Artificial Intelligence in Construction Market

Market Overview

The global artificial intelligence in construction market size was valued at USD 530.24 Million in 2023 and is projected to reach USD 5678.72 Million by 2032, registering a CAGR of 34.5% during the forecast period (2024-2032). 

The digital landscape of artificial intelligence in the construction sector is changing. The construction industry's potential is being developed to unprecedented heights by concentrating on technology such as artificial intelligence and machine learning at every stage of engineering and construction, from design, preconstruction, construction, and operations through asset management. In construction, AI uses artificial intelligence technologies to improve building projects' efficiency, safety, and quality. It can help with the planning, designing, building, running, and maintaining infrastructure and structures for construction managers and personnel. AI can evaluate enormous amounts of data from many sources, such as sensors, drones, cameras, and documents, to deliver insights and decision-making recommendations. Automating repetitive and time-consuming operations such as scheduling, estimating, billing, and reporting can save time and eliminate errors.

Artificial Intelligence can enhance collaboration and communication among stakeholders, including architects, engineers, contractors, and clients, by creating digital twins, 3D models, and BIM platforms. AI can improve construction site safety and security by recognizing risks, monitoring worker health, and preventing theft and vandalism. Artificial Intelligence can optimize materials and resources, including labor, water, energy, and equipment, by controlling supply, forecasting demand, and removing waste.

Market Dynamics

Global Artificial Intelligence in Construction Market Drivers

Increasing Demand for Data Integration and Visual Analytics

One of the drivers for AI in the construction market is the growing demand for data integration and visual analytics, which can assist construction businesses in gaining insights and making better decisions based on data collected from different sources such as sensors, drones, cameras, and documents. Data integration is merging data from several sources and presenting it to users cohesively. The science of analytical thinking aided by interactive visual interfaces is known as visual analytics. By incorporating AI into construction, data integration and visual analytics can provide real-time data monitoring, transformation, and delivery, bridging the gap between businesses and IT.

For instance, artificial intelligence can assist construction managers in visualizing project progress, identifying potential dangers, and optimizing budgets and schedules. AI can also assist construction employees with gaining access to relevant information such as design requirements, safety norms, and quality standards. As a result, the growing demand for data integration and visual analytics is a driving force and a beneficial tool in the AI in the construction market.

Global Artificial Intelligence in Construction Market Restraints

High Cost and High Maintenance Charges of AI-Based Robots and Equipment

The high cost and maintenance charges of AI-based robots and equipment restrain AI in the construction market because they can limit the adoption and scalability of AI solutions in the construction industry. AI-based robots and equipment are expensive to acquire, repair, and maintain because they require sophisticated and complex hardware and software components that are not easily available or accessible. Moreover, robots are limited to the tasks they have been programmed to do and cannot adapt to changing situations. Therefore, the high cost and maintenance charges of AI-based robots and equipment can hinder the growth and innovation of AI in the construction market.

One of the AI-based robots used in construction is the bricklaying robot. This robot can lay bricks faster and more accurately than human workers, reducing labor costs and improving quality. However, this robot is also very expensive to buy and operate. Moreover, this robot requires a flat and level surface to work on, which is not always available on construction sites. Therefore, the bricklaying robot's high cost and maintenance charges can limit its adoption and scalability in the construction industry.

Global Artificial Intelligence in Construction Market Opportunities

Growing Demand for Smart and Sustainable Buildings

Artificial intelligence (AI) has a chance to flourish in the construction industry as the demand for smart and sustainable buildings grows. AI may help construction companies satisfy the expectations and demands of consumers, regulators, and society. Smart and sustainable buildings use technology and design to improve the occupants' quality of life, health, and well-being while reducing the building's environmental impact and operational expenses. This endeavor offers evidence-based analysis and resolutions for optimizing building design, construction, and operation.

In constructing customized and optimized structures, artificial intelligence (AI) can play a key role in analyzing several factors, such as site attributes, climate conditions, material properties, and human preferences. Artificial intelligence can also optimize the construction process by automating jobs, coordinating workflows, and detecting problems. AI can also help monitor and control building systems such as lighting, security, fire, and water to maintain optimal performance and safety.

Regional Analysis

Based on region, the global artificial intelligence market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global market shareholder and is anticipated to expand significantly during the forecast period. The region of North America is distinguished by the presence of a significant number of inhabitants that have enhanced purchasing power, continuing investments in automation, and an increasing focus on having in-house artificial intelligence in the production of construction equipment by governments. One of the most important reasons contributing to the expansion of the market in North America is the region's rapidly growing investments in industrial Internet of Things (IIoT) and industrial automation technologies. Most of the world's largest technology corporations have invested in the local market, and local businesses prefer to work with them when developing AI-based products.

Additionally, North American construction companies have made large investments in the industry. As a result, several new suppliers have appeared to cater to the rapidly growing market. The region is projected to experience substantial growth during the projection period. In North America, artificial intelligence technologies are successfully applied in various contexts, including administration of projects and fields, management of risks and schedules, management of supply chains, and management of schedules and appointments.

Asia-Pacific is predicted to expand over the forecast period. The increasing investment in artificial intelligence (AI) solutions in the Asia-Pacific region for supply chain management, risk management, and project management is one of the primary factors expected to drive this market's rapid expansion over the forecast period. The rapid urbanization and industrialization of the world, which call for the development of AI solutions to meet the ever-increasing demand and complexity of building projects, is another factor contributing to the industry's expansion. In addition, the rising awareness and acceptance of AI solutions among construction enterprises, particularly in emerging markets like India, China, and Southeast Asia, are looking to increase their productivity, quality, safety, and profitability. The increasing investments and assistance from public and private sectors aim to stimulate AI's innovation and growth in the construction industry.

Additionally, the rising adoption of cloud-based and mobile-based AI platforms in India enables easy access and collaboration among stakeholders, such as contractors, engineers, architects, and clients. The presence of leading AI solution providers and research institutions in India, such as IBM, Autodesk, Microsoft, Google, IITs, and IIITs, drive the innovation and adoption of AI in the construction sector. The supportive government policies and initiatives in India, such as the National Strategy for Artificial Intelligence (NSAI), aim to promote the development and deployment of AI in various sectors, including construction.

Segmental Analysis

The global artificial intelligence in construction market is segmented based on component, technology, deployment, organization size, application, and industry type.

Based on components, the global artificial intelligence in 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. Artificial intelligence (AI) solutions enhance on-site efficiency by providing key construction applications, including risk management, project planning, schedule management, and supply chain management. Moreover, artificial intelligence technologies effectively tackle the issue of scarcity of skilled workers using task automation. These solutions can execute tasks that require significant amounts of time, such as estimating costs, creating programs, managing resources, and mitigating risks.

Furthermore, a significant number of construction organizations have implemented artificial intelligence (AI) solutions to enhance risk management and improve safety measures at building sites. For instance, Skanska is a Swedish multinational construction and development company that uses AI to enhance its design, planning, and execution processes. Skanska uses AI tools such as ALICE Technologies, a generative design and simulation platform, to optimize construction schedules and costs. Skanska also uses AI to monitor its workers' and equipment's health and safety.

AI-based professional or managed services that assist the implementation, integration, operation, and maintenance of AI systems in the construction sector are referred to as services. Consulting services can assist construction companies in identifying their requirements, difficulties, and potential for AI applications. System integration services can assist construction companies in ensuring AI solution compatibility, interoperability, and functionality.

Based on technology, the global artificial intelligence in construction market is divided into machine learning and deep learning, natural learning process (NLP).

Machine learning and deep learning segment dominates the global market and is expected to grow substantially over the forecast period. ML and deep learning can aid in analyzing large quantities of data from diverse sources, such as sensors, drones, cameras, and documents, to provide decision-makers with insights and recommendations. For instance, machine learning can aid in predicting the demand, supply, and price of building materials. Deep learning can help detect building and infrastructure defects, damages, and malfunctions.

Machine learning and deep learning can enhance construction projects' effectiveness, safety, quality, and sustainability by providing data analysis, automation, collaboration, and optimization. ML and deep learning can assist in optimizing the use of equipment, labor, energy, and water, among other resources and materials, by predicting demand, adjusting supply, and minimizing waste.

Based on deployment, the global artificial intelligence in 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. Cloud deployment eliminates the need to purchase and maintain costly hardware and software and employs IT personnel to manage them. Cloud deployment enables pay-as-you-go pricing models, so construction companies only pay for the resources they utilize. Cloud deployment simplifies AI solution integration and deployment, as well as data management and security. Deploying in the cloud also facilitates access and collaboration among various stakeholders, including contractors, engineers, architects, and clients, regardless of their location or device.

Based on organization size, the global artificial intelligence in construction market 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. Large corporations utilize AI in construction to enhance their productivity, quality, safety, and profitability. In the construction industry, enormous sums are being spent on introducing advanced technologies such as artificial intelligence. AI can help large businesses improve their project planning, design, and execution using data-driven insights and automation. AI can also help huge companies transform their business models and strategies through predictive analytics and machine learning.

Based on application, the global artificial intelligence in 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. Artificial intelligence in the construction market can assist project managers in enhancing their project management skills and capabilities by providing them with intelligent solutions that automate and optimize various processes, improve their decision-making and problem-solving skills, boost their quality and customer satisfaction, and enable them to innovate and differentiate themselves from their competitors.

Artificial Intelligence algorithms can analyze project requirements, resource availability, and constraints to automatically generate schedules that optimize project timelines. AI can also aid in automating and streamlining diverse duties, including budgeting, resource allocation, billing, and reporting. It can assist project administrators in saving time money, and reducing human error and inefficiency.

Based on industry type, the global artificial intelligence in 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. Heavy construction involves enormous structures and a wide variety of equipment, necessitating meticulous project management and extensive engineering. Several major equipment manufacturers are investing in autonomous machines to perform, among other duties, site work, excavation, grading, demolition, and paving. Monitoring processes in large enterprises and on large construction sites can be difficult.

Solutions and services powered by AI facilitate the management of task scheduling and reallocation, as well as other project planning-related tasks. Ports, dams, bridges, roads, coastal engineering, transportation, waterways, and energy infrastructure are adopting AI solutions because they aid in measuring productivity on job sites and offer project managers a competitive edge with intelligently visualized data. Risk management is ensured through AI-powered predictive maintenance.

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.