Well planned: Industry operators are expected to offer more value-added services boosting demand

The Architects industry derives the bulk of its revenue from nonresidential building design. Over the five years to 2018, IBISWorld expects industry revenue to increase. The construction market has been the principal driver for revenue growth during the period. The values of both nonresidential and residential construction have risen since 2013, resulting in an increased need for architectural design services. Over the five years to 2023, industry operators will continue to benefit from demand from nonresidential and residential construction projects. The value of both types of construction is anticipated to continue its growth, although at a much slower pace than during the current period...purchase to read more.

Industry Statistics & Market Size
Revenue
$45bn
Annual Growth 13-18
5.8%
Forecast Growth 18-23
Profit
Employment
233,501
Businesses
72,992
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry operators are expected to offer more value-added services
  • Sustainability has become an increasingly important issue for cities and societies around the world
  • A general movement toward integrated architecture and engineering firms is expected
  • Industry Report - Industry Key Buyers Chapter

    This industry is characterized by many small-scale consultants, often individual proprietors and partners who operate in narrow geographic markets. Although a majority of industry establishments do not have a payroll, non-employers are estimated to generate only 8.9% of total industry revenue. The fragmented nature of this industry is also evident when comparing the size of employing enterprises. In 2018, an estimated 66.7% of firms with a payroll have fewer than five employees and only an estimated 1.0% of firms have more than 100 workers.The industry's low level of concentration means that no firm holds a dominant position in the market; IBISWorld estimates that the four largest players account for only 4.9% of industry revenue in 2018. Goi...purchase to read more.

    Additional Insights for the Architects Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Architects Industry are

  • Having a clear market position
  • Ability to compete on tender
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Access to credit in the Architects industry impact industry performance..

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    What's in this report

    What is the Architects Industry?

    Architects plan and design residential, institutional, recreational, commercial and industrial buildings and structures by applying their knowledge of design, construction procedures, zoning regulations, building codes and building materials.

    Industry Products
  • Office building projects
  • Hospitals and clinical buildings
  • College and university school projects
  • Primary and secondary school projects
  • Retail and restaurant projects
  • All other nonresidential building projects
  • Architectural services for residential building projects
  • Architectural services for all other projects
  • Industry Activities
  • Architectural (except landscape) consulting services
  • Architectural (except landscape) design services
  • Architectural (except landscape) services
  • Building architectural design services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Access to credit
  • Value of residential construction
  • Corporate profit
  • Consumer Confidence Index
  • Housing starts

  • Current Performance
  • Steady revenue growth
  • LEED and energy efficiency
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth in downstream markets
  • Competitive conditions
  • Table: Architects Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Architects Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Retail Trade
  • Professional, Scientific and Technical Services
  • Educational Services
  • Arts, Entertainment and Recreation
  • Accommodation and Food Services
  • Public Administration

  • Key Selling Industries
  • Engineering Services
  • Landscape Design
  • Surveying & Mapping Services

  • Products & Services
  • All other nonresidential building projects
  • Architectural services for residential building projects
  • Office building projects
  • Architectural services for all other projects
  • Hospitals and clinical buildings
  • College and university school projects
  • Primary and secondary school projects
  • Retail and restaurant projects
  • Chart: Architects Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Governmental bodies (Federal, state and local)
  • All other private businesses and organizations
  • Construction, engineering and architectural firms and all other
  • Private corporations and businesses
  • Household consumers/Individuals
  • Nonprofit organizations
  • Private Hospitals and clinics
  • Private colleges and universities
  • Chart: Major Market Segmentation for the Architects Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Architects

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Architects Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Architects Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Architects Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of private non-residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    American Institute Of Architects (Aia)
  • The national professional association of architects.
  • Computer-Aided Design (Cad)
  • The use of computer technology to aid in the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • Green Building
  • A building designed to reduce environmental impact and be resource efficient.
  • Leadership In Energy And Environmental Design
  • Also known as LEED, an environmental building certificate program established under the US Green Building Council that certifies buildings that meet energy-efficiency and green requirements.
  • What Our Customers Say

    Why buy this report?

    The Architects Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Architects:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Architects market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Architects, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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