AI In Construction Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 11.10 Billion |
| Market Size (2030) | USD 24.30 Billion |
| Growth Rate (2025 - 2030) | 16.90% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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AI In Construction Market Analysis by Mordor Intelligence
The AI in construction market is valued at USD 11.1 billion in 2025 and is forecast to reach USD 24.3 billion by 2030, advancing at a 16.9% CAGR. Rising capital flows into digital infrastructure, sweeping labor shortages, and tightening safety mandates are prompting contractors to adopt intelligent automation at scale. Contractors use predictive analytics to rein in overruns, cloud-native platforms to unify siloed data, and autonomous equipment to close widening skills gaps. Major owners earmark record budgets for AI-ready data centers, while regulators codify AI-based safety and emissions reporting standards that raise technology adoption urgency. Competitive intensity heightens as incumbents integrate AI into familiar workflows to defend their share against venture-backed specialists that promise step-change productivity gains.
Key Report Takeaways
- By component, solutions held 68% of the revenue in the AI in construction market in 2024, while services are projected to post a 34% CAGR through 2030.
- By application, planning and design, led by 35.5% of the AI in construction market share in 2024, is set to expand at a 39.2% CAGR.
- By deployment, cloud captured a 62% share of the AI in construction market size in 2024, but Hybrid models are tracking a 37% CAGR.
- By project lifecycle phase, pre-construction held a 38% share in 2024 of the AI in construction market; post-construction/O&M is on track for a 42% CAGR.
- By end-user, general contractors commanded 42% of demand in 2024 in the AI in construction market, whereas Facility Managers led growth at a 36% CAGR.
- By project type, commercial projects led with 37% share in 2024 in the AI in construction, yet Infrastructure is forecast to accelerate at 31% CAGR.
- By geography, North America contributed 43% revenue in 2024 in the AI in construction; Asia Pacific is poised for a 33.5% CAGR through 2030.
Global AI In Construction Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cost and schedule optimisation via predictive analytics | +3.2% | Global with early adoption in North America and EU | Medium term (2-4 years) |
| Construction-site safety compliance acceleration | +2.8% | Global, driven by US and EU regulation | Short term (≤ 2 years) |
| Labour-shortage-driven robotics adoption | +4.1% | APAC core, spill-over to North America | Medium term (2-4 years) |
| ESG-linked demand for low-carbon, data-rich projects | +2.3% | EU leading, expanding to North America and APAC | Long term (≥ 4 years) |
| Boom in AI-ready data-centre projects | +3.7% | Global, concentrated in US, South Korea, China | Short term (≤ 2 years) |
| Maturity of openBIM standards enabling AI interoperability | +1.9% | Global, advanced in developed markets | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Cost and schedule optimisation via predictive analytics
Predictive analytics halves overruns by simulating thousands of schedule variations against live resource, weather, and supply-chain inputs, as Zachry Construction’s use of ALICE Core confirms.[1]Engineering News-Record, “Zachry Tests ALICE AI for Megaproject Scheduling,” enr.comContractors report 37% labour-productivity gains and 41% fewer change orders once models flag clashes before crews mobilise. These quantifiable wins make predictive planning the default starting point for digital-first project delivery in the AI in construction market.
Construction-site safety compliance acceleration
Computer-vision gateways now detect missing PPE, unsafe proximity, or equipment failures in real time, cutting incident rates by 67.5% and insurance claims by 36.8%. The US Department of Homeland Security’s critical-infrastructure guidance endorses AI-enabled risk assessment, strengthening the regulatory tailwind.[2]DHS, “Critical Infrastructure AI Safety Guide,” dhs.gov Contractors such as GCC use Buildots to inspect 70,000 elements weekly, alerting crews before hazards escalate. As penalties rise, safety-first AI becomes a board-level mandate.
