Artificial Intelligence in Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Artificial Intelligence in Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The AI in Construction Market is projected to register a CAGR of 33.87% from 2022 to 2027. According to the Association of Equipment Manufacturers (AEM), AI has the potential to boost productivity, safety, and other aspects of business success in the construction industry.

Key Highlights

• Artificial intelligence has recently benefited the construction industry, especially in pre-construction phases, like planning and designing, enabling advanced capabilities for building information modeling and generative design. AI is being used to monitor the interactions between workers, machinery, and items at the job site in real-time and notifies managers of any potential safety issues, design flaws, or productivity problems.
• The market is driven by the growing demand to lower production costs. The cost of equipment and machinery may be among the highest for any building project. Refurbished equipment could be a better choice to cut production costs because it costs less than brand-new equipment. For instance, businesses like Multy Lift provide a wide range of refurbished forklifts for purchase or lease. These forklifts have been reconditioned to a high level of quality, enabling them to operate more affordably than brand-new ones.
• The usage of AI-based technology in the construction industry is also progressively growing due to significant advancements in safety, monitoring, and maintenance systems that employ AI capabilities to predict and forewarn unfavorable circumstances. AI is also being utilized to facilitate communication between various construction process elements. For instance, the US software company PlanGrid provides a mobile app with real-time updates. It synchronizes data to make it simple for architects, designers, and contractors to access the project plans.
• Furthermore, AI is a technology that is essentially data-driven. Data availability and collection are crucial for accurate findings, especially in the case of safety and monitoring applications. This need generates a significant requirement for satellite imagery and spatial data in the construction industry. Additionally, cameras and drones collect data in low-level indoor monitoring and tracking applications.
• The desire for automation based on AI in the construction sector is restrained by a lack of competent labor in the global construction industry. Due to stringent migration regulations in many regions, especially in North America and Europe, the supply chain crisis sees a shortage of skilled workers. The Associated Builders and Contractors (ABC) forecasts that the industry will experience a lack of about 665,000 construction workers in 2022. This forecast is based on organizational analysis and labor demands based on variables such as inflation, construction spending, etc.
• The COVID-19 pandemic has significantly impacted the construction sector, which is sensitive to economic cycles; however, it has recovered over a while. In the wake of the COVID-19 global lockdown and the complete shutdown of construction activity, the workforce shortage is aggravated, which is expected to drive construction companies to improve their efficiency by adopting AI solutions.

Key Market TrendsPlanning and Design Segment is Expected to Occupy Significant Market Share

• Planning and design are crucial phases of construction. Any flaws or errors committed at this stage of development may incur a severe loss to the contractors in the later stages of the project. Such scenarios lead to many budget constraints and delays in project completion.
• As more than 35% of construction, professionals spend time in activities such as conflict resolution, dealing with design flaws, and rework, paper-based communication is hard to update and distribute. Such scenarios are increasing the demand for one-stop solutions, such as BIM 360 (Autodesk), that use AI to eliminate design flaws at the planning stage with the help of generative design capabilities.
• Building information modeling is one of the digital tools needed for current construction projects. BIM may improve efficiency and save costs during a building project's planning, design, and execution phases. With the help of Autodesk Revit, users may create internal structures and building components in 3D and link schedule-related data to specific 3D model elements.
• Recovering oil and gas prices in the global market and infrastructure investments in several countries are expected to start over 5,356 construction projects in the top twenty construction markets. Such growth in the sector is expected to create considerable demand for AI in the construction sector over the forecast period.

North America is Expected to Witness Significant Growth Rate

• North America is one of the most advanced construction markets in the world. It is the second-largest construction market, after Asia-Pacific, with more than 15% of the global annual construction revenues.
• The change in the political scenario of the United States and the massive construction labor shortage in the region, despite a considerable increase in construction labor activities, are driving the need for automation in the construction sector. The country is one of the most prominent hubs for construction tech startups. Therefore, the rapid adoption of AI is expected in the construction sector to overcome these hurdles, making it the fastest-growing region for artificial intelligence in the construction market.
• There is a robust increase in investments by the companies, such as Oracle Corporation, IBM Corporation, and many more, in developing technologies, such as machine learning and neural networks. The region also hosts many AI solution providers and construction companies, making this region the most competitive and robust.
• AI is also increasingly used in applications for surveying and analyzing materials and structures. For instance, the US firm, Robotics, aims to revolutionize how road infrastructure is maintained and managed. The company uses cameras fixed on car windshields to record the condition of a road. AI software is then used to analyze the data and develop maps, flagging areas where maintenance work is needed.
• However, Artificial intelligence will significantly impact employers across numerous industries and the job market. For instance, by 2030, automation will pose a severe threat to about 70% of jobs in North America in the transportation and logistics sector.

Competitive Landscape

Artificial Intelligence in the Construction market is fragmented and consists of some significant players providing AI solutions for the construction sector. Considerable players include Autodesk Inc., Building System Planning Inc., and Smartvid.io Inc., among others.

• In September 2022, Construction technology startup Toric, a data platform used by construction, engineering, and similar sectors that enables anyone to integrate, transform, model, and visualize data without writing code, raised $22 Million in funding. As part of the investment, Toric will offer new integrations for Autodesk Construction Cloud and Autodesk’s BIM design tools, such as Revit, Navisworks, and Civil 3D.
• In July 2022, United Rentals, Inc. partnered with Turner Construction which provides sustainable solutions, including all-electric trucks and zero-emission power systems. Turner will use the rental equipment to construct a hyperscale data center building for Meta, formerly the Facebook company, to reduce the environmental impact of the Jobsite.

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• The market estimate (ME) sheet in Excel format
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