Artificial Intelligence (AI) in Construction Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 3.99 Billion |
| Market Size (2029) | USD 11.85 Billion |
| CAGR (2024 - 2029) | 24.31 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Artificial Intelligence (AI) in Construction Market Analysis
The AI In Construction Market size is estimated at USD 3.99 billion in 2024, and is expected to reach USD 11.85 billion by 2029, growing at a CAGR of 24.31% during the forecast period (2024-2029).
Artificial intelligence in the construction industry is experiencing a digital transformation. Focusing on technologies like artificial intelligence and machine learning at every stage of engineering and construction, from design, preconstruction, construction, and operations to asset management, is developing the construction industry's potential to new levels.
- As a technological shift emerges in the construction industry, it is becoming beneficial for the companies that upgrade the technology. Thus, adopting AI products and services in construction is expected to contribute considerably to market growth in the coming years.
- Reducing production costs is a driving factor for adopting AI in the construction industry. Artificial intelligence (AI) technologies offer several benefits to help construction companies streamline operations, improve efficiency, and reduce costs.
- The demand for enhanced safety measures at construction sites is a significant driver for adopting AI in the construction industry. Construction sites are inherently high-risk environments, and accidents or safety incidents can severely affect workers and project timelines. AI technologies offer several capabilities that can improve safety and mitigate risks in construction.
- Artificial intelligence has recently benefited the construction industry, especially in preconstruction phases like planning and designing, enabling advanced capabilities for building information modeling and generative design. AI is being used to monitor the interactions between workers, machinery, and items at the job site in real time and notify managers of any potential safety issues, design flaws, or productivity problems.
- The construction industry relies heavily on skilled labor for various tasks, and the need for more qualified workers can pose challenges when integrating AI technologies. A lack of competent labor in the global construction industry restrains the desire for automation based on AI in the construction sector. Due to stringent migration regulations in many regions, especially in North America and Europe, the supply chain crisis has created a shortage of skilled workers. The Associated Builders and Contractors (ABC) forecasts that the industry will experience a shortage of about 665,000 construction workers in 2022. This forecast is based on organizational analysis and labor demands based on variables such as inflation, construction spending, etc.
- The COVID-19 pandemic significantly impacted the construction sector, which is sensitive to economic cycles but recovered over time. The workforce shortage got worse after the COVID-19 global lockdown and the complete shutdown of construction activity. It was expected to drive construction companies to improve efficiency by adopting AI solutions.
Artificial Intelligence (AI) in Construction Market Trends
Planning and Design Application Segment is Expected to Hold Significant Market Share
- The application of AI in the planning and design segment of the construction industry offers several benefits, ranging from enhanced efficiency and accuracy to improved decision-making. Planning and design are crucial phases of construction. Any flaws or errors committed at this stage of development may incur a severe loss to the contractors in the later stages of the project. Such scenarios lead to many budget constraints and delays in project completion.
- The adoption of Building Information Modeling in the construction industry has emerged as a new way to create the 3D models that construction professionals rely on to design, build, and repair accurately over the past few years. BIM platform programmers are improving the capabilities of BIM with smart, AI-driven features. In September 2022, construction technology startup Toric, a data platform used by construction, engineering, and similar sectors that enabled anyone to integrate, transform, model, and visualize data without writing code, raised USD 22 million in funding. As part of the investment, Toric will offer new integrations for Autodesk Construction Cloud and Autodesk's BIM design tools, such as Revit, Navisworks, and Civil 3D.
- BIM applies various tools and technologies, including machine learning, to help teams avoid a common, costly issue: duplicated work. Sub-teams working on shared projects often spend time creating models that other sub-teams have already made. With BIM, users "teach" machines to use algorithms to generate designs with multiple variations. As the AI builds models, it learns from each iteration until it comes up with the ideal model.
- Generative design involves using AI algorithms to explore various design possibilities based on defined parameters and constraints. AI can generate and evaluate multiple design options against performance criteria such as structural integrity, energy efficiency, or cost-effectiveness. This approach allows designers and architects to quickly generate innovative and optimized designs that meet project requirements.
- VR and AR technologies offer immersive and interactive experiences that aid in visualizing and communicating design concepts. AI can enhance VR and AR applications by generating realistic virtual environments, incorporating real-time data, and enabling real-time interactions. Designers, architects, and clients can use VR and AR to walk through virtual buildings, assess spatial relationships, and make design decisions based on realistic simulations.
- The number of housing construction projects plays a significant role in driving AI's planning and design segments in the construction market. As housing construction projects increase, the demand for efficient and effective planning and design processes also rises. AI technologies offer valuable capabilities that can support and enhance these segments. According to e-Stat (Japan) and MLIT (Japan), approximately 859.5 thousand housing starts were initiated in Japan in 2022. This represented an increase of 0.4 percent compared to the previous year. The highest figure during the surveyed period was recorded in 2013.
North America is Expected to Hold Significant Market Share
- The North America market for artificial intelligence (AI) in construction has been experiencing significant growth in recent years. The region has been at the forefront of technological advancements and digital transformation in the construction industry.
- The North American market for AI in construction is one of the largest and fastest-growing globally. The market is driven by increasing construction activities, demand for advanced technologies, and a focus on improving productivity and efficiency. The market encompasses various AI applications across different stages of the construction lifecycle, including planning, design, construction, and operations.
- North America, particularly the United States, has been a hub for technological innovation in the construction industry. Many regional companies have been at the forefront of developing and implementing AI technologies for construction applications. The market has witnessed the adoption of AI-driven solutions such as predictive analytics, computer vision, robotics, and machine learning across construction processes.
- North America has a robust infrastructure development sector, including residential, commercial, and public infrastructure projects. The region experiences urbanization and population growth, driving the demand for new construction projects. AI technologies are increasingly integrated into construction processes to optimize project planning, design efficiency, and operational management.
- North America has a well-defined regulatory environment that governs construction practices and safety standards. The regulatory landscape influences the adoption of AI in construction, as compliance with regulations and standards is crucial. AI technologies can help construction companies adhere to regulatory requirements, enhance safety measures, and improve overall compliance in the industry.
- As the North American construction industry embraces digital transformation, AI technologies are expected to improve productivity, safety, and project outcomes. The market is characterized by a growing ecosystem of AI technology providers, construction firms, and research institutions working together to drive innovation and advance the adoption of AI in construction practices.
Artificial Intelligence (AI) in Construction Industry Overview
- The artificial intelligence market in construction is fragmented with the presence of major players like Autodesk Inc., Building System Planning Inc., Smartvid.io Inc., Doxel Inc., and Bentley Systems Inc. Players in the market are adopting strategies such as partnerships, collaborations, and acquisitions to enhance their application offerings and gain a sustainable competitive advantage.
- In April 2023, Autodesk and VC Group agreed to accelerate digital transformation in the construction industry. Under the recent Government's Decision No. 258/Q-TTg on the approval of the Roadmap for the Application of Building Information Modeling (BIM) in the Construction Sector, Autodesk is expected to provide guidance and assistance to VC Group in their efforts to adopt technologies and digitize design and construction consultancy.
- In June 2022, Siemens, a pioneer in accelerated graphics and artificial intelligence (AI), and NVIDIA, a pioneer in infrastructure, building technology, and transportation, collaborated to establish the Industrial Metaverse.
Artificial Intelligence (AI) in Construction Market Leaders
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Autodesk Inc.
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Building System Planning Inc.
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Smartvid.io Inc.
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Doxel Inc.
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Bentley Systems Inc.
*Disclaimer: Major Players sorted in no particular order
Artificial Intelligence (AI) in Construction Market News
- January 2024: Siemens and Amazon Web Services (AWS) are enhancing their collaboration, simplifying the process for businesses across various sectors to develop and expand generative artificial intelligence (AI) applications. This partnership empowers domain experts in engineering, manufacturing, logistics, insurance, and banking to innovate and enhance applications using advanced generative AI technology.
