Construction Estimating Software Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.42 Billion |
| Market Size (2029) | USD 4.45 Billion |
| CAGR (2024 - 2029) | 12.89 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Construction Estimating Software Market Analysis
The Construction Estimating Software Market size is estimated at USD 2.42 billion in 2024, and is expected to reach USD 4.45 billion by 2029, at a CAGR of 12.89% during the forecast period (2024-2029).
- The construction estimating software market is experiencing robust growth, fueled by the rising intricacy of construction projects, the imperative for precise cost estimations, and technological advancements. A 2023 survey conducted by the Construction Management Association of America revealed that over half of the respondents noted enhancements in their estimating and bidding processes, attributing these improvements to the use of estimating software, either as a supplementary tool to traditional methods or as a complete replacement.
- With urbanization on the rise and numerous infrastructure projects underway, there's a growing demand for construction estimating software. Companies are increasingly adopting these tools to streamline workflows and refine their bidding processes. For instance, Contractor Foreman, an all-encompassing construction management software, boasts robust estimating features. Tailored for small to mid-sized construction firms, Contractor Foreman equips users with tools to craft precise estimates, monitor project costs, and oversee bids.
- Building Information Modeling (BIM) is becoming a cornerstone of modern construction projects, and its synergy with estimation software is a prominent trend. BIM's detailed 3D models lay the groundwork for accurate estimations. By merging BIM's capabilities with estimation software, professionals can achieve heightened precision in cost estimates, reduce discrepancies, and boost overall project efficiency.
- There's a noticeable shift towards cloud-based solutions in construction estimation software. These cloud platforms offer benefits like improved collaboration, real-time data access, and scalability. Such features not only enhance communication among project stakeholders but also streamline the estimation process, allowing professionals to collaborate seamlessly from any location. RedTeam Flex, for example, is a cloud-centric construction management software that comes equipped with powerful estimation tools, enabling users to craft detailed cost estimates, manage bids, and monitor project expenses in real-time.
- However, challenges persist in the market. For organizations with legacy systems, integrating new estimating software can be a daunting and resource-heavy task. Furthermore, as the industry increasingly digitizes its data storage, concerns surrounding data privacy and cybersecurity are becoming paramount for construction firms.
- The global construction industry faced disruptions due to the COVID-19 pandemic, impacting the economic trajectories of nations like China, India, Japan, UAE, and Mexico. In a bid to rejuvenate their pandemic-stricken economies, governments worldwide are channeling investments into the construction sector. This influx not only presents lucrative opportunities for the construction estimating software industry but also underscores the sector's significance in national economic strategies. In the post-pandemic landscape, governments are rolling out a slew of infrastructure projects, spanning residential buildings, commercial complexes, and bridges. These initiatives aim not just at bolstering GDP but also at uplifting employment rates.
Construction Estimating Software Market Trends
Cloud to Hold Significant Share
- Cloud-based construction estimating software serves as an essential tool for builders aiming to enhance operational efficiency and precision. Whether acting as a contractor, sub-contractor, or independent builder, this cutting-edge technology enables users to swiftly generate estimates, monitor expenses, and engage with various stakeholders from any location, at any time.
- According to market.us Scoop, construction firms predominantly utilize project financials software. The primary benefit of such software lies in its ability to boost collaboration and efficiency. By consolidating project data on the cloud, teams can collaborate in real-time, minimize errors, and swiftly make informed decisions. Furthermore, cloud construction estimating software typically boasts features such as project management integrations, automated quote generation, and customizable templates, underscoring its versatility for construction professionals.
- Integrating cloud construction estimating software into everyday operations is poised to revolutionize the construction industry's future. By addressing prevalent bottlenecks and refining project estimation accuracy, these tools not only optimize project management but also promote more sustainable construction practices.
- From project evaluation and takeoff to estimating, construction, and closeout, STACK’s cloud-based software empowers businesses to operate efficiently and boost profits. With STACK’s all-encompassing takeoff and construction cost estimating software, users can bid on more projects in less time. Leveraging top-tier cloud-based tools, users can achieve bids that are 10 times faster and can address up to 35% more winning opportunities.
- In summary, the benefits of adopting cloud technology are poised to drive the sector's growth in the coming years. Utilizing data to streamline processes not only enhances system performance and cost-efficiency but also boosts productivity. Moreover, the recent advancements in cloud-based tools are gaining traction, primarily due to their financial advantages.
North America is Expected to Hold a Major Share of the Market
- North America has consistently been a significant contributor to the construction estimating software market share in the last few years. It is still anticipated to maintain its leadership during the forecast period. The previous year, the area held more than one-third of the worldwide market share for construction management software.
