The global artificial intelligence (AI) in construction market size was accounted for USD 398.6 million, in 2018. It is estimated to grow at the CAGR of 34.0% over the forecasted period, 2019 to 2025. Artificial intelligence provides enhanced safety and predicts if any problem in the construction site. Thus, construction business firms are adopting artificial intelligence (AI) solutions for risk management and predictive maintenance. In addition, AI solutions help in developing industrial IoT solutions. IIoT solution is useful in reducing labor costs and improving industry output.
Construction companies give priority to safety measures. Moreover, the fatalities and injuries at workplaces raise safety concerns. For example, in 2017, according to the labor department of the U.S., the death rate of construction laborers is five times greater than private-sector workers. Furthermore, in the U.S. 39.0% of deaths at the construction site were due to unpredicted falls, in 2017. Artificial intelligence solutions provide greater visibility through predictive maintenance. AI-equipped cameras monitor places at job sites and help to analyze real-time processes.
Artificial intelligence-enabled systems are known to be highly efficient and help in executing tasks efficiently. Waterloo University in Canada has found that AI technologies help in learning advanced solutions to manage loads. With this system, bricklayers in the construction sites can maximize output. AI solutions also help firms to rely on autonomous robots. For example, autonomous robots can build wall structures with the help of assembly-line formation.
To measure cost overruns, AI neural networks are utilized in construction sites. Predictive analytics help to envision real-time data with the help of historic analysis or trends. Cost overruns are estimated on the basis of project size, competencies of project managers, and contract type. Project managers plan the project schedule and estimate the budget or costs with the help of feedback given by the AI system.
Artificial intelligence in the construction market is fragmented into services, and solutions depending on offering type. The solution offering segment is projected to lead the market by the end of 2025. Key players that offer AI solutions include Microsoft, Oracle, and IBM Corporation. AI solution helps in improving construction efficiency.
Artificial intelligence can perform automation of tasks to tackle labor shortage problems at the job site. These systems can perform time-intensive applications like resource management, program creation, and cost estimation. Several companies such as ICONICS, Inc. and PCL constructors Inc. are using AI solutions for smart building.
Applications are comprised of project management, schedule management, risk management, asset management, and others. The project management type segment is anticipated to hold a significant market share in the overall market. This also helps the firm to improve efficiency and productivity in building processes. This is done by automation in the building process through contract management, proposal management, and virtual designing.
AI-based project management solution helps to manage an over-budget construction project. This is done via accurate data precision by measurement of task times through real-time image capturing. These AI systems are also used for post-construction task management, including intelligent building, real estate management, and others. It is also useful in maintaining facility and assets operations.
The AI in the construction market is segmented into construction-stage, post-construction, and pre-construction depending on the stage. The pre-construction stage segment is projected to lead the market with the highest share. AI-enabled solutions help in design, planning-related tasks with the help of cost management, contract management, and proposal management.
In the pre-construction stage, cost management tasks are mainly handled with the help of artificial intelligence solutions. AI-based cameras monitor real-time resources based upon which budgets can be estimated. Furthermore, AI solutions help in creating a virtual design that is to be constructed for the pre-construction stage. The pre-construction stage is anticipated to dominate the market in the next few years.
The deployment type segment is comprised of on-premises and cloud systems. The cloud deployment segment is anticipated to hold a higher market share during the forecasted period. This growth is contributed to rising investment for IoT application development. Various construction companies focus on acquisition & mergers activities to provide efficient IoT-enabled and cloud solutions. These solutions also provide a virtual experience to consumers through a computerized virtual environment.
Cloud solutions are termed as a highly scalable and more cost-effective type of deployment. These solutions are highly adopted by heavy and large building projects. In addition, a large number of AI applications are deployed through private clouds.
The heavy construction segment is anticipated to hold the largest market share during the forecasted period, due to rising accidental, and injury cases at construction sites. Heavy construction business includes handling large equipment that requires extensive engineering. Thus, key manufacturers are investing in developing self-operating machines for performing demolition, excavation paving and other site works.
In large industries, task tracking becomes complex due to multiple business units. Ai-enabled services and solutions help in managing task reallocation, and scheduling. Several infrastructures including bridges, dams, roads, waterways, transportation, and ports utilizing AI solutions. Predictive maintenance helps to analyze risk management capabilities.
Organization size includes large enterprises, and small & medium-sized enterprises (SMEs). Large enterprises are mainly comprised of commercial and government enterprises. These enterprises are adopting AI-based systems to mitigate project management and risk management solutions.
The small & medium-sized enterprises segment is projected to grow at a substantial rate over the forecasted period. SMEs are adopting AI solutions due to their cost-effective and high-efficiency benefits. Cloud-based systems are highly preferred in these enterprises owing to their greater flexibility as per the project requirement. All these key factors are anticipated to bolster the market growth.
In 2018, North America accounted for the largest market share of over 38.0% in the overall market. Greater purchasing power, rising investment in automation are some of the key factors boosting regional growth. In addition, growing investment in industrial automation and IIoT structure is also expected to proliferate the market growth. Various companies like ThyssenKrupp AG and PCL Constructors are using Microsoft Azure to deploy AI-based solutions.
Asia Pacific is anticipated to register the fastest CAGR from 2019 to 2025. Growing infrastructural investment for project management, supply chain management, and risk management applications is supporting market growth. The increasing adoption of AI-based systems for the pre-construction stage especially in developing countries is contributing to market growth.
The COVID-19 pandemic is projected to positively impact the global AI in the construction market. Coronavirus outbreak is increasing the need for smart solutions such as artificial intelligence (AI) in construction. The AI-enabled tools help to resolve design issues, outdated techniques, and other environmental challenges.
Major of the construction projects have been re-started after two to three months of lockdown restrictions. However, the maximum of 60.0% of workers are able to work at construction sites along productivity is projected to fall by 30.0% to 40.0%. AI-based technologies help to take decisions faster at early stages which then speeds up the overall construction process. Thus, the market is anticipated to grow at a significant rate in the next few years.
Leading players in the market include IBM Corporation; SAP SE; Microsoft Corporation; ALICE Technologies Inc.; Oracle Corporation; eSUB Inc.; Smartvid.io, Inc.; and Autodesk Inc; Darktrace; and Aurora Construction and Security.
Key players in the market engage in strategic acquisitions and collaborations to increase their presence across the globe. For example, in 2019, Procore Technologies has acquired Construction BI to get the services of AI analytics. Similarly, in 2018, Autodesk, Inc. has acquired Building Connected, and Plan Grid Inc. to increase their product portfolio.
The base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, South America & Middle East & Africa
U.S., Canada, Mexico, U.K., France, Germany, China, Japan, India, and Brazil.
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global artificial intelligence in construction market report on the basis of offering, application, stage, deployment type, organization size, industry type, and region:
• Offering Outlook (Revenue, USD Million, 2014 - 2025)
• Application Outlook (Revenue, USD Million, 2014 - 2025)
• Asset Management
• Project Management
• Risk Management
• Schedule Management
• Supply Chain Management
• Stage Outlook (Revenue, USD Million, 2014 - 2025)
• Deployment Type Outlook (Revenue, USD Million, 2014 - 2025)
• Industry Type Outlook (Revenue, USD Million, 2014 - 2025)
• Public Infrastructure
• Heavy Construction
• Organization Size Outlook (Revenue, USD Million, 2014 - 2025)
• Small & Medium-sized Enterprises (SMEs)
• Large Enterprises
• Regional Outlook (Revenue, USD Million, 2015 -2025)
• North America
• the Asia Pacific
• South America
• Middle East & Africa (MEA)
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