Construction Software Market Analysis

Construction Software Market Overview

Construction Software Market Size was valued at USD 3.4 billion in 2023. The Construction Software market industry is projected to grow from USD 3.7 billion in 2024 to USD 7.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.2% during the forecast period (2024 - 2032).

One of the driving factors of the Construction Software Market is the increasing adoption of Building Information Modeling (BIM) technology. BIM is a digital representation of a building's physical and functional characteristics, which enables construction professionals to design, construct, and manage buildings more efficiently. BIM software is becoming increasingly popular in the construction industry as it helps reduce errors, improve collaboration, and save time and money. The demand for BIM software is expected to drive the growth of the construction software market in the coming years.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Construction Software Market Trends

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  Increasing Popularity Of Cloud-Based Construction Management Software

  
  

Cloud technology is slowly progressing in the construction sector. It is estimated that by 2020, the cloud market will reach USD 270 billion, with the public cloud market standing at a 44% growth rate. The cloud-based construction software is capable of lowering operational costs, increasing flexibility, and much more. Cloud-based software solutions benefit enterprises in reducing business costs. Additionally, they require low maintenance and act as a one-point solution for storing and managing data within an organization.

Cloud-based construction software is less expensive than other traditional software packages. These solutions offer an application programming interface (API) that allows vendors to offer customized packages to their clients. According to the 2017 survey of the Associated General Contractors of America, it was observed that nearly 87% of the construction contractors are using or planning to use cloud-based construction software. To suppress legacy hardware costs and improve efficiency, contractors are transitioning towards cloud-host systems. Other benefits such as access to real-time data from any location via any number of mobile devices, promoting greater capabilities, and better integration with other software used by contractors are fueling the popularity of cloud-based networks. Thus, the increasing popularity of cloud-based construction management software is expected to drive the growth of the Construction Software Market during the forecast period.

Construction Software Market Segment Insights

Construction Software Type Insights

By type, the construction software market has been segmented into project management, financial management, quality and safety, field productivity, and others. According to MRFR analysis, the project management segment is expected to have the largest market share, followed by the financial management segment. The quality and safety segment is expected to exhibit the highest CAGR during the forecast period. Project management in construction is defined as the direction, regulation, and supervision of a project from early development to completion. There is a wide range of construction project types such as commercial, residential, industrial, and heavy civil. Procore Technologies’ Procore Platform, Procore Construction OS, and others offer industry-leading construction project management software. The growth of the project management segment can be attributed to several factors. One of them being the track record of cost overruns and mismanagement in construction projects. The need for accountable and efficient use of resources such as the workforce, raw materials, and time is also favoring the demand for construction project management solutions.

FIGURE 2: CONSTRUCTION SOFTWARE MARKET SHARE BY TYPE 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction Software Deployment Mode Insights

Growing cloud infrastructure in the region allows more than 70% of the companies to offer cloud-based construction software solution. However, the solutions are also deployed in-house (on-premise) through professional services offered by the vendors. Moreover, based on the deployment mode, the Construction Software Market has been divided into cloud and on-premise.

FIGURE 3: CONSTRUCTION SOFTWARE MARKET SHARE BY DEPLOYMENT MODE 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction Software Organization Size Insights

The construction software market is often segmented by organization size, with two main segments being small and medium-sized enterprises (SMEs) and large enterprises. Large enterprises dominated the market during the forecast period.

FIGURE 4: CONSTRUCTION SOFTWARE MARKET SHARE BY ORGANIZATION SIZE 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction Software Application Insights

Construction software is mainly used by general contractors, building owners, architects and engineers, specialty contractors, and sub-contractors for increasing productivity and efficiency. Additionally, firms within specific areas of the construction industry, such as commercial, residential, and industrial as well as specialty contracting, general contracting, and highway, are benefited by construction software applications.

FIGURE 5: CONSTRUCTION SOFTWARE MARKET SHARE BY APPLICATION 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction Software Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.

North America is expected to dominate the Construction Software Market in terms of market share during the forecast period. The presence of key players and a focus on infrastructure development in the region contribute to market growth. The region by country has been segmented into the US, Canada, and Mexico. North America is witnessing continuous digitization in the construction industry. Although the construction industry in the region is severely hit by the COVID-19 pandemic, the slow recovery (after the global economy opened in July 2020) of the economy is also helping the industry to recover. It is expected that both commercial and residential construction projects will increase, creating a need for comprehensive construction software such as CRM solutions, bid management, security estimation tools, and project management tools. The country holds a major share in the construction software market. Construction is a major contributor to the US economy and is witnessing growth year over year, which drives the demand for construction software in the country. Additionally, the presence of well-established players such as Oracle Corporation, Autodesk, and Trimble Inc. and private players in the country investing in the research & development of advanced software are further driving the market growth.

