AI In Construction Market Size

Artificial Intelligence (AI) in Construction Market Analysis

The AI In Construction Market size is estimated at USD 3.99 billion in 2024, and is expected to reach USD 11.85 billion by 2029, growing at a CAGR of 24.31% during the forecast period (2024-2029).

Artificial intelligence in the construction industry is experiencing a digital transformation. Focusing on technologies like artificial intelligence and machine learning at every stage of engineering and construction, from design, preconstruction, construction, and operations to asset management, is developing the construction industry's potential to new levels.

• As a technological shift emerges in the construction industry, it is becoming beneficial for the companies that upgrade the technology. Thus, adopting AI products and services in construction is expected to contribute considerably to market growth in the coming years.
• Reducing production costs is a driving factor for adopting AI in the construction industry. Artificial intelligence (AI) technologies offer several benefits to help construction companies streamline operations, improve efficiency, and reduce costs.
• The demand for enhanced safety measures at construction sites is a significant driver for adopting AI in the construction industry. Construction sites are inherently high-risk environments, and accidents or safety incidents can severely affect workers and project timelines. AI technologies offer several capabilities that can improve safety and mitigate risks in construction.
• Artificial intelligence has recently benefited the construction industry, especially in preconstruction phases like planning and designing, enabling advanced capabilities for building information modeling and generative design. AI is being used to monitor the interactions between workers, machinery, and items at the job site in real time and notify managers of any potential safety issues, design flaws, or productivity problems.
• The construction industry relies heavily on skilled labor for various tasks, and the need for more qualified workers can pose challenges when integrating AI technologies. A lack of competent labor in the global construction industry restrains the desire for automation based on AI in the construction sector. Due to stringent migration regulations in many regions, especially in North America and Europe, the supply chain crisis has created a shortage of skilled workers. The Associated Builders and Contractors (ABC) forecasts that the industry will experience a shortage of about 665,000 construction workers in 2022. This forecast is based on organizational analysis and labor demands based on variables such as inflation, construction spending, etc.
• The COVID-19 pandemic significantly impacted the construction sector, which is sensitive to economic cycles but recovered over time. The workforce shortage got worse after the COVID-19 global lockdown and the complete shutdown of construction activity. It was expected to drive construction companies to improve efficiency by adopting AI solutions.