USD 665.67 million
Artificial Intelligence in Construction Market Size, Share, Growth Analysis, By Offering(Solution, Service), By Application(Asset Management, Project Management, Risk Management, Schedule Management), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2145 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
65
|Figures:
70
Artificial Intelligence in Construction Market Insights
Global Artificial Intelligence in Construction Market size was valued at USD 665.67 million in 2022 and is poised to grow from USD 892.66 million in 2023 to USD 9335.08 million by 2031, growing at a CAGR of 34.1% during the forecast period (2024-2031).
The artificial intelligence (AI) in the construction market has witnessed substantial growth, revolutionizing the traditional construction landscape. AI technologies are being harnessed to optimize various aspects of the construction lifecycle, enhancing efficiency, accuracy, and safety. From design and planning to project management and maintenance, AI is proving invaluable.
One significant application is Building Information Modeling (BIM), which utilizes AI algorithms to create 3D models, enabling stakeholders to visualize projects comprehensively. AI-driven predictive analytics assist in project scheduling, resource allocation, and risk assessment, thereby reducing delays and cost overruns. Drones and autonomous vehicles equipped with AI navigate construction sites for surveying, inspection, and data collection, expediting tasks that were once time-consuming.
Safety also receives a boost through AI with the ability to analyze data to predict potential hazards and ensure compliance with safety protocols. Quality control benefits from AI-powered image recognition systems that identify defects in real-time. Additionally, AI-driven energy management systems optimize resource usage in buildings, fostering sustainability.
Market projections indicate sustained growth as construction companies increasingly recognize AI's potential to streamline operations and minimize errors. However, challenges such as data privacy, integration complexities, and the need for upskilling the workforce persist. As AI continues to evolve, the construction industry stands to gain enhanced productivity, reduced costs, and safer work environments.
US Artificial Intelligence in Construction Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Solution
Fastest Growth
Solution
Growth Rate
34.1% CAGR
Global Artificial intelligence in construction market ($ Bn)
Country Share for North America Region (%)
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Artificial Intelligence in Construction Market Segmental Analysis
The global artificial intelligence in construction market is segmented by Offering, Application, Stage, Deployment Type, Industry Type, Organization Size, and Regional. Based on Offering the market is segmented as, Solution, Service. Based on Application the market is segmented as, Asset Management, Project Management, Risk Management, Schedule Management, Supply Chain Management, Others. Based on Stage the market is segmented as, Pre-Construction, Construction-Stage, Post-Construction.
Based on Industry Type, the market is segmented as, Residential, Public Infrastructure, Heavy Construction, Others. Based on Organization Size the market is segmented as, Small & Medium-sized Enterprises (SMEs), Large Enterprises. Based on Regional the market is segmented as, North America, Asia Pacific, Latin America, and Middle East & Africa (MEA).
Artificial Intelligence in Construction Market Analysis By Offering
The market's offering segment is divided into solutions and services, with solutions anticipated to dominate the market share. Notable industry players like IBM, Microsoft, and Oracle are actively providing AI solutions tailored for the construction sector. These AI solutions play a pivotal role in enhancing on-site operational efficiency by catering to key construction functions including risk assessment, project planning, scheduling, and supply chain management.
Furthermore, artificial intelligence solutions are instrumental in addressing the persistent challenge of skilled labor scarcity by automating various tasks. These solutions excel in executing time-consuming activities such as cost estimation, program development, resource allocation, and risk evaluation. Many construction firms have already integrated AI solutions to bolster risk management and elevate job site safety. For instance, instances such as PCL Constructors Inc. and ICONICS, Inc. stand as testaments to the successful deployment of AI platforms in constructing intelligent buildings.
Artificial Intelligence in Construction Market Analysis By Application
The application segment is categorized into asset management, project management, risk management, schedule management, supply chain management, and other functionalities. Notably, the project management sector is anticipated to hold a substantial share within this category. Numerous enterprises are embracing project management applications across all construction phases—pre-construction, construction, and post-construction. This strategic adoption significantly heightens productivity and operational efficiency through the automation of pivotal construction processes. These encompass proposal management, design and planning, sourcing and contract administration, as well as virtual design and construction.
Moreover, the integration of AI-powered project management applications proves particularly advantageous in navigating financially challenging projects. This is achieved by capturing real-time data from construction sites, enabling precise budget assessments through calculation of the original task completion times. Post-construction duties, such as intelligent real estate management and facility supervision, also benefit from these applications. Their implementation aids in sustaining asset functionality and site operations. As a result, companies are dedicating efforts towards incorporating AI-driven project management applications to streamline construction processes holistically.
Global Artificial intelligence in construction market By Offering
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Artificial Intelligence in Construction Market Regional Insights
In 2022, the North American AI in the construction market held a significant share of over 38%. This prominence can be attributed to the region's robust industrial automation sector. North America stands out for its substantial population with increased purchasing power, consistent investments in automation, and governmental emphasis on domestic AI-integrated construction equipment manufacturing. The region's marked investments in Industrial Internet of Things (IIoT) and industrial automation further contribute to the market's growth. Noteworthy tech giants have made substantial investments in this region, emerging as preferred choices for companies seeking AI-driven applications. A case in point is Microsoft Azure, developed by U.S.-based tech giant Microsoft, which has been employed by construction firms like PCL Constructors Inc. and ThyssenKrupp AG to implement AI-enabled building solutions.
Conversely, the Asia-Pacific (APAC) region is poised to exhibit the highest Compound Annual Growth Rate (CAGR) in the forthcoming period. Escalating investments in infrastructure for purposes such as risk management, project oversight, and supply chain optimization fuel the market's expansion in APAC. Emerging economies like India and China showcase a notable uptick in the adoption of pre-construction AI applications. Additionally, the impetus to develop smart cities in these nations propels companies to embrace AI solutions and services, further amplifying the region's growth trajectory.
Global Artificial intelligence in construction market By Geography
- Largest
- Fastest
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Artificial Intelligence in Construction Market Dynamics
Artificial Intelligence in Construction Market Drivers
Efficiency and Productivity Enhancement:
- AI technologies streamline construction processes, reducing manual labor and time consumption. Automation and predictive analytics enhance efficiency, resulting in faster project completion.
Predictive Maintenance:
- AI-driven predictive maintenance ensures timely equipment repairs, reducing downtime and extending machinery lifespan.
Artificial Intelligence in Construction Market Restraints
Cost of Implementation:
- Initial investment and integration costs for AI technologies can be high, especially for small and medium-sized construction firms.
Resistance to Change:
- Traditional construction practices might resist the adoption of AI technologies due to a reluctance to change established processes.
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Artificial Intelligence in Construction Market Competitive Landscape
The competitive landscape of the global artificial intelligence (AI) in the construction market is marked by the active participation of industry giants and innovative startups. Established players such as IBM, Microsoft, and Oracle have solidified their positions by offering robust AI solutions tailored to the construction sector. Their extensive resources, technological prowess, and global reach enable them to provide comprehensive AI-driven applications spanning project management, risk assessment, and supply chain optimization. These companies' established reputations also foster trust among construction firms seeking reliable AI solutions.
Alongside these industry giants, a dynamic ecosystem of startups is emerging, contributing innovative AI technologies to the construction space. These startups often specialize in niche areas, offering targeted solutions such as AI-powered drones for site monitoring or machine learning algorithms for real-time cost estimation. This diverse range of offerings encourages healthy competition and stimulates further innovation within the market.
Artificial Intelligence in Construction Market Top Player’s Company Profile
- IBM
- Microsoft
- Oracle
- Autodesk
- Trimble
- SAP
- Bentley Systems
- Caterpillar Inc.
- Komatsu Ltd.
- ABB Ltd.
- Doxel Inc.
- Smartvid.io
- Procore Technologies
- StructionSite
- BuildingConnected
Artificial Intelligence in Construction Market Recent Developments
- In June 2023, Autodesk announced the launch of its new AI-powered construction management platform, BuildOps. BuildOps uses AI to automate tasks such as scheduling, budgeting, and risk management, helping construction companies to improve efficiency and productivity.
- In May 2023, IBM announced the expansion of its Watson AI for Construction offering. The new offering includes new capabilities for predictive analytics, machine learning, and natural language processing, which can be used to improve decision-making, safety, and quality in construction projects.
- In April 2023, Microsoft announced a partnership with Trimble to develop AI-powered solutions for the construction industry. The partnership will focus on developing solutions for site safety, productivity, and quality control.
- In March 2023, Komatsu launched its first AI-powered excavator, the PC360LCi-11. The excavator uses AI to automate tasks such as digging, loading, and unloading, helping to improve safety and productivity.
Artificial Intelligence in Construction Key Market Trends
- Building Information Modeling (BIM) Integration: Building Information Modeling (BIM) is a cornerstone trend in the AI-driven construction market. BIM utilizes AI algorithms to create 3D digital representations of buildings, enabling stakeholders to visualize, plan, and manage construction projects comprehensively. AI-enhanced BIM platforms facilitate collaborative decision-making, detect clashes in design elements, and optimize resource allocation.
Artificial Intelligence in Construction Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global artificial intelligence in construction market analysis; the artificial intelligence (AI) in construction market is experiencing remarkable growth globally, with North America holding a substantial share due to its technological advancements and investments. The market is segmented into solutions and services, with solutions dominating the market share. AI applications cover project management, risk assessment, and asset management, with the project management segment leading. The market's growth is driven by the pursuit of enhanced efficiency, cost reduction, and improved safety through AI-driven automation, predictive analytics, and data-driven insights. Despite challenges like implementation costs and skilled labor shortages, the industry is witnessing increased adoption. The Asia-Pacific region is expected to exhibit the highest growth, fueled by rising infrastructural investments, especially in countries like India and China, highlighting the global relevance and potential of AI in construction.
| Report Metric | Details |
|---|---|
| Market size value in Construction | USD 665.67 million |
| Market size value in 2031 | USD 9335.08 million |
| Growth Rate | 34.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence in Construction Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence in Construction Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Artificial Intelligence in Construction Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence in Construction Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence in Construction Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence in Construction Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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