U.S. Healthcare Architecture Market Size, Share & COVID-19 Impact Analysis, By Facility (Hospitals, Ambulatory Surgical Centers, Long Term Care Facilities & Nursing Homes, Academic Institutes, and Others), By Service (New Construction and Refurbishment), and Country Forecast, 2023-2030

The U.S. healthcare architecture market size was worth USD 1.85 billion in 2022 and is anticipated to grow at a CAGR of 5.3% during the forecast period. 

Healthcare architecture refers to the planning and design of all healthcare facilities, including hospitals, clinics, long term care centers, retention centers, surgical centers, psychiatric asylums, and others. The planning and design include all the mechanical, electrical, and structural aspects, along with the functional duties required to be performed in that facility.

The rising expenditure on healthcare infrastructure in the U.S., increasing number of hospitals and other ambulatory surgical centers, and the increasing need for efficient patient accommodation are the major factors exhibiting the need for healthcare architecture and thus contributing to the market growth.

• For instance, according to the 2022 National Health Expenditure (NHE) Report published by the U.S. Centers for Medicare & Medicaid Services, in 2021, the total National Health Expenditure increased by 2.7% to reach USD 4.3 trillion, which accounted for approximately 18.3% of Gross Domestic Product (GDP).

Moreover, the impact of the COVID-19 pandemic on the U.S. healthcare architecture market was negative in 2020 due to a fall in employment rates, the imposition of lockdown, and supply chain disruptions leading to insufficient availability of raw materials.

U.S. Healthcare Architecture Market Trends

Rising Number of Micro Hospitals and Preference for Personalized Patient Rooms

The growing number of micro-hospitals is gaining the attention of healthcare architects. Micro hospitals are comparatively small facilities developed in the area ranging from 15,000 to 60,000 square feet. These settings offer emergency and specialty services to smaller communities, also called mini- or neighborhood hospitals. These hospitals have 8 to 10 beds, enabling the short stay for patients under observation.

• For instance, in June 2023, Nutex Health announced the opening of Albuquerque ER & Hospital East, a new micro-hospital. The hospital occupied an area of 20,000 square feet for 2-floor facilities, comprising 8 private exam rooms, an emergency room, 4 private in-patient beds, in-house imaging, pharmacy, and laboratory services.

U.S. Healthcare Architecture Market Growth Factors

Increasing Number of Hospitals to Accommodate Rising Patient Pool and Drive Market Growth for Healthcare Architecture in the U.S.

The diverse patient population with multiple diseases is leading to a growing demand for patient-centered designs in hospitals. Patient-centered designs are enabling the efficient accommodation of huge numbers of patients within the healthcare facility, further reducing overcrowding and chances of infections. In addition, the U.S. government is investing significantly in healthcare infrastructure, leading to the construction of more hospitals that will require healthcare architects and is anticipated to contribute to the expansion of the U.S. market during the forecast period.

• For instance, according to statistics from the American Hospital Association (AHA), the U.S. possessed 6,090 hospitals in 2020, 6,093 hospitals in 2021, and 6,129 hospitals in 2022, indicating a continuous rise in the development of hospitals.


• According to an article published in March 2022 by the U.S. Centers for Medicare & Medicaid Services, the annual growth in national health spending is anticipated to reach around USD 6.8 trillion by 2030.

The U.S. had around 6,129 hospitals in 2022, including 3,876 short-term acute care hospitals, which accounted for more than 50%. These hospitals deliver short-term emergency or non-urgent medical care within an in-patient setting.

RESTRAINING FACTORS

Rising Architectural Costs and Rapidly Changing Requirements May Limit the U.S. Healthcare Architecture Market Growth

The U.S. healthcare system’s requirement to deal with multiple disease conditions within the same facility is imposing a challenge on already-built healthcare facilities. In addition, healthcare facilities require functional and sustainable architectural designs to optimize energy consumption, further leading to high architectural and construction costs and thereby limiting the U.S. healthcare architecture market growth.

• For instance, according to an article published by Building Design+Construction in April 2023, the average cost per square foot for new hospital construction has increased to USD 419.2 in 2023 from USD 362.7 in 2019, indicating a rise of 15%.

U.S. Healthcare Architecture Market Segmentation Analysis

By Facility Analysis

Based on facility, the market is categorized into long term care facilities & nursing homes, ambulatory surgical centers, academic institutes, hospitals, and others.

The hospitals segment captured the largest U.S. healthcare architecture market share in 2022. The growth of the segment is attributed to the increasing number of hospitals in the country. For instance, as per the data published by AHA in 2022, there were a total number of 6,120 hospitals in the U.S., whereas this number was 5,534 in 2016.

Moreover, the ambulatory surgical centers segment is anticipated to register a significant CAGR during the forecast period. The rapid growth of the ambulatory surgical centers segment is attributed to the rising development of these settings in the U.S., the rising volume of surgical procedures, and improved outpatient experience. In addition, the low cost of procedures as compared to hospitals is anticipated to further boost the segment’s growth in the healthcare architecture market in the U.S. during the forecast period.

• For instance, according to an article published in March 2023 by Provista, procedures performed at ambulatory surgical centers are around 45%-60% less expensive than at hospitals.


• For example, an article published in February 2023 in the National Center for Biotechnology Information (NCBI) revealed the cost comparison for the Unicompartmental Knee Arthroplasty (UKA) procedure in different healthcare settings. The procedure costs around USD 9,025 in ambulatory surgical centers, USD 12,032 in outpatient-community hospitals, and USD 14,542 in in-patient-community hospitals.

By Service Analysis

Based on service, the market is segmented into new construction and refurbishment.           

The new construction segment held the largest share in 2022 and is anticipated to register notable growth during the forecast period. The factors attributed to the segment’s growth include new requirements that arose after the COVID-19 pandemic and rising demand for preventive medical care and flexible designs for different purposes.

• For instance, according to a news article published in March 2023, the traditional designs of healthcare facilities hindered care during the COVID-19 pandemic. The hospitals in the U.S. are now focusing on being ready for the next pandemic crisis. Rady Children's Hospital in San Diego initiated the remodeling of its campus for USD 1.2 billion.

Moreover, the rising orientation of refurbished construction in the U.S. market for healthcare architecture is further contributing to the refurbishment segment’s growth.               

List of Key Companies in U.S. Healthcare Architecture Market

Companies operating in the U.S. market are growing significantly owing to the rising investment in healthcare infrastructure in the U.S. and growing awareness and need for large healthcare facilities. In 2022, companies such as HKS, HDR, Perkins+Will, and Stantec accounted for a major market share.

• For instance, in March 2023, HDR announced that Henry Ford Health selected the company to design the expansion part of the Detroit Hospital Campus in the U.S. The campus is built in a 1.0 million square feet area. The project was handed over to 3 healthcare architecture engineering companies, including HDR, Tsoi Kobus Design, and Hamilton Anderson.                                                              

Moreover, companies such as NBBJ, HOK, CannonDesign, and Perkins Eastman are also expanding owing to the rising adoption of healthcare architecture services in the U.S., contributing to market growth.

• For instance, in June 2023, HOK finalized the design of a 264-bed hospital for USD 920 million in Michigan. The new hospital is scheduled to open in 2025 and is expected to improve the patient experience as the company designed the private in-patient rooms, which can be easily converted into intensive care space.

LIST OF KEY COMPANIES PROFILED:

• HDR (U.S.)


• HKS Inc. (U.S.)


• PERKINS&WILL (U.K.)


• Stantec (Canada)


• CannonDesign (U.S.)


• NBBJ (U.S.)


• Perkins Eastman (U.S.)


• SmithGroup (U.S.)


• HOK (U.S.)


• EYP Architecture & Engineering (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: CannonDesign announced the completion of the emergency department at the University of Chicago as a part of its expansion plans for its cancer center. Under the project, an additional 41,000 square feet were added to the existing 35,000 square feet emergency department to increase capacity and improve patient flow.


• February 2023: SmithGroup announced that the company was selected to design a rehabilitation hospital for children in Michigan. Under the project, SmithGroup provided architecture, medical planning, MEP engineering, interior design, lighting design, and other landscape architecture.


• April 2022: CannonDesign announced that Mount Sinai Medical Center selected the company to design the Irma and Norman Braman Cancer Center at Miami Beach to improve mental health and patient outcomes. The USD 250 million facility provided access to caregiver support, meditation, nutrition classes, physical therapy, and pet and music therapy.

REPORT COVERAGE

This market research report provides a detailed analysis of the market. It focuses on key aspects such as the number of healthcare facilities, key market trends, and technological advancements. In addition, it includes key industry developments such as mergers, partnerships, & acquisitions and the impact of COVID-19 on the market. Besides this, the report also highlights key industry dynamics.

Report Scope & Segmentation