Artificial Intelligence (AI) in Construction Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Artificial Intelligence (AI) in Construction Market size was estimated at USD 4.7 billion in 2023 and is projected to reach USD 25.2 billion in 2030 at a CAGR of 24.8% during the forecast period 2024-2030.

Artificial Intelligence (AI) is revolutionizing the construction industry by introducing transformative technologies across all stages of project development, from design and preconstruction to construction, operations, and asset management. This digital shift is not just advantageous but increasingly essential for companies aiming to stay competitive and achieve sustainable growth in the market. AI technologies promise substantial benefits, including enhanced operational efficiency, cost reduction, and improved safety measures at construction sites.

One of the primary drivers behind the adoption of AI in construction is its potential to lower production costs significantly. By leveraging AI-powered solutions, construction firms can streamline their operations, optimize resource allocation, and minimize waste, thereby improving overall project economics. Moreover, AI's role in enhancing safety standards is critical in mitigating risks inherent to construction environments. AI systems can monitor site activities in real-time, identify potential hazards, and alert managers to prevent accidents, ensuring both worker safety and project continuity.

AI's impact extends beyond operational efficiencies to encompass advanced functionalities in project planning and design phases. Technologies like building information modeling (BIM) and generative design powered by AI enable more sophisticated architectural and engineering capabilities, facilitating better project outcomes from inception through completion

Despite these advancements, the integration of AI in construction faces challenges, particularly due to the industry's heavy reliance on skilled labor. The shortage of qualified workers globally impedes the full-scale adoption of AI-driven automation. Regulatory constraints on migration in regions such as North America and Europe exacerbate this issue, further limiting access to necessary labor for AI implementation.

The COVID-19 pandemic further underscored the need for enhanced efficiency in the construction sector, catalyzing interest in AI solutions. The crisis disrupted supply chains and exacerbated labor shortages, prompting construction companies to seek technological solutions to optimize productivity and resilience.

Looking ahead, the AI in construction market is poised for substantial growth as more companies recognize the imperative to integrate these technologies. Market expansion will be driven by ongoing innovations in AI applications tailored for construction, coupled with increasing investments in digital transformation across the industry. As AI continues to mature and address specific challenges like labor shortages and safety concerns, its adoption is expected to accelerate, marking a pivotal shift towards a more efficient and safer construction ecosystem.

Delvens Industry Expert's Standpoint

The Artificial Intelligence (AI) in Construction Market is currently at a pivotal stage, poised for significant growth driven by its transformative potential across project lifecycle phases. Presently, AI-powered tools are increasingly automating repetitive tasks such as scheduling, resource allocation, and progress monitoring, which traditionally slowed down construction projects. This automation not only enhances operational efficiency and speeds up project completion but also optimizes material procurement through accurate forecasting and real-time adjustments, thereby reducing waste and costs.

Looking forward, the AI in Construction Market is expected to expand rapidly. The adoption of AI will continue to streamline construction processes, from design optimization using generative design and BIM to on-site safety monitoring and project management. AI's ability to analyze vast amounts of data will enable construction companies to identify and mitigate risks, optimize workflows, and make informed, data-driven decisions. Despite challenges such as data integration complexities, cybersecurity concerns, and initial implementation costs, ongoing advancements in AI technology and increasing industry-specific solutions are set to overcome these barriers.

As AI becomes more integral to construction operations, there will be a growing demand for skilled professionals who can manage AI systems and leverage data insights effectively. This convergence of technology and expertise will not only drive innovation within the construction sector but also enhance overall project outcomes, safety standards, and sustainability efforts, positioning AI as a cornerstone of future construction industry growth.

Market Portfolio

Key Findings

• On the basis of Offering, The Offering segment in the Artificial Intelligence (AI) in Construction Market is poised for substantial growth, driven by offerings from major players like IBM, Microsoft, and Oracle. These AI solutions are pivotal in enhancing operational efficiency by automating tasks such as risk management, project planning, schedule management, and supply chain optimization. By reducing dependency on skilled labor and improving productivity, AI solutions streamline workflows and accelerate project timelines. Furthermore, AI's ability to bolster safety measures through real-time monitoring and predictive analytics is crucial in mitigating risks at construction sites. As more companies, exemplified by PCL Constructors Inc. and ICONICS, Inc., integrate AI platforms to build smart buildings and improve project outcomes, the market for AI in construction is expected to expand significantly, driven by the growing recognition of AI's transformative impact on industry efficiency and innovation.

• On the basis of Application, the application segment is poised to significantly boost the Artificial Intelligence (AI) in Construction Market, expected to command a substantial market share. AI-enabled project management solutions streamline processes across all construction phases—from pre-construction planning to post-construction tasks like real estate and facilities management. These applications automate critical functions such as proposal management, planning, sourcing, and contract management, enhancing efficiency and productivity. AI's ability to capture and analyze real-time data from job sites enables precise budgeting and resource allocation, addressing common challenges like managing over-budget projects. As construction companies increasingly adopt AI to optimize operations and improve project outcomes, the demand for sophisticated AI-driven project management tools is set to drive market expansion, fostering innovation and competitiveness in the construction industry.

• On the basis of Industry Type, the Industry Type segment is set to propel growth in the Artificial Intelligence (AI) in Construction Market, anticipated to hold a significant market share. This sector encompasses large-scale projects such as ports, dams, bridges, and energy infrastructure, which demand meticulous project management and face challenges like complex logistics and safety risks. AI solutions are pivotal in addressing these challenges by automating tasks like scheduling, resource allocation, and predictive maintenance, thereby enhancing productivity and operational efficiency on job sites. AI's ability to provide real-time data analytics and smart visualization offers project managers crucial insights for better decision-making and risk management. Moreover, the integration of AI-driven technologies in heavy construction, including advancements in self-operating machines for site work and grading, underscores its role in revolutionizing industry practices. As major players invest in AI solutions tailored for heavy construction, the market is poised for significant expansion, driven by the sector's increasing adoption of technology to improve project outcomes, safety standards, and overall competitiveness.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America held the largest Artificial Intelligence (AI) in Construction Market share due to robust focus on project efficiency, government support through funding initiatives, and proactive adoption of AI technologies for enhanced project management and risk mitigation.

Regional Analysis

North America to Dominate the Market

• North America held the largest Artificial Intelligence (AI) in Construction Market primarily due to substantial investments by construction companies and the presence of established vendors catering to a growing demand. The region benefits from early adoption and integration of AI technologies across diverse applications such as project management, field operations, risk mitigation, and supply chain optimization. Despite challenges like industry fragmentation and a shortage of skilled AI-proficient workforce, North America's proactive approach in leveraging AI for improving construction efficiency, safety, and cost-effectiveness solidifies its position as the largest market for AI in construction.

Competitive Landscape

• Autodesk Inc.
• Building System Planning Inc.
• Smartvid.io Inc.
• Doxel Inc.
• Bentley Systems Inc.
• PTC Inc.
• IBM Corporation
• NVIDIA Corporation
• Oracle Corporation
• Alice Technologies Inc.
• Dassault Systems SE
• Lurtis Rules, S.L.
• Microsoft Corporation
• eSUB Inc.

Recent Developments

• In November 2022, Disperse.io, a UK-based construction technology firm, introduced a new product named Impulse. Utilizing AI, this platform enhances project management by analyzing 360° site scans to identify and present issues in building elevations, aiding project managers in making informed decisions based on performance insights captured from construction sites.

• In September 2022, Briq, a construction technology financial firm, acquired Swipez, an Indian fintech company specializing in automated billing and revenue collection. Briq's platform facilitates the automation of essential financial workflows within construction companies, including corporate planning, labor and materials forecasting, project forecasts, and revenue projections. Swipez streamlined billing management for businesses, offering efficient client billing management and timely revenue collection through automated processes.

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Report Scope