Architectural Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 351.69 Billion |
| Market Size (2029) | USD 485.24 Billion |
| CAGR (2024 - 2029) | 5.35 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Architectural Services Market Analysis
The Architectural Services Market size is estimated at USD 351.69 billion in 2024, and is expected to reach USD 485.24 billion by 2029, growing at a CAGR of 5.35% during the forecast period (2024-2029).
Architectural services offer feasibility studies, architectural programming, and project management, among others, with the aid of design, the creation of construction documentation, and the management of construction projects. Sustainable construction offers significant advantages and financial potential, pushing the market for architectural services. Additionally, increasing occupancy and the return on investment can reduce operational costs. The market is expanding due to the demand for conceptual engineering building construction and fundamental bioclimatic design.
- The advent of computer software has caused a paradigm change in architectural design during the past few years. Improvements in digital design tools, computer-controlled fabrication, connectivity, and interconnectedness have opened up a new stage of the design and build process.
- Building designs and architectural specifications constantly evolve due to the rapid infrastructure development in many growing nations. Furthermore, the demand for advanced design technology, such as 3D models and high-end designing software, is expected to rise as more and more new architectural firms enter the market with innovative designs and software, thereby improving services like urban planning. The architectural industry is also expanding significantly.
- The growing demand for green building services, which are intended to produce sustainable structures using ecologically responsible procedures and materials, is the fundamental force behind the growth of the architectural industry. Factors triggering global green building activity include market demands, the need to create healthier buildings, reduced energy consumption and lowering operating costs, environmental regulations, and local competition.
- The industry under study is expanding due to the rising popularity of 3D printing. This results from quick developments in material compositions, such as metals and polymers, as they transition from prototype tools to essential manufacturing components. This technology is also being incorporated into many processes and supply chains due to novel materials, reduced lead times, and unique finishes that abide by standards (FDA, ASTM, and ISO).
- The method used to tackle an issue demonstrates the nature of technology. Designing, then, might be characterized as a process that equally values problem-making and problem-solving. However, the technology's full potential cannot be realized without the knowledge and capacity to conceptualize design. The digital revolution in architectural design necessitates procedural and algorithmic thinking on the part of the designer as well as programming expertise. The design program is intricate and more challenging to utilize.
Architectural Services Market Trends
The Residential Segment is Expected to Register Significant Growth
- Urbanization, population expansion, and rising disposable income drive the residential segment of the global architectural services market. Due to this, the need for architectural services to design and develop apartment buildings, condominiums, and other residential structures has increased.
- Architectural services offer a wide range of assistance for the residential building sector, including interior design, to guarantee a successful residential construction project. To assist users in achieving project goals, the operating firms collaborate with reliable suppliers, partners, and service providers.
- One of the key aspects driving the global market for residential architectural services is rapid urbanization. In all the emerging markets in the area, affordable housing is a major government priority. The need for housing has grown considerably due to the constant growth of the world population and the influx of people into cities. The United Nations projects that there will be 9.7 billion people on Earth in 27 years, with around 68% living in cities. The need for residential architecture services increased due to this trend.
- In January 2023, Caron Architecture announced its acquisition by the West Coast architecture firm AXIS/GFA Architecture + Design. The acquisition marks a significant step in AXIS/GFA’s continuous growth and broadening presence on the West Coast. It further establishes the company as a key architectural design firm specializing in hotel and multi-family residential projects across the Western United States.
- Compared to past generations, consumers now have different lifestyle needs and preferences. For instance, contemporary families demand more open areas, practical floor plans, and eco-friendly amenities. As a result, architects are adjusting to these changes to create homes that satisfy their clients' wants and preferences. Nowadays, people are more willing to spend money on their homes. Due to this, there is a demand for high-end residential architecture services for estates, custom residences, and luxury apartments.
- In addition to this, technological developments have made it simpler for residential interior designers to communicate their ideas to clients and envision their projects. The design process has become more productive and efficient because of tools like virtual reality, augmented reality, and 3D rendering. These factors and initiatives for market players are anticipated to open a wide range of potential for architectural services in the residential sector.
Asia-Pacific is Expected to Occupy the Largest Market Share
- Architectural services, such as schematic drawings, space planning, and interior design, are becoming increasingly popular among businesses to attract new clients and improve client relations in Asia-Pacific. The government initiatives of the industry's top rivals aimed at encouraging homeownership and stamp duty exemption may also contribute to the market's growth in the region.
- Moreover, Asia-Pacific’s architectural business is expanding and offering improved services, including breakthroughs in urban planning, as more new architectural companies enter the market with innovative designs and software. Additionally, rapid urbanization, expanding demand for smart homes, and rising commercial and industrial building infrastructure upgrade activities worldwide are the major drivers driving the expansion of the architectural services market.
- Due to the advent of computer software, architectural planning has undergone a paradigm shift in recent years. Advances in digital design tools, computer-controlled manufacturing, computer-controlled connectivity, and interconnection have enabled a new phase of the designing and constructing processes.
- Architectural services include various activities, such as feasibility studies, architectural programming, project management with design assistance, construction document preparation, and construction administration. The growing demand for green buildings propels the architectural services industry, as sustainable development delivers significant advantages and economic prospects. Furthermore, the return on investment and occupancy may be enhanced, saving operational expenses.
- Furthermore, architectural business is expanding rapidly in the region, with a rising number of new architectural companies joining the market with novel designs and software, consequently delivering improved services such as urban planning advancements. These developments are projected to increase the demand for updated design technologies, such as 3D models and high-end design software. Numerous venture capital investments support the investigated industry's expansion by facilitating new competitors' entry.
Architectural Services Industry Overview
The degree of competitive rivalry in the market studied is high and expected to remain the same during the forecast period. The architectural services market comprises several global and regional players like IBI Group, Aedas, AECOM, HDR Architecture Inc., and Gensler in a contested market space. Although the market poses high barriers to entry for new players, several new entrants have gained traction. Players in the market are adopting strategies such as partnerships and expansions to enhance their product offerings and achieve a sustainable competitive advantage.
- February 2024: CannonDesign announced its collaboration with SRG Partnership, an energetic firm specializing in architecture, interior design, and planning, with offices in Portland, Oregon, and Seattle, Washington. Both firms are dedicated to creating environments that promote the growth of individuals, communities, and the environment. They will enhance their influence across the Pacific Northwest and nationwide, establishing new benchmarks for innovative design in the fields of health and wellness, education, science and technology, sports and recreation, and culture.
- February 2024: In a strategic move that marked a significant expansion of its services and market reach, Designblendz, a key architecture and 3D visualization firm known for its innovative approach to multi-family and commercial design, announced the merger with the architecture and interior design firm, IEI Group. This consolidation is poised to elevate the quality of architectural and design services, merging state-of-the-art technology with a distinguished history of design superiority.
Architectural Services Market Leaders
IBI Group
Aedas
AECOM
HDR Architecture, Inc.
Gensler
*Disclaimer: Major Players sorted in no particular order
Architectural Services Market News
- March 2024: AE Works Ltd (AE Works), a building design and consulting firm, announced that WTW Architects, a national provider of higher education design with a 65-year legacy of notable Pittsburgh projects, had become part of the company. This move brought together over 100 talented professionals, making it one of the largest architectural firms in the region.
- February 2024: Sheri Scott, Founder and Principal Architect at Springhouse Architects, and Todd Yoby, a licensed architect and Principal of Studiyo-b Architects, announced the merging of Springhouse Architects and Studiyo-b Architects. Serving the greater Cincinnati, Dayton, and Columbus areas, the combined firms will move forward as Springhouse Architects to offer residential architecture, commercial, and multi-family design for business owners, homeowners, home builders, and developers.
Architectural Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Green Building
5.1.2 Adoption of 3D Printing
5.2 Market Restraints
5.2.1 Lack of New Skills and Knowledge in Designing
6. MARKET SEGMENTATION
6.1 By End User
6.1.1 Residential
6.1.2 Education
6.1.3 Healthcare
6.1.4 Corporate
6.1.5 Other End Users
6.2 By Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia-Pacific
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBI Group
7.1.2 Aedas
7.1.3 AECOM
7.1.4 HDR Architecture Inc.
7.1.5 Gensler
7.1.6 HKS Inc.
7.1.7 Hardlines Design Company
7.1.8 Stantec Inc.
7.1.9 CallisonRTKL
7.1.10 Skidmore, Owings & Merrill LLP
7.1.11 CannonDesign
7.1.12 DP Architects
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. INVESTMENT ANALYSIS
Architectural Services Industry Segmentation
The architectural services market study defines the revenues generated from services such as architectural advisory services, construction and project management services, engineering services, interior designing services, urban planning services, and other services deployed for various end users such as residential, education, healthcare, corporate, and other end users across the globe. The study includes qualitative coverage of the most adopted strategies and an analysis of the key base indicators in emerging markets.
The architectural services market is segmented by end user (residential, education, healthcare, corporate, and other end users) and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the segments.
| By End User | |
| Residential | |
| Education | |
| Healthcare | |
| Corporate | |
| Other End Users |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Architectural Services Market Research FAQs
How big is the Architectural Services Market?
The Architectural Services Market size is expected to reach USD 351.69 billion in 2024 and grow at a CAGR of 5.35% to reach USD 485.24 billion by 2029.
What is the current Architectural Services Market size?
In 2024, the Architectural Services Market size is expected to reach USD 351.69 billion.
Who are the key players in Architectural Services Market?
IBI Group, Aedas, AECOM, HDR Architecture, Inc. and Gensler are the major companies operating in the Architectural Services Market.
Which is the fastest growing region in Architectural Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Architectural Services Market?
In 2024, the Asia Pacific accounts for the largest market share in Architectural Services Market.
What years does this Architectural Services Market cover, and what was the market size in 2023?
In 2023, the Architectural Services Market size was estimated at USD 332.87 billion. The report covers the Architectural Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Architectural Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the Architectural Services Market?
The major factors driving the Architectural Services Market are a) Growing need to renovate and restore existing buildings drives demand for architectural expertise b) Growth in international architectural firms and collaboration on projects across borders
Architectural Services Industry Report
The architectural services industry is booming, fueled by a surge in global construction and rapid urbanization, particularly in developing nations. This growth is bolstered by a rising demand for diverse architectural services such as construction management, urban planning, and interior design across various sectors including healthcare and residential. Innovations like 3D printing and virtual reality are transforming the architectural market, leading to more efficient designs, while a shift towards sustainable building practices reflects environmental concerns. The industry benefits from increased infrastructure projects and interest in smart cities, driving the need for advanced services. With a competitive landscape, firms are adopting strategic partnerships and technological advancements to meet client needs. This trend towards innovation and sustainability, along with global construction expansion, promises a bright future for the architectural services industry. For detailed market insights, Mordor Intelligence™ offers a comprehensive analysis, including forecasts and a historical overview of the architectural services market share, size, and revenue growth. Get a free report PDF download for a detailed industry analysis.