- October 2023: Comcast has unveiled plans to roll out Internet services, powered by DOCSIS 4.0 with FDX, to its initial customer base. While Comcast remains committed to FDX technology, its partnership with Broadcom offers both Comcast and other operators a broader spectrum of choices, enhancing their ability to offer top-tier connectivity. Notably, DOCSIS 4.0 with FDX achieves this without necessitating extensive new network infrastructure construction, benefitting both individuals and businesses, potentially reaching hundreds of millions.
AI In Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Industry
5. TECHNOLOGY SNAPSHOT
6. RELEVANT USE-CASES & CASE STUDIES
7. MARKET DYNAMICS
7.1 Market Drivers
7.1.1 Increasing Need to Reduce Production Costs
7.1.2 Demand for More Safety Measures at Construction Sites
7.2 Market Challenges
7.2.1 Scarcity of Skilled Employees and Workers
8. MARKET SEGMENTATION
8.1 By Application
8.1.1 Planning and Design
8.1.2 Safety
8.1.3 Autonomous Equipment
8.1.4 Monitoring and Maintenance
8.2 By Geography***
8.2.1 North America
8.2.2 Europe
8.2.3 Asia
8.2.4 Australia and New Zealand
8.2.5 Latin America
9. COMPETITIVE LANDSCAPE
9.1 Company Profiles
9.1.1 Autodesk Inc.
9.1.2 Building System Planning Inc.
9.1.3 Smartvid.io Inc.
9.1.4 Doxel Inc.
9.1.5 Bentley Systems Inc.
9.1.6 PTC Inc.
9.1.7 IBM Corporation
9.1.8 NVIDIA Corporation
9.1.9 Oracle Corporation
9.1.10 Alice Technologies Inc.
9.1.11 Dassault Systems SE
9.1.12 Lurtis Rules, S.L.
9.1.13 Microsoft Corporation
9.1.14 eSUB Inc.
- *List Not Exhaustive
10. INVESTMENT ANALYSIS
11. MARKET OPPORTUNITIES AND FUTURE TRENDS
Artificial Intelligence (AI) in Construction Industry Segmentation
Artificial intelligence is the concept of machines being able to perform tasks in a way that mimics sophisticated human intelligence capabilities, like recognition, planning, and decision-making. AI solutions have impacted other industries and are beginning to emerge in the construction sector. The study covers the market based on AI applications in different construction areas across the globe.
The artificial intelligence market in construction is segmented by application (planning and design, safety, autonomous equipment, monitoring, and maintenance) and by geography (North America, Europe, Asia Pacific, and the Rest of the World). The report offers market forecasts and size in value (USD) for all the above segments.
| By Application | |
| Planning and Design | |
| Safety | |
| Autonomous Equipment | |
| Monitoring and Maintenance |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America |
AI In Construction Market Research Faqs
How big is the AI In Construction Market?
The AI In Construction Market size is expected to reach USD 3.99 billion in 2024 and grow at a CAGR of 24.31% to reach USD 11.85 billion by 2029.
What is the current AI In Construction Market size?
In 2024, the AI In Construction Market size is expected to reach USD 3.99 billion.
Who are the key players in AI In Construction Market?
Autodesk Inc., Building System Planning Inc., Smartvid.io Inc., Doxel Inc. and Bentley Systems Inc. are the major companies operating in the AI In Construction Market.
Which is the fastest growing region in AI In Construction Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in AI In Construction Market?
In 2024, the North America accounts for the largest market share in AI In Construction Market.
What years does this AI In Construction Market cover, and what was the market size in 2023?
In 2023, the AI In Construction Market size was estimated at USD 3.02 billion. The report covers the AI In Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI In Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
AI In Construction Industry Report
Statistics for the 2024 AI in Construction market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. AI in Construction analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
AI In Construction Market Report Snapshots
