Artificial Intelligence (AI) in Construction Market Size, Share, By Offering (Service, and Solution), By Stage (Design Stage, Planning Stage, Inspection Stage, and Other Stages), By Deployment Mode (On-Premises, and Cloud), By Organization Size (Small & Medium Enterprises, and Large Enterprises), By Application (Facilities Management, Project Management, Supply Chain Management, and Others), By Industry (Commercial, Residential, Heavy Construction, and Others), and By Region - Trends, Analysis and Forecast till 2034

Artificial Intelligence (AI) in Construction Market Size was valued at USD 3.8 Billion in 2024 and is expected to reach USD 33.9 Billion by 2034, growing at a CAGR of 27.2%

Artificial Intelligence (AI) in Construction Market is revolutionizing traditional building practices by introducing intelligent systems that enhance efficiency, safety and decision making across all stages of construction. AI technologies such as machine learning, computer vision and robotics are integrated into various construction tasks from project planning to real time monitoring on construction sites.

Building smart cities and infrastructure in line with global sustainability goals is becoming increasingly dependent on artificial intelligence (AI) as the industry develops. AI is now essential for future proofing the construction sector due to these developments which create numerous chances for market expansion and innovation.

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Key Drivers of Target Market:

Increased Demand for Operational Efficiency

• AI helps reduce construction costs by optimizing project management, predicting maintenance needs and also minimizing downtime. For example, AI-driven tools can analyze historical data to forecast and prevent equipment failures thereby reducing repair costs.
• Project completion is accelerated by AI algorithms which simplify scheduling as well as resource allocation. In an industry where delays can result in large financial losses and also this efficiency is essential.
• AI provides actionable insights by analyzing large datasets which enables better decision making in planning and execution. This helps in managing complex projects with multiple variables.
• For instance, in July 2023, AI-powered scheduling software by ALICE Technologies was adopted by several large construction firms to improve project timelines and resource allocation.

Growing Focus on Safety and Compliance

• In order to identify safety risks and guarantee that rules are followed, artificial intelligence (AI) systems can evaluate real-time data from building sites. This lowers the likelihood of accidents.
• AI helps ensure that projects comply with safety standards and regulations reducing the likelihood of legal issues and fines. For example, in June 2023 Built Robotics introduced AI-driven safety solutions that integrate with drones and sensors to enhance site safety and compliance.

Rise in Smart Building Projects

• Smart buildings that can autonomously monitor and change environmental conditions are being created by combining artificial intelligence (AI) with Internet of Things (IoT) sensors.
• Through real-time system adjustments and data analysis from several sensors, artificial intelligence (AI) helps optimize building energy use. AI-driven smart building systems provide improved comfort and convenience for occupants by personalizing environmental controls based on their preferences.
• For instance, in September 2023, Johnson Controls launched a new AI based building management system that integrates with IoT sensors to enhance energy efficienvcy and user comfort.

Restrains:

Security and Privacy Issues with Data

• As AI systems collect and analyze large amounts of data, including sensitive information, they are vulnerable to cyber-attacks and data breaches. Ensuring compliance with data protection regulations such as GDPR is challenging and costly for companies using AI in construction. There are concerns about how data collected by AI systems is used and shared, raising privacy issues among stakeholders.
• For instance, in April 2023, Siemens faced scrutiny over data privacy issues related to their AI-based construction management tools, leading to increased focus on enhancing data security measures.

Opportunities:

Expansion of Autonomous Construction Equipment   

• The use of AI-powered autonomous construction vehicles and machinery is expected to grow reducing the need for manual labor in dangerous or repetitive tasks.
• Companies have the opportunity to invest in autonomous bulldozers, excavators and other machinery that can operate with minimal human intervention improving efficiency and safety on construction sites.

AI-Driven Sustainable Construction  

• AI can optimize the design and construction processes to minimize environmental impact by promoting the use of sustainable materials, reducing waste, and enhancing energy efficiency in buildings.
• This creates opportunities for companies to develop AI solutions that contribute to achieving sustainability goals aligning with increasing global demand for eco-friendly construction.

The market is segmented based on Offering, Stage, Deployment Mode, Organization Size, Application, Industry, and Region.

Offering Insights:

• Service: This segment involves analyzing an individual's genetic information to provide personalized dietary recommendations. It focuses on understanding how genetic variations affect nutrient metabolism, absorption, and overall health.
• Solution: The increasing complexity of AI systems necessitates expert assistance for seamless integration and optimization as this segment is expected to dominate the target market growth. Many construction firms prefer to outsource AI implementation and support due to the technical expertise required.

Stage Insights:

• Design Stage: AI in the design stage focuses on optimizing building designs, creating 3D models, and improving architectural planning. AI algorithms can analyze various design scenarios, predict outcomes, and offer alternatives, which enhances creativity and efficiency.  
• Planning Stage: This segment dominates the target market due to the extensive use of AI in managing large-scale construction projects. The ability to forecast timelines, estimate budgets, and allocate resources efficiently has led to significant adoption of AI technologies during this phase.  
• Inspection Stage: It is used for tracking progress, ensuring safety standards are met and identifying defects in materials or construction techniques before they escalate.      
• Other Stages: This segment encompasses AI applications across other stages of the construction lifecycle such as procurement, operations and maintenance. AI can optimize the procurement of materials, streamline supply chain management, and improve post-construction facility management by predicting maintenance needs through predictive analytics.

Deployment Mode Insights:

• On-Premises: On-premises solutions give companies full control over their data, which is critical for construction firms dealing with highly sensitive projects. It allows for a higher level of customization based on the specific needs of the construction site, as the infrastructure is managed internally.
• Cloud: This segment dominates the target market due to its flexibility, scalability and cost-effectiveness. With the increasing use of remote work, real-time collaboration, and a focus on reducing IT infrastructure costs, most construction firms are opting for cloud-based solutions.

Organization Size Insights:

• Small & Medium Enterprises: Small & medium enterprises in the construction sector often face resource limitations in terms of budget, personnel, and technological expertise. AI enables SMEs to optimize their resources by improving project management, reducing material waste, and enhancing energy efficiency.
• Large Enterprises: Genetic testing in clinical diagnostics helps in identifying genetic disorders, predicting disease progression, and guiding treatment options. It includes tests for hereditary conditions, cancer predisposition, and pharmacogenomics.  

Application Insights:

• Facilities Management: This segment is increasingly adopting AI-driven solutions due to the need for smart building management and energy efficiency. AI can predict equipment failures, optimize energy consumption, and automate maintenance schedules, ensuring operational efficiency and cost savings.
• Project Management: AI enhances project management by providing real-time data analysis, risk assessment, and optimization of resources. It helps project managers predict project timelines, identify potential delays, and optimize workforce allocation.  
• Supply Chain Management: By streamlining transportation, predicting demand, and controlling inventories for building materials, artificial intelligence is transforming supply chain management. AI can streamline supply chain operations, anticipate material shortages, automate procurement procedures, and cut down on delays.
• Others: This category includes other AI applications in construction, such as health and safety management, design optimization, and workforce management. AI-driven tools monitor safety conditions, assess compliance with regulations, and ensure worker safety on construction sites.

Industry Insights:

• Commercial: This sector in the construction industry involves the development of office buildings, retail spaces, hotels, and other commercial properties. AI is used to improve project management, safety, and efficiency in these large-scale projects. AI-powered software helps in real-time project tracking, resource allocation, and predictive maintenance of commercial buildings.
• Residential: AI in the residential sector focuses on smart home technology, automated design and energy management. AI systems help architects design homes more efficiently by simulating different structural scenarios, while builders use AI for site optimization and material management.  
• Heavy Construction: Infrastructure projects including highways, bridges, dams, and big industrial buildings are examples of heavy construction. In this industry, AI is essential for raising safety, cutting costs, and increasing project efficiency.
• Others: The category others includes smaller-scale or specialty construction projects, such as public works, stadiums, and cultural monuments as well as specialized industrial buildings.

Regional Insights

• North America: This region is one of the leading regions in adopting AI in the construction sector, driven by the region’s strong technological ecosystem and large-scale infrastructure projects.
• Asia Pacific: This region is expected to witness the fastest growth in AI in construction due to rapid urbanization, infrastructure development, and increasing investments in smart cities.
• Europe: The European construction industry is undergoing digital transformation, and AI plays a crucial role in this shift, aiding in predictive maintenance, project planning, and risk assessment.
• Latin America: AI is used to modernize construction methods, helping to overcome challenges like labor shortages, delays, and cost overruns.
• Middle East and Africa: Governments and private entities in this region are heavily investing in AI and automation to enhance the efficiency of the construction sector.

Artificial Intelligence (AI) in Construction Market Report Scope:

Attribute	Details
Market Size 2024	USD 3.8 Billion
Projected Market Size 2034	USD 33.9 Billion
CAGR Growth Rate	27.2%
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Offering - Service, and Solution By Stage - Design Stage, Planning Stage, Inspection Stage, and Other Stages By Deployment Mode - On-Premises, and Cloud By Organization Size - Small & Medium Enterprises, and Large Enterprises By Application - Facilities Management, Project Management, Supply Chain Management, and Others By Industry - Commercial, Residential, Heavy Construction, and Others
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Offering, Stage, Deployment Mode, Organization Size, Application, Industry, and Region.

