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The Architectural Engineering And Construction Solutions (AECS) market size is estimated to grow at a CAGR of 12.4% between 2022 and 2027. The market size is forecast to increase by USD 7,612.71 million. The growth of the market depends on several factors, such as the increasing requirements for large-scale project management, the reduction in design time in the construction industry, and the growth of the global construction industry.
This report extensively covers market segmentation by product (software and services), deployment (on-premise and cloud-based), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Architectural Engineering and Construction Solutions (AECS) Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
There is an increasing implementation of AEC systems across construction projects to save time, and enhance productivity, as they minimize rework and the dependence on paperwork and documentation (designing solutions). The main advantage of the AEC system is that they have the ability to automatically update the data and design changes in the project. Hence, such factors are expected to positively impact the market. Therefore, it is expected to drive market growth during the forecast period.
Some of the main problems faced by the construction industry include the incapability to complete construction projects on time and within the budget. Factors such as inefficient project planning and scheduling, the lack of contractor experience, improper site management and supervision, and the delayed delivery of materials are negatively impacting the construction industry. Hence, there is an increasing implementation of AEC systems across construction projects.
One of the primary trends in the global architectural engineering and construction solutions (AECS) market is the emergence of digital twins at scale marks. It mainly includes generating digital replicas of entire urban areas, campuses, and complex infrastructure networks.
Moreover, it helps to capture real-time data from different sources to mirror the physical environment's components and systems enabled by advanced sensors, data analytics, and cloud computing. The main advantage of such replicas is that it provides r insights for urban planning, project coordination, risk mitigation, and ongoing maintenance. Thus, the trend is positively impacting the architectural, engineering, and construction (AEC) market growth. Hence, such factors are expected to drive market growth during the forecast period.
There is an increase in demand for open-source software with the rising demand for digitalization in the market. Several open-source market players offer a wide variety of business analytics tools and applications. These kinds of software with various features are available freely on the Internet.
Thus, there is increasing adoption of such software among small and emerging enterprises as the purchasing g and licensing costs of commercial software are high. Additionally, the functional and common features offered by the proprietary are available in most of the open-source AECS. This is negatively impacting the architectural engineering and construction solutions market. Hence, such factors are expected to hinder market growth during the forecast period.
The software segment is estimated to witness significant growth during the forecast period. There is an increasing the product lifecycle management solutions such as computer-aided design (CAD) and computer-aided engineering (CAE) when compared to the whole AECS. However, the purchase of AECS has increased significantly with the growth of the construction industry across the globe. As a result, it has fuelled the demand for AECS across Europe and North America for public and private construction projects undertaken through building information modeling (BIM).
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The software segment was the largest segment and was valued at USD 5,360.59 million in 2017. The main advantage of the AECS system is that it helps to standardize the construction process by allowing the simplified and streamlined management of labor, site events, data capture, information, and material costs. As a result, there is a significant increase in the profitability and efficiency of their projects in the construction industry. For example, TELACU Construction, a Los Angeles-based company, designs and manages the construction of large-scale private and public projects in Southern California. By the implementation of Procore, it has enabled the company to minimize the time taken to manage construction communications. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Based on deployment, the segments are classified into on-premise and cloud-based. The implementation and hosting of software applications, tools, and technologies on the client's own infrastructure, typically within their physical premises is referred to as on-premises deployment in the global architectural engineering and construction solutions (AECS) market. The main advantage of this segment is that it enables enterprises to have full control over their software environment, from installation to customization, configuration, security, and ongoing maintenance. Additionally, it enables tighter control over data and processes. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors which is significantly contributing to the growth of the architectural engineering and construction solutions (AECS) market in North America is that the region is an early adopter of new and advanced technologies.
As a result, several industries across North America including the construction industry are technologically mature. Additionally, the presence of several prominent established market players in the region is fuelling the growth of the market. One of the main contributors to the market growth in the region is the US with established market players such as Bentley Systems and Trimble. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global architectural engineering and construction solutions (AECS) market witnessed a significant slowdown due to the halt in construction activities across residential and non-residential units in countries such as US and Canada in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in construction industries. Such factors are expected to drive the market during the forecast period.
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.
4M SA Advanced Software Engineering Systems: The company offers architectural engineering and construction solutions such as IDEA Architectural Design, 4MCAD Professional CAD, and FINE MEP Building Services.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ACCA Software Spa, ANSYS Inc., Autodesk Inc., Bentley Systems Inc., Carlson Software Inc., Chetu Inc., CYPE Ingenieros, Dassault Systemes SE, Esri Global Inc., Hexagon AB, Innovaya LLC, Nemetschek SE, Newforma Inc., Oracle Corp., Procore Technologies Inc., Schneider Electric SE, Solutions AEC, Trimble Inc., and Vee Technologies Pvt. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The architectural engineering and construction solutions (AECS) 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.
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Architectural Engineering And Construction Solutions (AECS) Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.4% |
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Market growth 2023-2027 |
USD 7,612.71 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
11.09 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
4M SA Advanced Software Engineering Systems, ACCA Software Spa, ANSYS Inc., Autodesk Inc., Bentley Systems Inc., Carlson Software Inc., Chetu Inc., CYPE Ingenieros, Dassault Systemes SE, Esri Global Inc., Hexagon AB, Innovaya LLC, Nemetschek SE, Newforma Inc., Oracle Corp., Procore Technologies Inc., Schneider Electric SE, Solutions AEC, Trimble Inc., and Vee Technologies Pvt. Ltd. |
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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, and Market condition analysis for the forecast period. |
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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 Product
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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