GVR Report cover Construction And Design Software Market Size, Share & Trends Report

Construction And Design Software Market Size, Share & Trends Analysis Report By Function (Cost Accounting, Project Management & Scheduling), By Deployment, By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-344-7
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 120

Report Overview

The global construction and design software market was valued at USD 10.55 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.7% from 2021 to 2028. The COVID-19 pandemic resulted in a slight decline in market growth owing to the discontinued operations of numerous construction sites across the globe. The pandemic has negatively impacted the businesses of numerous builders, engineers, and architects with diversified business models across different business sectors and geographies. The current growth can be attributed to the increasing requirement of large-scale project management, usage of smart devices, and growing adoption of cloud-based solutions. Moreover, the rising business expansion and research activities are expected to create new opportunities for the growth of the global market.

U.S. construction and design software market size, by function, 2018 - 2028 (USD Billion)

Moreover, the emergence of advanced technology in the construction and design industry, such as Augmented Reality (AR), Virtual Reality (VR), drones, communication tools, and business information modeling, is projected to support the demand for construction and design software. The integration of these technologies promotes safety and health in the construction industry, facilitating office personnel to meet social distancing requirements. However, increasing trends of remote working are enabling architectures and engineers to use the existing construction software for the further development of their construction models.

The increasing development of infrastructures and the growing need for better interior design and decoration is expected to boost the growth of the construction and design software market. Interior design software allows architects to take preventive measures, thereby minimizing the need to rebuild and remodel construction projects. One of the major factors driving the demand for construction and design software is the improved productivity gained by reducing dependency on documentation and paper works, which helps businesses minimize costs related to interior designing by offering enhanced budgeting tools. Moreover, the construction and design software enables architectures to prepare a comprehensive floor layout, including accurate measurements of doors, windows, flooring, walls, cabinets, lighting, and furniture.

Construction and design software increases the accountability and efficiency of construction businesses by streamlining their manual processes. Additionally, it helps with scheduling jobs and estimates, job costing, project management, punch listing, cost control and assessing risks associated with construction projects. Moreover, an increase in the number of infrastructure projects, integration with lean management processes, financial visibility, successful management, and timely completion of construction projects are also expected to bolster the demand for construction and design software over the forecast period.

Function Insights

The project management and scheduling segment accounted for the largest market share of around 20% in 2020. The increasing demand to control and manage project activities such as allocating resources, reducing time delays, and tracking project progress is the major factor driving the demand for project management and scheduling globally. Moreover, project management and scheduling mainly rely on a functional and centralized database that enables enterprises to gain speed and traction to meet project objectives within a given timeframe. For instance, in February 2021, Autodesk, Inc., a global provider of software and services for construction industries, released Autodesk Build, a construction management software platform built on Autodesk cloud platform for global users. The new platform provided solutions for project management, safety, cost, and quality by connecting workflows, data, and teams in one highly configurable environment.

The field service management segment witnessed substantial growth owing to the rising need for mobility with IoT and predictive analytics and the growing adoption of cloud-based applications. The function enables organizations to automate scheduling and dispatching, which helps streamline all processes associated with field operations. Factors such as accessibility to customer information from remote locations, management of mobile workforce, improvement of productivity, decrease in operational overheads and fuel expenses, and enhancement of customer satisfaction are expected to boost the segment growth. Additionally, the integration of advanced technologies such as augmented reality, artificial intelligence, and virtual reality in field services management offers lucrative opportunities for segment growth.

Deployment Insights

The cloud deployment segment accounted for the largest revenue share of more than 50% in 2020 and is expected to expand at a CAGR of over 9.3% from 2021 to 2028. Cloud deployment has become the most preferred way to deploy construction and design software and is predicted to maintain its dominance over the forecast period. For instance, in 2018, according to industry estimates, around 87% of the construction industry aimed to deploy cloud-based software for upcoming construction projects. The cloud-based software enables project managers to synchronize and connect with multiple teams to get real-time information across the project sites. Significant growth in the construction industry is expected to expand data utilization capabilities and cloud technologies to better manage businesses and promote productivity and efficiency by using data to streamline processes.

The on-premise deployment offers more flexibility and control to customize system software and IT infrastructures of organizations and manage data. Factors such as increasing complexity for real-time collaboration among project stakeholders, large upfront capital investments, low scalability, and higher storage requirements are hindering the adoption of on-premise solutions among key market players in the construction industry. Growing concerns of data security associated with construction projects impel organizations to switch from on-premise to cloud-based software solutions. Moreover, cloud-based construction and project management solutions offer organizations functionalities such as construction estimation, project management, scheduling, and automating tasks into a single dashboard, which is expected to hinder the growth of the on-premise segment.

End-use Insights

In terms of market revenue, the architects and builders segment accounted for the largest revenue share of over 35% in 2020. Growing focus on business intelligence and CAD software by engineers, architecture, and builders has accelerated the increasing adoption of new approaches in the working standards of the construction industry. Furthermore, the growing adoption of Building Information Modelling (BIM) by architects provides benefits such as synchronization of design and construction planning, conflict detection, visualization and collaboration, and cost reduction. Moreover, BIM improves how architects and builders design and construct buildings. The increasing number of infrastructural projects and growing recognition of BIM as a tool allows architects, remodelers, and designers to plan, design, and manage building projects more effectively. All these factors are enhancing the segment growth.

Global construction and design software market share, by end use, 2020 (%)

Engineers, designers, and remodelers rely heavily on digital collaboration tools such as BIM, 4D, and 5D simulations to replan projects and reoptimize schedules, expanding the market potential for construction and design software. For instance, in March 2021, Trimble Inc., hardware, software, and services provider, released the latest version of Tekla Structures 2021, a structural BIM software solution for structural engineering, constructible Building Information Modeling (BIM), and steel fabrication management. The new software also delivers improvements, enhancements, and updated features that simplify change management, enable accurate modeling with drawings, offer better usability with in-product guidance, and increase interoperability with improvements for Industry Foundation Classes (IFC).

Regional Insights

North America accounted for a major revenue share of around 30% in 2020 due to the large-scale adoption of digital systems in the infrastructure domain and BIM by engineers, designers, architects, and builders. The COVID-19 pandemic has significantly impacted consumer sentiments and businesses in the region, leading to recording the lowest growth rate in the construction sector. The pace of growth is expected to increase from 2021 onward due to huge infrastructure investments and the development of smart city projects, which is expected to enhance the construction industry and subsequently increase the demand for construction and design software in the region. For instance, in June 2021, the U.S. government declared an investment package worth USD 2 trillion, focusing on transport infrastructure and clean energy, to be used over the next eight years to achieve a 100% clean energy economy and net-zero emissions by 2050.

The prospects for market growth are increasing in regions such as the Asia Pacific and this can be attributed to the favorable development rate of the regional economies and significant growth of the construction industry. The Asia Pacific region is considered a major market for construction and design software due to the increasing construction activities in India, Japan, China, and Southeast Asian countries. Some of the key factors driving the demand for construction and design software include advanced technology, government norms, and regulatory policies in the Asia Pacific.

Key Companies & Market Share Insights

The key players operating in the market include Autodesk Inc.; Oracle Corporation; Microsoft; Trimble Inc.; and Constellation Software Inc. Market players are investing aggressively in research and development activities, improving their internal processes, actively engaging in new product development, and improving their existing products to acquire new customers and increase their respective market shares. Companies are also focusing on mergers and acquisitions and strategic partnerships to develop technologically advanced products and gain a competitive edge in the market.

For instance, in August 2020, Autodesk, Inc. completely acquired Pype, