Architectural Activities in the UK Industry Market Research Report Now Updated by IBISWorld

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The Architectural Activities industry designs buildings, structures and landscapes to meet the clients' requirements while applying specialist knowledge of design principles, construction procedures, zoning regulations, building codes and building materials. The industry is expected to generate revenue totalling £4.5 billion in 2012-13, down by 4.3% on the previous year. There is a substantial global market for architectural design services and several local firms are major international players. Industry revenue has trended sharply down since the onset of the recession and the subsequent slump in new building investment. Industry revenue is expected to decline at an annualised 7.0% over the five years through 2012-13. This is in line with the contraction in total building construction, and particularly the sharp decline in office construction, which typically has a very high architectural design input. Over the next five years, architects are expected to benefit from the cyclical recovery of investment into the housing and non-residential building markets. Industry revenue is forecast to return to growth over the five years to 2017-18, expanding at a faster pace than UK GDP (2.0%). For these reasons, industry research firm IBISWorld has updated its report on the Architectural Activities industry.

IBISWorld Market Research

IBISWorld Market Research

The industry struggles to rebuild after the economic crisis

The Architectural Activities industry designs buildings, structures and landscapes to meet the clients' requirements while applying specialist knowledge of design principles, construction procedures, zoning regulations, building codes and building materials. The industry is expected to generate revenue totalling £4.5 billion in 2012-13, down by 4.3% on the previous year. There is a substantial global market for architectural design services and several local firms are major international players. Exports currently account for about 5.0% of industry revenue while import penetration accounts for about 1.0% of domestic demand. Industry revenue has trended sharply down since the onset of the recession and the subsequent slump in new building investment. Industry revenue is expected to decline at an annualised 7.0% over the five years through 2012-13. According to IBISWorld industry analyst Anthony Kelly, “this is in line with the contraction in total building construction, and particularly the sharp decline in office construction, which typically has a very high architectural design input”.

The industry has a particularly fragmented structure, comprising many small-scale operators. Direct industry employment is expected to total 57,500 people in 10,300 establishments in 2012-13. This represents a decline in industry direct employment by 10,500 people since the cyclical peak of 68,000. By contrast, the industry has climbed by about 1,000 establishments since the onset of the recession as architects are forced to set up independent consultancies or leave the industry. Kelly adds, “over the next five years, architects are expected to benefit from the cyclical recovery of investment into the housing and non-residential building markets”. Industry revenue is forecast to return to growth over the five years to 2017-18, expanding at a faster pace than UK GDP (2.0%).

Three-quarters of industry enterprises are very small-scale firms employing less than five people and generate annual revenue of less than £250,000. One-third of architectural firms have been in business for less than three years. The Architectural Activities industry in the United Kingdom has a very low concentration of ownership and is characterised by its fragmented structure. The industry includes a few large-scale multinational players and many small-scale firms operating in narrow markets. The four largest architectural consulting firms contribute less than 5.0% of industry revenue. Major companies include BDP International, Aedas, WS Atkins and Foster + Partners.

For more information on the Architectural Activities industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry is primarily engaged in the planning and designing of buildings, town and urban planning, and landscape architecture. Architectural knowledge spans design and construction procedures, zoning regulations, building codes and building materials. This industry also provides drafting services, supplies detailed layouts, plans and illustrations of buildings, structures and systems.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & 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
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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