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The global healthcare architecture market size was valued at USD 8.17 billion in 2022 and is anticipated to grow from USD 8.52 billion in 2023 to USD 11.85 billion by 2030, exhibiting a CAGR of 4.8% during the forecast period.
Healthcare architecture refers to the designing and planning of healthcare facilities to create spaces that support the efficient and effective delivery of healthcare services. The architecture of hospitals is critical for maintaining public health as it influences the behavioral pattern of patients and provides ease in working in such spaces. According to the Cybermetrics Lab and the Spanish National Research Council (CSIC) research group, due to the increased requirement for new hospitals, several new hospital facility constructions and refurbishments are in the pipeline globally, with some of the investments amounting to USD 500 million. A growing number of hospitals in developed and developing nations is expected to boost the expansion of the healthcare architecture industry during the forecast period.
The major factor responsible for the market growth is the increasing rate of hospitalization and rising demand for advanced healthcare infrastructure to equip the facility with advanced medical products. Moreover, the rising investment in the healthcare infrastructure and increasing awareness about healthcare architecture are other significant factors driving the healthcare architecture market growth.
Displacement of Laborers and Lockdown Impositions Temporarily Slowed Down the Market Growth
The COVID-19 pandemic negatively impacted the market due to the imposition of lockdowns, displacement of laborers and architects to their native places, and the restricted supply of raw materials. In addition, during the initial phase of the COVID-19 pandemic, the healthcare system was unprepared to combat the patient load and other challenges with existing infrastructure. The above factors led to the overall slowdown of the market. Moreover, the pandemic delayed several strategic plans and achievements of the companies operating in the market and pushed the targets to 2023, hampering the market growth.
However, post-COVID, the market indicated considerable growth and returned to the pre-pandemic level, owing to the readiness of healthcare institutions for such an unexpected pandemic. The pandemic also provided a new impetus for healthcare architects to focus more on the sustainability and resilience of their models, such as designing healthcare spaces to accommodate large patient populations with required social distancing measures.
Thus, the government's increasing attention to evolving healthcare infrastructure helped the market recover rapidly from the impact of the COVID-19 pandemic.
Rising Adoption of Neuroaesthetics and Growing Inclination toward Space Repurposing
With the onset of the COVID-19 pandemic, the real estate industry adopted the concept of neuroaesthetics and the requirement of repurposing spaces. Neuroaesthetics deals with the perception, thoughts, and emotions shaped by the architectural environment around a person. The neuroaesthetics concept in health space design is trending and can be used to create responsive spaces that promote faster healing.
Moreover, repurposing healthcare spaces can play a significant role in revitalizing communities. Adaptive reuse of existing healthcare buildings offers huge potential to address the healthcare system's needs. Repurposing and structuring of space are becoming a popular strategy for hospital systems to expand services away from their hospitals. It requires less capital and repurposed space can be operational more quickly than new construction.
Thus, implementing neuroaesthetics architecture and repurposing space gained huge attention after the COVID-19 pandemic and is expected to positively influence the market.
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Increasing Rate of Hospitalizations is Driving the Growth of the Market Globally
The growth of the global market is primarily driven by the increasing rate of hospitalizations, which can be attributed to the rising diagnoses of acute and chronic diseases, growing incidences of traumas, and the increasing demand for preventive medical care. In many regions, there has been an increasing trend of medical tourism, which requires an extensively developed medical infrastructure that is expected to support market growth during the forecast period.
Moreover, a significant range of funds allocated by the government to the healthcare sector of emerging economies is estimated to boost the market by the end of the forecast period.
High Cost and Technical Requirements to Limit the Market Growth
Healthcare architecture is one of the complex architecture types and is associated with several regulations. Hospital architecture demands meticulous planning at each level, from dimensions to construction details, as it is meant to fulfill the needs of patients and caregivers. Being a specialized sector, the balance between art, cost, time, technique, and requirements is challenging and limiting the market growth.
Moreover, different types of healthcare rooms, such as OPD, IPD, Administrative, Diagnostics, ICU, surgery rooms, and others, require particular temperatures and humidity levels. Such broad necessities with limited resources, limits the creativity and hampers the market growth.
Hospitals Segment Dominated Due to Rising Government Emphasis on Improving Healthcare Architecture
Based on facility type, the global market is categorized into hospitals, ASCs, long term care facilities & nursing homes, academic institutes, and others. The hospitals segment accounted for the largest market share in 2022. The segment growth is due to the increase in the number of government-aided hospitals to expand the accessibility to healthcare.
The ASCs segment is set to exhibit significant growth during the forecast period. The increasing preference for ASCs, lower cost of care, and reduced stay are the factors expected to propel the segment growth during the forecast period.
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New Construction Segment Led the Market Due to Expansion of Healthcare Facilities
Based on service type, the market is segmented into new construction and refurbishment. The new construction segment held the largest market share in 2022 due to the high and sustained demand for the advanced hospital architecture globally. A significant amount of funds allocated by the government to the hospital sector of emerging economies is estimated to boost the market growth by the end of the forecast period.
Based on the regional ground, the market is studied across Europe, North America, the Asia Pacific, Latin America, and the Middle East & Africa.
North America Healthcare Architecture Market Size, 2022 (USD Billion)
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The North America market is estimated to grow at a substantial CAGR over the forecast period. The region dominated the global healthcare architecture market share in 2022 with a value of USD 2.32 billion. Rising technological developments, increasing funding for healthcare infrastructure, and surging adoption of healthcare architecture services are the major factors behind the regional growth.
Europe market accounted for a significant market share in 2022 due to technological advancements and increasing public and private partnerships.
The market in the Asia Pacific is set to depict the fastest growth rate over the forecast period. The major factors behind the growth are the increasing population in Asia Pacific countries and the increasing need to use the repurposing space concept to accommodate more people in limited healthcare facilities. Japan is expected to provide the largest market opportunity due to the developed healthcare sector in the country coupled with a high demand for technologically advanced hospital architecture. China also contributes heavily to the regional growth due to increased healthcare expenditure.
The rest of the world regional segment is expected to expand at a lower CAGR than other regions during the forecast period. The limited growth opportunity is leading to the lack of demand for the solution.
Market Players Focus on Getting Recognition to Capture High Market Share
The market is fragmented, with numerous small & mid-size players operating globally. HDR, HKS Inc, Perkins+Will, and Stantec are the key companies operating in the market in 2022. With the increasing demand for and adoption of healthcare architecture, companies are getting recognition owing to their capabilities to provide master planning with cost-effective designs that further strengthens their market presence.
Recent years have recorded a rising demand for lead design consultants for healthcare facilities in countries such as Australia and the UAE. In addition, a strong network of qualified architects across the globe is another key factor associated with an estimated rise in the number of healthcare architecture firms in the world by the end of the forecast period.
An Infographic Representation of Healthcare Architecture Market
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The healthcare architecture market report provides an in-depth industry analysis. It focuses on segments such as facility type and service type. Besides this, it offers insights related to the impact of COVID-19 and key market trends. In addition, the report highlights the competitive landscape and several factors contributing to industry growth.
CAGR of 4.8% from 2023 to 2030
Value (USD Billion)
By Facility Type, Service Type, and Region
By Facility Type
By Service Type
Fortune Business Insights says that the market stood at USD 8.17 billion in 2022 and is projected to reach USD 11.85 billion by 2030.
The market is projected to grow at a CAGR of 4.8% during the forecast period (2023-2030).
By facility type, the hospitals segment will lead the market.
The increasing rate of hospitalizations and increasing demand for repurposing space are some factors driving the market.
HDR, HKS, Perkins+Will, and Stantec are the major players in the market.
HDR, HKS, and Perkins+Will are the top players in the market.
North America is expected to hold the highest share in the healthcare architecture market.
Rising patient population, increase in number of surgeries and strategic collaborations are the factors that are expected to drive the adoption of healthcare architecture.
Use of visualization aids for planning and designing the hospitals and emergence of smart hospitals are trends of the healthcare architecture market
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