Global Artificial Intelligence (AI) in Construction Market 2023-2030

Global Artificial Intelligence (AI) in Construction Market 2023-2030

Global Artificial Intelligence (AI) in construction market is anticipated to grow at a CAGR of 38.7% during the forecast period (2023-2030). The factors such as the demand for efficient planning and other processes in construction advanced technology such as artificial intelligence is driving the growth of AI in the construction market. In addition, the rising need for construction safety has shown a positive impact on the growth of the market. The adoption of drones, robots, and autonomous vehicles in the construction industry is driving the growth of AI in construction market. Companies are adopting technologies for mapping, surveying construction sites, aerial imaging, and automating construction operations. This is developing immense opportunities shortly for the growth of AI in the construction industry.

Artificial intelligence aids the owners and contractors by providing a supervised learning system from collected environmental data, building data, and material data to identify the most productive way to create a building. Construction businesses are using an artificial intelligence system that recommends to a builder the materials to be used and costs needed to create the home based on available data in a few seconds. However, factors such as an unstructured construction environment and an unskilled workforce are hampering the growth of AI in the construction market.

Construction companies are using the capabilities of AI for designing, quality measurement, safety, and management. The design applications create a machine learning algorithm to offer designers anticipatory design models that are based on the preference of customers. The AI application joint generative design models with projects to offer a preliminary schedule and estimated cost. AI can do tasks similar to those performed by human intelligence such as recognition, decision-making, and planning.

Segmental Outlook

Global AI in the construction market is segmented based on end-user and application. Based on end-user, the market is segmented into residential, public infrastructure, heavy construction, and others. Based on the application, the market is segmented into planning & design, safety and efficiency, equipment, and monitoring &maintenance.

Planning & Design segment to have a significant share in AI in the construction market

The planning & design segment is anticipated to hold a significant market share in AI in the construction industry. In the planning stage, AI proposed construction sites and gathers valuable data and information to create 3D maps, blueprints, and construction plans. Technology enables to save time and money. Moreover, it gives insights to the professionals that need to effectively design, construct, plan, and manage infrastructure. A lot of costs are associated with architecture and design as making any changes in the construction phase that results in budgetary constraints. Increasing demand for a one-stop solution includes BIM 360 which makes use of AI to eliminate flaws in design at the planning stage.

Regional Outlooks

The global AI in Construction market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among these, the Europe market is anticipated to cater to a prominent growth over the forecast period. However, the Asia-Pacific region is projected to experience considerable growth in the AI in Construction market.

Asia-Pacific will augment with the fastest rate of artificial intelligence in the construction market

The market in Asia-Pacific is expected to be the fastest-growing region mainly owing to the large adoption of AI-based platforms such as machine learning, deep learning, code frameworks and pre-built algorithms by the real estate companies in countries such as China and Japan. Moreover, the increasing demands by the economies to create smart cities which require amenities that in turn results in fueling the construction industry and encourage companies to adopt projects of AI in construction.

Market Players Outlook

The key players of AI in construction market include Autodesk, Inc., IBM Corp., Microsoft Inc., Oracle, Inc., SAP SE, Doxel, Inc., Volvo AB, Smartvid.Io, Inc., Assignar, Inc, and ALICE Technology, Inc. These companies are offering innovative AI-based solutions all across the globe. The market is expected to show significant growth in coming years owing to the increasing number of start-ups supported by investment by tech giants. For instance, in September 2019, INDUS.AI, an advanced construction intelligence solution provider, raises $8 million in series A to bring AI to construction. The investment was led by Millennium New Horizons with additional participation from strategic investors Fundamental and Ground break Ventures.