- The region's dominance in the software market can be linked to a robust presence of software management firms, a consistent uptick in infrastructural projects, and a widespread acceptance of software services. Over the past decades, while U.S. spending on private construction has seen more fluctuations than public construction, the overall construction industry has generally trended upwards, with the exception of the post-2007 financial crisis years.
- Contractors in North America's construction sector prioritize specific software functionalities to enhance efficiency and project management. An industry expert survey revealed that 60% of respondents highlighted quick cost calculation as the top feature they seek. This was followed by 40% of contractors valuing software with take-off capabilities. Such preferences underscore the market's growth trajectory.
- Moreover, the market is buoyed by government initiatives promoting technology adoption for superior-quality construction projects. This governmental push not only accelerates progress but also amplifies market demand. A testament to this is the recent approval of an infrastructure investment bill by the U.S. Congress, which promises government funding for various infrastructure endeavors, thereby heightening the demand for labor, tools, and supplies in construction.
Construction Estimating Software Industry Overview
The Construction Estimating Software market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Procore Technologies, Inc., Contractor Foreman, Autodesk, Inc. and others.
The construction estimating software market is poised for significant growth as organizations increasingly recognize the importance of accurate cost estimation in managing complex projects effectively. With substantial revenue projections driven by rising construction activities, technological advancements, and regulatory compliance needs, stakeholders must navigate challenges such as integration complexity while capitalizing on emerging opportunities within this dynamic market landscape. The future looks promising for construction estimating software as it continues to evolve to meet the needs of modern construction firms across various sectors globally.
Construction Estimating Software Market Leaders
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Procore Technologies, Inc.
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Contractor Foreman
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Autodesk, Inc.
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Buildxact
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PlanSwift Software
*Disclaimer: Major Players sorted in no particular order
Construction Estimating Software Market News
- September 2024: Doğuş Technology, one of Turkey's leading tech companies, showcased its innovative, technology-driven solutions for the construction industry at ConteQ Expo 2024, alongside Doğuş Construction, at the Qatar National Convention Center. Both companies presented their projects that drive sector transformation by enhancing efficiency and sustainability in construction by integrating engineering and technology.
- January 2023: eTakeoff, a leading provider in takeoff software for construction estimating announced its partnership with Togal.AI, a fast-growing company bringing artificial intelligence to the construction industry. The partnership will integrate Togal.AI’s innovative artificial intelligence and machine learning technologies with eTakeoff Dimension, the industry veteran’s flagship product.
Construction Estimating Software 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 macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Significant Growth in Population and Rapid Urbanization
5.1.2 Adoption Towards Modern Construction Projects with Intricate Designs
5.2 Market Restraints
5.2.1 Limited Accuracy and High Costs
6. MARKET SEGMENTATION
6.1 By Deployment
6.1.1 Cloud
6.1.2 On-Premise
6.2 By Geography***
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Australia and New Zealand
6.2.5 Latin America
6.2.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Procore Technologies, Inc.
7.1.2 Contractor Foreman
7.1.3 Autodesk, Inc.
7.1.4 Buildxact
7.1.5 PlanSwift Software
7.1.6 ConWize Inc.
7.1.7 Buildsoft
7.1.8 RedTeam Software, LLC
7.1.9 STACK Construction Technologies
7.1.10 Bluebeam, Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Construction Estimating Software Industry Segmentation
Construction cost estimating software is computer software designed for contractors to estimate construction costs for a specific project. A cost estimator typically use estimating software to estimate their bid price for a project, which ultimately become part of a resulting construction contract.
The construction estimating software market is segmented by deployment (cloud, on-premises), geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | |
| Cloud | |
| On-Premise |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Construction Estimating Software Market Research FAQs
How big is the Construction Estimating Software Market?
The Construction Estimating Software Market size is expected to reach USD 2.42 billion in 2024 and grow at a CAGR of 12.89% to reach USD 4.45 billion by 2029.
What is the current Construction Estimating Software Market size?
In 2024, the Construction Estimating Software Market size is expected to reach USD 2.42 billion.
Who are the key players in Construction Estimating Software Market?
Procore Technologies, Inc., Contractor Foreman, Autodesk, Inc., Buildxact and PlanSwift Software are the major companies operating in the Construction Estimating Software Market.
Which is the fastest growing region in Construction Estimating Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Construction Estimating Software Market?
In 2024, the North America accounts for the largest market share in Construction Estimating Software Market.
What years does this Construction Estimating Software Market cover, and what was the market size in 2023?
In 2023, the Construction Estimating Software Market size was estimated at USD 2.11 billion. The report covers the Construction Estimating Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Construction Estimating Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Construction Estimating Software Industry Report
Statistics for the 2024 Construction Estimating Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Construction Estimating Software analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
