Architectural Services Market Size & Trend Analysis Report By Services (Advisory, Project Management, Engineering, Interior Design), By End-use, And Segment Forecasts, 2018 - 2025

Industry Insights

The global architectural services market size was estimated at USD 288.65 billion in 2016. Increasing investments in the construction market and a substantial increase in demand for design services are anticipated to drive market growth. Moreover, gradual shifting of the architectural industry towards the consultancy service industry is expected to impact the architectural services market.  

The demand for construction and project management was highest in 2016 and the market is expected to continue the growth over the forecast period. The market for urban planning services is anticipated to grow at a high rate, owing to increasing demand in smart city projects, waste management services, and infrastructure development projects by various governments.

The residential sector dominated the market and was valued at USD 159.4 billion in 2016. The government sector has a wide scope for architectural services especially in developing countries such as India where the government expenditure on infrastructure development is increasing substantially.

The architectural industry is growing considerably, with increasing number of new architectural firms entering the market with innovative designs and software for providing better services. Urban planning is expected to increase the demand for upgraded design technology involving 3D models, and high end designing software.

Services Type Insights

The market can be segmented by services into architectural advisory services, construction and project management, engineering, interior design, and urban planning services. The construction and project management segment is anticipated to exhibit high growth in the global architectural and designing services market over the forecast period. The segment accounted for USD 107.16 billion in 2016 and is projected to grow at a CAGR of 4.8% from 2017 to 2025. Architectural engineering services market is expected to witness a steep fall in revenue by 2025, owing to increased engineering service outsourcing such as CAD drawings and designing projects by European companies to small Asian companies.

The architectural firms are focusing on providing consultancy and advisory services rather than core architecture designing. Thus the market for interior design services is expected to witness moderate growth over the forecast period.

End-use Insights

Based on end-use industry, architectural services can be segmented into education, government, healthcare, hospitality, industrial, residential, and retail. Residential segment constitutes a larger share the demand for residential architecture design is expected to increase over the forecast period, also the government is investing in providing better housing to their citizens which is further expected to boost market growth. However, the government segment is going to witness exponential growth owing to increasing smart city projects in developing countries such as India wherein there is a huge demand for urban architecture design services.

The education and healthcare sector is also expected to grow at a moderate growth rate, increasing requirement of better healthcare and educational facilities in various regions is driving the market growth.

Regional Insights

Asia Pacific dominated the global market and was valued at USD 122.31 billion in 2016. The regional growth is mainly driven by the presence of major players, availability of cheaper labor, better infrastructure facilities for manufacturing, good economic condition, and innovation of new products and services.

Developed countries are driving huge demand owing to increased requirement of better infrastructure, also higher disposable income among residents of these countries is anticipated to drive the market. Middle East and Africa region is projected to exhibit fastest growth and is expected to witness a growth rate of 8.3% from 2017 to 2025.

Architectural Services Market Share Insights

The architectural services industry is highly competitive and fairly concentrated, with top four companies accounting for maximum share of the global revenue in 2016. Key players including Gensler, AECOM, AEDAS, IBI Group Inc., and HDR Architects dominated the global market accounting for over 15% of the revenue share in 2016.

Innovative design development and customized services are expected to be key parameter for being competitive in this market, with frequent mergers and acquisitions being undertaken as an attempt to diversify product portfolio and gain market share.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global architectural services market report on the basis of product and services, interior design, end-user, and region:

• Product and Service Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Architectural Advisory Services

  • Construction and Project Management

  • Engineering &, Interior Designing

  • Urban Planning

  • Others

• End-User Outlook (Revenue, USD Billion, 2014 - 2025)

  • Education

  • Government

  • Healthcare

  • Hospitality

  • Industrial

  • Residential

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa