Artificial Intelligence in Construction Market - Growth, Trends, and Forecast (2019 - 2024)

The Artificial Intelligence in Construction Market is segmented by Application (Planning and Design, Safety, Equipment, and Monitoring and Maintenance), and Geography.

Market Snapshot

artificial intelligence in construction market
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

Key Players:

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Artificial Intelligence in Construction Market

The artificial intelligence in construction market was valued at USD 434.038 million in 2018, and is expected to reach a value of USD 2,486.78 million by 2024, at a CAGR of 33.79%, during the forecast period (2019 - 2024). The engineering and construction sector is still behind the curve in implementing artificial intelligence solutions.

  • In the recent years, artificial intelligence has been very beneficial to the construction industry, especially in pre-construction phases, like planning and designing, enabling advanced capabilities for building information modeling and generative design. Additionally, considerable innovations in safety, monitoring, and maintenance systems that use AI capabilities to predict and warn about adverse situations are gradually increasing the role of AI-based technology in the construction industry.
  • Lack of skilled work force, due to stringent migration regulations in many regions, especially in North America and Europe, is driving the demand for AI-based automation in the construction sector. In the current market scenario, according to over 69% of project owners, poor contractor and workforce performances are the major reasons for project underperformance. Additionally, some factors, like rising demand for AI-based platforms and solutions, widespread adoption of Industry 4.0 and IIoT, and stringent safety regulations by governments, are driving the market.
  • Apart from the incumbent players, several startups are working toward applying artificial intelligence capabilities to traditional construction practices. For example, the tech startup Doxel, has an AI-based system that makes use of robotics and LIDAR technology to collect data from the construction site and provide meaningful insights to the engineers.
  • Furthermore, recovering oil and gas prices in the global market and infrastructure investments in several countries are expected to contribute to the commencement of over 5,356 construction projects in the top-twenty construction markets. Such developments are expected to create considerable demand for AI in the construction sector over the forecast period.

Scope of the Report

Artificial intelligence (AI) is the concept of machines being able to perform tasks in a way that would mimic complex human intelligence capabilities, like recognition, planning, and decision making. The technology has been widely adopted across several industries. However, the construction industry has been the slowest, in terms of adoption of the AI technology.
Application
Planning and Design
Safety
Equipment
Monitoring and Maintenance
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Planning and Design Segment is Expected to Occupy Significant Market Share

Planning and design phase is one of the most crucial phases in any construction project. A lot of soft costs are associated with research, architecture, and design, as making any changes in the construction phase would lead to budgetary constraints. 

As more than 35% of construction professionals spend time in activities, such as conflict resolution, dealing with design flaws, and rework, paper-based communication is hard to update and distribute. Such scenarios are increasing the demand for one-stop solutions, such as BIM 360 (Autodesk), that make use of AI to eliminate flaws in design at the planning stage, with the help of generative design capabilities.

In the planning stage, AI surveys a proposed construction site and gathers valuable data and information to create 3D maps, blueprints, and construction plans. Before AI was introduced, this was a process that would take weeks to complete. The technology helps to save both time and money in the form of labor. Additionally, it gives professionals the insights that they need to effectively design, plan, construct, and manage buildings and infrastructure.

AI is also being used to ease the communication between different elements in the construction process. For Instance, the US software firm, PlanGrid, offers an app that gives real-time updates and synchronized files to allow architects, designers, and contractors easy access to the plans related to a project. Additionally, it enables project data to be accessed on the spot by anyone on the team from a smartphone.

Parametric Architecture also comes under the purview of planning and design. Parametric design is a design system that allows customization with specific parameters to create different types of outputs. Like a programming language, the tool gives architects the ability to pick their design output, set the constraints, plug data, and create countless iterations of the product or building within minutes.

artificial intelligence in construction market

To understand key trends, Download Sample Report

North America is Expected to Witness Significant Growth Rate

North America is one of the most advanced construction markets in the world. It is the second-largest construction market, after Asia-Pacific, with more than 15% of the global annual construction revenues. The various applications are effectively used for AI technologies, such as project management, field management, risk management, schedule management, supply chain management, and others.

