Enjoy complimentary customisation on priority with our Enterprise License!
The architectural services market size is estimated to grow by USD 94.8 billion at a CAGR of 4.6% between 2023 and 2028. The growth of the global construction industry, driven by urbanization and infrastructure development, is increasing the demand for project management solutions to efficiently manage construction projects. The increasing requirements for large-scale project management, driven by the complexity and scale of modern projects, are also boosting market expansion by creating demand for advanced project management tools and techniques. Additionally, the reduction in design time, enabled by project management software's ability to streamline design processes and improve collaboration, is driving market growth. Overall, these factors are driving the growth of the market and driving innovations in project management technology.
To learn more about this report, View Report Sample
The market share growth by the construction and project management segment will be significant during the forecast period. The market gives great weight to the construction and project management industry. The market has grown over the past decade due to increasing demand for project management services to ensure on-time completion and cost-effectiveness of these projects.
Get a glance at the market contribution of various segments View the PDF Sample
The construction and project management segment was valued at USD 110.10 billion in 2018. Many companies offer project management services, and the market for these services is highly competitive. Prominent market players to watch include Jacobs Solutions Inc. and AECOM. Therefore, frequent initiatives and investments in the construction and project management segment will increase the demand for building services, driving the growth of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 52% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America has always been a lucrative market for global architecture service providers due to the region's early adoption of advanced technologies related to architecture services across all end-user segments. The industry in all sectors including oil and gas, manufacturing, construction, and mining in North America is technologically mature as a result of the early adoption of advanced technology. The strong presence and penetration of top providers are driving the overall market growth in the region. The region has some of the most advanced economies in the world, and the pace of infrastructure development in the region is increasing. The United States is the largest contributor to the market in this region due to its early adoption of advanced technologies across all industries. The strong presence and penetration of top providers are fueling the growth of the overall market in the region. The North American industry looks promising owing to various initiatives of the US government, such as corporate tax cuts and expected GDP growth during the forecast period.
The market is experiencing high growth due to increasing construction activities and rapid urbanization. With a focus on patient care and interior design, the market is evolving to cater to the hospitality sector and tourism industries. Utilizing schematic designs and space planning, architects are integrating virtual reality (VR) technology and artificial intelligence for more efficient project life cycle management. The market plays a crucial role in developing nations, focusing on improving patient outcomes and patient satisfaction through thoughtful building space design. Feasibility studies and architectural programming ensure that projects are viable and meet the needs of their users. Construction documentation is critical for translating designs into reality while balancing financial potential and operational costs. By addressing fundamental bioclimatic design, architects enhance occupancy comfort and sustainability. The advantages of such design include increased return on investment, which attracts funding and supports long-term growth. Overall, the architectural sector's strategic planning and execution are vital for optimizing patient satisfaction and achieving positive outcomes in healthcare environments. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of the global construction industry is notably driving the market. Maintenance and restoration work, along with a shift towards sustainable building development and renovation practices, are propelling the market in various countries. The focus on environmentally friendly and sustainable buildings has led to significant investment and innovation in the sector. The industry is witnessing growth due to increasing government investment, population growth, rising per capita income, and economic development in developing countries.
Furthermore, factors such as low-interest rates, a favorable global economic environment, and increased direct investment by institutional investors are driving commercial and institutional real estate investment, further boosting demand for new construction projects. This trend is also influenced by environmental concerns, which are leading to increased architectural advisory services and a focus on sustainable construction practices. Additionally, housing interest rates, emerging economies, rapid urbanization, growing population, and infrastructure development projects are contributing to the growth of the construction industry. Therefore, the increasing number of construction projects worldwide will drive the market in the forecast period.
The growing prevalence of Building Information Modeling (BIM) is a key trend influencing the market. Building Information Modeling (BIM) allows architects to create 3D models of buildings and other structures and distribute them to project stakeholders. The use of BIM has become commonplace in the market as it improves communication and collaboration among project stakeholders such as architects, engineers, contractors, and clients. Increased demand for long-distance communication and collaboration during the COVID-19 pandemic in 2020 and beyond has accelerated the adoption of BIM.
BIM has become a key tool for managing construction projects and fostering teamwork as more and more construction firms and project stakeholders work remotely. BIM is expected to continue to be widely adopted as more construction firms realize BIM's potential to improve project outcomes, reduce costs, and improve collaboration among project stakeholders. All these factors are expected to drive the market during the forecast period.
Economic volatility and uncertainty in the construction industry are challenging the market. The market faces significant challenges due to economic volatility and uncertainty. Fluctuations in demand and project cancellations mean that construction firms struggle with lower sales, lower profitability, and uncertainty about future business prospects. For example, the COVID-19 pandemic severely disrupted the global economy, sharply reducing demand for building services and construction activities. Economic instability caused by the pandemic forced many construction firms to postpone or cancel projects.
In addition, there is economic instability in some parts of the world, including political instability, financial crises, or trade disputes that affect demand for building services in such areas. To remain competitive, architectural firms must adapt to changing economic conditions, including reorientation to new markets and diversification of services. Construction firms can also prepare for economic volatility and uncertainty by employing risk management and scenario planning. Therefore, economic volatility and uncertainty are potential challenges that may impede the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AECOM: The company offers different types of architectural services, such as the planning and design of office buildings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Architectural Engineering and Construction Solutions (AECS) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, UK, France, Japan - Size and Forecast
Architectural Rendering Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Singapore, Germany, UK - Size and Forecast
Interior Design Services Market North America, Europe, EMEA, APAC: US, Canada, China, Germany, UK - Forecast
The market in North America is experiencing growth, driven by factors such as affordable home projects and the expanding healthcare sector, particularly hospitals. There is an increasing focus on cost control and scheduling, especially in the urban planning segment, where government initiatives are supporting rapid industrialization and the establishment of new factories. The market also sees demand for interior design services, particularly in the residential segment, where rising disposable income is driving the need for green buildings and luxury apartments. Architectural firms are leveraging computer software and digital design tools, including 3D printing and augmented reality, to enhance their market presence and business operations while meeting the demand for affordable housing and home offices. Strategic partnerships between architects and developers are essential for designing facilities such as hotels, resorts, and restaurants that cater to diverse customer bases across urban areas and rural areas, especially given the high costs associated with integrating civic infrastructure and creating appealing spaces for businesses.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
165 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
|
Market growth 2024-2028 |
USD 94.8 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
4.17 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 52% |
|
Key countries |
US, China, UK, Germany, and Japan |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
AECOM, Aedas Ltd., Arcadis NV, Arup Group Ltd., C.F. Moller Danmark AS, Dar Al Handasah Consultants Shair and Partners Holdings Ltd., DP Architects Pte Ltd., Foster and Partners Group Ltd., Gensler. M. Arthur Gensler Jr. and Associates Inc., HDR Inc., HKS Inc., HOK Group Inc., Jacobs Solutions Inc., NIKKEN SEKKEI Ltd., Perkins Eastman, SAS AREP, Scott Brownrigg, Stantec Inc., Surbana Jurong Pvt. Ltd., and The Jerde Partnership Inc. |
|
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.