Smart Construction Market Size was valued at USD 81.8 Billion in 2022. The Smart Construction industry is projected to grow from USD 101.02 Billion in 2023 to USD 546.70 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.50% during the forecast period (2024 - 2032).
Rising demand for efficient and sustainable construction practices, along with the integration of advanced technologies like IoT and AI is the key market drivers fueling the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Smart Construction is being driven by the widespread integration of advanced technologies. Construction industry stakeholders are increasingly adopting cutting-edge technologies of the Internet of Things, Artificial Intelligence, and Building Information Modeling (BIM) to enhance project efficiency and outcomes. IoT enables the interconnectivity of construction equipment and devices, facilitating real-time monitoring and data collection. AI algorithms contribute to predictive analytics, allowing for proactive decision-making and risk mitigation. BIM, on the other hand, fosters collaborative planning and design, promoting better coordination among various project stakeholders.
The global construction industry is undergoing a paradigm shift towards sustainability and efficiency, driven by environmental concerns, regulatory requirements, and a growing awareness of resource constraints. Smart construction practices address these demands by incorporating eco-friendly technologies and optimizing resource utilization. Energy-efficient construction materials, renewable energy solutions, and smart building systems contribute to environmentally sustainable projects.
Cost overruns and delays have historically plagued the construction industry. Smart construction addresses these challenges by leveraging automation and analytics to optimize project costs. Automation, in the form of robotics and autonomous construction equipment, streamlines construction processes, reduces labor costs and enhances precision. Additionally, predictive analytics and data-driven insights help project managers anticipate potential cost escalations and make informed decisions to prevent budget overruns.
Environmental concerns are increasingly shaping construction practices. According to a survey conducted 72% of contractors believe that incorporating sustainable practices is crucial for staying competitive. The emphasis on efficiency is also supported by a study by Construction Executive, where 90% of construction professionals surveyed identified productivity improvement as a top driver for technology adoption. As a result, it is anticipated that throughout the projection period, demand for Smart Construction will increase due to the rising preference for Sustainable and Efficient Construction Practices. Thus, driving the Smart Construction market revenue.
The Smart Construction Market segmentation, based on Type includes On-site Visualization, Fleet Tracking, Construction Simulation, Intelligent Control, and Others. The on-site visualization segment dominated the market, accounting for more than a quarter of market revenue. On-site visualization technologies play a pivotal role in the construction phase, aiding architects, engineers, and construction workers in visualizing complex designs and project details.
The Smart Construction Market segmentation, based on Application includes Construction, Transportation, Mining, and Others. The construction segment dominated the market, accounting for around 42% of market revenue. This is attributed to the high demand in the construction sector for sustainable practices.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Smart Construction market area will dominate this market. the region is home to a highly developed and technologically advanced construction industry. The presence of major players in the smart construction technology sector, as well as a strong focus on research and development, contributes to continuous innovation.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Smart Construction market accounts for the second-largest market share due to its well-established construction sector and a proactive approach toward sustainability and efficiency. European countries prioritize environmentally friendly construction practices, driving the adoption of smart technologies that contribute to green building initiatives. Further, the German Smart Construction market held the largest market share, and the UK Smart Construction market was the fastest-growing market in the European region
The Asia-Pacific Smart Construction Market is expected to grow at the fastest CAGR from 2023 to 2032. This is driven by the rapid urbanization and infrastructure development in key economies within the region. Countries such as China and India are experiencing substantial growth in construction activities, creating a high demand for smart construction solutions. Moreover, China’s Smart Construction market held the largest market share, and the Indian Smart Construction market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing in continuous research and development to bring forth innovative solutions. This includes advancements in IoT, AI, BIM, and other smart technologies to enhance construction processes, improve efficiency, and meet evolving industry needs. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Smart Construction industry must offer cost-effective items.
Given the dynamic nature of the construction industry and technology landscape, companies in the global Smart Construction industry adopt agile business strategies to benefit clients and increase their market share. In recent years, the Smart Construction industry has offered some of the most significant advantages to Consumers. Major players in the Smart Construction market, including Westbase Technology, CASE, XCMG, Mohocon, Sky Tronic, Komatsu, Sunward, StreamBIM, Zoomlion, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.
URC stands as a global leader in smart home automation and control solutions, renowned for its Total Control platform. The company seamlessly integrates cutting-edge technology with sophisticated design, allowing users to manage diverse home systems through single-touch or voice activation. With over 100 million touch screens and remotes sold in the past decade, URC is celebrated for its unrivaled performance and reliability. The comprehensive range of URC control systems, including Total Control and Complete Control, offers users a tailored experience. URC's user interfaces encompass tabletop controllers, in-wall touchscreens, remotes, keypads, and mobile apps, supported by voice control integration with industry leaders like Comcast Xfinity, Amazon Alexa, and Google Assistant. The company's systems are expertly designed, installed, and maintained by a network of trained systems integration professionals. In February 2022, Legrand forged a collaboration with URC, a prominent supplier of smart home automation and control systems, aiming to enhance Smart Home Control. This partnership entails joint efforts to deliver a smooth and integrated control experience for Legrand's Vantage lighting and climate systems.
Johnson Controls, a pioneer with a legacy spanning over 135 years, stands at the forefront of transforming environments worldwide. As the global leader in smart, healthy, and sustainable buildings, the company is dedicated to reimagining building performance for the benefit of people, places, and the planet. Leveraging its extensive history of innovation, Johnson Controls introduces cutting-edge solutions through OpenBlue, its comprehensive digital offering. With a vast team of 100,000 experts across 150+ countries, Johnson Controls boasts the world's largest portfolio of building technology, software, and service solutions, serving diverse industries such as healthcare, education, data centers, airports, stadiums, and manufacturing. In August 2022, Johnson Controls collaborated with Microsoft Beijing Campus to enhance its continuous retrofit and optimization of building operations. This collaboration resulted in a remarkable 27.9% energy savings and a significant improvement in key equipment uptime, reaching 98%.
January 2022: Johnson Controls successfully concluded the acquisition of FogHorn, a leading developer of Edge AI software for industrial and commercial IoT solutions. The integration of FogHorn's top-tier Edge AI into Johnson Controls' OpenBlue solution portfolio propels the company toward its vision of creating intelligent, self-sufficient buildings that continually learn, adapt, and autonomously respond to environmental and human needs.
September 2021: Legrand unveiled the Living Now design, characterized by its exceptional purity of creation and precise geometries suitable for all residences. This design seamlessly showcases its innovative potential when integrated with connected smart systems.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 81.8 Billion |
| Market Size 2023 | USD 101.023 Billion |
| Market Size 2032 | USD 546.705 Billion |
| Compound Annual Growth Rate (CAGR) | 23.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Westbase Technology, CASE, XCMG, Mohocon, Sky Tronic, Komatsu, Sunward, StreamBIM, Zoomlion, Caterpillar, Autonomous Solutions, Hyundai, Doosan, Dewalt, Hitachi Construction Machinery, Volvo, JCB, Globiz, Built Robotics, and SMS Equipment. |
| Key Market Opportunities | · Increasing Demand for Sustainable and Efficient Construction Practices offers a novel opportunity for market expansion |
| Key Market Dynamics | · Integration of advanced technologies is driving the smart construction market |
Frequently Asked Questions (FAQ) :
The Smart Construction Market size was valued at USD 81.8 Billion in 2022.
The global market is projected to grow at a CAGR of 23.50% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Westbase Technology, CASE, XCMG, Mohocon, Sky Tronic, Komatsu, Sunward, StreamBIM, and Zoomlion.
The On-site Visualization category dominated the market in 2022.
The Construction had the largest share in the global market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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