The change in the political scenario of the United States and massive construction labor shortage in the region, despite a considerable increase in construction labor activities, are driving the need for automation in the construction sector. The country is one of the most prominent hubs for construction tech startups.  Therefore, rapid adoption of AI is expected in the construction sector to overcome these hurdles, making it the fastest-growing region for artificial intelligence in the construction market.  

There is a robust increase in investments by the companies, such as Oracle Corporation, IBM Corporation, and many more, in developing technologies, such as machine learning and neural networks. The region also hosts many AI solution providers and construction companies, making it the most strong and competitive region.

AI is also being used increasingly in applications for surveying and analyzing materials and structures. For Instance, the US firm, Roadbotics, is aiming to revolutionize the way that road infrastructure is maintained and managed. The company uses cameras fixed on car windshields to record the condition of a road. AI software is then used to analyze the data and develop maps, flagging areas, where maintenance work is needed.

artificial intelligence in construction market

To understand geography trends, Download Sample Report

Competitive Landscape

The artificial intelligence in construction market consists of some major players providing AI solutions for the construction sector. Major players are undergoing new innovations and acquisitions, in order to provide more efficiency, as the construction sector is already witnessing slow growth in adopting these technologies.

For example, as of January 2018, NVIDIA, a prominent AI solutions developer in the global market, partnered with a Japanese construction equipment-manufacturer, Komatsu, to make use of drones and AI in the construction site. Reportedly, the partnership enables contractors to use NVIDIA's AI platform to analyze the data collected from drones to assess equipment costs and real-time worker interactions.

Autodesk Inc. released the next generation of BIM 360 and Connect and a new integration partner program called Construct Exchange, in order to bring third-party software applications and data into the BIM 360 construction workflow. This generation of BIM 360, is expected to support informed decision-making throughout the construction project lifecycle, by centralizing all project data in a single place.

 

Major Players

  1. Autodesk Inc.
  2. Smartvid.io Inc.
  3. Doxel Inc.
  4. Volvo AB
  5. Built Robotics Inc.

* Complete list of players covered available in the table of contents below

artificial intelligence in construction market

Table of Contents

  1. 1. INTRODUCTION

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

  5. 5. MARKET DYNAMICS

    1. 5.1 Introduction to Market Drivers and Restraints

    2. 5.2 Market Drivers

      1. 5.2.1 Rising Demand for AI-based Platforms and Solutions and Adoption of Industry 4.0 and IIoT

      2. 5.2.2 Construction Labor Shortage

      3. 5.2.3 Stringent Safety Regulations

    3. 5.3 Market Restraints

      1. 5.3.1 Low Levels of Penetration

    4. 5.4 Market Opportunities

      1. 5.4.1 Increasing Construction Activities Due to Smart City Initiatives

  6. 6. MARKET SEGMENTATION

    1. 6.1 Application

      1. 6.1.1 Planning and Design

      2. 6.1.2 Safety

      3. 6.1.3 Equipment

      4. 6.1.4 Monitoring and Maintenance

    2. 6.2 Geography

      1. 6.2.1 North America

      2. 6.2.2 Europe

      3. 6.2.3 Asia-Pacific

      4. 6.2.4 Latin America

      5. 6.2.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Autodesk Inc.

      2. 7.1.2 Building System Planning Inc.

      3. 7.1.3 Smartvid.io Inc.

      4. 7.1.4 Komatsu Ltd

      5. 7.1.5 Doxel Inc.

      6. 7.1.6 Volvo AB

      7. 7.1.7 Built Robotics Inc.

      8. 7.1.8 Accenture PLC

      9. 7.1.9 Nemetschek SE

      10. 7.1.10 Dassault Systemes SE

      11. 7.1.11 PTC Inc.

    2. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 8.1 Investment Analysis

    2. 8.2 Future of the Market

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please Enter a Valid Message!


Complete your payment details below

Shipping & Billing Information

Payment Information