Architectural Services Market Size, Share & Trends Report

Architectural Services Market Size, Share & Trends Analysis Report By Service (Construction & Project Management Services, Engineering Services, Urban Planning Services), By End User, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-064-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 139

Report Overview

The global architectural services market size was estimated at USD 333.14 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.7% from 2021 to 2028. The economic importance of architectural services is growing with the increasing construction activities across regions. Services such as planning, designing, consulting, and engineering are paramount in any construction project. Whether it is a residential or commercial project, architectural firms assist end-users from the initial phase of the construction process, offering blueprints to building structure designs. The application of 3D technology is gradually proliferating into the architectural services space; emerging as a new mode of presenting the design-build of the project. Apart from saving time and money, the technology can also be integrated seamlessly with in-house CAD applications to add newer design possibilities and better perspectives with visually appealing scaled models. Thereby, advancements in 3D technology coupled with innovation and sustainability are anticipated to emerge as the key growth factor for the market.

U.S. architectural services market size, by service, 2016 - 2028 (USD Billion)

The architecture sector has made advancements capitalizing on the available technology. Services ranging from blueprint designing to consulting are now conducted using electronic communication platforms. The inclusion of new technologies enabling these services from remote locations is establishing opportunities for cross-border business. With specialized construction projects undertaken worldwide, the demand for services including consultations is expected to be on the rise, subsequently favoring the market growth.

In addition to technology integration, the market is anticipated to benefit from ongoing investments in smart city projects as well as rural-urban development projects worldwide. In the wake of the COVID-19 pandemic, the need to track patients, testing results, and deaths have attracted investment in upgrading technology and infrastructure in smart cities. Tools such as Power BI are used in New Orleans, and Los Angeles, in the U.S. to track key trends related to COVID-19. Also, the government of China has rejuvenated its “new infrastructure initiative” program to increase investment in smart city technology. Large infrastructure projects like smart cities require a thorough feasibility check on project viability and risk analysis, subsequently driving the requirement for professional expertise. In situations like these, architectural services are a preferred choice to streamline activities in project development.

The architectural services market also remains vulnerable to the changing regulatory scenario. The construction industry is rapidly changing and the regulations defining its boundaries are constantly shifting. Different Occupational Safety and Health Administration (OSHA) standards that apply to the construction sector are categorized under OSHA requirements related to leading hazards at construction sites. Also, the construction industry is regulated by various local and engineering standards which need to be adhered to by the architectural service provider. Failing to meet these standard requirements in terms of service quality could hamper the credibility of the service provider.

Additionally, the COVID-19 outbreak has slowed down the market growth as several projects were delayed due to national emergencies, compelling individuals to remain quarantined for a long-time. The supply chain remained disrupted during the period, and several auctions related to infrastructure projects were delayed to avoid any risks of virus contamination, and thus imposed a challenge to the market growth.

Service Type Insights

The demand for architectural services in the construction and project management segment captured a revenue share exceeding 30% in 2020, a trend expected to continue over the forecast period. The need for expert inputs on contract negotiations, construction designing, project control, quality management, and risk analysis, requiring specialized professionals and teams across any project, are a few key factors attributing towards the industry growth. Such professionals occupy a majority position in the service revenue growth matrix, thereby attributing to the segment growth.

In terms of urban planning, the demand for architectural services is expected to witness the fastest growth, with the segment expected to register a CAGR exceeding 5.0% from 2021 to 2028. Growing investments in projects focused on rural development as well as the new infra projects in urban areas are anticipated to drive segment growth over the forecast period. Furthermore, rapid digitization and advancement in technologies requiring professionals to plan and strategize such large projects is the other factor favoring the segment growth over the forecast period.

End-user Insights

The demand for architectural services was higher in the industrial sector in 2020, accounting for more than 40% of the overall market share. Rapid industrialization and adoption of technologies is a significant factor that favored the adoption of these services in the industrial sector. Several expansion plans of factories, distribution centers, and business units across countries over the years have led to demand for engineering and architectural services in the industrial sector.

Global architectural service market share, by end user, 2020 (%)

The demand for architectural services for the hospitality end-use segment is expected to register a higher CAGR over the forecast period. The segment is estimated to register a CAGR of more than 5.5% from 2021 to 2028. Growth in travel & tourism activities across regions is one factor that led to the development of different hospitality infrastructure development projects. Moreover, the growing demand for modular constructions, unique designs, and renovations across transport facilities as a part of smart city projects is contributing to the segment growth over the forecast period.

Regional Insights

The Asia Pacific held the largest revenue share of more than 35% in 2020. Growth in the investment for smart city projects and rapid industrialization across the countries such as China, India, and Southeast Asian economies are some of the factors expected to favor the regional market growth. Moreover, the growing demand for green infrastructure development and unique residential projects across countries in the region is expected to drive the demand for architectural and engineering services over the forecast period.

The demand for architectural services in the Middle East and Africa region is expected to register a high CAGR over the forecast period. The demand is attributable to the growing infrastructure investments and significant capital projects across industries such as hospitality, healthcare, and education. Governments across countries are extending their efforts to increase infrastructure spending as a part of economic development programs. For instance, recently, several mega projects such as Diriyah Gate, Project NEOM, Quiddiya Entertainment City, and the Red Sea Project, together accounting for approximately USD 532 billion, were launched in Saudi Arabia.

Key Companies & Market Share Insights

The market is highly competitive and fragmented due to the presence of domestic and prominent vendors offering services across regions. The application of technologies to innovate design strategies and the capability to assist end-users from simple to complex projects are the factors increasing the vendor’s competitiveness. Key vendors such as AECOM, Gensler, and HDR are increasingly pursuing partnerships, mergers, and acquisition strategies to enhance their capabilities and business growth. For instance, In July 2019, HDR, a U.S.-based architecture and construction service provider, acquired Hurley Palmer Flatt Group, a U.K.-based engineering consulting service provider. With the acquisition, HDR aimed to strengthen its building engineering services in the U.K.

In addition to the mergers and acquisition strategy, vendors also compete across several government projects. For instance, in December 2019, Mobilinx Hurontario General Partnership received a contract from Metrolinx and Infrastructure Ontario (IO). The service required designing, operating, financing, building, and maintaining the Hurontario Light Rail Transit project. IBI Group was selected to lead the team of designers until the completion of the project, which is anticipated by the fall of 2024. Some of the prominent players operating in the global architectural services market are:

  • AECOM

  • Foster + Partners

  • Gensler

  • HDR

  • IBI Group

  • Jacobs Engineering Group

  • NIKKEN SEKKEI LTD.

  • Perkins Eastman

  • PERKINS&WILL

  • Stantec

Architectural Services Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 344.95 billion

Revenue forecast in 2028

USD 474.36 billion

Growth Rate

CAGR of 4.7% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service type, end-user, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

AECOM; Foster + Partners; Gensler; HDR; IBI Group; Jacobs Engineering Group; NIKKEN SEKKEI LTD.; Perkins Eastman; PERKINS&WILL; Stantec

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global architectural services market report based on service type, end-user, and region:

  • Service Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Architectural Advisory Services

    • Construction and Project Management Services

    • Engineering Services

    • Interior Design Services

    • Urban Planning Services

    • Others

  • End-user Outlook (Revenue, USD Million, 2016 - 2028)

    • Education

    • Government

    • Healthcare

    • Hospitality

    • Residential

    • Industrial

    • Retail

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • Sweden

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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