Artificial Intelligence in Construction Market Forecast (2019 – 2025) By Offering, Application, Stage, Deployment Type, Industry Type, Organization Size, and Region

The global artificial intelligence (AI) in construction market size was valued at $398.6 million in 2018 and is expected to reach $2421.26 million by 2025 and record a CAGR of 36.0% from 2019 to 2025. The role of artificial intelligence in improving safety standards and assistance in predicting threats at construction sites have been a major factor fueling the growth of the global artificial intelligence (AI) in construction market.

Growing awareness about the safe of site workers to boost the market growth during the forecast period

Increase in the use of artificial intelligence for the development of industrial internet of things (IIoT) based applications for construction sites, growing injuries and fatalities at construction sites, improved on-site visibility, rise in awareness to reduce unexpected falls and incidents, and better execution of tasks by workers are some of the prime factors propelling the growth of the market. On the other hand, the growth in the use of AI neural networks in construction projects to detect cost overruns and to provide real-life training material for improving the knowledge and skills of site workers are other factors fueling the market growth.

Segment Analysis

The global artificial intelligence (AI) in construction market is segmented based on offering, application, stage, industry type, deployment type, organization size, and region. By offering, the market is classified into solution and service. Based on application, the market is categorized into asset management, project management, risk management, schedule management, supply chain management, and others. Depending on stage, the market is divided into pre-construction, construction-stage, and post-construction. Further, based on deployment type, the market is bifurcated into cloud and on-premises. Based on industry, the market is classified into residential, public infrastructure, heavy construction, and others. Depending on the size of organization, the market is divided into small and medium-sized enterprises (SMEs) and large enterprises. By region, the market is studied across North America, Europe, Asia Pacific, South America, and MEA.

Solution segment expected to hold major market share throughout the estimated period

The solution sub-segment is projected to grab a larger share of the market among offerings segment. Key market players such as Microsoft, IBM, and Oracle are providing artificial intelligence solutions for the industry. AI solutions enhances on-site productivity by providing key construction applications, such as schedule management, project planning, risk management, and supply chain management.

Artificial intelligence solutions also solve the problem of shortage of skilled workers by adding automation to this task. Many construction firms have implemented AI solutions for risk management and improving the safety at the construction site. For example, PCL Constructors Inc. and ICONICS, Inc. have used artificial intelligence platforms at the construction site to build smart buildings.

Project management segment anticipated to dominate the market during the forecast period

The project management sub-segment is projected to hold a major share of the market among applications segment. Numerous companies have implemented the project management application for every stage of the construction, such as pre-construction, construction-stage, and post-construction. It benefits the company by improving productivity and efficacy by automating the construction procedures, such as sourcing and contract management, planning and designing, proposal management, and virtual design & construction.

AI-enabled project management application is also useful in managing the over-budget construction projects by pulling the real-image data from the construction site and offering exact estimations for budget by calculating the original hours taken to complete the job. It is also used for post-construction activities such as facilities management and real estate management & intelligent buildings. Additionally, it assists in maintaining the assets and facility operations of the construction site. Thus, today many companies are mainly focusing on adopting AI-enabled project management applications.

Pre-construction segment projected to rule the market in next few years

The pre-construction sub-segment is anticipated to grab a major share among other stages segment in the market. This stage involves the prior project management tasks, such as schedule management and cost management. Hence, many construction firms are adopting for effective management of the entire construction project.

Cost management is one of the important pre-construction stage tasks and construction companies prefer artificial intelligence for this task. AI-enabled cameras at the construction site capture the total time and resources spent on a project, based on which cost and budget is decided for the future projects. Artificial intelligence assists the project managers in estimating the budget, based on the type of contract and project start and end dates. Additionally, AI helps in creating a virtual representation of the model that is to be constructed.

Cloud segment predicted to hold a significant market share during the estimated period

The cloud sub-segment is anticipated to hold a major market share amongst both deployment types due to the increase in investments in IoT-based applications. Numerous AI solutions providers for construction companies are investing in IoT and cloud-based products and services through mergers and acquisitions. The investments are intended for developing computer-aided virtual environment (CAVE), to provide architects, contractors, and clients with a virtual view of their building.

Heavy construction segment projected to dominate the market in the future

Heavy construction sub-segment is expected to hold a major market share among industry types segment, because of rising accidents and sudden falls at large construction sites. Heavy construction involves massive structures and a wide variety of equipment that require appropriate project management and extensive engineering. Many major equipment producers are investing in self-operating machines to perform excavation, site work, demolition, grading, and paving, amongst other tasks.

