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The Artificial Intelligence (AI) In The Construction Market size is estimated to grow at a CAGR of 30.65% between between 2023 and 2028. The market size is forecast to increase by USD 4.06 billion. The growth of the market depends on several factors, including the increasing demand for data integration and visual analytics, the reliability of data-guided decisions, and the growth of the global construction market. AI is a combination of hardware and software that develops smart machines that can think and learn like humans. In the construction industry, it helps builders, contractors, architects, and engineers by performing highly repetitive, monotonous, hazardous, and high-productive tasks. AI with decision-making ability allows users to design complex projects and automate day-to-day decision-making tasks, along with improved predictions.
This artificial intelligence (AI) in construction market report extensively covers market segmentation by solution (software, services, and hardware), end-user (large enterprises and small and medium enterprises (SMEs)), 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 2018 - 2022.
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One of the key factors driving artificial intelligence (AI) in construction market growth is the reliability of data-guided decisions. There has been a rise in the automation of day-to-day processes over the years. In addition, there is a rise in the number of connected devices used by end-user industries and individual users have increased the volume of data generated. As a result, businesses have realized that data can be used to optimize costs, deliver better services, and boost revenues.
Moreover, end-user companies are increasingly capitalizing on data analytics (data generated from construction sites and past projects of companies) to incorporate customer preferences and feedback and market demand and supply trends in the construction planning processes. In addition, data-guided decisions help end-user industries improve their product offerings. Hence, such factors are positively impacting artificial intelligence in construction market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping artificial intelligence (AI) in construction market growth is the automatic updating and building of projects. One of the difficult tasks for project managers, engineers, and analysts for project portfolio management is to update and build project schedules. As a result, intelligent project portfolio management scheduling tools are integrated into the system to increase the productivity of the project. Therefore, this will help project managers, engineers, and analysts to do their essential tasks.
Moreover, it can also reference a predefined process library to perform the best possible output for a function. In addition, if there is no preset process output, then the tool will prompt a message to create the missing process. Furthermore, in case a necessary skill is required for a task, AI will reference the process library, and a system check will be performed for the availability of resources required to complete the work. Therefore, it is positively impacting artificial intelligence in construction market. Hence, such factors are driving the market growth during the forecast period.
The lack of a skilled workforce for the development of AI algorithms is one of the key challenges hindering the artificial intelligence (AI) in construction market growth. The lack of technical expertise is a major deterrent to the growth of the market. In addition, end-user companies using AI on their construction IT platforms must have a thorough knowledge of the working of AI software platforms and periodically update infrastructure to ensure smooth operations.
Therefore, the lack of technical knowledge often deters end-users from adopting AI in their IT platforms, particularly in developing countries, where end-users are reluctant to learn and adopt new technologies. As a result, it is essential for market players to offer both online and offline training and consultation to ensure that end-users obtain the maximum benefits of AI. Therefore, it is negatively impacting artificial intelligence in construction market. Hence, such factors hinder the market growth during the forecast period.
The software segment is estimated to witness significant growth during the forecast period. Several factors including the rising globalization, growth of IT in the construction industry for decision management, adoption of machine learning platforms, text analytics, robotic process automation, image and video analysis, deep learning, and speech recognition fuel the growth of this segment. In addition, the demand for software-based AI is increasing because of the rise in construction activities and the adoption of advanced technologies (in construction projects) in emerging economies including China, India, Brazil, Indonesia, and Mexico.
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The software segment was the largest segment and was valued at USD 276.54 million in 2018. Moreover, the market players operating in the global AI in the construction market offer software solutions to organizations, which are used in project management, predictive risk management, schedule management, and supply chain management applications. In addition, these solutions use AI risk management software that aids data collection and analysis to derive meaningful business insights and reduce the risk of disaster. Furthermore, AI software facilitates standardization in the construction industry by facilitating and simplifying the management of labor, site occurrences, data collection, information, and material costs. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period..
The numerous advantages offered by AI in the large enterprises segment will increase the market growth. This segment plays an essential role in driving the development and utilization of AI technologies in the construction sector. In addition, the construction industry is home to large enterprises, which are characterized by their expansive scope of operations, substantial resources, and intricate project portfolios. Moreover, these companies often manage multiple construction sites at the same time and manage large-scale projects that necessitate sophisticated technological solutions to maximize productivity, efficiency, and safety. For example, BAM Ireland, an operational company of the Royal BAM Group, uses AI to increase efficiency and performance in construction processes, which makes them safer, smarter, and more sustainable. Therefore, the utilization of AI by large enterprises in the construction industry will fuel the growth of this segment which in turn drive the market growth 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 US and Canada are some of the main countries in North America that are contributing to the AI in construction market growth in North America. In addition, in countries such as Mexico, construction management software solutions are adopted in major construction projects including the construction of the Mexico City New International Airport, which fuels the growth of the AI in construction market in the region.
Furthermore, several factors such as global conferences, product launches, and product exhibitions are fuelling the growth of the AI in construction market in North America. In addition, the construction industry in all sectors, including oil and gas, manufacturing, building, and mining, in North America is technologically mature, owing to the early adoption of technologies which is positively impacting the AI in construction market. Hence, such factors are driving the market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of global artificial intelligence (AI) in the construction market witnessed a significant slowdown due to the halt in industrial and construction activities 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 industrial and construction activities. Such factors are expected to drive the market during the forecast period.
The artificial intelligence (AI) in construction market 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 Artificial Intelligence (AI) in Construction 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.
ALICE Technologies: The company offers AI in construction through its Alice software to get optimal resource planning.
Amazon.com Inc: The company offers AI in construction such as connected construction solution, construction project management solution, equipment telematics solution, and many more on the AWS platform.
Autodesk Inc: The company offers AI in construction through its Autodesk construction cloud software that helps to manage data effectively and record higher work safety.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The artificial intelligence (AI) in construction market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 - 2022.
Artificial Intelligence (AI) In Construction Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.65% |
Market Growth 2024-2028 |
USD 4.05 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
29.8 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALICE Technologies, Amazon.com Inc., Autodesk Inc., Bentley Systems Inc., Customindz Inc., Darktrace Holdings Ltd., Dassault Systemes SE, Doxel Inc., eSUB Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., Newmetrix, NVIDIA Corp., Oracle Corp., PTC Inc., SAP SE, Siemens AG, The Access Group, and TUV SUD AG |
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. |
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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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