Artificial Intelligence (AI) in Construction

Artificial Intelligence (AI) in Construction

Global Artificial Intelligence (AI) in Construction Market to Reach US$12.1 Billion by 2030

The global market for Artificial Intelligence (AI) in Construction estimated at US$1.8 Billion in the year 2023, is expected to reach US$12.1 Billion by 2030, growing at a CAGR of 31.0% over the analysis period 2023-2030. Solutions Component, one of the segments analyzed in the report, is expected to record a 30.5% CAGR and reach US$8.0 Billion by the end of the analysis period. Growth in the Services Component segment is estimated at 32.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$530.1 Million While China is Forecast to Grow at 29.9% CAGR

The Artificial Intelligence (AI) in Construction market in the U.S. is estimated at US$530.1 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.8 Billion by the year 2030 trailing a CAGR of 29.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 27.5% and 26.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 21.5% CAGR.

Global Artificial Intelligence (AI) in Construction Market - Key Trends and Drivers Summarized

How Is AI Transforming Construction Operations?

Artificial intelligence is revolutionizing the construction industry, introducing advanced automation, predictive analytics, and precision management that are fundamentally changing how projects are planned, executed, and maintained. AI is employed in construction operations to streamline project management, automate repetitive tasks, and enhance on-site safety. One primary application is in project planning and scheduling, where AI algorithms analyze historical project data to create realistic timelines and anticipate potential delays, enabling better resource allocation and cost control. Construction managers also use AI-driven project management tools to monitor workflows in real-time, identifying bottlenecks and reallocating resources dynamically to meet deadlines. Additionally, machine learning is applied in logistics to optimize the supply chain by predicting material demand and timing shipments accurately, reducing waste and cost overruns. On-site, AI-powered drones and cameras monitor construction progress, capturing high-resolution images that are processed by computer vision to compare real-time progress with project plans, ensuring that timelines and quality standards are met. With these tools, AI is making construction operations more efficient, reducing human error, and enabling a level of precision and oversight that was previously challenging to achieve in such a complex industry.

What Role Does AI Play in Enhancing Safety on Construction Sites?

AI is significantly improving safety on construction sites, an area where risks are high and rapid response is critical. Through the use of computer vision and real-time data analytics, AI systems can monitor on-site activities, identify hazards, and enforce safety protocols automatically. For instance, cameras powered by AI can detect when workers are not wearing required safety gear, like helmets or harnesses, and send real-time alerts to supervisors to take corrective actions. Similarly, AI algorithms analyze movement patterns on-site to identify potentially unsafe behavior, like workers entering restricted zones or heavy machinery operating too close to foot traffic, reducing the likelihood of accidents. Predictive analytics are also employed to evaluate safety risks based on historical data, such as accident records and environmental factors, helping managers take preventative measures to address high-risk areas before incidents occur. Additionally, AI-powered wearables monitor workers’ health indicators, such as heart rate and fatigue levels, and issue alerts when thresholds are crossed, reducing the risk of incidents related to overexertion. By enhancing hazard detection, real-time monitoring, and proactive risk management, AI is playing a crucial role in transforming construction site safety, potentially reducing the industry’s historically high accident rates and fostering a safer work environment.

How Is AI Influencing Design and Project Efficiency in Construction?

AI is enhancing design processes and project efficiency in construction by enabling data-driven decision-making and providing innovative tools that support more accurate and sustainable designs. Architects and engineers are increasingly turning to AI-powered generative design, which explores multiple design permutations based on specific constraints like materials, structural load, and environmental impact. This process produces optimized designs that align with aesthetic and functional requirements while maximizing material efficiency and sustainability. Furthermore, AI is instrumental in assessing environmental impact, simulating building performance under various conditions, and recommending materials that reduce carbon footprint, aligning with the construction industry`s growing emphasis on sustainable practices. In project execution, AI-driven robotics and autonomous machinery are deployed for repetitive tasks such as bricklaying, concrete pouring, and earth-moving, allowing skilled workers to focus on more complex activities. This improves project efficiency by accelerating construction timelines and reducing labor costs, which is particularly valuable given the labor shortages facing the industry. Additionally, AI in Building Information Modeling (BIM) allows for better coordination between architects, engineers, and contractors by integrating real-time data updates and clash detection, preventing costly rework and improving project collaboration. Together, these AI applications are driving efficiency in the design and construction process, ultimately supporting more sustainable, high-quality building outcomes.

What Factors Are Driving the Growth of AI in the Construction Market?

The growth in the AI in construction market is driven by several factors, including advancements in digital technology, the demand for efficiency and sustainability, and evolving industry regulations. One of the primary drivers is the rapid development of AI technology, which has lowered costs and made these tools more accessible to construction firms of all sizes. The increasing adoption of cloud computing and edge processing allows construction sites to leverage real-time data analysis, supporting advanced AI applications on-site without requiring extensive infrastructure investments. Another key factor is the industry’s need to address labor shortages and rising labor costs; AI-driven robotics and automation help fill this gap by performing tasks that are labor-intensive, allowing firms to complete projects faster and with fewer resources. The growing focus on sustainability in construction, driven by regulatory requirements and consumer demand for environmentally friendly practices, is also propelling AI adoption. AI-powered design tools, energy-efficient material recommendations, and predictive maintenance of building systems align with these sustainability goals. Additionally, heightened health and safety regulations are pushing companies to adopt AI for proactive safety management, as AI-based monitoring can improve compliance with evolving standards. Together, these technological, economic, and regulatory factors are driving AI integration in construction, making it an indispensable component in modernizing an industry that faces unique challenges in efficiency, safety, and sustainability.

SCOPE OF STUDY:

The report analyzes the Artificial Intelligence (AI) in Construction market in terms of US$ Thousand by the following Application; Component; End-Use; Stage, and Geographic Regions/Countries:

Segments:
Component (Solutions, Services); Stage (Pre-Construction, Construction-Stage, Post-Construction); Application (Project Management, Asset Management, Risk Management, Other Applications); End-Use (Heavy Construction, Residential, Public Infrastructure, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 251 Featured) -

• Alice Technologies
• Askporter
• Assignar
• Aurora Computer Services
• Autodesk
• Bentley Systems
• Beyond Limits
• Building System Planning
• Coins Global
• DarKTrace
• Deepomatic
• Doxel
• eSUB
• IBM
• Jaroop
• Lili.Ai
• Microsoft
• Oracle
• Plangrid
• Predii
• Renoworks Software
• SAP
• SmarTVid.Io

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