Architectural Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC M6921Revenue
$7.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
46,615
Businesses
13,094
Wages
$X.Xbn
Architectural Services in Australia industry analysis
Architectural services firms have endured challenging conditions in recent years. In response to uncertain economic conditions because of the pandemic and subsequent supply chain issues, many downstream clients delayed or cancelled projects, dropping demand for architectural services. Tumbling business confidence and construction activity have contributed to few new projects starting work in recent years. This trend has intensified competition and put downwards pressure on prices, further reducing architects' ability to lift revenue. Nonetheless, climbing demand from institutional building construction, especially for healthcare buildings, has recently provided some support to industry revenue. Overall, industry revenue is expected to fall at an annualised 1.6% over the five years through 2023-24, to $7.6 billion. This trend includes an anticipated plunge of 5.2% in 2023-24 because of supply chain disruptions and rising interest rates causing ongoing limitations for construction activity.
Trends and Insights
- Growth in institutional building construction, particularly in complex sectors like healthcare, provides sizeable business opportunities for large architecture firms. This is thanks to their expertise in managing intricate design requirements and compliance with specific regulations.
- Stringent building regulations and growing environmental awareness have heightened demand for design development. Changing regulations and an emphasis on green-building practices require more specialised input and knowledge, boosting the need for architects and their services in design development.
- The geographic spread of architectural enterprises largely corresponds with Australia's population distribution, economic activity and construction activity. For this reason, the industry is heavily concentrated across the eastern seaboard.
- The industry exhibits low market share concentration. Many sole proprietors and small-scale architecture firms contribute to the industry’s high fragmentation.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated $7.6bn in 2023.
Trends and Insights
Swelling institutional building construction activity has benefited large architecture firms
- Architects derive significant revenue from design work in non-residential building markets. An uptick in public capital expenditure has boosted institutional construction activity and created projects for architecture firms, partially offsetting other construction segments' decline.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Sustainable design and circular economy principles will transform architectural practices
- Australia's move towards a circular economy signals a potentially significant change in architectural practices. Architects can play a crucial role in this shift by promoting recycled materials and designing buildings for adaptability and long-term use. Adopting circular design standards can lead to developing energy-efficient structures that generate less waste throughout their life cycle.
Biggest companies in the Architectural Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
GHD | 166.9 | |
Woods Bagot | 110.5 | |
Hassell | 79.4 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Schematic design, Design development and Contract documentation. Schematic design is the largest segment of the Architectural Services in Australia.
Trends and Insights
Contract documentation services have benefited from swelling commercial and industrial construction activity
- Contract documentation services primarily involve producing final designs, specifications and schedules for all stakeholders that detail the project's requirements.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Construction in Australia
- Engineering Consulting in Australia
- Environmental Science Services in Australia
- Specialised Design Services in Australia
International industries
- Global Architectural Services
- Architects in the US
- Architects in Canada
- Architectural and Design Services in New Zealand
- Architectural Activities in the UK
Table of Contents
About this industry
Industry definition
Industry firms provide architectural design and drafting services, landscape design services and town planning services. Industry operators also provide consultation on land zoning and building code regulations. Activities related to prime contractors managing or organising construction projects are excluded from the industry.
What's included in this industry?
Schematic designDesign developmentContract documentationArchitectural drafting servicesContract administrationLandscape and urban designCompanies
GHDWoods BagotHassellPurchase this report to view all 4 major companies in this industry.
Related Terms
GREEN ARCHITECTUREBUILDING INFORMATION MODELLING3D PRINTINGIndustry Code
ANZSIC 6921 - Architectural Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Growth in institutional building construction, particularly in complex sectors like healthcare, provides sizeable business opportunities for large architecture firms. This is...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Stringent building regulations and growing environmental awareness have heightened demand for design development. Changing regulations and an emphasis on green-building pract...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The geographic spread of architectural enterprises largely corresponds with Australia's population distribution, economic activity and construction activity. For this reason,...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry exhibits low market share concentration. Many sole proprietors and small-scale architecture firms contribute to the industry’s high fragmentation.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Architectural Services industry is heavily populated by smaller firms and individual practitioners owing to design work’s bespoke nature. Major companies struggle to scal...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of GHD's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Woods Bagot's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Hassell's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for GHD, and factors influencing its performance in the industry
- Description and key data for Woods Bagot, and factors influencing its performance in the industry
- Description and key data for Hassell, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
There’s a direct relationship between commercial, industrial, institutional and residential construction business and demand for architectural services. Increasing constructi...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Technological advancements like 3D printing are lowering costs. While traditional methods involve creating physical scale models using materials like blocks, paper and wood, ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Architectural Services industry in Australia in 2024?
The market size of the Architectural Services industry in Australia is $7.6bn in 2024.
How many businesses are there in the Architectural Services in Australia industry in 2023?
There are 13,094 businesses in the Architectural Services industry in Australia, which has declined at a CAGR of 0.1 % between 2018 and 2023.
Has the Architectural Services industry in Australia grown or declined over the past 5 years?
The market size of the Architectural Services industry in Australia has been declining at a CAGR of 1.6 % between 2018 and 2023.
What is the forecast growth of the Architectural Services industry in Australia over the next 5 years?
Over the next five years, the Architectural Services industry in Australia is expected to grow.
What are the biggest companies in the Architectural Services market in Australia?
The biggest companies operating in the Architectural Services market in Australia are GHD, Woods Bagot and Hassell
What does the Architectural Services in Australia include?
Schematic design and Design development are part of the Architectural Services industry.
Which companies have the highest market share in the Architectural Services in Australia?
The company holding the most market share in Australia is GHD.
How competitive is the Architectural Services industry in Australia?
The level of competition is high and increasing in the Architectural Services industry in Australia.
