The global architectural services market is expected to grow at a considerable rate over the forecast period. Increasing trend of service outsourcing across various industry verticals is expected to drive the industry growth.
Favorable government policies on architecture focus on the sustainable development of the environment and urban design. These policies are expected to enhance the trust which in turn shall boost the industry. Contractors also rely on the government regulations which help them deliver the right design to the right person at the right time.
Demand is dependent on the investments being made on the buildings and large scale projects in the emerging metropolitan cities across the globe. Such emerging cities promise immense growth opportunities for the developers and contractors. The big firms hold a significant share of the industry with the design of large commercial and industrial buildings.
The industry comprises institutions that plan and design institutional, residential, leisure, industrial, and commercial buildings. The application of design and construction procedures, building codes, zoning regulations and building materials are some of the techniques utilized to perform architectural services.
The industry can be subdivided on the basis of industry products, industry activities, and potential clients. Some of the industry products include building design, interior design, planning, predesign, landscape and urban design, and construction project management.
The industry activities can be segmented into basic designing, providing construction phase services, restoration, planning and providing building fit-out services.
The market can be subdivided on the basis of potential clients into home owners, developers, government and contractors. As home owners occupy a larger proportion of the population, they are expected to constitute the majority of the revenue share.
Home owners are expected to create significant opportunities among the market participants such as the dealers and contractors. Creating unique designs are expected to unearth innovation among market players.
The use of CAD is on the rise due to enhanced global connectivity. The drawings can be transferred electronically to any part of the world making it easier to communicate the changing trends and needs of the customer.
The purchasing power of the people has been increasing which is a positive sign for the market. People are able to afford the best designs thereby helping contractors pump huge investments into the business and creating a positive outlook and room for new designs in the future. The increasing investment in the global construction industry is a positive sign for the growth of the industry.
The value of both residential and non-residential buildings has increased over the years. Firms cost cutting patterns have improved the profit margins. The profit margins being good in number are expected to deliver positive return on investment.
As people are becoming more aware of their surroundings and tend to lead a healthy life in an environment, such architectural designs are expected to come up in the succeeding years thus expected to give positive returns in the future.
The single material approach can also be adopted to follow the sustainable balance in the environment and the surroundings. The single-material approach helps in creating an ecological sense. Depending on the climatic context as well on the usage of single material, waste reduction can be achieved.
Passive cooling, lowered life cycle cost and maintenance are some of the factors that make it more favorable and hence promises better prospects in the future. Using single material reduces the maintenance cost which in turn helps in creating the desirable result of sustainable future.
The global gross domestic product (GDP) is increasing at a steady rate which indicates good chances of growth in the future. The standard of living is improving which in turn is expected to induce the architectural business as people would tend to invest into better homes and designs.
Demand for such services has increased with the boost in residential and commercial construction activities. As most part of the cost is fixed, the profitability relies on the inflow of work in a constant manner. Government contracts are expected to boost the industry with new possibilities. The Chinese government has invested a huge amount of money in the construction of institutional buildings such as prisons, schools and hospitals.
Futuristic structures such as the hypnotic bridge, the rotating skyscraper, indoor parks, the invisible architecture, natural disaster-proof forts have opened up huge growth avenues for the industry players. However, economic slowdown across regions and increasing focus on sustainable building techniques is expected to challenge the market over the coming years.
AECOM, a U.S. based company, provides management consolation services and professional technical support. Moreover, the industry is anticipated to see extensive mergers and acquisition activities owing to the significant growth opportunities over the next few years. The recent acquisition of Bury by Stantec, a civil engineering firm, would help Stantec to expand its businesses across the U.S.
Gensler is investing in the Birmingham‘s growing design in the United Kingdom owing to the huge growth prospects and opportunities. Moreover, Nikken Sekkei, a Japanese architecture firm, has reportedly formed an alliance with Krasnoyarsk in Russia, and Siberian Federal University to jointly work on the Krasnoyarsk smart city project.
Key players in the business include AECOM, Brickman Group, Gensler, HDR, Nikken Sekkei, Stantec, and Skidmore Owings & Merrill.
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