Labour-shortage-driven robotics adoption
Robots now assume rebar tying, bricklaying, and solar pile driving, trimming dangerous work hours by 72% and boosting accuracy by 55%. Japan’s Kajima Corporation orchestrates unmanned machinery via the A4CSEL platform, tackling up to 7,000 micro-tasks per shift.[3]The Asahi Shimbun, “Kajima’s A4CSEL Automates Heavy Equipment,” asahi.comThe technology lets owners proceed despite aging craftspeople, especially across APAC, where deficits are most acute. Autonomous solutions, therefore, rank among the strongest growth vectors in the AI in construction market.
ESG-linked demand for low-carbon, data-rich projects
AI selects materials, predicts HVAC loads, and automates off-site fabrication, driving 25% carbon cuts versus legacy approaches. Platforms like Estabild feed live-site data into ESG dashboards so builders can prove compliance to investors in real time. Europe’s taxonomy regulations push contractors to quantify embedded carbon, turning AI from optional to essential for qualification.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High upfront investment and unclear ROI | -2.1% | Global, most severe for SME contractors | Short term (≤ 2 years) |
| Shortage of AI-literate construction talent | -1.8% | Global, acute in developed markets | Medium term (2-4 years) |
| Fragmented project data and legacy siloed systems | -1.5% | Global legacy markets | Long term (≥ 4 years) |
| Forthcoming AI-governance and transparency rules | -1.2% | EU leading, expanding globally | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High upfront investment and unclear ROI
Comprehensive AI roll-outs frequently exceed USD 100,000 before benefits materialise, a threshold that sidelines many subcontractors. Project-based revenue models further complicate payback calculations, slowing the early-stage uptake of AI in the construction market.
Shortage of AI-literate construction talent
Universities have only recently added data-science modules to construction curricula, leaving firms to compete for scarce specialists who command premium wages. Skill shortages lengthen pilot timelines and dilute achievable savings, tempering near-term growth.
Segment Analysis
By Component: Solutions Lead While Services Accelerate
Solutions accounted for 68% of 2024 spend as contractors rushed to license off-the-shelf platforms that plug easily into existing workflows. Service revenues trail in absolute terms yet they are projected to climb at a 34% CAGR because enterprises now hire integrators to tune algorithms to project-specific data sets. The AI in construction market size for Services is set to close the gap as adopters prioritise change-management expertise over stand-alone code. Multimodal suites from Trimble stitch generative design, project controls, and automated quantity take-off into one interface, dampening point-solution appeal.
Consultants, systems integrators, and specialised trainers capture mindshare by cleaning legacy datasets, building data lakes, and managing continuous-improvement loops. Their growing foothold signals that technology competitiveness in the AI in construction market hinges as much on advisory depth as on algorithm horsepower.
By Application: Planning and Design Dominance Challenged by Safety Surge
Planning and Design led with a 35.5% share in 2024, driven by generative design workflows that reduce design timelines by 50%. However, Safety and Risk Management is forecast to outpace all peers, with a 39.2% CAGR, as regulators tighten oversight. Cloud-vision engines streamline inspections, while wearable sensors send alerts directly to supervisors. This pull from safety compliance positions, Safety and Risk Management,to rewrite the AI in construction market share hierarchy by 2030.
Applications such as autonomous equipment control and predictive maintenance follow closely. Robots scale repetitive tasks, while sensor-driven maintenance reduces idle time by 25-40%. Collectively, emergent use cases diversify revenue channels and amplify vendor differentiation.
By Deployment: Cloud Leadership Faces Hybrid Challenge
Cloud platforms captured 62% of 2024 deployments thanks to low entry barriers and instant scalability. Hybrid approaches are set to record a 37% CAGR as owners insist on local data sovereignty while still exploiting cloud analytics. The AI in construction market size tied to Hybrid models climbs quickly in regions with patchy site connectivity. Vendors now ship containerised inference engines that run at the edge but sync to the cloud for model retraining, satisfying both uptime and security mandates.
On-premises solutions linger for mega contractors with sunk IT investments. Yet even these firms test hybrid add-ons for remote projects where pop-up networks cannot support large-data syncs. Flexibility therefore defines next-generation deployment decisions.
By Project-Lifecycle Phase: Pre-construction Leads as Post-construction Surges
Pre-construction claimed 38% of 2024 spend, reflecting the conviction that early-stage optimisation yields the highest return. Digital feasibility modelling, AI-driven cost estimation, and virtual coordination all compress pre-build cycles. Post-construction/O&M is forecast for a 42% CAGR as facility managers unlock new revenue from AI-enabled predictive maintenance and energy tuning. This segment will materially expand the AI in construction market by linking contractors to long-term asset-management income streams.
Construction-phase solutions such as progress tracking and quality control remain core, yet future growth tilts toward lifetime performance analytics delivered through digital twins that update continuously and inform renovation planning.
By End-user: General Contractors Lead While Facility Managers Accelerate
General Contractors controlled 42% of expenditure in 2024 by embedding scheduling bots and resource-allocation models across multibillion pipelines. Facility Managers hold the fastest lane with a 36% CAGR as building owners demand sensor-driven insights to cut energy bills and boost tenant comfort. Integration with existing CAFM and BMS stacks lifts switching costs and deepens stickiness in the AI in construction market.
Specialty Sub-contractors adopt AI for granular tasks such as bidding and take-offs, whereas Architects and Engineers tap generative design to iterate massing options in minutes. Project Owners and insurers also emerge as influential buyers of risk-analytics engines, broadening the customer base.
Note: Segment shares of all individual segments available upon report purchase
By Project Type: Commercial Leadership Challenged by Infrastructure Growth
Commercial builds retained 37% share in 2024, leveraging AI to optimise floorplate efficiency and tenant experience. Infrastructure schemes are tracking a 31% CAGR on the back of record budgets for AI-ready data centers and smart-mobility corridors. Governments earmark subsidies for gigawatt-scale facilities that require liquid cooling, high-density power, and cyber-secure command layers, each of which is a catalyst for AI spending.
Residential demand rises steadily through modular design engines and embedded smart-home technology, while industrial projects deploy AI for line layout optimization and safety monitoring. Variety across project types diversifies cyclical risk for vendors in the AI in construction market.
Geography Analysis
North America generated 43% of 2024 revenue, driven by deep venture capital pools, extensive cloud infrastructure, and OSHA’s AI-friendly safety agenda. Multi-billion data center pipelines in Utah, Virginia, and Texas hand regional contractors a definitive scale advantage. Federal funding via the Infrastructure Investment and Jobs Act further entrenches demand, particularly for AI-enabled transportation and clean-energy facilities.
The Asia Pacific is the fastest-growing territory, with a 33.5% CAGR through 2030, led by South Korea’s USD 35 billion data center plan and China’s Eastern Data, Western Compute program. Severe craft-labour shortages are pushing Japanese, Singaporean, and Australian builders toward robotics, while policymakers are embedding AI adoption in their national digital-economy roadmaps. Fragmented regulatory progress remains a hurdle to execution, but is easing as regional working groups align around ISO and openBIM standards.
Europe posts steady gains as Fit-for-55, taxonomy, and circular-economy rules compel builders to document carbon performance. AI platforms that automate material passports and energy-use forecasts thus find ready buyers. Middle East megacities adopt AI for smart-infrastructure rollouts, positioning Gulf states as lighthouse clients for greenfield digital twins. Africa and South America contribute modest volumes yet register rising pilot activity in port, rail, and renewable-energy projects, indicating long-range upside for the AI in construction market.
Competitive Landscape
The field remains moderately fragmented as the top five vendors account for roughly 35% of global billings, allowing nimble entrants to secure footholds. Autodesk, Trimble, and Oracle extend integrated suites with AI add-ons to protect installed bases. AI-native challengers such as Buildots, Alice Technologies, and Doxel concentrate on high-resolution progress capture and schedule simulation to deliver distinctive ROI.
