Artificial Intelligence in Construction Market to Generate $8.6 Billion by 2031, States the Report by Allied Market Research

A lead analyst at AMR has highlighted that artificial intelligence in the construction market across Asia-Pacific is anticipated to grow at the fastest CAGR during the forecast period.

Allied Market Research published a research report on artificial intelligence in the construction market. The findings of the report state that the global market for artificial intelligence in construction generated $496.4 million in 2021, and is projected to reach $8.6 billion by 2031, witnessing a CAGR of 34.1% from 2022 to 2031. The report offers valuable information on changing market dynamics, major segments, top investment pockets, and competitive scenarios for market players, investors, shareholders, and new entrants.

“An increase in demand for data integration and visual analytics in the construction sector has significantly contributed to the growth of artificial intelligence in construction in recent years. This is because artificial intelligence in construction facilitates the better design of buildings through generative design. Additionally, AI in construction helps in risk mitigation, and project planning, improves construction safety, and can address labor shortages." said Vitika Verma, Manager, of ICT and Media at Allied Market Research.

The report provides insights on drivers, restraints, and opportunities to help the market players in devising growth strategies and capitalizing on opportunities. An increase in demand for data integration and visual analytics drives the growth of global artificial intelligence in the construction market. On the other hand, the shortage of skilled professionals impedes growth to some extent. However, the rise in research & development activities and the increasing adoption of pertinent strategies by the major players have paved the way for lucrative opportunities in the industry.

The report also offers a detailed scenario of the impact of the Covid-19 pandemic on artificial intelligence in the construction market globally. It is helpful for the market players, new entrants, and investors to determine strategies as per the current scenario and improvise relevant business models for the next few years. The outbreak of the pandemic had a sheer negative impact on artificial intelligence in the construction market, due to the implementation of global lockdown. The mandatory social distancing norms gave way to the complete shutdown of construction activities. These factors affected the growth of artificial intelligence in the construction market. Significant reduction in cash flows due to the closure of various construction and operational activities led to the stoppage of construction activities. Also, the economic slowdown affected the setup of new artificial intelligence in construction projects across the world as the majority of government expenditure was headed off to the healthcare sector.

An exhaustive segmentation of the global artificial intelligence in the construction market based on offerings, deployment type, organization size, industry type, and region is also portrayed in the report. These insights are helpful for new as well as existing market players to capitalize on the fastest-growing and largest revenue-generating segments to accomplish growth in the future.

By deployment type, the on-premises segment contributed to the major share in 2021, accounting for nearly three-fifths of the global artificial intelligence in the construction market. On the other hand, the cloud segment is projected to portray the fastest CAGR of 36.9% from 2022 to 2031.

By organization size, the large enterprise segment held the major share in 2021, garnering three-fourths of the global artificial intelligence in the construction market, and is anticipated to retain its dominance throughout the forecast period. Simultaneously, the SME segment is expected to cite the fastest CAGR of 38.6% throughout the forecast period.

By region, North America accounted for the highest share in 2021, generating more than one-third of the global artificial intelligence in construction market revenue, and is expected to dominate by 2031. At the same time, the Asia-Pacific region would portray the fastest CAGR of 34.9% during the forecast period.

Leading market players of the global artificial intelligence in construction market analyzed in the report include ?IBM, Microsoft Corporation, Building System Planning Inc.,?Oracle Corporation, SAP, Autodesk, Inc.,?aurora computer services, PTC Inc., NVIDIA Corporation, Dassault Systemes SE.