Enjoy complimentary customisation on priority with our Enterprise License!
The construction estimation software market size is estimated to grow at a CAGR of 7.93% between 2022 and 2027. The market size is forecast to increase by USD 658.18 million. The growth of the market depends on several factors, including the growing demand for cost-effective and efficient construction management solutions, the adoption of cloud-based deployment in construction estimation software, and the increasing construction activities in emerging economies.
This construction estimation software market report extensively covers market segmentation by end-user (architects and builders, construction managers, contractors, and others), deployment (cloud-based and on-premise), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The growing demand for cost-effective and efficient construction management solutions is notably driving the market growth, although factors such as the integration with existing legacy systems and software may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the major factors driving the global construction estimating software market is the demand for affordable and effective construction management solutions. Effective project management and cost estimating are required to complete construction projects on time and on budget. The likelihood of cost overruns and project delays is decreased with the aid of construction estimation software used by architects, contractors, and project managers to determine costs accurately and optimize project management procedures such as the scheduling of construction projects.
For instance, Sage Software's construction estimation software provides sophisticated features, including job estimation, change order management, and scheduling, enabling project managers to precisely estimate and track project costs. Similarly, PlanGrid's construction estimation software allows architects and builders to communicate in real-time, lowering cost estimation errors and increasing project management effectiveness. The adoption of construction estimation software is anticipated to continue growing and drive the growth of the market in focus during the forecast period due to the rising demand for affordable and effective construction management solutions.
Increased integration of 3D modeling and building information modeling (BIM) technologies is the primary trend shaping the global construction estimation software market growth. The global building estimating software market is increasingly integrating 3D modeling and BIM technology. These technologies enable architects and builders to develop detailed digital models of construction projects, enabling more accurate cost estimates and project planning. The integration of 3D modeling and BIM technology facilitates collaboration among various stakeholders in construction projects, including architects, engineers, and contractors.
For instance, 3D modeling, and BIM technologies are combined in project management software, including Trimble's Vico Office Suite, which estimates construction costs. It enables users to build intricate 3D models of construction projects, calculate costs precisely, and monitor the advancement of projects in real-time. As it increases project management effectiveness and lowers the possibility of cost estimation errors, integrating 3D modeling and BIM technologies is anticipated to gain popularity between 2023 and 2027. This trend will further drive the growth of the market focus during the forecast period.
Incorporating new software with legacy systems and software is one of the major challenges impeding the global construction estimation software market. Integrating new construction estimation software with existing project management, accounting, and other operational systems used by many construction companies can be difficult. When the software is incompatible with the hardware or operating systems already in use by the company, this problem may become even more difficult, resulting in data loss and other problems. For instance, integrating new construction estimation software with an existing ERP system can be difficult and time-consuming.
To make certain that the two systems are appropriate and can interact with each other without any difficulties, they might also need to be significantly customized. The integration process may interrupt project management procedures such as estimation, which could cause delays and extra expenses. Due to these difficulties, construction firms may hesitate to embrace the construction estimation software and invest in integration to boost project management effectiveness and cost estimation precision. This is a significant challenge that can hinder the growth of the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Construction Estimation Software Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AppliCad: The company offers construction estimation software which help contractors to gauge the cost of materials and labor for submitting bids for the project. Also, under this segment, the company specializes in the development of software products and services for professional estimators who do roofing and cladding proposals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the architects and buliders segment will be significant during the forecast period. Factor such as, the rising demand for effective and affordable construction management solutions from small and big organizations and increasing demand for precise construction project cost estimation and efficient project management, architects and builders are the primary end users of construction estimation software.
Get a glance at the market contribution of various segments View the PDF Sample
The architects and buliders segment was valued at USD 412.59 million in 2017 and continued to grow until 2021. Demand for building estimating software is growing from architecture, and builders are experiencing significant growth. The noted market is also expected to grow with the proliferation of cloud-based building estimating software that allows contractors and architects to access project data from anywhere and collaborate in real time. Presence of major market players, intense competition, and a significant increase in demand for construction estimating software is expected to increase the demand for construction estimating software from the architects and builders segment, which is expected to drive the growth of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The region has some of the most advanced and developing economies in the world, such as the US and Canada, which increases the rate of infrastructure development in North America. In countries such as Mexico, construction estimation software solutions are adopted in major construction projects like the Mexico City New International Airport construction.
Moreover, the US plays a major role in the North American market. The construction industry in North America looks promising because of various initiatives by the US government, such as lowering corporate tax and expected growth in GDP. This would eventually propel the regional growth of the market in focus during the forecast period.
The construction industry in the region witnessed a decline in growth due to the outbreak of the COVID-19 pandemic in 2020. However, in 2021, large-scale vaccination drives in countries such as the US and Canada reduced the number of daily COVID-19 cases in the region. Furthermore, in January 2021, the US president announced a COVID-19 stimulus package worth USD 1.9 billion to overcome the adverse effect of the pandemic on the US economy. Such steps helped the resumption of construction activities in the region. Moreover, the resumption of construction activities planning, designing, and execution, among others, and normalcy in the region led to various developments in the construction market, starting in 2021. With the recovery and resumption of operations in the construction industry, the increase in demand for construction estimation software witnesses a significant increase. This increasing trend is expected to continue, owing to which the market in focus is expected to grow positively during the forecast period.
The construction estimation software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global construction estimation software market as a part of the global application software market within the global information technology (IT) software market. The parent global IT software market covers companies developing and producing application and system software. It also includes companies offering database management software. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Construction Estimation Software Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.93% |
Market growth 2023-2027 |
USD 658.18 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.78 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AppliCad, Autodesk Inc., Buildsoft, ConstructConnect Inc., Contractor Foreman, Corecon Technologies Inc., Glodon Co. Ltd., Micromen Software Solution Pvt. Ltd., Microsoft Corp., Nemetschek SE, PrioSoft Construction Software, Procore Technologies Inc., REDTEAM SOFTWARE LLC, RIB Software GmbH, Sage Group Plc, SAP SE, SmarteBuild, Takeoff Live, Trimble Inc., and UDA Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.