Full Support: Global Architectural Services Industry Market Research Report from IBISWorld has Been Updated

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Over the past five years, global investment into commercial building developments collapsed, leading to faltering demand for the industry's services, particularly in the United States, Europe and Japan. In the coming years, however, rising business sentiment will boost investment in building construction and for architectural design services. For these reasons, industry research firm IBISWorld has updated a report on the Global Architectural Services industry to its growing industry report collection.

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Demand has been weak in large economies, but emerging economies are buoying growth

Revenue for the Global Architectural Services industry is expected to decline at an average rate of 2.9% to $129.2 billion in the five years to 2012. During this time, industry performance faltered, reflecting a collapse in global investment into commercial building developments. According to IBISWorld analyst Kevin Culbert, “The demand for architectural design services has been particularly weak in the world's largest economies, corresponding with the subdued growth of the United States, Japan and the European Union.” However, growth in emerging markets mitigated more severe declines. Nevertheless, industry revenue is expected to increase just 1.8% in 2012, largely due to slowing growth in China and persisting debt problems in the eurozone.

The Global Architectural Services industry has relatively high margins; however, the recession has caused profit margins to decline across developed markets. Major architecture firms have trimmed permanent staff to slow a decline in profit, causing employment to contract an average 0.7% per year over the past five years. “This industry has a highly fragmented structure,” Culbert says, “and most firms are small-scale contractors that operate within narrow regional markets or in specialized services.” There are also a number of large-scale firms capable of operating outside national boundaries, he adds. Many of the leading consulting engineering firms have been consolidating operations through mergers or strategic alliances over the past decade. These multidisciplined, multinational companies are well placed to win contracts in most markets.

The industry's predominantly localized nature means that international trade represents only a minor share of total industry activity. International activity is largely confined to the large-scale US and European design firms, and specialist architectural companies with a high-profile brand. Several of the largest firms have also merged operations with major engineering and construction companies to offer clients a one-stop shop for design, procurement and construction services. Unfortunately for industry operators, the industry has increasingly found itself in direct competition with multidisciplined engineering and building companies or government agencies that maintain an in-house architectural design capability.

Performance of the Global Architectural Services industry is expected improve over the next five years with the gradual stabilization of global investment conditions, particularly in the United States and Western Europe. The industry will benefit from an increase in global aggregate private investment and improvements in downstream construction industries. Consequently, industry revenue is forecast to grow each year on average in the five years to 2017. For more information, visit IBISWorld’s Global Architectural Services industry report page.

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IBISWorld industry Report Key Topics

This industry comprises establishments primarily engaged in planning and designing residential, institutional, leisure, commercial, and industrial buildings and structures by applying knowledge of design, construction procedures, zoning regulations, building codes and building materials.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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