Generated 2025-12-28 20:17 UTC

Market Analysis – 81101526 – Quantity surveying service

Executive Summary

The global market for Quantity Surveying (QS) services is valued at an est. $21.5B and is projected to grow steadily, driven by global construction and infrastructure investment. The market has seen an est. 3-year CAGR of 4.2%, reflecting a resilient post-pandemic recovery in the construction sector. The single greatest opportunity lies in leveraging digital technologies like 5D Building Information Modeling (BIM) to enhance cost accuracy and project efficiency. Conversely, the primary threat is a persistent shortage of skilled surveyors, which is driving up labor costs and creating capacity constraints.

Market Size & Growth

The global Total Addressable Market (TAM) for quantity surveying and construction cost management services is estimated at $21.5 billion for 2024. The market is projected to expand at a Compound Annual Growth Rate (CAGR) of 5.1% over the next five years, reaching an estimated $27.6 billion by 2029. Growth is fueled by increasing project complexity, a focus on cost certainty in an inflationary environment, and major government infrastructure programs.

The three largest geographic markets are: 1. Asia-Pacific: Driven by rapid urbanization and infrastructure development in China, India, and Southeast Asia. 2. North America: Buoyed by significant public funding (e.g., US Infrastructure Investment and Jobs Act) and a strong private commercial/industrial construction pipeline. 3. Europe: Led by the UK, with a mature QS profession and major renewal/retrofit projects focused on sustainability.

Year Global TAM (est. USD) CAGR (YoY)
2024 $21.5 Billion -
2025 $22.6 Billion +5.1%
2026 $23.8 Billion +5.3%

Key Drivers & Constraints

  1. Demand Driver: Infrastructure & Capital Projects. Global investment in large-scale infrastructure, renewable energy, and advanced manufacturing (e.g., data centers, semiconductor fabs) necessitates sophisticated cost management to control budget overruns.
  2. Demand Driver: Cost & Risk Mitigation. Heightened material price volatility and supply chain disruptions have elevated the importance of accurate cost forecasting, value engineering, and contractual risk management provided by QS professionals.
  3. Constraint: Talent Shortage. An aging workforce and insufficient pipeline of new graduates are creating a significant shortage of qualified quantity surveyors, particularly those with digital skills. This directly impacts service availability and drives up labor costs. [Source - Royal Institution of Chartered Surveyors (RICS), Q1 2024]
  4. Technology Shift: Digitalization. The adoption of 5D BIM, data analytics, and AI-powered cost estimation tools is transforming the profession. Firms that fail to invest and upskill in these areas face a competitive disadvantage.
  5. Regulatory Driver: ESG & Sustainability. Expanding regulations around embodied carbon and life-cycle costing (LCC) are increasing the scope of QS services. Surveyors are now critical for advising on sustainable material selection and achieving green building certifications (e.g., LEED, BREEAM).

Competitive Landscape

The market is fragmented, comprising large, multi-disciplinary consultancies and smaller, specialized firms. Barriers to entry are moderate, including the need for professional accreditation (e.g., RICS, AIQS), established client relationships, and significant investment in software and training.

Tier 1 Leaders * Turner & Townsend: Differentiator: Deep expertise in large-scale, complex program management for global clients, particularly in infrastructure and natural resources. Majority-owned by CBRE. * Arcadis: Differentiator: Strong integration of design, engineering, and cost management services with a heavy focus on sustainability and digital solutions. * AECOM: Differentiator: Unmatched scale as a global infrastructure consulting firm, offering end-to-end project lifecycle services from planning to asset management. * Gleeds: Differentiator: A global property and construction consultancy with a reputation for strong, independent cost advice and a partnership-led approach.

Emerging/Niche Players * Linesight: Focuses on high-tech sectors like data centers and life sciences, offering specialized cost management expertise. * RLB (Rider Levett Bucknall): A global practice operating as a network of local firms, providing strong regional knowledge and client focus. * Cumming Group: A growing multi-faceted project and cost management consultancy, expanding its global footprint through strategic acquisitions. * RIB Software (A Schneider Electric Company): A technology provider whose iTWO 4.0 platform is enabling smaller consultancies to offer advanced 5D BIM-based QS services.

Pricing Mechanics

Quantity surveying services are typically priced using one of three models: a percentage fee based on the total construction contract value (most common for full-service commissions), fixed-price lump sum for a defined scope of work, or time-based rates (hourly/daily) for advisory services or ad-hoc support. The percentage fee model is most prevalent, typically ranging from 0.5% to 2.5% of project cost, depending on project complexity, size, and region.

The primary cost component for suppliers is skilled labor, accounting for an est. 60-70% of the price build-up, which includes salaries, benefits, and overhead. Other key costs include professional indemnity (PI) insurance, software licensing (BIM, cost databases), and business development. Fee pressure is a constant, with clients often seeking to commoditize QS services, while suppliers push for value-based pricing that reflects the risk mitigation and savings they deliver.

Most Volatile Cost Elements (Supplier Side, last 12 months): 1. Skilled Labor Wages: est. +6-8% due to intense competition for talent. 2. Professional Indemnity Insurance Premiums: est. +15-20% driven by a hardening market and increased project complexity/litigation. 3. SaaS/Software Licensing Fees: est. +8-10% for key platforms like BIM and enterprise cost management tools.

Recent Trends & Innovation

Supplier Landscape

Supplier Region(s) Est. Market Share Stock Exchange:Ticker Notable Capability
Turner & Townsend Global 8-10% Part of CBRE (NYSE:CBRE) Program management for mega-projects
Arcadis Global 7-9% EURONEXT:ARCAD Integrated sustainability & digital design
AECOM Global 6-8% NYSE:ACM End-to-end infrastructure lifecycle services
Gleeds Global 3-5% Private Independent cost advisory, strong UK/EU presence
RLB Global 3-5% Private (Global Partnership) Strong local market knowledge, cost data
Linesight Global 1-2% Private Data center & high-tech sector specialist
Cumming Group N. America, Europe 1-2% Private Project management & cost consulting

Regional Focus: North Carolina (USA)

Demand for quantity surveying services in North Carolina is high and accelerating. This is driven by a confluence of major investments in the Research Triangle Park (RTP) area by the life sciences and technology sectors (e.g., Apple, Eli Lilly), significant manufacturing projects (e.g., VinFast, Toyota), and robust population growth fueling commercial and residential construction in Charlotte and Raleigh-Durham. Local supplier capacity is stretched, with a mix of global firms (AECOM, Turner & Townsend) and strong regional players competing for limited skilled talent. The state's competitive corporate tax rate is a positive factor, but navigating local permitting and a tight labor market are key challenges for project delivery.

Risk Outlook

Risk Category Rating Justification
Supply Risk Medium A sufficient number of firms exist, but a shortage of senior, skilled talent creates capacity bottlenecks for complex projects.
Price Volatility Medium Labor inflation and rising insurance costs are driving fee increases, though percentage-based fees offer some budget predictability.
ESG Scrutiny Medium Increasing focus on embodied carbon and sustainable sourcing places greater responsibility and scrutiny on the QS function.
Geopolitical Risk Low Service is primarily delivered locally. Risk is confined to the impact of geopolitical events on specific international projects.
Technology Obsolescence Medium Firms not investing in BIM, data analytics, and digital workflows will quickly lose competitiveness and accuracy.

Actionable Sourcing Recommendations

  1. Mandate Digital Delivery & Value-Based Fees. For all projects >$25M, mandate 5D BIM in RFPs to automate quantity take-offs and improve cost accuracy. Structure fees to reward suppliers for technology-driven efficiency and value engineering savings, moving away from a pure percentage-of-cost model that incentivizes higher project costs. This can reduce cost variance by an est. 5-10%.

  2. Implement a Tiered Supplier Strategy. Engage one global Tier 1 firm for large-scale, complex programs to leverage their scale and specialized expertise. Concurrently, qualify two pre-vetted regional firms for projects <$50M to ensure local market knowledge, foster price competition, and mitigate capacity risk in high-demand regions like the Southeast US.