assisting the industry's growth. The demand for urban planning services is also rising due to an increasing number of smart city initiatives launched by governments around the globe, which is boosting the market growth for architectural services. Additionally, there is fierce competition among the main players in the market for architectural services. Prominent market participants are utilizing both organic and inorganic strategies to establish a strong foothold in the market.
February 2023: - Nvidia, a manufacturer of GPUs, is introducing a new service that will let users access its DGX AI supercomputer in the cloud. A new set of cloud-based tools for creating generative AI systems was also unveiled by the company. After the release of OpenAI's ChatGPT chatbot, such models have seen a surge in popularity, and Nvidia has benefited.
February 2023 - The wide release of the resource map for the Amazon Virtual Private Cloud was announced by Amazon earlier this month. Customers may access all VPC resources and connections in a visual format using the new feature's central hub, which helps them better, understand their VPC architecture.
Based on end-user, the architectural services market is segmented into education, government, healthcare, hospitality, residential, industrial, retail, and others. The industrial segment accounted for the largest share of 28.4% in 2022 and is expected to grow at a CAGR of 7.2% through the forecast period. This can be attributed to rapid industrialization, increased business company acquisitions, and new factory construction. Additionally, the demand for architectural advisory and interior design services is anticipated to increase due to rising environmental concerns and business owners' initiatives to create green buildings. This is anticipated to have a favorable effect on segment development.
Moreover, the residential category is expected to become the second-highest segment with a share of 25.1% in 2021. Furthermore, urban population growth has pressured the real estate sector to find a sustainable solution to the growing need for residential structures. The demand for residential housing has increased due to relevant macroeconomic factors like increasing employment, a low-interest rate, and an increase in disposable income, which has also increased the demand for architectural services.
Construction of homes and businesses has increased as a result of the rapid urbanization taking place in emerging nations like Brazil and India. In addition, to better manage their smart city projects, architects are predicted to require more services like urban planning and project management.
By region, this market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. Among these regions, the Asia-Pacific dominates the market and is also anticipated to grow at a CAGR of 10.83% throughout the forecast period. Over the forecast period, the segment is anticipated to expand gradually. Rapid urbanization, a rising population, and an increase in the number of industrial and residential building projects in this area can all be attributed to the growth. Due to the presence of significant manufacturers and their growing efforts to create new production facilities, China dominated the market for architectural services. The expansion of the market for architectural services is anticipated to be significantly influenced by the development of the market in the Asia-Pacific region. The development of this industry would be significantly impacted by countries like China and India.
However, the North American region is also anticipated to grow at a CAGR of 6.4% during the forecast period. This is driven by well-developed building projects and a rise in the use of architectural services by end users. The largest demand for architectural services in this area has been caused by infrastructure modernization and redevelopment. The foundation of this specific market segment has been rapid digitalization with the aid of end-to-end software and the most up-to-date designing tools.
Figure 3: Architectural Services Market, by Region Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Moreover, building designs and architectural specifications seem to be constantly evolving as a result of the quickening pace of infrastructure development in both developed and developing areas of the world. The market is effectively being driven by expanding construction activities in the residential, commercial, and public sectors.
The demand for architectural services in the education sector to build high-tech, affordable facilities is projected to positively affect the market's growth. As a result of the strict regulations put in place by governments all over the world and a halt in construction work, many ongoing architectural projects have been delayed. The demand for architectural services consequently declined globally.
Major players in the architectural services market, including AECOM; Foster + Partners; Gensler; HDR; IBI Group; Jacobs Engineering Group; Nikken Sekkei Ltd.; Perkins Eastman; Perkins and Will; Stantec, and others, are focusing on developing their business strategies.
Foster + Partners
Nikken Sekkei Ltd.
Perkins and Will
PCL Constructors Inc.
February 2023: - In order to offer its first Professional Certificate program on edX, edX, a online learning platform from 2U, Inc., announced an expanded partnership with Amazon Web Services, Inc. The Professional Certificate program in Cloud Solutions Architecture helps learners get ready by offering the information and abilities required to begin developing a career in cloud architecture.
February 2023: - Samsung's involvement in the operator's nationwide rollout began with the launch of Samsung-supported sites for the DISH Wireless 5G network by Samsung Electronics and DISH Network Corporation. With Samsung providing an initial shipment of 24,000 Open RAN-compliant radios1 and 5G virtualized RAN software solutions, the companies are speeding up the deployment of the DISH network across the United States, which is ready to offer DISH Wireless network users dependable and quick nationwide coverage.
Architectural Advisory Services
Construction and Project Management Services
Interior Design Services
Urban Planning Services
Building Code Counseling and Interpretation Counseling Services
Legal Technical Recruitment Compliance Counseling Services
Rest of Europe
Rest of Asia-Pacific
Rest of the World
|Market Size 2022||USD 325.3 Billion|
|Market Size 2023||USD 360.4 Billion|
|Market Size 2030||USD 630.4 Billion|
|Compound Annual Growth Rate (CAGR)||8.32% (2023-2030)|
|Historical Data||2019 to 2021|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Services Type, End-User, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and the Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||AECOM, Foster + Partners, Gensler, HDR, IBI Group, Jacobs Engineering Group, Nikken Sekkei Ltd|
|Key Market Opportunities||Rising cases of technological advancement would create more growth opportunities|
|Key Market Dynamics||The development of 3D printing Rising cases of infrastructure development.|
The market for Architectural Services was USD 325.3 Billion in 2022.
The global analytics market is expected to be USD 630.4 Billion in 2030.
The growth rate for the Architectural Services market is 8.32% through the forecast period.
At present, the Asia Pacific region holds the largest market share.
The major players are dominating the market are AECOM, Foster + Partners, Gensler, HDR, IBI Group, Jacobs Engineering Group, Nikken Sekkei Ltd.
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