AI in Construction Market Overview
As per MRFR analysis, the AI in Construction Market Size was estimated at 1.51 (USD Billion) in 2023.
The AI in Construction Market Industry is expected to grow from 1.82(USD Billion) in 2024 to 15 (USD Billion) by 2035. The AI in Construction Market CAGR (growth rate) is expected to be around 21.11% during the forecast period (2025 - 2035).
Key AI in Construction Market Trends Highlighted
Driven by the growing need for efficiency, safety, and cost-effectiveness within the sector, the Global AI in Construction Market is seeing notable developments. AI technology has transformed construction management by allowing more precise project planning, resource allocation, and risk control. Key market drivers include the increasing need for automation in construction processes and the developing trend of smart cities, where AI technologies are used to simplify operations, strengthen design processes, and boost safety measures. Furthermore, worldwide sustainability projects have spurred the use of artificial intelligence (AI) technologies that maximize resource use and reduce waste, hence influencing a more environmentally conscious building industry.
Particularly in fields like predictive analytics and real-time monitoring, the subject of artificial intelligence in construction offers many possibilities. By using machine learning algorithms to forecast project delays and distribute resources more efficiently, businesses may improve their operational strategy. The fast-expanding IoT devices in construction create a scene suited for artificial intelligence integration as well, enabling the gathering of large data sets that might guide decision-making processes. Businesses concentrating on developing artificial intelligence solutions designed particularly for the building will be able to seize these expanding prospects and promote creativity. Recent times have demonstrated a noteworthy movement towards collaborative AI solutions that boost communication and workflow among project teams, equating to better project outputs.
Emphasizing virtual cooperation and remote monitoring, the epidemic has hastened the digital transformation of the construction business. The need for sophisticated artificial intelligence technology that can guarantee worker safety on job sites by means of predictive analytics and real-time notifications is becoming more essential. These developments point to a strong momentum within the Global AI in Construction Market as stakeholders want to use technology for enhanced efficiency and safety in building projects all around.
Fig 1: AI in Construction Market Overview
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in Construction Market Drivers
Increase in Infrastructure Development Projects
A surge in infrastructure development projects in several areas is driving the notable expansion of Global AI in Construction Market Industry. Post-pandemic, the Global economic recovery has prompted more government infrastructure expenditure. For example, the Global Infrastructure Outlook estimates a global need for USD 94 trillion worth of infrastructure investments by 2040. This projection shows that nations are aware of the need to improve and build their infrastructure to fit rising populations and urbanization.
Including artificial intelligence, major companies like the World Bank and the European Investment Bank are actively financing infrastructure initiatives using innovative technology. Project management, resource allocation, and predictive analytics all use artificial intelligence capabilities, which help to make construction operations more efficient, timely, and affordable. This widespread use of artificial intelligence technology is expected to significantly increase output in the building industry, hence increasing the need for solutions in the Global AI in Construction Market.
Rising Demand for Automation and Robotics
As construction firms aim to increase productivity and lower labor costs, automation and robots are becoming even more vital in the Global AI in Construction Market Industry. Many areas are seeing a decline in the construction workforce, which is driving businesses to use technology to bridge the workforce shortfall. A study by the International Federation of Robotics claims that demand for construction robots has risen 25% yearly as businesses use automation to solve workforce shortages and simplify operations.
Moreover, companies like the Occupational Safety and Health Administration (OSHA) stress the use of safety technology in construction, which improves worker safety and efficiency. Adopting AI-driven robotic solutions helps with material handling, demolition, and bricklaying, hence simplifying complex procedures and lowering human risk. This increasing trend forecasts a steady increase in investment and study on artificial intelligence technology in the building industry.
Enhanced Project Monitoring and Management
The intricacy of large-scale construction projects drives Global AI in the Construction Market Industry to need improved project monitoring and management. Advanced AI-powered technologies provide data analytics and real-time tracking, hence helping construction managers simplify processes and reduce risks. A Construction Industry Institute research has shown that projects without appropriate monitoring systems are 20% less likely to be executed on time and under budget than those with such systems.
Using artificial intelligence for efficient project management may greatly enhance project results. Furthermore, famous companies like Autodesk and Procore are setting the pace by providing AI-driven software solutions, helping to reduce expenses, manage resources, and optimize schedules. These sophisticated monitoring systems will promote further usage of artificial intelligence technology across the sector as the need for accuracy and on-time delivery in building projects grows.
AI in Construction Market Segment Insights
AI in Construction Market Application Insights
The Application segment of the Global AI in Construction Market is pivotal, showcasing various functionalities that significantly enhance operational efficiency in construction projects. By 2024, the market valuation for this segment is projected to reach a substantial 1.82 USD Billion, growing robustly to an impressive 15.0 USD Billion by 2035. Within this segment, Project Planning stands out with a valuation of 0.3 USD Billion in 2024 and is expected to rise to 2.5 USD Billion in 2035. This sub-segment is crucial as it enables construction firms to optimize scheduling and resource allocation, ensuring that projects are completed on time and within budget, which is vital in the highly competitive construction environment.Safety Management, valued at 0.25 USD Billion in 2024 and projected to increase to 2.0 USD Billion in 2035, reflects the industry's heightened focus on worker safety and regulatory compliance, employing AI for hazard detection and risk assessment. Quality Control holds a valuation of 0.2 USD Billion in 2024, illustrating the importance of maintaining high standards in construction practices, a necessity that is expected to elevate its market position to 1.75 USD Billion in 2035. Predictive Maintenance, although currently lower at 0.15 USD Billion in 2024, is anticipated to grow to 1.5 USD Billion by 2035, showcasing its relevance in minimizing equipment downtime and maximizing productivity through advanced analytics.Lastly, Site Management is poised to dominate the segment with a valuation of 1.12 USD Billion in 2024, expected to soar to 7.25 USD Billion in 2035. This rapid expansion underscores the critical need for effective management of construction sites, where AI-powered solutions enhance operational workflows and real-time decision-making. Collectively, these components reflect a comprehensive ecosystem where AI in Construction Market applications are set to transform project delivery methods, significantly impacting the operational dynamics of the entire industry.The rapid growth in these areas is driven by increasing project complexities, the rising demand for safety and quality assurance, and the need for efficient resource utilization, making these sub-segment areas essential for firms aiming to thrive in a challenging market landscape.
Fig 2: AI in Construction Market Insights
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in Construction Market Technology Insights
The Global AI in Construction Market is experiencing significant growth within the technology segment, with expectations that the market will be valued at 1.82 billion USD by 2024 and reaching 15.0 billion USD by 2035. This growth is driven by advancements in various technologies, including Machine Learning, Natural Language Processing, Computer Vision, Robotics, and Big Data Analytics, which are becoming pivotal in enhancing operational efficiency and project management in the construction sector. Machine Learning applications are optimizing project scheduling and resource allocation, while Natural Language Processing is streamlining communication and documentation processes.Moreover, Computer Vision plays a vital role in site surveillance and safety monitoring, significantly improving construction site management. Robotics is revolutionizing construction tasks through automation, thereby reducing labor costs and improving precision. Big Data Analytics is also crucial, as it enables firms to analyze vast amounts of project data, leading to informed decision-making and enhanced project outcomes. Overall, the Global AI in Construction Market segmentation reflects a trend toward greater integration of intelligent technologies, which is addressing challenges such as labor shortages and increasing project complexity.These factors collectively illustrate the significant potential for market growth and innovation in the industry.
AI in Construction Market End Use Insights
The Global AI in Construction Market is experiencing substantial growth, with the overall market projected to be valued at 1.82 billion USD in 2024. This growth can be attributed to various factors influencing different end use segments, including Residential, Commercial, Infrastructure, Industrial, and Specialty. Among these, the Infrastructure segment plays a crucial role as it increasingly adopts AI technologies to enhance project efficiency, reduce costs, and ensure safety in large-scale public works. The Residential market sees significant potential as AI solutions optimize construction processes and enable smart building technologies, catering to evolving consumer demands.In the Commercial sector, AI applications help streamline operations and improve project management, making it a pivotal contributor to market growth. The Industrial segment, benefiting from automation and predictive analytics, is also driving the adoption of AI in construction for improved productivity. Lastly, the Specialty sector focuses on niche applications and high-tech innovations, complementing the broader market trends. With a compound annual growth rate of 21.11 percent expected from 2025 to 2035, the Global AI in Construction Market segmentation underscores the critical advancements shaping the industry's landscape.