By Offering:

• Service
• Solution

By Stage:

• Design Stage
• Planning Stage
• Inspection Stage
• Other Stages

By Deployment Mode:

• On-Premises
• Cloud

By Organization Size:

• Small & Medium Enterprises
• Large Enterprises

By Application:

• Facilities Management
• Project Management
• Supply Chain Management
• Others

By Industry:

• Commercial
• Residential
• Heavy Construction
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Artificial Intelligence (AI) in Construction Market include Autodesk, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Trimble Inc., NVIDIA Corporation, Dassault Systèmes, Bentley Systems, Incorporated, PlanGrid, Inc., Smartvid.io, Inc., ALICE Technologies, Built Robotics, Assignar, Procore Technologies, Inc., and Aurora Computer Services.

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• In September 2024, Highwire, a platform that supports managing contractor construction and operation risk, has launched a safety risk management tool that offers advanced AI analysis. The new functionality aims to provide deep insights into contractor risk through advanced AI analysis of safety documentation. In addition to classifying safety processes and proactively identifying risks, the application also automates document review and analyses safety management systems. According to Highwire, these are jobs that would often need thousands of human hours to do.
• In July 2023, AJAX Engineering, a concreting equipment manufacturer, has launched Concrete GPT, an AI-driven platform designed specifically for India's construction and concreting industry. Concrete GPT provides a robust technical information collection with expert validation on industry insights, developments, and regulatory updates, with the goal of serving millions of construction professionals and concrete specialists.
• In July 2024, AI construction technology leader Buildots has announced the release of its new Integrated Tracking feature to further enable unified tracking of automated and manually-recorded tasks within a single platform on both mobile and desktop devices. The new feature allows project teams to leverage AI for automated progress tracking, while enabling professionals to log and verify tasks requiring human oversight, such as confirming the presence of electrical wiring in conduits or completion of tasks like quality assurance checks and inspections.

• Autodesk, Inc.*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Trimble Inc.
• NVIDIA Corporation
• Dassault Systèmes
• Bentley Systems, Incorporated
• PlanGrid, Inc.
• Smartvid.io, Inc.
• ALICE Technologies
• Built Robotics
• Assignar
• Procore Technologies, Inc.
• Aurora Computer Services

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Research Objectives
• Assumptions
• Abbreviations

Market Preview

• Report Description
  • Market Definition and Scope
• Executive Summary
  • Market Snippet, By Offering
  • Market Snippet, By Stage
  • Market Snippet, By Deployment Mode
  • Market Snippet, By Application
  • Market Snippet, By Application
  • Market Snippet, By Industry
  • Market Snippet, By Region
• Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restraints
  • Market Opportunities
• Market Trends
• Product Launch
• Merger and Acquisitions
• Impact Analysis
• PEST Analysis
• Porter’s Analysis

 

Market Segmentation, By Offering, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Service
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Solution
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Segment Trends

Market Segmentation, By Stage, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Design Stage
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Planning Stage
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Inspection Stage
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Other Stages
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Deployment Mode, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• On-Premises
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Cloud
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Organization Size, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Small & Medium Enterprises   
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Large Enterprises
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Application, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Facilities Management 
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Project Management
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Supply Chain Management  
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Others
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Industry, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Commercial
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Residential
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Heavy Construction
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Others
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (USD Bn), By Offering, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Stage, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Deployment Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Organization Size, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Industry, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • U.S
    • Canada
• Asia Pacific
  • Market Size and Forecast (USD Bn), By Offering, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Stage, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Deployment Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Organization Size, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Industry, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Europe
  • Market Size and Forecast (USD Bn), By Offering, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Stage, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Deployment Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Organization Size, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Industry, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
• Latin America
  • Market Size and Forecast (USD Bn), By Offering, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Stage, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Deployment Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Organization Size, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Industry, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • Brazil
    • Mexico
    • Rest of Latin America
• Middle East and Africa
  • Market Size and Forecast (USD Bn), By Offering, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Stage, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Deployment Mode, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Organization Size, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Industry, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East and Africa

Competitive Landscape

• Heat Map Analysis
• Company Profiles

• Autodesk, Inc.
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Trimble Inc.
• NVIDIA Corporation
• Dassault Systèmes
• Bentley Systems, Incorporated
• PlanGrid, Inc.
• Smartvid.io, Inc.
• ALICE Technologies
• Built Robotics
• Assignar
• Procore Technologies, Inc.
• Aurora Computer Services

The Last Word

• Future Impact
• About Us
• Contact