US Architecture Industry Analysis

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US Architecture Industry Analysis

Key Takeaways

  • The United States architectural design industry was valued at $86.4 billion in 2020.
  • The industry is expected to fall to $12.8137 billion by 2027 at a CAGR of negative (-) 23.86%.
  • The average age of an architectural firm principal in the US is 45.4 years. 9% of them are between 20 and 30 years, 25% between 30 and 40 years, while 66% are above 40 years.
  • Among architectural firm principals, 14.6% of them are women compared to 73.8% which are men. 11.6% of them reported unknown gender.

Introduction

  • The research provides an overview of the US architectural services market, including the demographics of architectural firm owners (principals) in the country and other industry insights such as the average size of architecture firms in the country, the biggest US markets/cities architectural firms are located, or the major difference in resources between the large and small architecture firms.

United States Architectural Services Industry: Market Size & Growth

Demographics of Principals (Architectural Firm Owner)

Age

  • The average age of an architectural firm principal in the US is 45.4 years.
  • 9% of them are between 20 and 30 years, 25% between 30 and 40 years, while 66% are above 40 years.
  • The average age of US architectural principals based on ethnicity is provided in the figure below.

Gender

  • Among architectural firm principals, 14.6% of them are women compared to 73.8% which are men.
  • 11.6% of them declined reported an unknown gender.

Ethnicity

  • The White represents the ethnic group with the highest number of principals in the US, with 70.8% of all Principals at architectural firms being whites.
  • Asians make up 14.1% of principals, Hispanic or Latino, 10.1%, Black or African American, 2.8%, American Indian and Alaska Native, 0.3%, while 1.9% of the survey respondents failed to identify their ethnicity.
  • The change in the ethnicity of architectural firm principals in the US over time since 2010 is provided in the diagram below.

Education

  • 65% of principals in architectural firms hold a Bachelor's Degree and 17% hold a Master's Degree.

Income Level

  • Principals, architectural firms with a Bachelor's degree earn more than those without, at $124,977 annually.
  • Principals with a Master's degree earn a median annual income of $123,359.

Industry Insights

Average Size of Architecture Firms

  • In the United States, small architectural firms (1-9 employees) make up 75.2% of all the architectural firms in the country.
  • Furthermore, mid-sized firms (10-49 employees) make up 18.5% of firms, while large firms (50+ employees) make up 6.3% of architectural firms in the United States.
  • 2.5% had above 100 employees
  • More than one-quarter (25+%) of architecture firms in the US are sole practitioners.
  • 60% had less than five employees on their payrolls,
  • The average number of employees at architectural firms in the US is 12 employees.

The Biggest Markets/Cities Architectural Firms are Located

  • The five (5) biggest cities architecture firms are located in include San Francisco, California, New York City, NY, Seattle, Washington, Los Angeles, California, and Boston, Massachusetts.
  • The cities were selected from the analysis of the top 300 architecture firms in the US published by Architectural Record and the top 160 architecture firms for 2021 published by BDC Network.
  • Based on both lists, the US cities with the largest number of architectural firms located in them were selected and compared to the list of US biggest cities.
  • The best state for architecture published by Zippia, top cities for architecture by Sixt, and the best cities for architects by Rethink The Future were all reviewed before the cities were selected.

Differences in Resources Between Large and Small Architecture Firms

Business-Related Research for Architecture Industry

Research Strategy

For the purpose of this research on the analysis of the United States architectural industry, we have leveraged the most reputable sources of information available in the public domain to craft our research work. Such sources include industry reports by Research and Markets and the US business architecture industry report published by AIA, other reputable sources such as Zippia, First Research, Architectural Record, and news reports, including Business Newswire and Architect Magazine.

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