Alliances with hyperscalers accelerate product maturity. Cemex partnered Microsoft to launch the first generative-AI assistant tailored to cement and concrete workflows. Suffolk Construction joined forces with Trunk Tools to create a standardised AI toolkit deployed across 40 active jobsites. PropTech and ConTech startups raised USD 4.47 billion and USD 3.7 billion respectively during 2024, signalling renewed investor confidence.
Fast-evolving white spaces include supply-chain orchestration, regulatory compliance automation, and knowledge-graph-based design reuse. Vendors that pair data-ownership strategies with open-platform architectures are best placed to shape the next growth wave inside the AI in construction market.
AI In Construction Industry Leaders
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Autodesk, Inc.
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Smartvid.io, Inc.
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Doxel, Inc.
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Trimble Inc.
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Bentley Systems, Incorporated
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2025: Procore Technologies introduced Procore AI with predictive analytics and a Copilot assistant slated for full release in 2025.
- January 2025: AJAX Engineering debuted SmartBots powered by Concrete AI at Bharat Mobility Global Expo 2025.
- December 2024: Taisei Corporation rolled out a secure generative-AI search system for internal knowledge sharing.
- November 2024: Trimble unveiled SketchUp Diffusion, ProjectSight automation, and LiveCount symbol detection at its Dimensions conference.
Global AI In Construction Market Report Scope
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.
| Solutions |
| Services |
| Planning and Design |
| Safety and Risk Management |
| Autonomous and Semi-autonomous Equipment |
| Quality and Progress Monitoring |
| Predictive Maintenance |
| Others |
| Cloud |
| On-premises |
| Hybrid |
| Pre-construction |
| Construction |
| Post-construction / OandM |
| General Contractors |
| Specialty Sub-contractors |
| Architects and Engineers |
| Project Owners / Developers |
| Facility Managers |
| Other End-users |
| Residential |
| Commercial |
| Industrial |
| Infrastructure (Transport, Utilities) |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Chile | ||
| Peru | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| South Korea | ||
| India | ||
| Rest of Asia Pacific | ||
| Middle East and Africa | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Component | Solutions | ||
| Services | |||
| By Application | Planning and Design | ||
| Safety and Risk Management | |||
| Autonomous and Semi-autonomous Equipment | |||
| Quality and Progress Monitoring | |||
| Predictive Maintenance | |||
| Others | |||
| By Deployment | Cloud | ||
| On-premises | |||
| Hybrid | |||
| By Project-Lifecycle Phase | Pre-construction | ||
| Construction | |||
| Post-construction / OandM | |||
| By End-user | General Contractors | ||
| Specialty Sub-contractors | |||
| Architects and Engineers | |||
| Project Owners / Developers | |||
| Facility Managers | |||
| Other End-users | |||
| By Project Type | Residential | ||
| Commercial | |||
| Industrial | |||
| Infrastructure (Transport, Utilities) | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Chile | |||
| Peru | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| South Korea | |||
| India | |||
| Rest of Asia Pacific | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Saudi Arabia | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the AI in construction market?
The market stands at USD 11.1 billion in 2025 and is projected to hit USD 24.3 billion by 2030 at a 16.9% CAGR.
Which region is growing the fastest?
APAC leads growth with a 33.5% CAGR through 2030, fueled by record infrastructure spending and supportive digital-transformation policies.
Which application segment will expand the quickest?
Safety and Risk Management is forecast to grow at 39.2% CAGR as regulators strengthen job-site safety enforcement.
Why are hybrid deployments gaining traction?
Hybrid models balance cloud scalability with on-premises data security, making them ideal for sites with intermittent connectivity or strict data-sovereignty mandates.
What restrains near-term adoption among smaller contractors?
High upfront investment and limited access to AI-literate talent make it difficult for many SMEs to realise quick payback on AI initiatives.
How concentrated is vendor competition?
The market is moderately concentrated; the top five vendors control about one-third of revenue, leaving ample opportunity for specialised startups to gain share.
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