Reports - Artificial Intelligence (AI) In Construction Market
Artificial Intelligence (AI) In Construction Market Size, Share & Trends Analysis Report by Offerings (Solutions, Services) by Deployment Type (Cloud, On-Premises) by Organization Size (Small & Medium-sized Enterprises (SMEs), Large Enterprises) by Industry Type (Residential, Institutional Commercials, Other Industry Types) by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Assessment (2017 - 2022) & Forecast (2023 - 2030)
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USD 4909.7 Million
35.2%
North America
Asia Pacific
2022
2019 - 2021
NaN - NaN
By Offerings, By Deployment Type, By Organization Size, By Industry Type, By Region
The final deliverable will encompass both quantitative and qualitative data, providing a comprehensive analysis of the market. The scope is customizable.
The global Artificial Intelligence (AI) In Construction Market was valued at USD 594.6 Million in 2022 and is projected to reach a value of USD 4909.7 Million by 2030 at a CAGR (Compound Annual Growth Rate) of 35.2% between 2023 and 2030.
Premium Insights
Recent advancements in artificial intelligence have benefited the construction industry, particularly in pre-construction phases such as planning and designing, by facilitating advanced building information modeling and generative design capabilities. AI monitors the interactions between workers, machinery, and objects on the job site in real-time and alerts managers of potential safety issues, design defects, or productivity issues. Increasing demand to reduce production costs is driving the market. Equipment and machinery costs may be among the highest for any construction endeavor. Refurbished equipment could be a superior option for reducing production costs to brand-new equipment because it is less expensive. For instance, companies like Multy Lift offer a vast selection of refurbished forklifts for sale or lease. These forklifts have been reconditioned to a high standard, allowing them to operate at a lower cost than new ones.
Planning and design are essential construction phases. In the projects later phases, any defects or errors committed at this stage of development could cost the contractors a significant amount of money. Such circumstances result in numerous budget constraints and project completion delays. Paper-based communication is difficult to update and disseminate because more than 35% of construction professionals are involved in conflict resolution, addressing design flaws, and reworking. Such circumstances are increasing the demand for all-in-one solutions, such as BIM 360 (Autodesk), that use artificial intelligence to eradicate design flaws during the planning phase by utilizing generative design capabilities. BIM is one of the necessary digital tools for current construction initiatives. BIM may increase efficiency and reduce costs during a building projects planning, design, and construction phases. Users can create 3D internal structures and building components with Autodesk Revit and link schedule-related data to specific 3D model elements.
Construction companies view safety as one of the most important aspects of project management. Injuries and fatalities in the workplace are persistent and alarming problems. In 2017, the U.S. Department of Labor reported that the death rate of construction laborers was five times higher than that of other private sector workers. In addition, the rise in struck-by fatalities has prompted site managers and businesses to address workplace injuries. Moreover, in 2017, approximately 39% of construction fatalities in the United States were caused by unexpected falls on the job site. AI provides enhanced visibility and predictive maintenance to prevent injuries caused by these sudden falls. AI-enabled cameras can monitor the entire area surrounding the construction site, allowing project managers to observe and analyze activities in real time if problems are detected. With the aid of artificial intelligence, visibility, and awareness on-site can be increased to reduce unanticipated accidents and incidents. It has been demonstrated that artificial intelligence can help workers execute duties more safely. For example, the University of Waterloo (Canada) researched artificial intelligence in the construction industry and discovered that AI technology assists master bricklayers in learning advanced techniques to limit joint burdens.
Economic Insights
As tensions escalate between Russia and Ukraine, the entire economy is bracing for the ramifications of this enormous confrontation. The invasion by Russia is predicted to have disastrous effects on economic growth and development. This issue threatens to halt growth and block prosperity in a world where we hope to reach a $100 trillion GDP by 2022. The economic trend is likely to reverse despite their best agreement attempts. The globe is waiting with bated breath to see how this situation develops.
Top Market Trends
Market Segmentation
The global Artificial Intelligence (AI) In Construction market can be segmented into the following: Offering, Deployment Type, Organization Size, Industry Type, and Region. Based on Offering, the market can be categorized into Solutions and Services. Additionally, based on Deployment Type, the market can be split further into Cloud and On-premises. Moreover, based on Organization Size, the market can be differentiated between Small and Medium-sized Enterprises (SMEs) and Large enterprises. Additionally, based on the Industry Type, the market can be further segregated into Residential, Institutional Commercial, and Other Industry Types. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Based on Offering
Solution to Offer Wider Revenue Due to Rising Demand for Advanced Solutions
In 2022, the solutions subsegment dominated the market in terms of offerings. The expansion is primarily attributable to the increasing innovation, creativity, and accessibility of AI-based construction activity solutions. Building and construction companies frequently utilize AI technology to complete various construction tasks. Construction industry applications for artificial intelligence solutions include supply chain management, project planning, schedule management, and risk management. Construction processes are becoming more efficient due to the implementation of AI technologies. Additionally, artificial intelligence solutions address the skilled labor shortage by automating duties. Cost estimation, program creation, resource management, and risk management are a few examples of time-consuming tasks that these solutions can perform. Most builders employ AI solutions for risk administration and improved job site safety.
Based on the Deployment Type
Cloud Deployment to Account for Maximum Share Owing to the Rising Focus within Prominent Players
Increasing investments in IoT-based applications are anticipated to give the cloud segment a significant market share among both deployment categories. Through mergers and acquisitions, several AI-in-construction solution providers invested in the cloud and IoT-based products and services. The investments will create a computer-aided virtual environment (CAVE) that will give general contractors, architects, and consumers a virtual experience of their building. Using the cloud provides a more affordable deployment method for construction companies. Its scalability and rapid adaptability make it ideal for large and weighty construction projects. In addition, AI applications are currently deployed in private clouds to address privacy and security issues. Consequently, cloud deployment is anticipated to be the industry leader among deployment categories for AI applications.
Based on the Organization Size
Large Enterprises to Accommodate Maximized Revenue Owing to Favorable Government Regulations
Due to the rising demand for risk administration and project management solutions across the segment, large enterprises, including government and commercial enterprises, are progressively adopting AI solutions on a large scale. Due to favorable governmental regulations, large construction companies are incorporating AI solutions and services. Small and medium-sized businesses are anticipated to grow reasonably over the forecast period. Due to the cost-effectiveness of the platform, more and more small and medium-sized businesses are employing AI solutions. Cloud-based AI solutions are advantageous for construction companies because there are no setup fees, and they can be started and halted based on the projects needs. In addition, expanding construction companies necessitates database management, which is anticipated to increase demand.
Based on Region
North America to Lead Global Sales Owing to Shrinking Need of Arable Land
The North American construction market is one of the most advanced globally. Despite a significant increase in construction labor activities, the changing political landscape of the United States and the enormous construction labor shortage in the region are driving the need for automation in the construction industry. The nation is one of the most important centers for construction technology firms. To overcome these obstacles, the construction industry is anticipated to rapidly implement AI, making it the fastest-growing area for artificial intelligence in the market for building. Companies such as Oracle Corporation, IBM Corporation, and many others invest significantly more in developing machine learning and neural networks. This region is also home to many AI solution providers and construction firms, making it the most competitive and robust. Applications for surveying and analyzing materials and structures make increasing use of AI. For instance, the American company Robotics intends to revolutionize the maintenance and management of road infrastructure. The company employs windshield-mounted cameras to record the roads condition. AI software then analyzes the data, which generates maps highlighting areas where maintenance is required.
The Asia Pacific region is anticipated to have the greatest CAGR in the coming years. Increasing infrastructure investments for applications such as risk management, project management, and supply chain management drive this markets expansion in the Asia-Pacific region. In emerging economies, such as India and China, the prevalence of pre-construction AI applications has grown. In addition, the increasing demand for smart city development in these economies encourages businesses to adopt AI solutions and services.
Competitive Landscape
The market vendors are concentrating on expanding their customer base to acquire a competitive edge in the market. Consequently, vendors are implementing several strategic initiatives, including collaborations, acquisitions and mergers, and partnerships. For example, Procore Technologies, Inc. acquired Construction BI, LLC in August 2019 to introduce next-generation AI analytics to the construction industry. In December 2018, Autodesk Inc. acquired two construction technology firms based in the United States: PlanGrid, Inc. and BuildingConnected. The purpose of these acquisitions was to encourage construction software development to digitize the entire constructing process.
The key players in the global Artificial Intelligence (AI) In Construction market include - Autodesk Inc. (U.S.) among others.
Recent Market Developments
Segmentation of the Global Artificial Intelligence (AI) In Construction Market
Source: www.vantagemarketresearch.com
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Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis | |
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