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    Artificial Intelligence in Construction Market Analysis

    Artificial Intelligence in Construction Market Analysis
    Report code - SR2385 Delivery - 2 Weeks
    Artificial Intelligence in Construction Market Size, Share, Trend, Forecast, Competitive A See more...

    Market Insights

    The artificial intelligence in construction market is expected to grow from USD 1.06 billion in 2022 to USD 7.02 billion by 2029 at a CAGR of 31.0% during the forecast period.

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    AI in construction refers to the use of Artificial Intelligence (AI) technologies in the construction industry. AI has the potential to transform the construction industry by improving efficiency, safety, and sustainability. AI technologies such as machine learning, computer vision, and natural language processing can be used to automate tasks, analyze data, and make predictions.

    For instance, AI can analyze construction site data to identify potential safety hazards, optimize construction schedules, and improve project management. Additionally, AI can be used to predict material and equipment needs, optimize building design for energy efficiency, and reduce waste. The use of AI in construction has the potential to reduce costs, speed up construction processes, and improve project outcomes. Overall, AI is revolutionizing the construction industry by enabling companies to work smarter and more efficiently.

    Key Players

    The major players operating in the global artificial intelligence in construction market are:

    • IBM
    • Microsoft
    • Oracle
    • SAP
    • Alice Technologies
    • eSUB
    • SmarTVid.Io
    • DarKTrace
    • Aurora Computer Services
    • Autodesk
    • Jaroop
    • Lili.Ai
    • Predii
    • Assignar
    • Deepomatic
    • Coins Global
    • Beyond Limits
    • Doxel
    • Askporter
    • Plangrid
    • Renoworks Software
    • Building System Planning
    • Bentley Systems

    Market Dynamics

    The growing need for data integration and visual analytics is driving the expansion of the global construction market's AI segment. Through the use of AI, the construction industry can achieve real-time data synthesis, analysis, conversion, and dissemination, which in turn, helps bridge the gap between IT and business.

    Major vendors are developing AI-powered products to enhance their analytical capabilities, while construction companies require AI platforms on their worksites to integrate various corporate systems with web and cloud-based applications. Additionally, these firms are integrating data with AI-driven video analytics systems to scrutinize and assess diverse data types such as survey and sales data, to facilitate intelligent decision-making. These factors are expected to fuel the demand for AI in the construction industry in the coming years.

    The shortage of skilled personnel is a major obstacle to the growth of the artificial intelligence market in the construction industry. The use of AI in construction requires expertise in both technical and domain knowledge to achieve the intended outcomes. Without a solid understanding of the technology, project predictions and off-site construction work may fail, resulting in substantial losses for the business and hindering the industry's growth with various project-related challenges.

    To maintain their market growth, industry players are investing significant effort into research and development of innovative and intelligent strategies. These strategies include launching new products, engaging in mergers and acquisitions, collaborations, partnerships, and refurbishing existing technologies.

    In April 2022, Deepomatic, a leader in visual automation for telecommunications, partnered with Polish system integrator VECTOR SOLUTIONS to provide its AI-powered image recognition solution to all telecom operators in Poland, accelerating the deployment of fiber optic across the nation. Poland has made fiber deployment a priority since updating its National Internet Plan in 2020 to meet the Gigabit Society goals. These goals aim to provide 100% of households with access to broadband speeds of at least 100 Mbps by 2025, with an option to upgrade to gigabit speeds.

    Segment Analysis

    Component Insights

    The solutions sub-segment was the dominant factor in the market in 2022. The expansion can be attributed to the market's growing creativity, development, and accessibility of AI-based solutions for construction activities. Construction firms are increasingly using AI technology to complete various construction tasks.

    AI solutions provide significant applications for the construction industry, including supply chain management, project planning, schedule management, and risk management, thereby enhancing the efficiency of the construction process. These factors are expected to be the primary drivers of the artificial intelligence market's growth in the construction industry during the forecast period.

    Deployment Type Insights

    During the forecast period, the cloud sub-segment is expected to demonstrate the fastest growth in terms of deployment type. The cloud is an easily accessible and cost-effective deployment option for construction applications. Advantages such as flexibility, disaster recovery, automatic software upgrades, capital expense-free, increased collaboration, remote work capabilities, document management, security, competitiveness, and environmental friendliness make the cloud a popular choice.

    Furthermore, investors are financing the development of computer-aided virtual environments that provide clients, designers, and builders with a virtual experience of a building, which is expected to be a significant driver of growth in the cloud sub-segment of the artificial intelligence in construction market.

    Organization Size Insights

    The dominant sub-segment in the artificial intelligence in construction market by organization size in 2022 was large enterprises. This can be attributed to the significant investment by large businesses in advanced technologies such as artificial intelligence for the construction sector. For example, Procore Technologies is a large enterprise that offers artificial intelligence-enabled solutions to support workers in the construction industry.

    This company uses project data to generate business intelligence, providing historical analysis for better predictions and utilizing machine learning to extract trends from larger datasets and find patterns. Customers can use industry-sourced templates or create their own bespoke reports to benefit from strong data visualization.

    Additionally, Procore's clients can combine and save data from various platforms, enabling them to take charge of their financial situation with the help of Al-powered solutions. These factors are predicted to be the major drivers of artificial intelligence in construction market opportunities during the forecast period.

    Industry Type Insights

    During the forecast period, the institutional commercial sub-segment is expected to exhibit the fastest growth in terms of industry type. Institutional and commercial buildings, such as stadiums, schools, hospitals, malls, libraries, art galleries, and museums, fall under this category of construction.

    These structures are subject to more stringent regulations compared to residential buildings and must be adaptable to meet the increasing demand for advanced technologies. These factors are anticipated to drive the growth of the institutional commercial sub-segment in artificial intelligence in construction market during the analysis time frame.

    Geographic Analysis

    North America dominated the global market in 2022 and is expected to remain the fastest-growing sub-segment during the forecast period. The region's advanced technological infrastructure and the presence of major artificial intelligence in construction industry participants are expected to drive market demand. For instance, in April 2021, IBM Corporation, Red Hat Software, and Cobuilder announced a global partnership to jointly develop a new platform called OpenBuilt.

    The platform aims to tie together the dispersed supply chain of the building sector and provide a cutting-edge digital solution to assist upcoming building projects for the development of safer, sustainable, and effective technologies. These factors are expected to drive the growth of the AI in construction industry in North America.

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What deliverables will you get in this report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the Artificial Intelligence in Construction Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional and country level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

     

    Target Audience

    Here is the list of the group of customers that the market hopes to have the greatest opportunity to convert-

    • Distributors
    • Suppliers
    • Manufacturers
    • Logistics organizations
    • Government bodies

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com

    Recent Developments

    • In February 2023, Strabag SE, the global construction company, entered into a partnership with Microsoft to create a Data Science Hub to collect decentralized data and use it for insights, including risk management projects.
    • In July 2022, Oracle released enhancements of its smart construction platform with new analytics capabilities.
    • In March 2022, ALICE Technologies and Kajima Group, one of the world’s oldest and largest construction companies, partnered to use ALICE on some of its most critical projects. ALICE Technologies' construction simulation and optimization platform enables general contractors globally to leverage the power of AI to plan, bid, and build their large-scale infrastructure and commercial projects with greater efficiency and lesser risk.

    Frequently Asked Questions (FAQs)

    AI in construction refers to the use of Artificial Intelligence (AI) technologies in the construction industry. AI has the potential to transform the construction industry by improving efficiency, safety, and sustainability. AI technologies such as machine learning, computer vision, and natural language processing can be used to automate tasks, analyze data, and make predictions.

    The artificial intelligence in construction market size is estimated to grow from USD 1.06 billion in 2022 to USD 7.02 billion by 2029.

    The major players operating in the global Artificial Intelligence in Construction market are IBM, Microsoft, Oracle, SAP, Alice Technologies, eSUB, SmarTVid.Io, DarKTrace, Aurora Computer Services, Autodesk, Jaroop, Lili.Ai, Predii, Assignar, Deepomatic, Coins Global, Beyond Limits, Doxel, Askporter, Plangrid, Renoworks Software, Building System Planning, Bentley Systems.

    North America dominated the global market in 2022 and is expected to remain the fastest-growing sub-segment during the forecast period.

    The solutions sub-segment was the dominant factor in the market in 2022. The expansion can be attributed to the market's growing creativity, development, and accessibility of AI-based solutions for construction activities.

    The artificial intelligence in construction market is expected to grow at a CAGR of 31.0% during 2023-2029.