Architectural Services Market Size, Share & Trends Analysis Report By Service Type (Architectural Advisory Services, Engineering Services, Urban Planning Services), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview 

The global architectural services market size was valued at USD 344.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2022 to 2030. The demand for services can be attributed to the increasing construction activities across the globe. Rapid urbanization in developing countries, such as India and Brazil, is resulting in increasing residential and commercial construction activities. Moreover, governments are focused on introducing affordable home projects across various countries. This rise in construction activities is expected to support the demand for architectural services such as construction and project management services and urban planning, in turn, boosting the market growth.

The healthcare and hospitality sectors are witnessing rapid growth. In the healthcare sector, hospitals are focused on improving patient care through the establishment of new facilities and reorganizing existing spaces. This helps them improve patient outcomes, increase patient satisfaction, and optimize the building space to seamlessly treat patients. As a result, services such as construction and project management, and interior design are expected to witness significant demand. The hospitality sector is witnessing increasing tourism in developed and developing countries. Increased tourism has led to the development of new hotels, resorts, and restaurants at tourist locations. 

Businesses are opting for architectural services such as interior design, space planning, and schematic designs that help them attract more customers and enhance their stay experience. In addition, the focus of major players on enhancing their businesses and customer base through strategic partnerships is expected to augment market growth. For instance, in January 2021, Gensler, a global architectural service provider, announced its partnership with Forge Development Partners. As part of this partnership, Gensler was appointed as the chief of architectural and interior design for all Forge Development Partners projects. This partnership helped Gensler to enhance its business by catering to Forge projects. 

Similarly, in September 2021, Colliers, 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. Architects often face challenges in communicating ideas and delivering complex designs. The deployment of VR technology in architectural designs enables architects to save time and money while delivering high precision in design. The rapid adoption of virtual reality in the architectural service space is expected to drive market growth. 

Although the market is expected to witness high growth, the high costs associated with architectural services are expected to pose a challenge for the market. In addition, the looming lack of skilled labor and adequate knowledge for design is hampering the market growth. In 2020, the COVID-19 pandemic negatively impacted the global market. Strict lockdowns and temporary suspension of construction sites resulted in a decline in demand for architectural services. However, in the second quarter of 2021, construction activities witnessed growth with the introduction of new as well as redesigning projects, thus leading to the gradual recovery of the architectural services market.

Service Type Insights

The construction and project management segment accounted for a revenue share exceeding 34.0% in 2021 and is expected to witness high growth over the coming years. Construction and project management are important aspects of a project. With increasing construction activities, the demand for construction and project management services is increasing for tasks such as project life cycle management, cost control, scheduling, and risk management.

The urban planning segment is expected to witness significant growth in the market, registering a CAGR of 9.2% over the forecast period. This can be attributed to increasing government initiatives for urban development. Moreover, the increasing number of residential projects and rising demand for smart solutions to manage and deliver efficient plans are expected to support segment growth.  

End-use Insights

The industrial segment dominated the market and accounted for a revenue share of over 45.0% in 2021. This can be attributed to the rapid industrialization across the globe, coupled with increasing acquisitions and new factory establishments carried out by business firms. In addition, the growing environmental concerns and initiatives carried out by business owners to construct green buildings are expected to contribute to the demand for architectural advisory and interior design services. This is expected to positively impact segment growth.

The residential segment is expected to witness significant growth over the forecast period, Surge in disposable income coupled with lower housing interest rates in emerging economies is also expected to bode well for market growth over the forecast period. Additionally, rapid urbanization across tier-II cities in emerging economies is expected to drive the demand for architectural services over the forecast period. Moreover, the demand for services such as urban planning services and project management services is expected to increase among architects to better manage their smart cities projects.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of over 36.0% in 2021. The segment is expected to grow steadily over the forecast period. The growth can be attributed to rapid urbanization, growing population, and increasing residential and industrial construction projects in this region. China dominated the market for architectural services owing to the presence of major manufacturers and their increasing efforts to establish new production plants.

Europe accounted for a significant revenue share in the market. The growth of this market can be attributed to the flourishing construction sector in the IT sector owing to rising investments and new infrastructure development projects. The gradual resumption of the construction of various data center facilities affected by temporary suspension due to the COVID-19 pandemic and the commencement of new IT projects are expected to revive the market for architectural services over the forecast period.

Key Companies & Market Share Insights

New entrants backed by venture capital firms are entering the market with more innovative designs and advanced solutions. This is increasing competition in the market. Moreover, major players are focused on acquiring significant shares in the market by focusing on strategic acquisitions. For instance, in December 2021, IBI Group, a global architectural service provider, announced the acquisition of Teranis Consulting Ltd., an environmental consulting firm. The acquisition is expected to support the company’s efforts in enhancing its sustainability and environmental management business. Some of the prominent players in the architectural services market include:

• AECOM

• Foster + Partners

• Gensler

• HDR

• IBI Group

• Jacobs Engineering Group

• Nikken Sekkei Ltd.

• Perkins Eastman

• Perkins and Will

• Stantec 

Architectural Services Market Report Scope

Segments Covered in the Report 

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global architectural services market report based on service type, end use, and region:

• Service Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Architectural Advisory Services

  • Construction and Project Management Services

  • Engineering Services

  • Interior Design Services

  • Urban Planning Services

  • Building Code Counseling and Interpretation Consulting Services

  • Legal Technical Requirement Compliance Counseling Services

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Education

  • Government

  • Healthcare

  • Hospitality

  • Residential

  • Industrial

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa