Construction Software-as-a-Service Market Size - By Type of Software, By Deployment Model, By Application, By End-Use, Forecast, 2024 - 2032

Construction Software-as-a-Service Market Size

The global construction software-as-a-service market size was valued at USD 13.3 billion in 2023 and is projected to grow at a CAGR of over 10.8% between 2024 and 2032, due to the increasing adoption of cloud-based solutions. Through their platform deployment, construction companies obtain scalability features with affordable pricing and adaptable operations at any business scale. With SaaS-based software operating in the cloud, users obtain real-time collaborative access to project information creating better communication while reducing delays. These solutions eliminate the need for expensive hardware and IT infrastructure which results in substantial upfront cost reduction.
 

The market for construction software as a service is rapidly growing due to stringent regulations and need for added digital reporting and documentation. There is an increasing need to substantiate and report for compliance to safety, environmental, and quality regulations, more so concisely than in the past.

As a result of growing focus on regulation, construction companies now leverage SaaS solutions which make data storage simple and enable easy access to the required regulatory documents and reports to be drafted and submitted. These platforms enable construction firms to achieve greater organizational efficiency by automating compliance reporting and audits, thereby increasing the organizational visibility while decreasing the person-hours spent on corrective actions. An example of this is Command Technologies, Inc. launching Contractor's Command Post Version 4.0 in September 2023. It combines business development and operational finance and is designed to improve collaboration between the two functions.
 

Construction Software-as-a-Service Market Trends

• The technological progress in AI, machine learning as well as predictive analytics is shaping up construction software as a service. These developments enhance decision making and task performance efficiency on construction SaaS platforms.
   
• AI and machine learning help in scheduling task and calculating risk that smoothen workflow and minimizes error. Predictive analytics help identify potential delays or additional costs by comparing them with previous projects. This helps companies avoid issues and improve performance.
   
• For example, in May 2024, an AI Innovation Hub was launched by the Nemetschek Group, a top developer of software solutions for architecture, engineering, construction, and media. The main objective of this hub is to promote the use of AI across these industries. Their objective is to create AI algorithms that can serve all customers needs at every stage of the automative lifecycle, from design through construction to operations.
   
• Currently, construction SaaS is undergoing integration with many other applications such as ERP, CRM, and finance to assist organizational departments with managing budgets, resources, and schedules.
   
• Large construction enterprises were the early adopters of SaaS solutions, capitalizing on their scalability and efficiency. Now, especially in the age of SMEs, these platforms are being embraced in mass, due to the low cost and subscription-based pricing models.
   
• For instance, in May 2023, the company Buildertrend launched a new subscription plan specifically for small businesses which has enabled small and medium-sized contractors to use more affordable solutions for client administration, budgeting, and scheduling.
   

Construction Software-as-a-Service Market Analysis

Based on application, the commercial construction segment held 47% share in 2023 and is expected to cross a revenue of over USD 15 billion by 2032.
 

• Commercial construction segment holds major share in the construction SaaS market in 2023. This is caused primarily by the size and complexity of commercial projects such as office buildings and retail developments which demand sophisticated planning, coordination, and project management.
   
• Construction SaaS platforms are providing features such as project progress tracking, real-time data, and even collaboration tools. These functionalities aid in accurate business operational understanding, proper collaboration among teammates, and most importantly meeting project deadlines, which help ensure the projects get completed on time and in full order.
   
• In addition, commercial projects tend to be associated with significant budgets, thus, organizations are keener on purchasing quality software that facilitates business processes. As indicated by those companies remarked, they can mitigate delays and improve resource management, which saves money, as long as they are done right.
   

Based on deployment model, the public cloud segment dominated 58% share of the construction software-as-a-service market in 2023.
 

• The construction software market is dominated by the public cloud because of its reduced costs and operational structure. It provides powerful software-based solutions without the heavy investment in capital infrastructure. Public cloud allows smaller construction companies to access premium software affordably to help them grow and run efficiently without high upfront costs.
   
• The public cloud helps smaller construction companies to access premium software solutions and compare them with larger companies without the financial downside of a large up-front investment. As such, this level of accessibility enhances growth and provides operational efficiencies.
   
• The public cloud ensures the automatic software updates with no need for businesses to manage IT maintenance and technical problems. It also enables construction businesses to run their core functions smoothly without any interruptions. This seamless utility is one of the main motivators of the increasing penetration of public cloud solutions within the construction software-as-a-service market.
   
• As an example, in July 2023, Trimble launched Construction One Software, a solution primarily developed on the public cloud. The platform provides better scalability and lower IT costs, and more real-time collaboration of project participants. This software reduces costs by leveraging cloud-based infrastructure, making it the most reasonable and efficient for construction firms.
   

• In 2023, the North America region accounted for over 37% share of the construction software-as-a-service market and is expected to exceed USD 12 billion by 2032. North America's construction industry is really moving forward with digital tools. The region is leading the market with rapid adaptation with leading efforts. This surge is driven by extensive infrastructural projects and strict regulations regarding construction data management, paving the way for the increased need for modern SaaS platforms.
   
• Europe construction SaaS market has been potential to tap into, major countries that are leading for digital takeover are UK, Germany and France. This region is undergoing a digital transformation driven by a demand for superior project management, better cost efficiency, and greater collaboration, all of which are propelling SaaS adoption accelerated. Moreover, sustainable construction practices are driving more adoption of SaaS platforms that optimize resource utilization and supports green building initiatives.
   
• For instance, in November 2023, A new set of tools has been released by Bentley Systems aimed at improving energy efficiency and green building. They are focusing on Europe, especially in the UK, Germany, and France. These countries are really pushing for sustainable construction and better project management.
   
• In Asia Pacific, the construction software-as-a-service market is growing quickly due to ongoing infrastructure projects and urban growth in places like China, India, and Japan. Construction SaaS adoption is further fueled by government initiatives supporting smart cities and digital transformation, and businesses increasingly adopting digital solutions to enhance the efficiency of project management.
   
• For instance, in September 2023, Autodesk collaborated with several Indian municipalities to integrate its construction software into smart city initiatives. This partnership has strengthened urban development with digital twin technologies and made efficient use of resources.
   
• In the Middle East and Africa, construction SaaS market is experiencing moderate growth, fueled primarily by scale infrastructure projects, especially in the Gulf region. Digital construction is also gaining momentum with the urban expansion and government-led smart city initiatives.
   

Construction Software-as-a-Service Market Share

• Top 5 companies of construction SaaS market are Oracle, Autodesk Inc., Procore Technologies, Inc., Sage Group Plc. These companies collectively hold around market share of 12% in 2023.
   
• Prominent leaders such as Oracle are investing in AI and machine learning in their cloud Aconex construction management add on, with the intention of enabling synergetic work during the entire project lifecycle. Oracle Aconex enables a deep analysis of data, which, in turn, facilitates attaining optimal business decisions and agility in construction.
   
• Autodesk is integrating all the essential components of its Construction Cloud platform through integrated workflows that facilitate project management, design collaboration, and field execution. Relying on automation and data science, Autodesk is streamlining operational atividades throughout the entire construction lifecycle. The acquisition of PlanGrid and BuildingConnected constitutes an expansion of Autodesk’s capabilities as well as investment into third party software to provide a more holictic and usable package for its clients.
   
• Procore is another player in the market. They provide a platform that keeps project teams connected throughout the entire construction process. Procore is looking to expand its features for planning, managing projects, and handling finances. They’re also integrating other tools to give users more options. By investing in AI and data analytics, Procore wants to make workflows smoother and give better project visibility. Their market growth is fueled by partnerships and expanding internationally.
   
• The top companies in construction software are always on the lookout for new chances. They form partnerships, merge with others, and launch new products. They invest more in research and development. These moves help them add smart features, automate tasks, and use new technology. The ultimate goal is to simplify project management, enhance productivity, and increase the sustainability of construction practices.
   
• To stay in the competition, businesses are investing in R&D. For example, in April 2024, Autodesk set the pace by investing more than USD 1.2 billion in research. The investment aims to enhance AI tools to streamline project management processes and further optimize solutions for construction in the cloud. This marks an increase of 17% from 2023. It demonstrates how the sector is shifting towards greater reliance on automation and predictive data analysis.
   

Construction Software-as-a-Service Market Companies

Major players operating in the construction software-as-a-service industry are:

• Oracle
• Autodesk
• Procore Technologies
• Sage Group
• Trimble
• Bentley Systems
• Jonas Construction Software
• Buildertrend
• Heavy Construction Systems Specialists (HCSS)
• Newforma

Construction Software-as-a-Service Industry News

• The AI-powered virtual assistant, Buildots, was unveiled in August 2024. This allows users to monitor significant construction changes and the likely new changes that come with it. This extraordinary development empowers construction teams with easy project management and aids them make informed decisions. With Buildots, relevant and commonplace information is easier to come by which results to informed decision making and increased project effectiveness.
   
• Further digital tools were made available by FirstSource, the supplier for Builders Borker. In October 2024, they launched the “MyBLDR.com” website which permits outsourcing for building contractors, so that smaller construction firms would be able to track the progress of construction projects more efficiently. This initiative is in accordance with Builders FirstSource's strategic goal of incorporating technology in order to streamline the process of homebuilding, enhance operational and project management efficiency for its customers, and other stakeholders.
   
• In February 2023, PlanHub introduced updates to its platform to improve bidding processes for contractors to enhance construction project management.
   
• In June 2024, Neilsoft launched ConstructMonitor. This is a software tool that helps manage quality and progress in construction projects. They worked with Fujita Corporation from Tokyo to create it. ConstructMonitor focuses on bigger construction projects like commercial offices, high-rise buildings, data centers, hospitals, and malls. It's available as a service for clients and can be used on public or private clouds.
   

The construction software-as-a-service market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, by Type of Software

• Project management
• Field service management
• Estimating and bidding
• Enterprise resource planning (ERP)
• Construction management
• Others

Market, by Deployment Model

• Public cloud
• Private cloud
• Hybrid cloud

Market, by Application

• Residential construction
• Commercial construction
• Infrastructure projects

Market, by End-User

• General contractors
• Subcontractors
• Engineers and architects
• Builders & developers

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa