Construction Software Market Size, Share and Trends 2024 to 2034

Construction Software Market Size and Forecast 2024 to 2034

The global construction software market size is calculated at USD 3.72 billion in 2024 and is projected to surpass around USD 8.99 billion by 2034, expanding at a solid CAGR of 9.21% from 2024 to 2034. The rising urbanization and the demand for the construction industry, along with better planning and project management, drive the growth of the construction software market.

Construction Software Market Key Takeaways

• North America dominated the construction software market with the largest market share of 35% in 2023.
• Europe is anticipated to grow at a significant rate in the market during the forecast period.
• By type, the project management segment held a dominant presence in the market in 2023.
• By deployment mode, the cloud segment registered its dominance over the construction software market in 2023.
• By organization size, the large enterprise segment contributed the biggest market share of 65% in 2023.
• By application, the general contractors segment dominated the market in 2023.

U.S. Construction Software Market Size and Growth 2024 to 2034

The U.S. construction software market size is exhibited at USD 0.98 billion in 2024 and is projected to be worth around USD 2.41 billion by 2034, growing at a CAGR of 9.36% from 2024 to 2034.

North America dominated the construction software market in 2023. The growth of the market is attributed to the rising urbanization that causes demand for the construction industry, and the United States is considered the early adopter of technologies in every field, which accelerates the demand for construction software by several builders in their construction projects. Additionally, the rising government intervention in the adoption of the technologies in the construction project for minimizing the time, and cost of the operations with the greater efficiency is fueling the growth of the construction software market in the region.

• The construction industry is the leading contributor to the economy of the United States. In the 1st quarter of 2023, there are more than 919,000 construction establishments in the United States. The construction industry creates about $2.1 trillion worth of structures every year, employing 8.0 million employees.

• Construction spending in July 2024 is projected to be $2,162.7 billion at a seasonally adjusted annual rate, 3.0% (±1.0%) more than the revised June estimate of $2,169.0 billion. The July 2023 projection of $2,027.4 billion is 6.7% greater than the actual amount. Spending on construction in the first seven months of 2024 was $1,237.5 billion, which is 8.8% more than the $1,137.4 billion spent during the same time in 2023. 
• Compared to the revised June estimate of $1,685.5 billion, the annual rate of adjustment for private construction spending was $1,678.7 billion, or 0.4% less. 
• On the other hand, in July, the revised June estimate of $483.5 billion was replaced with an annual rate of $484.0 billion, a 0.1% rise. 

Europe is anticipated to grow at a significant growth rate during the forecast period. The rising investment in urbanization and the integration of smart construction software into the construction industry are playing a significant role in the expansion of the construction software market. Additionally, the regional government is heavily investing in smart infrastructure and technologies in construction projects, which are collectively contributing to the growth of the market across the region.

The European construction industry is gaining significant traction compared to the other industries. The new housebuilding accounted for 19.9% of the total investment in construction. At the same time, the investment in renovation accounted for 30.3% of the total investment in construction. Non-residential acquired 31.8% of the construction sector, and civil engineering accounted for a smaller portion of the construction sector investment, accounting for 17.9% of the sector. 

Market Overview

Construction software is one of the important tools or applications in modern construction projects. The construction software is also known as the single solution that can be visited for the overall project documentation. The construction software allows project managers to manage budgets, set schedules and timelines, ensure quality and safety programs, complete quality and safety checklists, communicate and coordinate with stakeholders, and store daily reports across the field and the office. The construction software provides benefits like greater efficiency, reduced risk, better decision-making, and increased profits.

Construction Software Market Growth Factors

• Rise in the population: The increasing global population and the increasing demand for construction projects such as residential, commercial, and industrial buildings to address their requirements are contributing to the increased demand for construction software.
• Technological adoption: There is an increasing demand for technological integration into construction projects to streamline and enhance productivity, better collaborate with teams, and increase project quality.
• Digitization: Rising digitization and automation across industries, infrastructural development, the usage of smart devices in industries, and the rising popularity of cloud infrastructure are boosting the growth of the construction software market.
• Rising demand for aesthetics: Customers' rising preference for giving their homes an everlasting aesthetic, home interiors, and decoration is driving the adoption of construction software for better project planning and procurement.
• Government intervention: Several regional governments are taking the initiative in the development of infrastructure through the integration of smart technologies for better productivity, lower cost management, and enhanced efficiency in construction projects.

Some of the top construction software that are leading the construction software market

• Procore is the best project management software for complete project management software in the construction industry. 
• Linarc Leading Construction Software is an integrated collaborative platform for construction project management.
• Builder Trend is a cloud-based construction management software made for specialty contractors, home builders, commercial contractors, and home remodelers.
• Autodesk Construction Cloud is a project management suite that delivers a deep, broad, and connected set of tools for builders.
• Raken is a cloud-based construction management software that provides field data in real time.
• CoConstruct is a one-stop solution for all construction management software for remodelers, home builders, and design/build firms.
• HCSS offers a suite of interlinked applications that help in every field of stages in construction projects for small to large-scale contractors.
• e-Builder Enterprise cloud-based construction Program Management Information Solution (PMIS) and integrated solution for large-scale facilities like healthcare, capital projects including infrastructure, K-12 schools, higher education, and commercial establishments.
• InEight, the integrated cloud-based projects control platform, integrates construction management software products for projects like manufacturing plants, infrastructure for energy and power projects, and heavy civil structures like bridges. 
• JOBPROGRESS is a cloud-based business productivity platform for the home improvement program for small-scale contractors.