Canada is projected to grow at the fastest CAGR in the region owing to high investments by the government to develop infrastructure facilities. Government initiatives for smart cities, increasing adoption for construction software for managing the entire project, accounts, and allowing quality assurance from a single location, growing demand for cloud-based services and solutions, and increasing investments in real estate, industrial, and public infrastructure facilities are the driving factors for the market growth.

Increasing urbanization, high focus on infrastructural developments, and adoption of cloud platforms are driving the market growth in Mexico. The high cost of software is expected to hinder the market growth in the region.

FIGURE 6: CONSTRUCTION SOFTWARE MARKET SHARE BY REGION 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Construction Software Key Market Players & Competitive Insights

The construction software market is characterized by the presence of many global, regional, and local players. The market is competitive, with all the players competing to gain maximum market share. Strong competition and increasing adoption of innovative technologies such as cloud, IoT, and AI, are key factors that confront the growth of the global market. The vendors operating in the construction software market compete based on cost, product quality, reliability, and aftermarket services. The vendors must provide cost-efficient and high-quality services to survive and succeed in an intensely competitive market.

MRFR includes the following key players for construction software market research study: Sage Group plc, Oracle, Trimble Inc., Procore Technologies, Inc., Jonas Construction Software Inc., Fieldwire, Autodesk Inc., Buildertrend, Esticom Inc., ConstructConnect, CoConstruct, Corecon Technologies, Inc, STACK Construction Technologies, CMiC, and Heavy Construction Systems Specialists, Inc. (HCSS).

The above-mentioned industry players are focused on providing innovative construction software solutions with enhanced security levels, complying with industry regulations (global and regional), and ensuring cost-efficiency. Furthermore, they also focus on expanding their market reach and increase their customer base while building diversified product offerings

Key Companies in the Construction Software market include

• Sage Group plc


• Oracle


• Trimble Inc.


• Procore Technologies, Inc.


• Jonas Construction Software Inc.


• Fieldwire,


• Autodesk Inc.


• Buildertrend,


• Esticom Inc.


• Construct Connect


• Corecon Technologies, Inc,


• STACK Construction Technologies


• CMiC


• Heavy Construction Systems Specialists, Inc. (HCSS)


• Others

Construction Software Industry Developments

In July 2024, with the goal of transforming construction site safety conditions through the use of artificial intelligence (AI) and other technologies, HammerTech, a business that provides construction safety software, was able to raise USD 70 million from Riverwood Capital. The investment will boost HammerTech's growth and raise the upgrading workers' general productivity.

In July 2024, the software company Nemetschek Group, which has its headquarters in Germany and focuses on the AEC/O (architecture, engineering, construction, and operation) sector, has now established itself in the Indian market and intends to expand its activities considerably. Given the potential for expansion in the nation's infrastructure and real estate markets, the company plans to revolutionize the Indian AEC sector.

In July 2024, Render Networks, a provider of geospatial network construction platforms, announced a partnership with Safe Software and enhanced its digital transformation and data integration capabilities supporting Render's construction management platform. This alliance would allow Render to enhance its FME processes in construction management workflows and improve the overall customer experience.

In June 2024, Trimble succeeded in creating a new asset lifecycle management software suite known as Trimble Unity. This software allows public infrastructure and capital project owners to effectively and efficiently plan, design, maintain and expand interconnected digital workflow systems.

In March 2024, under their seed fundraising round, Ontraccr Technologies, a Canadian firm that offers construction solutions, was able to raise USD 0.88 million from investors to enhance their operations in additional industrial sectors and the US market.
In November 2023, Sage Group plc. introduced Sage Construction Management Software in Canada. To enhance customer satisfaction, the company has further incorporated project management as well as cloud pre-construction functionalities which now allow them to enlarge their construction cloud suite within Canada.

In November 2022, Procore Technologies, Inc., an American company specializing in construction management software, announced the establishment of its operating business center in Germany.

Construction Software Market Segmentation

Construction Software Type Outlook

• Project Management


• Account/Financial Management


• Quality & Safety


• Field Productivity


• Others

Construction Software Deployment Mode Outlook

• Cloud


• On-Premise

Construction Software Organization Size Outlook

• Large Enterprise


• Small and Medium Enterprises

Construction Software Application Outlook

• General Contractors


• Building Owners


• Architects and Engineers


• Sub-Contactors


• Specialty contractors

Construction Software Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa


• South America