Global Artificial Intelligence in Construction Market Grows Tremendously at a CAGR of 34.5%

Introduction

Artificial intelligence (AI) is employed in construction to enhance building projects' efficiency, safety, and quality. Construction managers and staff can benefit from utilizing this tool in several stages, including planning, designing, building, running, and maintaining infrastructure and structures. Artificial intelligence can analyze vast quantities of data from many sources, including sensors, drones, cameras, and papers, to provide valuable insights and recommendations for decision-making. Tasks like scheduling, estimating, billing, and reporting that are repetitive and time-consuming can be automated to increase productivity, cut down on labor costs, and decrease errors.

Market Dynamics

Increasing Demand for Data Integration and Visual Analytics Drives the Global Market

The increasing need for data integration and visual analytics is a significant factor driving the adoption of artificial intelligence (AI) in the construction industry. This technology enables construction companies to gain valuable insights and enhance decision-making processes by leveraging data from various sources, including sensors, drones, cameras, and documents. Data integration refers to consolidating data from multiple sources and delivering it in a unified manner to users.

Visual analytics is the field that encompasses the application of interactive visual interfaces to enhance analytical thinking processes. The integration of artificial intelligence enables the utilization of data integration and visual analytics to facilitate real-time monitoring, transformation, and distribution of data. This integration serves as a means to bridge the gap between enterprises and information technology (IT).

Growing Demand for Smart and Sustainable Buildings Creates Tremendous Opportunity

With the increasing demand for smart and sustainable buildings, artificial intelligence has an opportunity to thrive in the construction sector. Artificial intelligence has the potential to assist construction enterprises in meeting the expectations and requirements of consumers, regulatory bodies, and society at large. Smart and sustainable buildings employ technological advancements and innovative design strategies to enhance their occupants' overall quality of life, health, and well-being while concurrently mitigating the adverse environmental effects and minimizing operational costs associated with the structure. This undertaking provides a comprehensive examination and proposes solutions based on empirical facts to enhance building design, construction, and operation efficiency and effectiveness.

Regional Analysis

North America is the most significant global market shareholder and is anticipated to expand significantly during the forecast period. The North American region is distinguished by the presence of a sizable population with increased purchasing power, ongoing investments in automation, and a growing emphasis by governments on having in-house artificial intelligence in the production of construction equipment. North America's rapidly growing investments in industrial automation and Internet of Things (IoT) technologies are one of the area's main market growth drivers.

Furthermore, North American construction firms have made significant investments in the business. As a result, various new providers have emerged to service the fast-expanding market. During the projection period, the region is expected to increase significantly. Artificial intelligence technologies are successfully used in various applications in North America, including project and field administration, risk and schedule management, supply chain management, and schedule and appointment management.

Key Highlights

• The global artificial intelligence in construction market size was valued at USD 530.2 Million in 2023 and is projected to reach USD 7,637.9 Million by 2032, registering a CAGR of 34.5% during the forecast period (2024-2032).
• Based on components, the global artificial intelligence in the construction market is segmented into solutions and services. The solutions segment owns the highest market share and is expected to expand significantly over the forecast period.
• Based on technology, the global market for artificial intelligence in construction is divided into machine learning, deep learning, and natural learning processes (NLP). The machine learning and deep learning segments dominate the global market and are expected to grow substantially over the forecast period.
• Based on deployment, the global artificial intelligence in the construction market is segmented into cloud and on-premises. The cloud segment is the largest contributor to the market and is predicted to expand significantly over the forecast period.
• Based on organization size, the global market for artificial intelligence in construction is bifurcated into small and medium enterprises and large enterprises. The large enterprise owns the highest market share and is expected to grow substantially during the forecast period.
• Based on application, global artificial intelligence in the construction market can be bifurcated into project management, risk management, schedule management, and supply chain management. The project management segment dominates the global market and is expected to grow significantly over the forecast period.
• Based on industry type, the global artificial intelligence in the construction market can be bifurcated into residential, public infrastructure, and heavy construction. The heavy construction segment is the highest contributor to the market and is expected to grow significantly over the forecast period.
• North America is the most significant global market shareholder and is anticipated to expand significantly during the forecast period.

Competitive Players

1. IBM
2. Microsoft
3. Oracle
4. SAP
5. Alice Technologies
6. eSUB
7. Autodesk
8. Built Robotics
9. InEight
10. Buildots
11. Doxel AI
12. ALICE Technologies
13. Converge.io
14. Others

Recent Developments

• July 2023- Construction Global announced that Autodesk acquired Pype, a provider of cloud-based AI solutions for the construction industry, to streamline project management and workflows.
• April 2023- Komatsu, a Japanese construction equipment maker, partnered with Skydio, a US drone startup, to use AI-powered drones for site surveys and inspections.
• February 2023- Alice Technologies, a US-based AI company that helps construction firms optimize their projects and schedules using simulation and optimization algorithms.

Segmentation

1. By Technology
   1. Machine Learning and Deep Learning
   2. Natural Learning Process (NLP)
2. By Component
   1. Solutions
   2. Services
3. By Deployment
   1. Cloud
   2. On-Premises
4. By Organization Size
   1. Small and Medium Enterprises
   2. Large Enterprises
5. By Applications
   1. Project Management
   2. Risk Management
   3. Schedule Management
   4. Supply Chain Management
6. By Industry Type 
   1. Residential
   2. Public Infrastructure
   3. Heavy Construction