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 AI technology helps construction companies analyze their data and solve their business problems quickly while reducing the additional expenses. Additionally, there is an increasing demand for improving the safety at construction sites and reducing the production costs. These factors are expected to drive the growth of the AI in construction market.
North America is expected to lead the market in terms of deploying AI construction solutions. Moreover, it is estimated to be the highest contributor to the AI in construction market as compared to the other regions. North America hosts a large number of AI solution providers and construction companies, which makes it the most strong and competitive region.
The growth in the Asia Pacific (APAC) region can be attributed to the demand for AI in construction solutions in countries, such as Japan and China. The rapid technological advancements in the developing countries, such as Singapore, is also expected to be contributing to the growing AI in construction market in APAC. The major vendors are introducing new AI in construction solutions to mark their presence in this region. Residential and institutional commercials are the most technologically driven industry types in the region and extensively work toward enhancing the business experience.
On the basis of components, the global AI in construction market has been broadly classified into solutions and services. Among services, the training and consulting segment is expected to grow at the highest CAGR during the forecast period, as these services provide feasibility assessment, analysis, and advisory for large-scale projects. They also include the necessary user training for utilizing deployed solutions. These services form the foundation for applications to run effortlessly with the required expertise.
Among stages, the construction stage is expected to grow at the highest CAGR during the forecast period. In the construction stage, there are a lot of crucial requirements, such as ensuring safety at jobsites and analyzing real-time data to monitor employees and the work progress. The workers work under extremely dangerous scenarios, and the size of the construction site makes it difficult for the managers to monitor workers individually. Hence, many companies are adopting AI in construction solutions and leveraging the information collected by the drones at jobsites.
The AI in construction market report encompasses the competitive landscape and company profiles of the key vendors based on their product offerings and business strategies. The key AI in construction vendors include IBM (US), Microsoft (US), Oracle (US), SAP (Germany), Alice Technologies (US), eSUB (US), Smartvid.io(US), Aurora Computer Services(England), Autodesk(US), and Building System Planning (US).
On the basis of technologies, the AI in construction market has been segmented into machine learning and deep learning; and Natural Language Processing (NLP). Out of these technologies, the NLP segment is expected to grow at a higher CAGR during the forecast period.
On the basis of deployment types, the AI in construction market has been segmented into cloud and on-premises. The cloud deployment type is expected to have the larger market size and projected to grow at a higher CAGR during the forecast period. The growing demand for cloud-based deployment type can be attributed to the cost-effectiveness of cloud-based AI in construction solutions.