Architectural Engineering And Construction (AEC) Software Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan, France, Italy, Canada, India, South Korea - Size and Forecast 2024-2028

Architectural Engineering And Construction (AEC) Software Market Size 2024-2028

The architectural engineering and construction (AEC) software market size is forecast to increase by USD 7.07 billion at a CAGR of 12% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. One major trend is the increasing adoption of cloud-based solutions, which offers advantages such as real-time collaboration and access to large data sets. This is particularly relevant to city planning services, real estate development, and the construction of data centers, transportation infrastructure, highways, aviation facilities, and e-commerce warehouses.
• Additionally, another growth driver is the need for interoperability between different software systems to streamline workflows and improve project efficiency. However, challenges remain, including data security concerns and the complexity of implementing new technologies. Despite these hurdles, the future of the AEC software market looks promising, with continued innovation and investment in advanced technologies such as artificial intelligence and the Internet of Things (IoT) set to transform the industry.

What will be the Size of the Market During the Forecast Period?

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• The architectural engineering and construction (AEC) industry is undergoing a significant digital transformation, with software playing a pivotal role in streamlining processes and improving efficiency. This transformation is driven by various factors, including the adoption of sustainable building practices, the need for project management and construction management solutions, and the integration of emerging technologies such as building information modeling (BIM), 3D printing, and artificial intelligence (AI). Design software is a crucial component of the AEC industry, enabling architects and engineers to create detailed plans and models for buildings and infrastructure projects.
• Additionally, project management software, on the other hand, helps construction companies manage resources, schedules, and budgets more effectively. Construction management software facilitates collaboration between different stakeholders, ensuring that projects are completed on time and within budget. Digital transformation in the AEC industry is also leading to the adoption of cloud-based solutions. These solutions offer several advantages, including increased flexibility, scalability, and accessibility. However, on-premises deployment remains a popular choice for some organizations due to security concerns and the need for greater control over their data. The integration of AI in AEC software is a growing trend, with applications ranging from predictive maintenance and energy optimization to automating repetitive tasks and improving design processes.
• Moreover, AI is also being used to analyze data from drones and virtual reality (VR) to enhance project visualization and site surveying. Sustainable building practices are becoming increasingly important in the AEC industry, with renewable energy and green construction being key areas of focus. AEC software is playing a critical role in this area, enabling the design and implementation of energy-efficient buildings and infrastructure projects. The learning curve associated with implementing new AEC software can be a challenge for some organizations. However, the benefits of digital transformation far outweigh the initial investment and training costs. With the right software solutions in place, AEC firms can improve productivity, reduce errors, and enhance collaboration between teams.
• In summary, the AEC services market includes architectural services, engineering services, and construction services. Each of these segments is adopting software solutions at different rates, with engineering services leading the way due to the need for precise calculations and simulations. However, architectural and construction services are also investing in software to improve design processes and project management. Infrastructure projects, including public infrastructure, residential construction, commercial construction, and industrial construction, are all benefiting from the adoption of AEC software. The use of software is enabling more efficient design and construction processes, as well as improved collaboration between stakeholders.
• In conclusion, the AEC software market is experiencing significant growth as organizations in the industry continue to embrace digital transformation. From design software and project management solutions to cloud-based offerings and AI integration, software is playing a critical role in improving efficiency, reducing costs, and enhancing collaboration in the AEC industry.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Deployment
  • On-premises
  • Cloud
• Type
  • Designing software
  • Planning software
  • Buiding software
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • South America
  • Middle East and Africa

By Deployment Insights

• The on-premises segment is estimated to witness significant growth during the forecast period.

The market encompasses digital solutions that facilitate design, planning, and construction processes in the building industry. Two primary deployment models exist: on-premises and cloud-based. On-premises AEC software is installed and managed directly on a company's local hardware and servers, providing several advantages. Control and customization are significant benefits of on-premises AEC software. Companies can tailor the software to their specific needs, ensuring it aligns with their workflows and processes. Additionally, having the software on-premises allows for greater control over system configurations, updates, and security. This deployment model is particularly attractive to organizations handling sensitive data or operating in regions with stringent data privacy regulations.

Similarly, security is another key advantage of on-premises AEC software. By keeping the software within their own infrastructure, companies can minimize the risk of data breaches and unauthorized access. This is crucial for firms dealing with confidential project information or proprietary designs. In conclusion, on-premises AEC software remains a popular choice for many firms due to its control, customization, and security benefits. This deployment model continues to play a significant role in the digital transformation of the AEC industry, particularly for organizations with unique requirements and data security concerns.

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The on-premises segment was valued at USD 4.03 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• Europe is estimated to contribute 38% 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.

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The market in North America is witnessing notable expansion due to rapid technological progressions and the increasing emphasis on enhancing collaboration throughout the construction process. Procore Technologies, Inc., a leading industry player, showcased this trend at its Innovation Summit in June 2024. The company unveiled a suite of product enhancements designed to streamline collaboration and boost efficiency across various project stages. Procore's dedication to driving innovation in the construction sector is evident in its ongoing development of essential products, including project management, quality assurance, safety, and construction finances. By integrating advanced technologies such as artificial intelligence (AI) and data analytics, Procore empowers users to leverage these solutions to propel their businesses forward.

Additionally, the AEC software market in North America is witnessing substantial growth, fueled by the increasing adoption of these advanced technologies in architectural, engineering, and construction services. This growth is particularly evident in infrastructure projects, residential construction, and commercial and industrial construction. Procore's commitment to innovation and collaboration is expected to continue shaping the future of the AEC industry in North America.

Market Dynamics

Our researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise in adoption of Architectural Engineering And Construction (AEC) Software Market?

Inorganic growth strategies are the key drivers of the market.

• The market in the United States is witnessing notable expansion due to strategic partnerships and acquisitions. One notable instance of this trend is the alliance between AVEVA and Work Packs Inc., a leading Construction management software provider, announced in October 2023. This collaboration brings together AVEVA's digital transformation expertise and Work Packs Inc.'s innovative construction solutions, focusing on capital projects. This strategic partnership aims to tackle the distinct challenges confronted by engineering, procurement, and construction (EPC) companies and owner-operators. By merging their technologies, AVEVA and Work Packs Inc. Offer enhanced value to their clients in the AEC industry. Incorporating advanced technologies like drones, 3D printing, virtual reality (VR), and Cloud computing, these companies are revolutionizing the AEC sector.
• Additionally, drones provide aerial surveys and inspections, ensuring accuracy and efficiency. 3D printing enables faster and more cost-effective construction, while VR offers interactive project visualization and planning. Cloud computing facilitates real-time collaboration and data access, streamlining workflows.

What are the market trends shaping the Architectural Engineering And Construction (AEC) Software Market?

Increasing demand for cloud architectural engineering and construction (AEC) software is the upcoming trend in the market.

• The market in the United States is experiencing a notable transition towards cloud-based systems. This trend is fueled by the requirement for heightened collaboration, real-time data availability, and advanced project management functionalities. Cloud-based AEC software solutions, including Autodesk Construction Cloud, are increasingly essential for industry professionals. Cloud AEC software offers several benefits, including streamlined communication and collaboration among project participants. By consolidating project data onto a unified platform, these tools ensure all team members have access to the latest information, thereby minimizing the risk of mistakes and misunderstandings. Additionally, cloud-based systems enable real-time data sharing, expediting decision-making and enhancing overall project efficiency.
• As the construction sector continues to evolve, cloud AEC software will remain a crucial component, particularly in the development of logistics centers and housing stock. These industries rely on effective collaboration and real-time data access to ensure project success. By adopting cloud-based AEC software, businesses can improve their operations, reduce costs, and ultimately, deliver better outcomes for their clients. In conclusion, the shift towards cloud-based AEC software in the US market is driven by the need for enhanced collaboration, real-time data access, and advanced project management capabilities. Cloud platforms, such as Autodesk Construction Cloud, are becoming indispensable tools for industry professionals, particularly in the logistics and housing sectors. By embracing these solutions, businesses can streamline their operations, minimize risks, and deliver superior results.

What challenges does Architectural Engineering And Construction (AEC) Software Market face during the growth?

Interoperability issues is a key challenge affecting the market growth.

• In the market, interoperability continues to pose a significant challenge. The inability of different software systems to effectively communicate and exchange data can lead to inefficiencies and increased costs for project teams. Manual data conversion and re-entry, often required due to poor interoperability, are time-consuming and error-prone. This can result in project delays and dissatisfaction among end-users. The importance of seamless data exchange is particularly evident in industries such as city planning services, real estate, data centers, transportation infrastructure, highways, aviation, and e-commerce. In these sectors, the need for accurate and timely data exchange is essential for efficient project execution and effective decision-making.
• Additionally, the lack of interoperability can lead to a range of issues, including inconsistencies, errors, and delays. For example, in transportation infrastructure projects, the inability to accurately exchange data between design and engineering software tools can result in costly mistakes and project delays. Similarly, in aviation, poor interoperability can impact safety and efficiency, potentially leading to costly disruptions. Addressing interoperability challenges in the AEC software market requires a collaborative effort from software companies and industry stakeholders. By working together to develop and implement open standards and interoperability protocols, project teams can streamline their workflows, reduce errors, and improve overall project outcomes. This will be crucial for meeting the demands of industries such as city planning services, real estate, data centers, transportation infrastructure, highways, aviation, and e-commerce, where the need for accurate and timely data exchange is paramount.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Advanced Micro Devices Inc.
• AECOM
• ANSYS Inc.
• Autodesk Inc.
• AVEVA Group Plc
• Bentley Systems Inc.
• BOXX
• Cadpro New Zealand Ltd.
• Dassault Systemes SE
• Esri Global Inc.
• Graphisoft SE
• Hexagon AB
• ideCAD
• nCircle Tech.
• Nemetschek SE
• Procore Technologies Inc.
• PTC Inc.
• RIB Software GmbH
• Trimble Inc.
• Vee Technologies Pvt. Ltd.

Qualitative and quantitative 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. 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.

Research Analyst Overview

The market is a dynamic and innovative industry that caters to the unique needs of architects, engineers, contractors, and other stakeholders involved in the design, planning, and construction of buildings and infrastructure projects. This market encompasses a range of software solutions, including design software for creating and visualizing structures, project management software for streamlining workflows, and construction management software for overseeing on-site activities. Digital transformation is a key trend driving the growth of the AEC software market. The adoption of cloud-based solutions and Building Information Modeling (BIM) technology is enabling more efficient and sustainable building practices. Architects, engineers, and contractors are leveraging advanced software to design and build smarter, greener structures, using renewable energy and smart building technologies.

In summary, the learning curve for implementing AEC software can be steep, but the benefits are significant. Cloud-based solutions offer greater flexibility and accessibility, while on-premises deployment provides more control and security. The use of drones, 3D printing, artificial intelligence (AI), and virtual reality (VR) is revolutionizing the industry, enabling more accurate and efficient design and construction processes. The AEC software market serves a diverse range of sectors, from residential and commercial construction to infrastructure projects and public infrastructure. Services provided include architectural services, engineering services, construction services, city planning services, real estate, data centers, transportation infrastructure, and more. The market is expected to continue growing as the demand for advanced software solutions increases and digital services become increasingly integral to the AEC industry.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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