Construction Software Market size was valued at USD 3.36 billion in 2023 and is likely to reach USD 10.8 billion by 2036, registering around 9.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of construction software is estimated at USD 3.61 billion. The growth of the market can be attributed to the growing requirements for large-scale project management, and ongoing research and development activities to design improved versions of the software. Along with these, rising application areas of lean management in the construction industry, and escalating investments to enhance the productivity of the companies are also expected to drive significant growth to the market in the forthcoming years. Furthermore, surge in adoption of cloud-based solutions, and increasing private and public investments in the construction sector are projected to offer profitable opportunities to the market in the near future. As of 2021, more than 80 percent of the organizations have adopted a multi-cloud strategy. Whereas, about 65 percent of the organizations operate on cloud-based environments.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
9.4% |
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Base Year Market Size (2023) |
USD 3.36 billion |
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Forecast Year Market Size (2036) |
USD 10.8 billion |
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Regional Scope |
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The market is segmented by end user into builders, technology innovators, researchers, distribution vendors, and government, out of which, the technology innovators segment is anticipated to observe notable growth in the global construction software market. This can be accounted to the high usage of the product by technology innovators to plan, design and collaborate during construction lifecycle. Apart from this, construction software helps sub-contractors connect with designers and provide an accurate visual representation to the sub-contractor for validating costs, which is another factor predicted to boost the growth of the market segment in the future. Additionally, on the basis of deployment, the cloud segment is assessed to occupy the largest share during the forecast period owing to the high scalability, flexibility and cost-effectiveness of cloud computing. Moreover, the increasing advancements towards construction 4.0 is also expected to significantly drive the growth of the segment during the forecast period.
Our in-depth analysis of the global market includes the following segments:
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By Deployment |
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By End User |
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On the basis of geographical analysis, the global construction software market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Europe industry is estimated to dominate majority revenue share by 2036, attributed to growing technological innovations in the IT sector, and increasing activities for infrastructural development in the region. Moreover, the market in North America is evaluated to grab the largest share during the forecast period, which can be credited to the high volume of construction projects, and early adoption of technology. On an average, more than 1 million new housing units are planned every year in the United States. The construction industry represents about 4 percent of the total GDP of the country. In addition, strong presence of market players is also anticipated to boost the region’s market growth in the coming years.
October 2021- Sage Group announced its selection to the Associated Builders and Contractors Tech Alliance, which is a consortium of firms that creates construction technology and innovative solutions.
February 2021- Oracle launched Oracle Construction Intelligent Cloud Service, a suite of AI and analytics application for the engineering and construction industry.
Author Credits: Abhishek Verma
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