In large enterprises and heavy building sites, tracking the processes is quite challenging. AI-powered solutions and services help to manage task scheduling and reallocation, and other project planning related tasks. Substantial infrastructures such as bridges, roads, ports, dams, transportation, waterways, coastal engineering, and energy infrastructure are adopting the AI solutions as it helps to measure productivity on the construction sites while promising project managers a competitive edge with smart visualized data.

Large enterprises expected to lead the market over the forecast period

The large enterprises are anticipated to seize a substantial share of the market among both organization sizes. Large enterprises, including the government and commercial enterprises, are gradually implementing AI-based solutions on a large scale, due to the increasing demand for risk management and project management solutions across the segment.

On the other hand, small and medium enterprises are increasingly adopting AI solutions due to its extensive benefits of data generation, as the need for. Moreover, the growing demands of the construction companies for appropriate data management in these companies is likely to drive the growth of the market in the near future.

Regional Analysis

North America was observed to grab 38% share of the market in 2018, mainly because of the growing industrial automation market in the region. North America is recognized as a region with huge population having enhanced purchasing power, unceasing investments in automation, and governments’ growing emphasis on having in-house AI in construction equipment manufacturing. Moreover, significantly growing investments in IIoT and industrial automation is one of the chief reasons fueling the growth of North America market. Many big companies offering technical solutions have invested in this market and have been chosen for implementing AI-based applications by the other companies. For example, several construction companies, such as PCL Constructers Inc. and ThyssenKrupp AG have used the Microsoft Azure, developed by the U.S. based tech giant Microsoft, to deploy AI-enabled building solutions.

APAC region is anticipated to register the highest CAGR in the coming future. Growing infrastructural investments for numerous applications, such as project management, risk management, and supply chain management are propelling the growth of this market in the Asia-Pacific region. Pre-construction AI applications have experienced an increased adoption in emerging economies, such as India and China. Additionally, the growing demand to develop smart cities in these economies is encouraging the companies to adopt AI solutions and services.

Key market players

Some of the major players of the global artificial intelligence (AI) in construction market are IBM Corporation; Microsoft Corporation; ALICE Technologies Inc.; Oracle Corporation; SAP SE; eSUB Inc.; Smartvid.io, Inc.; Darktrace; Aurora Construction and Security; and Autodesk Inc. In order to improve the presence in the market, several companies are adopting strategies such as mergers & acquisitions, and research & development investments. For example, in August 2019, Procore Technologies, Inc. acquired the Construction BI, LLC, to bring next-generation AI analytics to the construction industry. With the acquisition of Construction BI, the company is looking forward to offer its clients greater transparency and accessibility to their data to support them in taking better, more effective decisions. This can also offer its customers with a host of new and rich industry insights, such as foreshadowing risk, benchmarking against peers, and precisely estimating the outcomes during the construction process.

In December 2018, Autodesk Inc. acquired two U.S. based construction-tech startups PlanGrid, Inc., and Building Connected. These acquisitions were aimed at inspiring construction software development to digitize the whole process of construction.

Key Benefits for Stakeholders

• This research provides the analytical representation of the global artificial intelligence (AI) in construction market along with the recent trends and future predictions to illustrate the future investment pockets.
• The overall market potential is determined to understand the profitable trends to help stakeholders obtain a lead position in the market.
• Porter’s five forces analysis to determine the potency of the buyers and suppliers of the market is also offered in the report.
• The report provides information related to key drivers, restraints, and opportunities with a thorough impact analysis.

Key Segments

By Offering 

• Solution
• Service

By Application 

• Supply Chain Management
• Asset Management
• Risk Management
• Project Management
• Schedule Management
• Others

By Stage 

• Pre-Construction
• Post-Construction
• Construction-Stage

By Deployment Type 

• Cloud
• On-Premises

By Industry Type 

• Residential
• Heavy Construction
• Public Infrastructure
• Others

By Organization Size 

• Small & Medium-sized Enterprises (SMEs)
• Large Enterprises

By Region 

• North America

  • Canada
  • U.S.
  • Mexico

• Europe

  • France
  • U.K.
  • Germany

• Asia Pacific

  • Japan
  • China
  • India

• South America

  • Brazil

• Middle East and Africa (MEA)