U.S. Healthcare Architecture Market – By Service (New Construction, Refurbishment), Facility (Hospitals, Long Term Care Facilities, Ambulatory Surgical Centers) & Forecast (2024 – 2032)

U.S. Healthcare Architecture Market – By Service (New Construction, Refurbishment), Facility (Hospitals, Long Term Care Facilities, Ambulatory Surgical Centers) & Forecast (2024 – 2032)

U.S. Healthcare Architecture Market Size

U.S. Healthcare Architecture Market size was valued at around USD 2.5 billion in 2023 and is estimated to grow at 5.4% CAGR from 2024 to 2032, driven by factors such as rising rates of hospital admissions and increasing demand for preventive medical care driving the need for new healthcare facilities and expansion of existing ones. The diagnosis of acute and chronic disorders is on the rise, leading to a greater need for specialized healthcare facilities designed to cater to such conditions.

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Additionally, the increasing number of hospitals and ambulatory surgical centers is contributing to the healthcare architecture market growth. For instance, as of 2020, there were over 6,000 hospitals and nearly 6,500 ambulatory surgical centers in the U.S., according to the American Hospital Association and the Ambulatory Surgery Center Association respectively. These factors create a robust demand for healthcare architecture services, including new construction and refurbishment projects, to accommodate the evolving healthcare landscape and ensure patients receive high-quality care in modern, efficient facilities.

Healthcare architecture is the specialized discipline of architecture focused on the design and planning of healthcare facilities such as hospitals, clinics, medical offices, and research centers. It involves creating environments that promote healing, safety, and efficiency while considering the unique needs of patients, healthcare providers, and staff.

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U.S. Healthcare Architecture Market Trends

The growing funding for healthcare infrastructure, both from private and public sources and increasing investments in healthcare facilities by healthcare organizations, private investors, and real estate developers are fuelling the demand for architectural services.

• For instance, in 2020, healthcare real estate investment reached USD 11.1 billion, marking a notable increase from previous years in the U.S., according to CBRE Group, Inc. This funding is directed towards the construction of new hospitals, clinics, and medical centers, as well as the refurbishment of existing facilities to meet modern standards and accommodate rising patient demands.
• Additionally, healthcare providers are recognizing the impact of well-designed spaces on patient outcomes and satisfaction, leading to a higher demand for specialized architectural services. For instance, American Institute of Architects (AIA) shows that healthcare construction spending in the U.S. grew by 4.1% in 2021, reflecting the industry's commitment to investing in architecture to improve healthcare delivery.
• Furthermore, government initiatives aimed at expanding access to healthcare services, upgrading aging infrastructure, and improving healthcare delivery are driving significant investments in new healthcare facilities and renovations. For example, the American Rescue Plan Act of 2021 allocated USD 8.5 billion to support the construction and renovation of healthcare facilities in underserved communities, contributing to the growth of the healthcare architecture market. These investments are expected to continue driving demand for architectural services in the healthcare sector in the coming years.

U.S. Healthcare Architecture Market Analysis

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Based on service, the market is categorized into new construction and refurbishment. The new construction segment dominated the market, generating approximately USD 1.6 billion revenue in 2023.

• Advances in medical technology often require new infrastructure to support and implement them. New facilities are designed with state-of-the-art equipment and technology like architecture design software to provide the best possible care to patients by constructing advanced facilities. This drives the need for new construction projects, thereby, fueling the industry growth.
• Additionally, evolving healthcare delivery models, such as the shift towards outpatient care and ambulatory surgery centers, may require the development of new types of facilities. New construction allows for the creation of specialized spaces tailored to these emerging healthcare trends

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Based on facility, the U.S. healthcare architecture market is categorized into hospitals, ASCs, long term care facilities and nursing homes, and other facilities. The hospitals segment dominated the market, accounting for around 46.4 % share in 2023.

• Hospitals play a central role in the healthcare system, serving as primary locations for inpatient care, specialized treatments, and emergency services. They often act as referral centers for patients requiring advanced medical care, increasing the demand for architectural services to accommodate the critical functions they provide.
• Additionally, many hospitals are affiliated with academic institutions and research centers, combining patient care with education and research activities. These facilities often require specialized designs to support teaching, collaboration, and advanced medical research, further increasing the complexity of hospital architecture.

U.S. Healthcare Architecture Market Share

The market is characterized by intense competition among various architectural firms vying for projects in the rapidly evolving healthcare sector. Established firms dominate the landscape with their extensive portfolios and track records of delivering innovative healthcare facilities. With the growing emphasis on patient experience, technology integration, and sustainability, firms that can demonstrate proficiency in these areas gain a competitive edge. Moreover, regulatory compliance, cost efficiency, and flexibility in design solutions are critical factors shaping competition in this dynamic market landscape.

U.S. Healthcare Architecture Companies

Some of the eminent market participants operating in the U.S. healthcare architecture industry include

• CannonDesign
• EYP Architecture & Engineering
• HDR, Inc.
• HKS Inc.
• HOK Group, Inc.
• Jacobs Solutions Inc.
• NBBJ
• Perkins Eastman
• Perkins+Will
• SmithGroup

U.S. Healthcare Architecture Industry News

• In August 2023, HKS, Inc., announced the opening of its new office in Seattle, Pacific Northwest. The new facility provides technology services focused on healthcare sector. This strategy helped expand the company’s market reach and its reputation in the healthcare architecture market.
• In June 2023, HDR announced its expansion in Southern California, establishing an architecture studio in San Diego. This strategic growth of the architecture practice for healthcare and science complements the company’s recognized presence in healthcare architecture market in Southern California.

The U.S. healthcare architecture market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments

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Market, By Service

• New construction
• Refurbishment

By Facility

• Hospitals
• Ambulatory surgical centers
• Long term care facilities and nursing homes
• Other facilities