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The construction estimation software market size is forecast to increase by USD 658.18 million at a CAGR of 7.93% between 2022 and 2027. The market's expansion hinges on various elements, primarily driven by the escalating need for cost-effective and efficient solutions for construction management. This demand stems from the complexities of modern construction projects, where efficient management becomes paramount. Additionally, the adoption of cloud-based deployment methods for software has played a pivotal role. Cloud solutions offer scalability, accessibility, and collaboration features that enhance productivity and streamline project workflows. This shift toward cloud-based deployment reflects the industry's evolution toward digital transformation and modernization.
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This 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.
The market is experiencing significant growth in the construction sector, driven by the need for improved financial risk management and resource allocation in real estate development. Traditional estimating methods, such as the use of spreadsheets and statistics, are being supplemented by modern construction project estimation software. These digital tools offer increased accuracy and efficiency in calculating funds and monitoring assets. Construction managers are turning to these solutions to mitigate financial risks and ensure complex modern construction projects are completed on time and within budget. The software also helps in managing variables, specifications, and materials, reducing the likelihood of human error. However, the adoption of construction estimation software is not without challenges. Digital threats pose a risk to the security of sensitive project data. Therefore, it is crucial for developers to invest in reliable and secure software solutions. The future of construction estimation lies in technological innovation and the integration of construction applications into client networks for seamless product performance and asset monitoring. 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. This software is essential for architects, builders, and contractors to ensure accountability and accuracy in construction project management. This software enables effective asset monitoring, estimating, and real-time adjustments through features like job estimation, change order management, and scheduling.
Moreover, digital technologies, including cloud computing and the Internet of Things, facilitate deployment and real-time collaboration. Modern construction projects, particularly complex infrastructure development initiatives and smart cities, require advanced construction application software for financial risk mitigation and resource allocation. Product performance is enhanced with quality checking tools and specifications adherence. Augmented reality and client network integration offer a competitive edge. Hence, such factors are driving the market growth during the forecast period.
Increased integration of 3D modeling and building information modeling (BIM) technologies is the primary trend shaping the global market growth. These digital tools enhance accountability and accuracy in construction projects by allowing architects and builders to create detailed digital models of buildings. The collaboration between stakeholders, including engineers, contractors, and real estate developers, is facilitated through cloud-based project management software, such as Trimble's Vico Office Suite. This technology enables real-time adjustments, resource allocation, and asset monitoring, reducing financial risks and human error.
Moreover, modern construction projects, including malls and infrastructure development initiatives, benefit from the efficiency and competitive edge provided by these construction applications. The integration of augmented reality, the Internet of Things, and other digital technologies further enhances product performance and client network management. Hence, such factors are driving the market during the forecast period.
Incorporating new software with legacy systems and software is one of the major challenges impeding the global market. In the market, integrating new solutions with existing systems is a significant challenge. Architects and builders, real estate developers, contractors, and other construction professionals rely on project management, accounting, and other operational systems. When new software is incompatible with existing hardware or operating systems, integration becomes more complex. This issue can lead to data loss and other problems, particularly when integrating with enterprise resource planning (ERP) systems.
Moreover, to ensure compatibility and seamless interaction, customization may be necessary. Digital technologies, including cloud computing, augmented reality, the Internet of Things, and asset monitoring, are transforming modern construction projects. However, these advancements also introduce financial risks and the need for real-time adjustments and collaboration. Product performance and efficiency are crucial, as is the ability to make real-time adjustments and allocate resources effectively. Hence, such factors are hindering the market 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.
Market Customer Landscape
Companies 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.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the architects and buliders segment will be significant during the forecast period. The market is experiencing substantial growth due to the increasing demand from architects and builders for accurate and accountable project cost estimation and efficient management. This growth is driven by the widespread adoption of cloud-based solutions, enabling real-time collaboration and asset monitoring from any location.
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The architects and buliders segment was valued at USD 412.59 million in 2017 and continued to grow until 2021. Digital technologies, including augmented reality and the Internet of Things, are also transforming modern construction projects. Contractors and real estate developers seek a competitive edge through the use of construction application software, which offers product performance improvements and real-time adjustments. However, the complexity of these systems and potential digital threats require careful consideration during deployment. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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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 market in North America is experiencing rapid expansion due to urbanization and technological innovation in countries like the US and Canada.
Moreover, Traditional estimating methods are being replaced with advanced solutions, such as those offered by BENTLEY SYSTEMS and Trimble, in major projects like the Mexico City New International Airport. Spreadsheets and statistics are being supplemented with subscription license models for real-time tracking and monitoring of building and construction development. Technological advancements, including virtual reality, are simplifying information and service management in workplaces, further fueling market growth. Variables, such as project size and complexity, are more accurately estimated using these solutions, leading to increased efficiency and cost savings.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
Construction estimation software plays a crucial role in the building and construction industry by providing accurate and efficient cost estimations for projects. The market for this software is significant, with various players offering solutions that cater to different project sizes and complexities. It enables contractors, architects, and engineers to create detailed cost estimates, manage budgets, and track project expenses. It also facilitates collaboration between team members and helps ensure that projects are completed on time and within budget. Key features of it include the ability to generate accurate cost estimates based on historical data, the ability to manage and track project expenses, and the ability to create detailed reports and analyses. The market landscape depends on various factors such as Estimating Edge, Foundation Software, Funds calculation, Perpetual License, Project estimator software, Real-time Adjustments, Real-time collaboration, Size of Construction Projects, Software License, and Speed. Additionally, some software solutions offer integration with other project management tools, such as scheduling and design software. The market is expected to grow due to the increasing adoption of technology in the construction industry and the need for more accurate and efficient cost estimations. With the increasing complexity of construction projects and the need for more precise cost estimations, it is becoming an essential tool for contractors, architects, and engineers.
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 companies, Market Positioning of companies, 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 forecasting, 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
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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