AI in Construction Market Solution Type Insights
The Global AI in Construction Market is poised for substantial growth, with expectations of reaching a value of 1.82 billion USD by 2024 and expanding significantly to 15.0 billion USD by 2035. Within this market, the Solution Type segment plays a pivotal role, encompassing Software, Hardware, and Services, each vital for enhancing efficiency and effectiveness in construction projects. Software solutions are major contributors to the market, focusing on process automation, project management, and data analysis, which are increasingly essential for driving productivity.Meanwhile, Hardware solutions enhance operational capabilities with advanced sensors and robotics that streamline construction tasks. Services are integral as they provide support in implementation, customization, and maintenance, ensuring that AI technologies are effectively integrated into existing systems. This segmentation allows stakeholders to tailor AI applications according to specific construction needs, addressing the industry's unique challenges such as labor shortages and project delays. As governments worldwide invest in infrastructure development, the Global AI in Construction Market is positioned for robust market growth, driven by the increasing demand for smart construction solutions.
AI in Construction Market Regional Insights
The Global AI in Construction Market is poised for significant growth, with a total market value reaching 1.82 USD Billion in 2024 and projected to rise to 15.0 USD Billion by 2035. Within the Regional segmentation, North America holds a prominent position with a valuation of 0.73 USD Billion in 2024, expected to expand to 5.6 USD Billion by 2035, indicating its major role in driving technological innovations in construction. Europe follows closely with a value of 0.51 USD Billion in 2024, set to grow to 3.9 USD Billion; this region is recognized for rapidly adopting AI solutions to improve efficiencies.The APAC region is emerging with a valuation of 0.38 USD Billion in 2024, projected to reach 3.0 USD Billion by 2035, propelled by urbanization and infrastructure investments. South America and the MEA regions currently contribute 0.1 USD Billion each in 2024, reflecting a growing interest in AI applications in construction, with expectations of reaching 1.0 USD Billion and 1.5 USD Billion respectively by 2035. Each of these regions contributes to the Global AI in Construction Market revenue through unique drivers, opportunities, and challenges, enhancing the overall market landscape.
Fig 3: AI in Construction Market Regional Insights
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in Construction Market Key Players and Competitive Insights
The Global AI in Construction Market is increasingly becoming a pivotal sector where advanced technologies like artificial intelligence are transforming traditional construction practices. The integration of AI solutions enables stakeholders to enhance efficiency, reduce costs, and improve project outcomes. As construction projects become more complex, the adoption of AI technologies is essential for optimizing workflows, predicting project risks, and ensuring safety measures are in place. This rapidly evolving market is characterized by the presence of various players who leverage AI capabilities to cater to the unique challenges encountered in construction, fostering a competitive landscape that is both dynamic and innovative. Companies are increasingly investing in research and development to deliver cutting-edge solutions that align with the needs of clients and the broader industry trends emphasizing sustainability and digital transformation.IBM stands out in the Global AI in Construction Market with its robust technological infrastructure and extensive expertise in artificial intelligence. The company offers a suite of AI-driven solutions designed to address the unique needs of the construction industry, helping firms make data-driven decisions and streamline operations. IBM's strengths lie in its innovative approach and ability to integrate AI with existing construction management tools, enabling predictive analytics and real-time insights. The company’s strong brand reputation and resources facilitate advanced research collaborations and partnerships that enhance its market position. As a result, IBM remains poised to capitalize on emerging opportunities within the construction sector, fostering robust relationships with clients and maintaining its influence in providing next-generation solutions.Trimble has established a significant footprint in the Global AI in Construction Market by delivering specialized software and hardware solutions tailored to the construction industry's needs. The company’s key products often include advanced modeling tools and data management platforms that utilize AI elements to enhance project planning and execution. Trimble's strengths stem from its deep industry knowledge and commitment to innovation, enabling the firm to provide cutting-edge tools that integrate seamlessly into various construction workflows. Furthermore, Trimble continuously expands its market presence through strategic mergers and acquisitions that bolster its technology portfolio, positioning itself as a leader in AI application for construction processes. With a focus on improving collaboration, safety, and efficiency across projects, Trimble's offerings remain essential as the construction sector increasingly prioritizes digital transformation and smart technology integration on a global scale.
Key Companies in the AI in Construction Market Include
- IBM
- Trimble
- SAP
- Bluebeam
- Smartvid.io
- Bentley Systems
- Autodesk
- RIB Software
- PlanGrid
- Microsoft
- SAS Institute
- Honeywell
- Buildots
- DAUB
- Oracle
AI in Construction Market Industry Developments
Recent news developments in the Global AI in Construction Market indicate a growing adoption of artificial intelligence technologies by major players like IBM, Autodesk, and Trimble. In September 2023, IBM announced a collaboration with various construction firms to enhance predictive maintenance through AI-driven analytics, aiming to increase efficiency on job sites. Similarly, Autodesk launched a new suite of AI tools aimed at automating project management tasks, enabling firms to save time and reduce costs. In light of mergers and acquisitions, SAP acquired a leading AI-driven construction management software company in August 2023, enhancing its capabilities in the sector. Meanwhile, Bluebeam and Smartvid.io are exploring potential integrations to strengthen their respective product offerings. The market saw steady growth, with a significant valuation boost of several billion dollars from 2021 to 2023, impacted by the increasing need for smart construction solutions. The influence of AI is becoming pivotal as the construction industry faces challenges such as labor shortages and project inefficiencies. Reports indicate that the Global AI in Construction Market is expected to expand rapidly, positioning several companies like Bentley Systems and Oracle at the forefront of this transformation.
AI in Construction Market Segmentation Insights
AI in Construction Market Application Outlook
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Project Planning
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Safety Management
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Quality Control
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Predictive Maintenance
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Site Management
AI in Construction Market Technology Outlook
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Machine Learning
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Natural Language Processing
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Computer Vision
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Robotics
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Big Data Analytics
AI in Construction Market End Use Outlook
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Residential
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Commercial
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Infrastructure
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Industrial
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Specialty
AI in Construction Market Solution Type Outlook
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Software
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Hardware
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Services
AI in Construction Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
Report Attribute/Metric
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Details
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Market Size 2023
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1.51(USD Billion)
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Market Size 2024
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1.82(USD Billion)
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Market Size 2035
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15.0(USD Billion)
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Compound Annual Growth Rate (CAGR)
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21.11% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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IBM, Trimble, SAP, Bluebeam, Smartvid.io, Bentley Systems, Autodesk, RIB Software, PlanGrid, Microsoft, SAS Institute, Honeywell, Buildots, DAUB, Oracle
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Segments Covered
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Application, Technology, End Use, Solution Type, Regional
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Key Market Opportunities
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Predictive maintenance solutions, Construction project optimization, Enhanced safety monitoring systems, AI-driven design automation, Smart materials integration
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Key Market Dynamics
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Increased operational efficiency, Enhanced safety measures, Improved project management, Cost reduction strategies, Real-time data analysis
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Countries Covered
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North America, Europe, APAC, South America, MEA
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AI in Construction Market Highlights:
Frequently Asked Questions (FAQ) :
The Global AI in Construction Market is expected to be valued at 1.82 USD Billion in 2024.
By 2035, the Global AI in Construction Market is projected to reach 15.0 USD Billion.
The expected CAGR for the Global AI in Construction Market from 2025 to 2035 is 21.11%.
North America is expected to dominate the market with a valuation of 5.6 USD Billion by 2035.
The Project Planning application segment is anticipated to be valued at 2.5 USD Billion in 2035.
The Site Management application is expected to be valued at 1.12 USD Billion in 2024.
Major players in the market include IBM, Trimble, SAP, Autodesk, and Microsoft.
The Safety Management application segment is projected to reach a valuation of 2.0 USD Billion in 2035.
The APAC region is projected to be valued at 3.0 USD Billion in 2035.
The Quality Control application segment is expected to grow from 0.2 USD Billion in 2024 to 1.75 USD Billion in 2035.