MarketsandMarkets expects the global Artificial Intelligence (AI) in construction market to grow from USD 407.2 million in 2018 to USD 1,831.0 million by 2023, at a Compound Annual Growth Rate (CAGR) of 35.1% during the forecast period. The rising demand for AI-based solutions and platforms, the need for more safety measures at construction sites, and the capability of AI in construction solutions and services for reducing the production costs are expected to drive the growth of the AI in construction market. Few investments made in technological Research and Development (R&D) is expected to act as the major restraint for the market growth.
The cloud deployment type is expected to have the larger market share during the forecast period
In the AI in construction market, the cloud deployment type offers multiple benefits, such as reduced operational and maintenance costs, fewer complexities, and more scalability. AI in construction solution providers are focusing on deploying robust cloud-based solutions for their clients, as many organizations have started adopting the cloud-based deployment type. Additionally, the cloud deployment type is user-friendly, cost-effective, and easy to access. However, at present, many construction companies are still opting for on-premises-based AI in construction solutions.
Among technologies, the machine learning and deep learning segment is expected to have the larger market size during the forecast period
The AI in construction market by technology has been segmented into machine learning and deep learning; and Natural Language Processing (NLP). Among these technologies, the machine learning and deep learning segment is expected to have the larger market size.
The machine learning and deep learning technology offers the most robust methodology to tap into the area of context that involves human-computer interactions and provides close predictions based on the historical data. This technology is useful in the construction industry in terms of automating business functions.
North America is expected to have the largest market size in the AI in construction market during the forecast period
Among regions, North America is expected to have the largest market size in the AI in construction market during the forecast period. The North American region has always stayed ahead in technological adoption and is a hub for many technically advanced construction companies. These companies have made huge investments in the AI in construction market, and several vendors have evolved to cater to the rapidly growing market. Considerable growth in the market size is expected in the region during the forecast period. The major initiatives taken for the growth of the AI in construction market belong to this region. Organizations in this region make the best use of technologies to eliminate the hassles in time-consuming tasks and ease their functioning and decision-making capabilities.
In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, innovation and technology directors, and executives from various key organizations operating in the AI in construction market to arrive at the AI in construction market size.
- By Company Type: Tier 1: 35%, Tier 2: 39%, and Tier 3: 26%
- By Designation: C-Level: 55%, Director Level: 40%, Others: 5%
- By Region: North America: 38%, Europe: 40%, APAC: 21%, and Rest of the World (RoW): 1%
The AI in construction market has been segmented on the basis of technologies, stages, components (solutions and services), applications, deployment types, organization size, industry types, and regions. The solutions segment includes design and planning, revenue estimation, virtual assistant, demand forecasting, predictive maintenance, and others (root cause analysis and customer/buyer analysis), whereas the services segment comprises integration and deployment, training and consulting, and support and maintenance. The deployment types covered in this report are cloud and on-premises. The organization size includes Small and Medium-sized Enterprises (SMEs) and large enterprises. The application segment covers project management, field management, risk management, schedule management, supply chain management, and others (equipment and construction materials management, resource management, subcontractor management, and cost management). The industry types include residential, institutional commercials, heavy construction, and others (light industrial construction and specialized industrial construction). Finally, on the basis of regions, the AI in construction market has been segmented into North America, Europe, Asia Pacific (APAC), and Middle East and Africa (MEA.
The report would help market leaders and new entrants in the AI in construction market in the following ways:
1. The report segments the market into various subsegments, hence it covers the market comprehensively. The report provides the closest approximation of revenue numbers for the overall market and its subsegments. The market numbers are further split across various industry types and regions.
2. The report helps in understanding the overall growth of the market. It provides information on the key market drivers, restraints, challenges, and opportunities.
3. The report helps in understanding the competitors better and gaining more insights to strengthen their positions in the market. The study also presents the positioning of the key players based on their product offerings and business strategies.