PUBLISHER: The Business Research Company | PRODUCT CODE: 1674256
PUBLISHER: The Business Research Company | PRODUCT CODE: 1674256
AI in construction involves leveraging artificial intelligence tools and techniques within the construction sector to gain comprehensive insights into on-site activities. These AI applications can optimize various aspects such as energy efficiency and indoor air quality by analyzing data sourced from building systems, thereby enhancing overall performance indicators.
The primary components of AI in construction encompass both solutions and services. Solutions involve methods or approaches used to tackle challenges or fulfill particular needs within the construction sector. AI is harnessed by construction companies to scrutinize project data, including tasks such as construction site monitoring and predictive analytics. Meanwhile, AI-powered construction services are utilized across pre-construction, construction, and post-construction phases, implemented both on the cloud and on-premises. Applications of AI in construction span various areas such as project management, field management, risk assessment, schedule coordination, supply chain oversight, and other relevant functions across heavy construction, institutional commercial projects, residential development, and related industries.
The AI in construction market research report is one of a series of new reports from The Business Research Company that provides AI in construction market statistics, including AI in construction industry global market size, regional shares, competitors with an AI in construction market share, detailed AI in construction market segments, market trends and opportunities, and any further data you may need to thrive in the AI in construction industry. This AI in construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The AI in construction market size has grown exponentially in recent years. It will grow from $1.76 billion in 2024 to $2.29 billion in 2025 at a compound annual growth rate (CAGR) of 30.0%. The growth in the historic period can be attributed to efficiency improvements, cost reduction, data analytics, automation in construction processes, safety enhancement.
The AI in construction market size is expected to see exponential growth in the next few years. It will grow to $7.21 billion in 2029 at a compound annual growth rate (CAGR) of 33.2%. The growth in the forecast period can be attributed to predictive maintenance, increased adoption of drones, AI-driven project risk management, supply chain optimization, augmented reality (AR) applications. Major trends in the forecast period include autonomous construction equipment, predictive analytics for project management, computer vision for site monitoring, collaborative robots (cobots), energy efficiency and sustainable construction.
The rise in infrastructure projects is anticipated to drive the growth of artificial intelligence (AI) in the construction market in the future. An infrastructure project involves developing new road systems or significantly modifying an existing network that impacts traffic flow. AI plays a crucial role in infrastructure projects by utilizing advanced technologies and algorithms to enhance various aspects of the project lifecycle, enabling more efficient design, planning, operation, and management of construction initiatives. Consequently, the adoption of AI in the construction sector is expected to increase as the industry seeks innovative solutions to address the demands of infrastructure development. For example, in September 2024, the United States Census Bureau, a government agency, reported that construction spending in July 2024 was estimated at a seasonally adjusted annual rate of $2,162.7 billion, which is 6.7% (+-1.8%) higher than the July 2023 estimate of $2,027.4 billion. During this time, construction spending reached $1,237.5 billion, reflecting an 8.8% (+-1.2%) increase compared to the $1,137.4 billion spent in the same period in 2023. Therefore, the increase in infrastructure projects is propelling the growth of artificial intelligence (AI) in the construction market moving forward.
The burgeoning government investments in smart city initiatives are poised to significantly drive the advancement of AI within the construction market in the foreseeable future. These investments denote the allocation of public funds towards infrastructure development, service provision, and fostering economic growth and societal welfare. When directed toward AI in construction, government investments play a pivotal role in enhancing the quality of life within smart cities, making them more efficient, sustainable, and conducive to living. Notably, as per the Press Information Bureau in January 2022, the Indian Central government increased its allocation to ₹34,887 crore from ₹28,315 crore, with an 89% utilization rate of funds released by the Center and States for smart city projects. Hence, the escalating government investments in smart city ventures stand as a driving force behind the expansion of AI adoption within the construction sector.
Major players within the artificial intelligence (AI) in the construction market are embracing new technologies to fortify their market presence. For instance, in December 2022, PCL Construction, a Canadian-based construction firm, unveiled AI Surveyor, a pioneering platform in construction technology. AI Surveyor serves as an innovative construction technology platform that automates infrastructure development reporting by harnessing artificial intelligence and robust GIS analytics. This system collects data via UAV, facilitating streamlined reporting on daily progress in the field through specialized Key Performance Indicator (KPI) monitoring and highlighting potential deviations for further assessment. Previously conducted manually, this process incurred additional labor and equipment costs. However, leveraging an AI surveyor accelerates and enhances efficiency while furnishing project teams with precise information and statistics critical for project development.
Key players in the AI construction market are directing their efforts toward developing cutting-edge technologies, notably digital assistants, to optimize revenue and productivity within building and infrastructure projects. Digital assistants, also referred to as virtual or mobile assistants, are sophisticated computer programs engineered to offer diverse forms of support. For instance, in March 2022, Slate Technologies, Inc., a US-based AI software platform catering to the construction sector, introduced a digital assistant tailored for the industry. Leveraging AI and machine learning, this assistant aids construction professionals in making informed decisions early in the project lifecycle, thereby optimizing revenue generation while maintaining project timelines, ultimately boosting productivity. Adaptability is a key feature of the assistant, as it refines its guidance based on user interactions and project outcomes, delivering contextual advice. The Slate Digital Assistant offers comprehensive insights into the construction process by conducting multidimensional analyses on both internal and external data sources. These sources encompass a wide array of data, including emails, RFIDs, 3D models, ERP systems, and various construction-related datasets. Furthermore, it integrates non-integrated systems across general contractor and subcontractor organizations, in addition to utilizing public data such as labor statistics, weather conditions, and traffic data, enhancing its learning capabilities over time.
In August 2024, Turner Construction, a US-based international construction firm specializing in project and construction management, acquired Dornan Engineering Group for an undisclosed amount. Through this acquisition, Turner Construction aims to broaden its presence in Europe and enhance its capabilities in the advanced technology sector, particularly in data centers and biopharmacy facilities. Dornan Engineering Group, an Ireland-based construction company, utilizes AI to optimize project planning, improve safety, and enhance cost estimation, fostering efficiency and innovation in construction.
Major companies operating in the AI in construction market include Microsoft Corporation, Oracle Corporation, SAP SE, Nvidia Corporation, AECOM Technical Services Inc., Acciona S.A., Dassault Systemes SE, Autodesk Inc., Trimble Inc., PTC Inc., Bentley Systems Incorporation, Procore Technologies Inc., OpenSpace Inc., Dusty Robotics Inc., Doxel Inc., Versatile Inc., Alice Technologies Inc., Deepomatic Inc, Smartvid.io Inc., eSUB Inc., Kwant.AI inc., Nyfty.AI inc., Built Robotics Inc., Newmetrix, Caidio Inc., Buildots, AirWorks LLC
North America was the largest region in the AI in construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global AI in construction market report during the forecast period. The regions covered in the ai in construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the ai in construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The AI in the construction market includes revenues earned by entities through planning, an inspection of quality and safety, price estimation, and managing projects. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The AI in the construction market consists of sales of drones, robots, software, and platforms. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
AI In Construction Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on ai in construction market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for ai in construction ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ai in construction market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.