The architectural services market reached a valuation of US$ 302.2 Billion in 2022. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a 3.5% CAGR, reaching US$ 426.3 Billion. Rising urban population has put the real estate industry under pressure to come up with a sustainable solution to the rising demand for residential buildings. Suitable macroeconomic factors such as rising employment, low-interest rate, and increase in disposable income have also led to a rise in the demand for residential housing, ultimately leading higher demand for architectural services.
Advancements in technology will play a pivotal role in the dissemination of architectural services. The implementation of BIM or advanced designing techniques/software will provide an edge over the competitors. Standardization of policies governing the architectural services industry will help foster market growth globally. Policies will help streamline guidelines concerning complex design or engineering requirements, creating a level playing platform for service providers across the globe. Demand for architectural services has increased over the past decade owing to rising application of Architectural Services in automotive and appliances and furniture manufacturing industries.
Use of architectural services for consumer goods, namely automobiles, refrigerators, water heaters, dishwashers, microwaves, and industrial machinery has been on the rise. Growing demand on account of increasing purchasing power of consumers in developing economies is cited as the main factor that will influence sales of Architectural Services over the coming years. Also, attributable to their versatility and widespread usage, sales of Architectural Services will increase over the next ten years. Some of the leading architects across the world are focusing on designs that require minimal felling of trees and disruption of the natural elements. Environmental planning has emerged as an important discipline within architecture, and it focuses on creating designs that cause no harm to the natural ecosystem. This factor, coupled with the responsiveness of the masses to green designs, has given a thrust to market growth.
Key Takeaways from the Market Study
- According to Fact.MR, a CAGR of 1% was recorded for the Architectural Services market from 2017-2022
- In FY 2022, the Architectural Services market reached a valuation of US$ 302.2 Billion
- The market is likely to register a Y-o-Y growth rate of 3.0% in 2023
- By Service, the Construction & Project Management Segment is expected to dominate the market, documenting a 3.3% value CAGR
- As per Fact.MR’s projections, the market for Architectural Services in China will likely expand at a 3% CAGR
- The Architectural Services market in India is expected to expand at a 3.2% CAGR
“The increase in demand from the construction industry across the globe acts as one of the major factors driving the growth of architectural coatings market,” comments an analyst at Fact.MR.
Prominent players in the Architectural Services Industry are taking advantage of the rapidly increasing demand for the Architectural Services in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale players. Some prominent market developments are as follows:
- In September 2021, Colliers, professional services and investment management company, partnered with Bergmann, a design and architecture service provider. Through this partnership, Colliers aimed to enhance its geographic footprint.
- In June 2021, Sweco agreed to acquire Belgian consultancy Boydens Engineering. Belgian consultancy Boydens Engineering has a strong reputation in the field of sustainable design.
- In February 2021, Arcadis NV acquired a 70% stake in HydroLogic Research B.V. HydroLogic Research provides hydroinformatics, data science, modeling, and optimization for climate-resilient water management.