Construction and Design Software Market Size, Share and Trends 2025 to 2034

Construction and Design Software Market Size and Forecast 2025 to 2034

The global construction and design software market size accounted for USD 11.05 billion in 2024 and is predicted to increase from USD 12.21 billion in 2025 to approximately USD 29.99 billion by 2034, expanding at a CAGR of 10.50% from 2025 to 2034. The rising adoption of AI and ML technology, increasing demand for energy-efficient design, and growing investment in smart city projects are expected to drive the growth of the construction and design software market throughout the projection period. 

Construction and Design Software Market Key Takeaways

• North America led the global market with the largest market share of 33% in 2024. 
• Asia Pacific is anticipated to grow at the fastest CAGR of 11.5% during the forecast period.
• By function, the project management and scheduling segment held the biggest market share of 19% in 2024.
• By function, the on across bid management segment is expected to witness significant growth during the projection period. 
• By deployment, the on-premise segment accounted for the largest market share of 55% in 2024.
• By deployment, the cloud segment is expected to grow significantly during the forecast period. 
• By end-use, the architects and builders segment contributed the biggest market share of 40% in 2024. 
• By end-use, the designers segment is expected to witness remarkable growth during the forecast period.

Role of Artificial Intelligence (AI) in the Construction and Design Software Market

Artificial intelligence technology emerges as a transformative force that holds great potential to reshape the construction industry. AI in construction refers to the usage of various AI-powered tools specifically designed for the construction industry. AI is widely being adopted in design and planning construction, especially for optimization purposes. To stay ahead in the evolving infrastructure landscape, contractors, civil engineers, asset owners, and architects are increasingly using AI to improve multiple facets of construction by refining project planning, streamlining design processes, improving project efficiency, and ensuring long-term structural health monitoring. It facilitates data-driven decision-making, which often results in improved efficiency and safety on construction sites.

U.S. Construction and Design Software Market Size and Growth 2025 to 2034

The U.S. construction and design software market size was exhibited at USD 2.63 billion in 2024 and is projected to be worth around USD 7.28 billion by 2034, growing at a CAGR of 10.71% from 2025 to 2034.

North America dominated the construction and design software market by capturing the largest share in 2024. This is mainly due to the increase in consumer preference for better interior design in buildings, the rise in investment in smart and sustainable infrastructure, and the high adoption of digital solutions in the construction sector. There is a high adoption of building information modeling (BIM) in sustainable building development and the surge in investments in the construction sector, especially across the U.S. and Canada, bolstered the regional market growth. Moreover, the rise in government investments in infrastructure development influenced the market in North America.

• In August 2024, The U.S. Department of Transportation’s Federal Aviation Administration (FAA) awarded USD 566.4 Mn via 296 grants in 47 states to modernize airports. This funding is a part of President Biden’s Bipartisan Infrastructure Law Airport Infrastructure Grants (AIG) program, part of the USD 25 Bn total included in the law for airport and air traffic control infrastructure improvements.

Asia Pacific is anticipated to witness the fastest growth in the market during the forecast period. The regional market growth is driven by the rapid infrastructure development, rising integration of advanced technologies in the construction industry to manage large-scale projects, and increasing demand for Building Information Modeling (BIM) solutions in energy-efficient buildings. Rapid urbanization, growing adoption of advanced design tools, and favorable government initiatives supporting smart and sustainable infrastructure further support market growth. Countries like Japan, Singapore, China, India, and South Korea are major contributors to the market owing to the rapid urbanization and increasing investment in smart city projects. In addition, the rising adoption of cloud-based design software to significantly improve project coordination and alleviate costs of large-scale construction projects and the rising construction activities contribute to market growth.

• According to the article published by the Ministry of Housing & Urban Affairs in December 2024, as of 15.11.2024, under the Smart Cities Mission (SCM), work orders have been issued in 8,066 projects amounting to ₹1,64,669 crore, of which 7,352 projects (i.e. 91% of total projects) amounting to ₹1,47,366 crore have been completed, as per the data provided by 100 Smart Cities.

Europe is anticipated to experience notable growth in the market during the forecast period. Rising digitization in the construction sector, focus on energy-efficient and sustainable construction practices, increasing integration of digital tools like 3D modeling and digital twins in the construction industry, and rising integration of AI-powered solutions to streamline construction processes are expected to drive the growth of the construction and design software market in Europe. In addition, supportive government regulations promoting smart cities and sustainable urban development and the rising demand for cloud-based construction management solutions are expected to propel the growth of the market during the forecast period.

Market Overview

In the era of a rapidly evolving digital landscape, construction and design software emerges as a transformative force and holds great potential to revolutionize the construction industry around the world. Construction design and software use multiple digital tools and applications for the effective planning, designing, and management of construction projects. These software platforms allow architects, contractors, and engineers to enhance design accuracy, reduce costs, optimize resource management, boost collaboration, and streamline workflows. The construction and design software market is experiencing rapid growth due to the increasing construction activities across the globe.

Construction and Design Software Market Growth Factors

• The increase in the number of smart cities and sustainable construction projects, particularly in developed and developing countries, boosts the demand for sophisticated design tools that generally incorporate green building standards, propelling the market’s expansion. 
• The increasing adoption of various construction design software solutions such as sketchUp, AutoCAD, DataCAD, Autodesk Revit, Cedreo, Chief Architect, Home Design 3D, and others drives the growth of the market.
• The rising government initiatives for the development of infrastructure projects and the integration of advanced technologies such as cloud-based solutions, Virtual Reality (VR), and Augmented Reality in construction processes are expected to promote the growth of the construction and design software market in the coming years.
• The rapid urbanization and the increasing integration of BIM in sustainable architecture are expected to accelerate the growth of the market during the forecast period.

Market Scope

Market Dynamics

Drivers

Rising Adoption of Building Information Modeling (BIM)

The increasing utilization of building information modeling (BIM) is boosting the growth of the construction and design software market. The market has witnessed the extensive adoption of BIM as a standard practice in the construction industry. Building Information Modeling (BIM) is a popular innovative approach to the design, construction, and effective management of building projects. It offers numerous advantages over conventional tools. The critical information about various elements of a construction project is enabled through the utilization of BIM, which may include spatial relationships, geometry, material quantities, or schedules. Moreover, using BIM enhances predictability, accuracy, and clarity regarding the life cycles of projects, yielding compelling results and providing stakeholders with information about whether the projects will be completed and within budget.

Restraint

Reluctant to Adopt Advanced Technologies

The reluctance to adopt advanced technologies is projected to hinder the growth of the global construction and design software market. In addition, there is a lack of skilled professionals in many under-developed countries, limiting the adoption of construction and design software. Different software solutions require training for effective installation and use, discouraging some architects and contractors from adopting them. 

Opportunity

Increasing Investments in Infrastructure Development

The surge in investments in global infrastructure development is anticipated to create lucrative opportunities in the construction and design software market. The rising public and private investment in the development of smart cities leads to an increasing demand for digital tools and BIM in construction projects. Construction and design software are widely adopted in the construction of energy-efficient buildings and smart cities. In addition, the rising investment in various digital tools has streamlined the processes and has significantly changed how organizations approach and implement construction and design projects. With the rising focus on reducing operational costs and boosting productivity, the construction sector is experiencing remarkable growth in the adoption of advanced technologies.

Function Insights

The project management & scheduling segment held the largest share of the construction and design software market in 2024. Several construction companies around the world increasingly rely on construction and design software to optimize the process for effective project management and scheduling. It helps construction professionals create and manage project schedules. Construction scheduling software stores and saves all the critical project information in a single place, enabling stakeholders to get continuous access to the project flow. Cloud-based project management & scheduling software can effectively manage projects and simplify the scheduling process. Cloud-based construction scheduling applications enables teams to work on various complex projects, optimizes project efficiency, and significantly improves overall project management. 

The on across bid management segment is expected to witness a significant growth during the forecast period. This is mainly due to the increasing adoption of bid management software by construction companies. Bid management is one of the most important aspects for construction companies when hiring contractors to carry out multiple tasks in a construction project. Construction bid management centers on getting contracts to assist in generating a lumpsum profit and also aligns with a construction company’s abilities and goals.

Deployment Insights

The on-premise segment dominated the construction and design software market with the largest share in 2024. On-premise software is specifically designed to be installed and run directly on an organization’s infrastructure. It enables users to get complete control over the ownership of the infrastructure. Moreover, on-premise software supports scalable operations, which allows businesses to enhance their storage capacity, computational power, and software licenses as required.

The cloud segment is expected to grow significantly during the projected period. Cloud-based construction and design software provides numerous benefits, such as cost-effectiveness, scalability, collaboration enhancement, and advanced security measures. Cloud-based software allows teams to collaborate remotely and manage projects from different locations.

End-use Insights

The architects & builders segment held the largest share of the construction and design software market owing to the increasing investment in the development of sustainable buildings and smart cities. Builders and architects widely use construction and design software to obtain all the necessary design tools for various types of home construction or renovation projects. Additionally, this software assists in effectively handling workflows and project management tasks.

The designers segment is expected to witness remarkable growth during the forecast period. The segment growth is attributed to the increasing demand for aesthetic interior design and décor. Tools like building information modeling (BIM) and computer-aided design (CAD) help design teams effortlessly design interior as well as exterior designs of buildings. Several designers around the world are increasingly utilizing construction and design software to boost overall productivity. 

Recent Developments

• In July 2024, TestFit, a Dallas-based real estate development feasibility platform, announced the launch of a new tool called Generative Design. This tool enables architects and developers to optimize building and site layout designs effortlessly. 
• In February 2025, Hover, a leader in 3D property data, released Instant Design, an AI-powered design product. This product enables construction pros and homeowners to instantly visualize any home remodeling or new construction project.
• In March 2025, Trimble unveiled the 2025 versions of Tekla Structural Designer, its structural analysis and 3D design software for multimaterial buildings, and Tekla Tedds, its automated civil and structural analysis calculation software. With several significant updates, both products offer enhanced user experience and expanded design capabilities for an optimized design collaboration experience.
• In September 2024, Zenerate launched an AI-powered design automation tool, Zenerate App, to quickly generate and identify optimal design schemes, and eliminate the need to redraw floor plans to fit a unit mix. Zenerate App generates building and site plan options in real time to meet specific project objectives.

Construction and Design Software Market Companies

• Trimble Inc.
• Constellation Software Inc.
• Autodesk Inc.
• Oracle Corporation
• Microsoft Corporation
• SAP SE
• Vectorworks, Inc.
• Sage Group plc
• BENTLEY SYSTEMS
• RIB Software SE

Segments Covered in the Report

By Function 

• Safety & Reporting
• Project Management & Scheduling
• Project Design
• Field Service Management
• Cost Accounting
• Construction Estimation
• On across Bid Management
• Others

By Deployment 

• On-premise
• Cloud

By End-use

• Architects & Builders
• Remodelers
• Designers
• Others 

By Region

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East and Africa (MEA)