ARCHITECTURAL SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Architectural Services Market Size and Trends

The global architectural services market is estimated to be valued at US$ 387.98 Bn in 2024 and is expected to reach US$ 559.61 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

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The architectural services market is expected to grow steadily over the next few years. The rising population globally has increased the demand for residential and commercial construction spaces. Additionally, increased investments by various governments and private organizations in public infrastructure such as roads, railways, hospitals, and schools will also propel the growth of the architectural services market during the forecast period. With rapid urbanization, many developing nations are focusing on improving their infrastructure which is anticipated to boost the need for architectural services worldwide. Furthermore, growing environmental concerns have spurred the demand for green buildings, which require extensive architectural planning, thereby driving the market growth.

Growing urbanization and urban development projects

As the world population continues to grow exponentially, urbanization is also increasing at a tremendous rate. More and more people are migrating to cities in search of better livelihood opportunities and improved quality of life.

Country governments and private real estate developers are investing huge sums of money to develop smart cities, expand existing cities and set up special economic zones. In India, the government's ambitious 'Housing for All by 2022' initiative aims to construct over 80 million affordable houses in urban and rural areas. Many Gulf countries are also aggressively developing new cities and urban centers. All these large-scale urbanization efforts are driving tremendous demand for experienced architectural firms that can plan, design and implement diverse real estate and construction projects as per global standards and local needs. The scope and scale of work is much larger than before, benefiting top architecture companies.

For instance, in December 2020, IBI Group, a Canadian-based architecture, engineering, planning, and technology firm acquired the assets of Cole Engineering Group, a engineering consulting firm. This strategic move is aimed to enhance IBI's capabilities and competitiveness across all areas of its business, allowing the company to deliver a broader range of services to its major public-sector projects and deepen its relationships with private-sector developer clients.

Rising income levels and demand for modern architecture

Another key driver for the architectural services Market is the rising disposable income levels of consumers and their increasing aspirations for beautiful homes and offices. As living standards improve globally, both individuals and corporations are willing to pay more to incorporate innovative and aesthetically appealing designs into their properties. There is a growing preference for open plan layouts, ample natural lighting, smart, and eco-friendly features. People also want residential and commercial buildings that match international quality standards and brands. This has augmented the requirement for professional architectural expertise that understands global trends and can transform blueprints into breath-taking structures.

Higher income consumers in emerging markets like China, Brazil, India are fueling strong demand for luxurious villas, farmhouses, penthouses and glass facade offices. Even mid-income groups want upgraded designs and facilities in their projects. Architects thus need to constantly refine and diversify their skills according to the project budget and client needs.