Market Dynamics
Global Building Information Modeling Market Drivers:
Enhanced Productivity through Interoperability
Construction projects need proper coordination and understanding between various stakeholders involved due to the collaborative structure of the architect, engineer, and construction (AEC) sector. Several elements are associated with a construction project, such as suppliers, engineers, architects, builders, and workers. For years, the exchange of information between these elements was documented by tables, graphs, and drawings. In addition, AEC professionals prefer automated devices, which could deliver results in less time, save money, and reduce manual operations. BIM can facilitate these solutions.
In addition, the demand for automated systems has gained popularity in the construction industry, which is anticipated to reduce human errors and provide accuracy in the digital representation of construction models, resulting in cost savings and improved productivity. Hence, there is a need for an interface that could integrate issues and provide a common platform for successful operation.
Growing Construction Industry
Demands in the real estate and construction industries have returned following the effects of the recession. The construction industry has witnessed rapid growth in the Middle East and most developing countries of Asia. For instance, in the Middle East in the year 2017, a considerable number of key projects were announced, such as King Abdullah Economic City in Rabigh, which is estimated to cost around USD 27 Million; Abu Dhabi Airport Expansion with a budget allocation of USD 6.8 million; a project of USD 500 million for Presidential Palace in Al-Ras Al—Akhdar; and over USD 50 Million worth of other BIM enabled projects. This is anticipated to be a prominent factor boosting the adoption of BIM technologies in the region.
In addition, some key initiatives, such as Make in India and the construction of Smart Cities by the Indian government, are expected to fuel the market growth. Moreover, the Global Construction Report 2025 stated that developing Asian countries would account for 13.5% of global construction development in the coming years. Therefore, building information modeling solution has been gaining popularity among the construction industries.
Global Building Information Modeling Market Restraint:
High Implementation Cost
One factor restricting BIM growth is pricing issues related to the licensing and subscriptions of various modeling services. BIM solutions are expensive compared to traditional modeling solutions such as AutoCAD, which is a major limiting factor for the market. The process of BIM implementation is not limited to the purchase of software and solutions, as it needs to be incorporated into the whole process, i.e., from the planning stage to project delivery, which increases the overall cost of implementation. Moreover, small and mid-sized construction firms prefer AutoCAD solutions over BIM solutions for modeling services due to the high investments required. Developed countries, particularly the U.S. and the U.K., have witnessed higher adoption of BIM due to strong economic conditions. However, pricing structure acts as the major restrain for the market.
Global Building Information Modeling Market Opportunities:
Rising Environmental and Energy Concerns
The BIM market is expected to witness promising growth in the coming years because of the growth in environmental and energy concerns that arise from the rising number of construction activities worldwide. BIM solutions provide various benefits, such as reducing the energy consumption of the building and increasing the efficiency of the building by installing assorted equipment used for underfloor air distribution systems. In addition, it improves the process of energy management by a reduction in electricity consumption used during the construction and maintenance phase of a building.
Furthermore, the construction industry is among the major contributors to environmental degradation, which includes climate change, rising levels of pollution, and carbon emissions. Government agencies around the globe are keen to implement regulatory norms to minimize this effect and have focused on the construction of green buildings for sustainable development. For instance, government mandates for eco-friendly green structures exist in countries such as the U.S., the U.K., Singapore, and the UAE. These are some of the parameters that are expected to boost the adoption of BIM in the future.
Regional Analysis
Based on region, the global building information modeling market is segmented as North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America is the most significant global market shareholder and is expected to exhibit a CAGR of 11.4% over the forecast period. The region's market is predicted to be pushed by continued technological developments in the goods provided by market participants, favorable government regulations, rising environmental consciousness, and expanding real estate sector. With the rise in the rate of real estate in retail, healthcare, entertainment, and industrial sectors, these businesses are finding it difficult to integrate multiple services during planning, designing, and construction. In addition, BIM solutions are helping such sectors provide better customer service. Advancements in various services, such as the pre-fabrication process, spatial coordination, and integrated model data with O&M, are also anticipated to boost the market in North America.
Furthermore, companies like Autodesk have introduced BIM applications, which provide 360 degrees of experience. For instance, Apple has initiated a platform for several BIM applications from companies such as Nemetschek AG., Trimble Navigation Limited, Bentley Systemes Inc., and Autodesk, Inc., enabling users to use BIM services easily and more securely. Likewise, standards set by National BIM Standard-United States (NBIMS-US) cost estimation and project management services offered through the cloud and increased return on investments reported by architecture, engineering, and construction (AEC)firms also work as catalysts in the growth of global market in North America.
Asia-Pacific is estimated to exhibit a CAGR of 16.5% over the forecast period. Due to the flourishing building industry in this region, BIM technologies are expanding rapidly. The rise in the retail sector and emerging infrastructures in the region are expected to be the key factors propelling the growth of the global market in this region. Governments in various Asian countries are developing regulations to mandate the adoption of BIM for construction. For instance, Japan, South Korea, and Singapore have mandated using BIM for public buildings. In addition, Nemetschek AG has signed a three-year contract with the Singapore Institute of Architects (SIA) to create awareness about BIM software and improve architectural skills in Singapore.
Similarly, Singapore has developed strategies to implement BIM widely in alliance with Building and Construction Academy (BCA) Singapore. Increasing urbanization in India and exponential growth in architecture, engineering, and construction (AEC) have led to a high demand for such automated technologies in the region. Technological advancements and innovative product launches are also estimated to create growth opportunities for the Asia-Pacific market.
Europe is predicted to experience the greatest global market growth. Government regulations in the architecture, engineering, and construction (AEC) industry have initiated the growth of BIM solutions in the region. For instance, in 2016, the U.K. government mandated using electronic tools such as BIM for public projects to modernize and improve public procurement processes. The U.K. government is also making efforts to reduce carbon emissions as per EU carbon commitments. Governments in different European countries are adopting and promoting new building mechanisms to change the way of construction in the AEC industry. For instance, in 2017, the German Ministry of Transport and Digital Infrastructure introduced a digital building platform, Platform Digitales Bauen, where processes and device descriptions would be standardized, thereby improving the interoperability of the building life cycle.
Building information modeling (BIM) is a type of project life cycle management software typically utilized by real estate companies, construction firms, and AEC (architecture, engineering, and construction) professionals. The primary purpose of constructing information modeling software is to improve project performance and yield superior results. BIM assists construction managers in collecting data and information from pertinent disciplines and communicating more effectively. BIM users have a competitive advantage due to enhanced data communication, coordination among various stakeholders, and construction productivity.
In addition, the U.K. government has established the "BIM Task Group" to promote BIM adoption across the region per the government's construction strategy. The Italian government has initiated using BIM to restore historic structures. These factors provide the lucrative potential for the growth of Europe's market.
Segmental Analysis
The global building information modeling market is segmented into component, deployment mode, application, and end-user.
Based on components, the global market is categorized into solutions and services.
The solution segment dominates the global market and is estimated to exhibit a CAGR of 13.1% during the forecast period. BIM has emerged as a multifunctional solution in recent years. It is offered customized software versions such as Autodesk Revit, ProStructures, DESTINI Estimator, and Vico Office Suite to enhance its market position. This solution has benefited contractors and building professionals by improving their revenue margin, saving operating time, and providing comfort to customers. Similarly, the surge in demand for cloud-based building information modeling solutions and the integration of BIM solutions in the AEC industry for reducing operational costs in an effort to increase profit margins is expected to provide lucrative potential for market growth during the forecast period.
Based on deployment mode, the global market is bifurcated into on-premise and cloud.
The on-premise segment owns the highest market share and is estimated to exhibit a CAGR of 11.8% during the forecast period. The on-premise deployment model for building information modeling enables the installation of software and permits applications to run on systems present within an organization's premises instead of at a distant facility such as server space or cloud. These solutions offer enhanced security features, which drive their adoption in large-scale financial institutions and organizations. Construction organizations are encouraged to embrace on-premise solutions by growing worries about securing extremely valuable project-related data.
Based on application, the global market is categorized into commercial, residential, and industrial.
The commercial segment dominates the global market and is estimated to exhibit a CAGR of 13.4% during the forecast period. BIM is proving efficient in improving the off-site fabrication of plumbing, ducts and electrical assemblies, production of elements, and reduction in installation time in the field, which helps in cost reduction. Currently, level 2 BIM improves the integration of documents and construction contracts in commercial projects; suppliers find it their preferred delivery method because of better design and project information coordination.
Furthermore, according to the 2017 royal institution of chartered surveyors (RICS) "International BIM implementation guide," targets have been set for BIM adoption in developed countries such as the U.K., Australia, Hong Kong, and Singapore. Specialized machines have major adoption in such countries. The U.K. government also stated that all commercial construction projects should be delivered using BIM by 2016. However, construction companies adopting BIM have increased in emerging economies to increase their profit margin. In addition, sectors such as retail are also adopting BIM for their complex planning applications. The U.S., Europe, and Japan have imposed stress on eco-friendly green structures owing to global warming, increasing BIM adoption.
Based on end-user, the global market is categorized into architects/engineers, contractors, and others.
The architects/engineers segment owns the highest market share and is predicted to exhibit a CAGR of 13.2% during the forecast period. BIM enables architects and engineers to create and communicate design intent and understand performance, appearance & required capital at early stages in the building design process. In addition, BIM has become the tool of choice for many architects because of features such as 3D printing, enabling them to represent construction models effectively. Companies such as Autodesk, Inc. provide Mac-enabled features for BIM software, which increases the penetration of this software among these end users.
Furthermore, emerging economies are showing prominent growth for BIM, thus providing future opportunities for architects/engineers in India and China. For instance, in 2017, Tremble Buildings with Tekla Corporation launched an end-to-end design-build-operate (DBO) lifecycle in India, and Autodesk plans to set up offices in Kolkata. Moreover, increased leverage of mobile apps, cloud-driven transformations, and rise in data-driven productivity, improved communication, and handover of projects are some future advancements that are expected to benefit these professionals.