How Can AI Impact the Construction Software Market?

The integration of artificial intelligence and machine learning plays an important role in smart construction projects. AI and machine learning work like smart assistance that helps in assisting and analyzing the vast amount of data and alerts project managers about potential risks and damages. Artificial intelligence can be used to filter spam emails and monitor advanced safety. AI could benefit in several areas of construction, including prevention of cost overheads, better designing of buildings with generative design, project planning, risk mitigation, enhancing productivity and safety in the construction site, addressing labor shortage, off-site construction, and helping in post-construction projects. 

• In July 2024, Buildots, a leader in AI construction technology, announced the launch of a new Integrated Tracking feature design to offer unified tracking of automated and manually recorded tasks on both desktop and mobile devices.

Market Scope

Market Dynamics

Driver

The rising advancements in the smart cities

The rising demand for smart infrastructural development in economically developing and developed countries due to the rising per capita income in the population and the surging interest towards the higher lifestyle and spending on the lifestyle is driving the demand for smart building infrastructure. Thus, the rising investment in smart building or smart home infrastructural development by digitization is contributing to the expansion of the construction software market. Digitization in smart cities helps in the utilization of eco-friendly resources and better relational capital while assuring high quality and performance. These are also redefining the decision-making process in the construction industry. Also, the increasing preference for the renovation of houses and integration of smart technologies in the home is further contributing to the growth.

Restraint

High cost and time

The increased cost of deployment and the time for the operation are some of the limitations of the construction software, and the fluctuating accuracy in project management is restraining the growth of the construction software market.

Opportunity

Emerging technologies in the construction industry

The technological transformation of the construction industry has revolutionized overall operations, quality, and productivity. The technologies in the construction industry, such as virtual reality and augmented reality, blockchain technology, drones, digital twins, 4D simulation, 3D laser scanners, BIM (building information model), and 3D printing, are enhancing efficiency with enhanced quality and productivity. Additionally, the continuous investment in the infrastructural development, energy, and utility sectors significantly driving the enhancements in construction production is also emerging as a potential opportunity in the construction software market’s growth. 

Type Insights

The project management segment held a dominant presence in the construction software market in 2023. The increasing digitization across industries and in the construction industry is also driving the adaptation of software tools that can enhance efficiency and operations. Project management software in construction or construction project management helps enhance the coordination between personnel and material resources, increasing the life cycle of the building to be more efficient and streamlined.

It is the software that can streamline and maintain the top-to-bottom operations from coordinating and communication to the pre-construction and the completion of the project. The project management software works under the regulation of engineering, architecture, and city planning. Project management is used throughout the project’s lifecycle; it involves the management of the resources and people to control the cost, scope, quality, and time of construction. 

Deployment Mode Insights

The cloud segment registered its dominance over the construction software market in 2023. The increasing adoption of cloud deployment in construction projects is due to its higher efficiency and real-time monitoring of the projects. The cloud deployment allows project managers to connect and coordinate with several teams on the project sites in real-time. Various large-scale enterprises are using cloud-based construction software owing to its properties, such as cost efficiency, which helps streamline and increase productivity in operations.

Organization Size Insights

The large enterprise segment dominated the construction software market globally in 2023. The rising global population and the demand for large-scale construction businesses for the development of residential and commercial buildings address the demand from the population. The rising evaluation of the construction industry in the last decades due to the rising demand for residential and commercial buildings and rising urbanization is driving the demand for automation and digitization across the industry for better project management. Several large enterprises and builders are accepting construction software for project perspective, like building planning, scheduling, development, and building parameters. The construction software helps project managers with greater efficiency and productivity.

Application Insights

The general contractors segment dominated the construction software market in 2023. The rising awareness about technologies and digitization across industries, including the construction industry, is the driving force behind the higher acceptance of construction software by general contractors. There are a number of benefits associated with the adoption of the construction software by the general contractor, such as improved project planning and scheduling, seamless government reporting, tackling the project delay on the head, streamlined subcontractor tracking, increased safety, enhanced quality control, increased collaboration between team members, manage the procurement process, attract clients with seamless reporting, and smart cost management.

Construction Software Market Companies

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

Recent Developments

• In August 2024, Hyphen Solutions, a leading player in cloud-based residential construction management software, launched the latest website design for serving hubs for suppliers, manufacturers, home builders, and trades. With the latest launch, the company extends its 25-year legacy of transformation in the residential construction industry with the integration of technologies.
• In September 2024, KPA launched a new function specially designed to enhance the safety of the construction industry. The new feature is aims to enhance efficiency, promoting robust safety culture, and real-time visibility.
• In July 2024, Trimble launched a new software suite called Trimble Unity for asset lifecycle management. The software allows owners of capital projects and public infrastructure to effectively design, plan, operate, construct, and maintain their assets with the connected digital workflow and centralized data.

Segments Covered in the Report

By Type

• Project Management
• Account/Financial Management
• Quality and Safety
• Field Productivity
• Others

By Deployment Mode

• Cloud
• On-premise

By Organization Size

• Large Enterprise
• Medium and Small Enterprise

By Application

• General Contractors
• Building Owners
• Architects and Engineers
• Sub-Contractors
• Specialty Contractors

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa