AI in Construction Market Size

AI in Construction Market size valued at over USD 2.5 billion in 2022 and is anticipated to grow at a CAGR of 20% between 2023 and 2032. The industry growth is owing to improving efficiency and productivity through the optimization of project scheduling, resource allocation, and task management, leading to reduced timelines & costs.

Data-driven decision-making leverages AI's ability to analyze large volumes of construction data, enabling informed & proactive planning and resource optimization. Furthermore, AI enhances safety in construction operations through real-time monitoring, hazard detection, and compliance enforcement. It also enables quality control and defect detection, ensuring high construction standards and reducing rework.

The high cost of investment and operation is a significant obstacle hampering AI in construction market growth. Developing and implementing AI technologies in construction projects require substantial financial resources including the cost of acquiring AI systems, hardware, software, and specialized expertise. Moreover, operational & maintenance expenses can be substantial including the need for skilled personnel, regular updates, and infrastructure requirements. The high cost of investment and operation makes it challenging for small- & medium-sized construction companies to adopt AI solutions.

COVID-19 Impact

The COVID-19 crisis disrupted several industries including manufacturing & construction, transportation & logistics, and mining. The global shutdown affected outdoor industrial operations and hampered supply chains, restricting the adoption and implementation of AI technologies in the construction industry. The pandemic also highlighted the need for contactless operations, remote monitoring, and digital solutions, which accelerated the interest & investment in AI for construction. With the resumption of industrial operations post-pandemic, the demand for AI and IoT surged across various industries including construction.

AI in Construction Market Trends

The integration of Internet of Things (IoT) devices and sensors is creating demand for AI in construction. These connected devices collect real-time data on construction sites, equipment, and worker activities. This data, when combined with AI algorithms, provides valuable insights for optimizing construction processes, improving safety, and enhancing decision-making. Furthermore, the use of AI-powered drones and robotics in construction is gaining traction. These trends are driving the industry toward smart and automated construction practices, leading to increased efficiency, productivity, and quality in construction projects.

AI in Construction Market Analysis

The AI in construction market from solution segment dominated around USD 1.5 billion revenue in 2022. AI-powered solutions encompass a range of technologies and tools designed specifically for the construction industry. These solutions typically include components such as machine learning algorithms, computer vision, natural language processing, and data analytics platforms. The growth of AI solutions in construction is driven by their ability to automate processes, optimize resource allocation, enhance safety, and improve decision-making. These components work in synergy to provide comprehensive and tailored solutions that address the unique challenges & requirements of the construction industry, leading to increased efficiency, productivity, and overall project success.

The project management segment held over 35% of the AI in construction market share in 2022. AI technologies are being leveraged to streamline and optimize various aspects of project management. Machine learning algorithms can analyze historical project data to generate accurate cost estimates, predict project timelines, and identify potential risks & delays. AI-powered tools and platforms assist in resource allocation, scheduling & task management, and improving project efficiency & productivity. Furthermore, AI-driven analytics enable real-time monitoring of project progress, allowing for proactive decision-making and effective resource allocation. The growth of AI in project management is revolutionizing how construction projects are planned, executed, and managed, leading to improved outcomes and reduced project risks.

North America AI in construction market accounted for 30% of the revenue share in 2022. The region benefits from advanced technological infrastructure and a strong focus on innovation. The construction industry in North America is increasingly adopting AI-driven solutions to improve operational efficiency, project management, and safety. The key factors driving growth include the demand for sustainable & smart construction practices, the need for cost reduction, and a supportive regulatory environment. Additionally, strategic partnerships between technology providers, construction companies, and research institutions further fuel the growth of AI in construction across North America.

AI in Construction Market Share

Major companies operating in the AI in construction market are:

• Alice Technologies Inc.
• Autodesk, Inc.
• Bentley Systems Inc.
• Dassault Systemes SE
• IBM Corporation
• Microsoft Corporation
• NVIDIA Corporation
• Oracle Corporation
• Predii
• PTC Inc.
• SAP SE
• Smartvid.io Inc.
  

AI in Construction Industry News:

• In July 2022, ALICE Technologies was selected by Takenaka Corporation, one of Japan's five largest general contractors, for a variety of critical projects. ALICE’s architecture optioneering structure enables global building contractors to quickly & safely use AI to bid, plan & build big infrastructure and for business developments.
  

The Artificial Intelligence in construction market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Component

• Solution
• Service

Market, By Deployment Model

• On-premises
• Cloud

Market, By Organization Size

• SME
• Large enterprises

Market, By Application

• Project management
• Field management
• Risk management
• Asset management

Market, By End User

• Residential
• Commercial
• Industrial
• Public infrastructure

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia