The Global Artificial Intelligence in Construction Market was valued at USD 0.4 Bn in 2020 and is expected to reach USD 3.5 Bn by 2027, with a growing CAGR of 36.5% during the forecast period (2021-2027).
Artificial Intelligence (AI) technology is adopted to increase task efficiency and reduce the risks involved in the task. AI in construction industry is adopted to make the construction sites safer for human workers and reduce the company’s operational costs. AI technology is incorporated into the core of machinery to help the engineers and workers perform efficiently and get technological help wherever required.
The Global Artificial Intelligence in Construction Market Dynamics:
The global AI in construction market is anticipated to grow at a significant speed majorly owing to the adoption of artificial intelligence technology to increase the safety levels for workers working on the constructions sites and reduce the health hazards in the construction area. According to the Occupational Safety and Health Administration (OSHA) a regulatory agency of the United States Department of Labor, states that till the year 2020, “one in five worker deaths last year were in construction.” The death rate at the construction sites is alarming and is needed to be taken care of. To prevent the possible hazards on the construction sites, the sites are generally equipped with safety equipment such as cameras, sensors, and IoT devices that detect several features of construction operations and inform the team whenever the safety hazard is likely to happen and thus is driving the AI in construction market.
Several AI in construction market players are continuously investing in the research and development department to bring advancements to the AI incorporated equipment for the building and construction sector usage. For instance, in March 2020, The Newmetrix’s construction-trained AI engine named ‘Vinnie’ is evolved with new features such as new work at height risks, see construction phases, and detect workers in a group. Such technological advancements persuade companies to adopt artificial intelligence at the construction sites to lessen the health risks, improve work quality, and lessen construction operational expenses and therefore is expected to boost the AI in construction market growth.
The Global Artificial Intelligence in Construction Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in artificial intelligence in construction market are:
ased on component, the solution segment is expanding at the highest growth rate during the period owing to increasing availability of varied solution in the AI in construction market along with increasing AI in construction market players
The AI in construction market is segmented based on components into solutions and services, among which the solution segment is anticipated to grow at the highest rate throughout the forecast period. The growth is majorly attributed to the increase in development, innovation, and availability of AI-based construction activities solutions present in the market. An increasing number of building and construction companies are adopting AI technology for carrying out various construction activities.
For instance, in September 2018, PCL Construction, Canada-based construction business has announced using of digital technology and cloud services in their process. PCL created the mobile-ready Job Site Insights application with the help of Microsoft Azure and Azure IoT technologies. Also in November 2018, ICONICS, the US-based software company launched the Digital Twins for a manufacturing solution. The Digital Twin is developed using Microsoft’s Azure Digital Twins platform, which renders virtual modeling capabilities for physical environments. Another reason for the growth of the solution segment in AI in construction market is the growing number of AI in construction market players along with increasing investments in the AI in construction market.
Based on the applications, the project management segment accounted for the largest market share in the overall artificial intelligence in construction market size owing to increased adoption of AI-based application for project management, followed by the planning and designing segment
The project management segment is observed to hold the largest market segment in global AI in construction market owing to the increasing adoption of AI incorporated project management application in every phase in the construction activity such as pre-construction, construction-stage, and post-construction. The AI technology benefits the company with increased efficiency and productivity. Artificial intelligence help is automating the construction processes such as sourcing and contract management, proposal management, and virtual design and construction among others.
The planning and designing segment is accounted to witness significant growth for AI in construction market during the forecast period owing to advantages provided by AI adoption such as a decrease in errors and cost-cutting. According to an article published by USGNN, in August 2018, approximately 35% of the time is spent on non-optimal activities such as rework on design and planning flaws and conflicting resolutions by construction professionals and engineers during one construction project. To avoid the wastage of time and cost, the companies are adopting technologies such as BIM 360 (Autodesk). The BIM software helps in eliminating the flaws in the design. Autodesk Revit is one example of such BIM software which enables professionals to design structures and interior elements in 3D and link schedule-related information to a particular element in the 3D model.
Based on regions, the artificial intelligence in construction market in North America accounted for the largest share in 2020 owing to rapid industrial development and huge market players’ presence, followed by Asia Pacific and Europe
The North American region in the global AI in construction market is accounted to hold the majority of the market share in the year 2020. The dominance is attributed to the well-developed technological infrastructure in the region coupled with a large presence of key AI in construction market players in the region. For instance, in April 2021, IBM Corporation, Red Hat Software, and Cobuilder announced a global collaboration to co-build a new platform that will be designed to help connect the distributed construction industry supply chain. The platform is named as OpenBuilt that is expected to offer an innovative digital solution to benefit in innovating, and driving sustainable, safer, and more efficient construction projects. The market player present across the region provides advancements, innovations, and extensive investment into the market benefiting the overall growth of the AI in construction market.
The report also provides an in-depth analysis of artificial intelligence in construction market dynamics such as drivers, restraints opportunities and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report, Get Sample Copy
COVID-19 Impact on the Artificial Intelligence in Construction Market Analysis
The outbreak of the covid-19 pandemic has imposed a global industrial and economic shutdown along with the complete lockdown situation. The building and manufacturing industry also experienced a complete shutdown which led to work cessation. Additionally, the declining growth of the global AI in construction market is attributed to the increasing need for maintaining covid-19 safety measures such as social distancing to avoid the spread of the virus.
The impact of COVID-19 has greatly affected artificial intelligence in construction market. The AI in construction market is negatively impacted owing to the decreased cash circulation in the market that affected the cash liquidity with construction companies and resulted in shutting down their operational activities. Several industries and companies opted for work from home models to avoid the spread of the covid-19 pandemic that in turn is leading to less usage of office floor space and expenses thus, decreasing the global AI in construction market opportunities for the construction sector.
The report also provides an in-depth analysis of key trends in artificial intelligence in construction market
|1||The trend of using AI powered construction equipment to automatically capture 3D scans of construction sites to analyze construction site data efficiently is driving the global AI in construction market||Positive|
|2||The increasing usage of geospatial AI and drones for land survey and mapping to reduce survey time is boosting the AI in construction market||Positive|
|3||The rising trend of offsite construction factories run by autonomous robots to speed project delivery is propelling the AI in construction market||Positive|
The report also provides an in-depth analysis of recent news developments and investments
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