Artificial Intelligence In Construction Market: Impact on Project Management
The global artificial intelligence in construction market was valued at approximately USD 2.93 billion in 2023 and is anticipated to reach USD 16.96 billion by 2030, growing at a CAGR of 26.9% from 2024 to 2030. This growth is fueled by the various advantages AI offers in the construction sector, including the prevention of cost overruns by forecasting budgets based on historical data and aiding in the development of predictive models aligned with project timelines. This efficiency renders mega-construction projects more cost-effective.
Artificial intelligence (AI) also improves 3D model-based processes, lightening the workload for engineers, construction professionals, and architects. Additionally, it enhances project planning through robots that conduct 3D scans of construction sites, providing data that helps management tackle on-site issues.
Another significant driver of this market is the enhanced risk control on job sites, which assures contractors and subcontractors can concentrate on productive tasks. Furthermore, advanced AI applications, such as autonomous construction machinery, improve on-site efficiency by automating labor-intensive activities like bricklaying and concrete pouring. Concurrently, AI-driven workforce optimization mitigates labor shortages by intelligently distributing workloads, analyzing performance, and allocating resources. The diverse benefits of AI in construction significantly boost the demand for related products and services, propelling market growth.
Key Market Trends & Insights
• North America Artificial Intelligence in construction market dominated the market with 40.4% share in 2023. The factors responsible for this growth are attributed to the huge investments in technology and heavy usage of AI in project management, risk management, supply chain management, and many more fields which is increasing the demand for the product and growing the market in the region significantly.
• The U.S. dominated the North American AI in the construction market with a share of 75.3% in 2023 due to real-time collaborations, stringent regulatory compliances, and technological advancements which led to a surge in the demand for the product and the growth of the market significantly in the country.
• In terms of offering segment, solution offerings dominated the market with a revenue share of 81.7% in 2023. This growth is primarily driven by significant advancements in AI technologies, including Natural Language Processing (NLP), deep learning, and machine learning.
• Based on application, the project management applications segment accounted for the 36.2% market revenue share in 2023. This growth is primarily driven by the integration of machine learning algorithms.
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Market Size & Forecast
• 2023 Market Size: USD 2.93 Billion
• 2030 Projected Market Size: USD 16.96 Billion
• CAGR (2024-2030): 26.9%
• North America: Largest market in 2024
Key Companies & Market Share Insights
Some prominent companies in the artificial intelligence (AI) sector of the construction market include Microsoft, Oracle, SAP SE, and others. Organizations are striving to expand their customer base to secure a competitive advantage in the industry. As a result, major players are implementing various strategic initiatives, including mergers and acquisitions, along with partnerships with other leading firms.
• Microsoft has entered this market by offering AI solutions like Copilot, Dynamics 365, and Microsoft Azure AI, which enhance daily operations such as client management, marketing, regulatory compliance, and more.
• Oracle is partnering with companies like Rosedin Electric to establish innovative labs in this field and promote market innovation. They provide data-driven decision-making software, including Oracle Construction Intelligence Cloud Services.
Key Players
• Autodesk Inc.
• International Business Machines Corporation
• Microsoft
• Oracle
• SAP SE
• Trimble Inc.
• ALICE Technologies Inc.
• BuildingConnected
• The Access Group
• Doxel.
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Conclusion
The global artificial intelligence in construction market growth is driven by AI's ability to prevent cost overruns, enhance 3D modeling processes, and improve project planning through data-driven insights. Additionally, AI facilitates better risk control on job sites, allowing contractors to focus on productivity. Advanced applications like autonomous machinery automate labor-intensive tasks, while workforce optimization strategies address labor shortages. Overall, AI's multifaceted benefits are significantly boosting demand for related products and services, fueling market expansion.