Global Architectural Services Market Report 2021-2028: Investments in Infrastructure Projects Such as Smart Cities and Renovation of Aging Infrastructure
DUBLIN (June 22, 2021) — The global architectural services market size is anticipated to reach USD 474.36 billion by 2028, registering a compound annual growth rate (CAGR) of 4.7% over the forecast period.
Investments in infrastructure projects such as smart city, and renovation of aging infrastructure in developed and developing economies is expected to fuel market growth. Furthermore, subsequent government efforts and commitment to drive investments in the infrastructure sector are expected to favor industry growth. For instance, in January 2019, the Saudi Arabia government announced its plan to develop a zero-carbon city as a part of the Neom project, subsequently contributing to the country’s economic growth.
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.
Architectural services rely majorly on the construction and logistics industry and play a significant role in uplifting a country’s economy. The impact of COVID-19 has negatively affected the market growth as the construction projects are at a halt due to labor and fund shortage. Continued planned investments in infrastructure projects remain halted for the short and medium-term across regions. However, the market is expected to grow as every sector recovers, and supply chain operation continues with a decline in COVID-19 cases across countries.
Architectural Services Market Report Highlights
- The market is expected to expand at a CAGR of 4.7% over the forecast period. The demand for architectural services is expected to proliferate as construction activities continue to rise. However, the market has been hit by the COVID-19 pandemic, which has restricted construction activities globally, resulting in a minor impediment to the growth.
- Urban planning services are expected to register the highest CAGR exceeding 4.0% over the forecast period. Growing investments in rural-urban infrastructure projects and sustainable infrastructure initiatives as a part of smart city developments are expected to increase the demand over the forecast period.
- The hospitality end-use sector is expected to exhibit a higher CAGR of more than 3.0% over the forecast period. Developments in transport infrastructures as a consequence of mega-events such as the FIFA World Cup and Summer Olympics, coupled with rising inclination towards tourism, is expected to upkeep segment growth by 2028.
- The Asia Pacific region dominated the market for architectural services in 2020 and is expected to continue its growth over the forecast period. The regional growth can be attributed to the increasing construction activities in developing countries such as China, India, and Indonesia over the forecast period.
- Some of the key vendors operating in the market include AECOM, Gensler, HDR, HOK, and NIKKEN SEKKEI LTD. In May 2020, the architectural service vendor PERKINS&WILL, in collaboration with Denmark studio Schmidt Hammer Lassen Architect and multi-disciplinary design group Arup, have designed mobile testing labs by retrofitting out-of-use school buses to fulfill the need for inexpensive, quick, and scalable testing labs..
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