Global Architectural Services Market Grows Steadily at a CAGR of 4.8%

Introduction

Architectural services consist of the planning and creation of building and interior aesthetics that correspond to zoning, legal, and safety requirements. These services consist of programming, interior design, feasibility assessments, site selection, project management, property condition audits, renderings, marketing materials, permanent site presence, and the processing of various contracts. The primary categories of architectural and engineering consultants and related services are engineering, architectural, surveying, mapping, geophysical, laboratory testing, building inspection, and drawing services. Engineering services are those provided for system, assembly, or product deployments comparable to those specified for this program in terms of material, design, and scope.

Market Dynamics

Increasing Adoption of 3D Printing and 5D Building Information Modeling Drives the Global Market

In the market for architectural services, 3D printing is progressively expanding. With 3D printing, architects may construct several models of the planned infrastructure while saving up to 75% on costs and cutting turnaround time from days to hours. It is projected that technological developments, innovation, and sustainability will emerge as the primary growth drivers for the architectural services market. 5D Building Information Modelling (BIM) is the most recent innovation architectural businesses utilize to provide cost-effective architectural services. 5D BIM capabilities include the effective design of cost schedules and real-time cost projections for a rapid comparison to the target cost. As a result, it aids in assessing the total expenditures incurred throughout each step of the building. The adoption of innovative solutions and cutting-edge technologies will drive market growth over the forecast period.

Growth in Construction Activities Creates Tremendous Opportunities

The expansion of the real estate sector is anticipated to contribute considerably to the expansion of the architectural services market. Cities in industrialized countries are getting smarter and expanding rapidly due to the increasing adoption of technology. Urbanization and population increase would drive the subsequent expansion of the construction industry. The U.S. Bureau of Labor Statistics forecasted a 10% rise in construction and extraction jobs between 2018 and 2028 due to continued economic growth and population growth, necessitating additional homes, roads, and other infrastructure. Moreover, government measures to enhance infrastructure in emerging economies promise well for the construction industry and the economic growth of these economies as a whole. As building activities continue to increase, more and more construction businesses are opting for architectural services to streamline their construction projects, offering enormous growth prospects for industry participants.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global architectural services market and is anticipated to grow at a CAGR of 5.2% during the forecast period. According to Forbes, the Asia-Pacific area has enjoyed significant market growth due to the region's extensive real estate industry penetration and government emphasis on smart cities. According to Mondaq, increasing new funds express interest in Asia-Pacific assets, indicating that prices remain fair and that the region's markets continue providing various investment options. This increased interest comes from both domestic and foreign institutional investors. In addition, countries such as India and China contribute to market expansion. IBEF (India Brand Equity Foundation) forecasted that India's real estate sector will increase from 120 billion USD in 2017 to 1 trillion USD by 2030, contributing up to 13% of the country's GDP by 2025. As a result, the country's demand for architectural services will grow, leading to market growth.

Europe is expected to grow at a CAGR of 2.8% over the forecast period. Europe is a significant contributor to the market's revenue. Due to rising investments and new infrastructure development projects, the expansion of this market can be attributed to the IT industry's thriving construction sector. In addition, the temporary halt of building multiple data center facilities and introducing new IT projects due to the COVID-19 pandemic is expected to affect the architectural services industry over the forecast period.

Key Highlights

• The global architectural services market was valued at USD 384.03 billion in 2022. It is estimated to reach USD 585.57 billion by 2031, growing at a CAGR of 4.8% during the forecast period (2023–2031).
• Based on service type, the global architectural services market is divided into architectural advisory services, engineering services, construction and project management services, interior design services, urban planning services, and others. The construction and project management services segment is responsible for the largest market share and is estimated to grow at a CAGR of 4.21% over the forecast period.
• Based on end-user, the global architectural services market is segmented into education, government, healthcare, hospitality, residential, industrial, retail, and others. The industrial segment owns the highest market share and is estimated to expand at a CAGR of 3.8% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global architectural services market and is anticipated to grow at a CAGR of 5.2% during the forecast period.

Competitive Players

Competitive Players

The key global architectural services market players are AECOM, AEDAS, DP Architects Pte Ltd., PCL Constructors Inc., HKS Inc., HOK, Foster + Partners, Perkins Eastman, HDR, Gensler, IBI Group, Nikken Sekkei Ltd., Jacobs Engineering Group, Perkins and Will, Stantec.

Recent Developments

Market News

• In July 2022, Arcadis and IBI Group Inc. announced that they had agreed for Arcadis to buy all outstanding shares of IBI Group for C$19.50 per share. The acquisition of IBI Group's forward-thinking, technology-driven design business would bolster Arcadis' digital leadership, enhance its North American presence, and propel the global expansion of its combined solutions.

Segmentation

Global Architectural Services Market: Segmentation

By Service Type

• Architectural Advisory Services
• Engineering Services
• Construction and Project Management Services
• Interior Design Services
• Urban Planning Services
• Others

By End-User

• Education
• Government
• Healthcare
• Hospitality
• Residential
• Industrial
• Retail
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa