Construction technology market expected to reach $24 billion by 2033
The construction technology market is projected to grow to $24 billion in the next decade thanks to optimization and improved processes.
Construction technology insights:
- The construction technology market is projected to experience significant growth over the forecast period, with an estimated increase from $5 billion in 2023 to a substantial $24 billion by 2033.
- Key markets such as the United States, the United Kingdom, China, Japan and South Korea are expected to witness substantial growth, each with its own CAGR and market share projections.
The construction technology market is anticipated to be worth $5 billion in 2023. The market is estimated to reach $24 billion by 2033, growing at a CAGR of 16.9% over the forecast period.
Construction technology is optimizing processes, increasing productivity and boosting safety on construction sites by integrating digital tools and innovative procedures. Building information modeling (BIM) enables the production of virtual three-dimensional (3D) representations of construction projects. BIM allows stakeholders to efficiently interact, identify and address difficulties throughout the design process and optimize resource allocation. This technology decreases rework, increases accuracy and shortens project schedules.
Drones are increasingly being used in construction. Drones do aerial surveys, monitor-building sites and examine them, allowing project managers to get real-time data and make educated decisions. They improve site safety by minimizing the need for personnel to manually reach dangerous locations.
Construction operations have been considerably influenced by robotics and automation. Robots can do repetitive activities like bricklaying, concrete pouring and material transportation with accuracy, eliminating labor-intensive processes. By eliminating physical strain and exposure to dangerous conditions, this automation boosts productivity, decreases costs, and enhances worker safety.
The use of Internet of Things (IoT) devices and sensors on building sites allows for the collection of data on variables such as temperature, humidity, and structural integrity. This information is useful for predictive maintenance, early discovery of problems and effective resource management. IoT devices improve worker safety by monitoring conditions and alerting them to possible threats.
Construction technology is altering the industry by boosting cooperation, increasing safety and lowering costs, resulting in quicker and more efficient construction operations.
The building technology sector in the United States is expected to grow at a 1% CAGR to $3.41 billion by 2033.
The construction technology sector in the United Kingdom is expected to achieve a market share of $1.78 billion by 2033, growing at a CAGR of 4%.
The construction tech sector in China is predicted to attain a market share of $2.68 billion during the projection period, representing an 8% CAGR.
The Japanese construction technology sector is expected to reach $2.00 billion by 2033, growing at a 5% CAGR.
South Korea’s construction technology sector is expected to have a market share of $2.2 billion by the end of the projected period, with a 7% CAGR.
The construction technology sector is likely to be dominated by the software segment. In 2023, software accounted for 1% of total revenue.
Industrial construction is predicted to dominate the construction tech business, with a CAGR of 1% from 2022 to 2033.
The construction technology business is very competitive. Autodesk, Procore Technologies, Trimble, Bluebeam, Bentley Systems, Construct Connect, prologis, Rhumbix, and FieldLens (now part of WeWork) are among the major players in this field.
Large technology businesses have also entered the market, bringing their resources and skills to bear on traditional building techniques. These companies provide substantial financial backing as well as technological expertise, helping them to develop cutting-edge solutions and acquire a competitive advantage. Furthermore, construction-related enterprises are investing in R&D to stay ahead of the competition.
Competition in the building technology industry is driven by the demand for improved output, cheaper prices, and increased safety. Companies are working hard to develop solutions that solve these concerns while also offering unique value propositions. Some specialize in certain areas, such as BIM software, robotics, or IoT devices, whilst others offer complete end-to-end solutions.
Demand for construction technology solutions continues to climb, and competition is projected to heat up even more, forcing businesses to constantly develop and enhance their goods and services in order to obtain a competitive edge. Furthermore, large corporations are expanding their presence in these markets by establishing local production facilities and expanding their distribution networks. They are also concentrating on offering cost-effective solutions to clients in these markets in order to get a competitive edge.
These insights are based on a report on the Construction Tech Market by Future Market Insights, a CFE Media and Technology content partner.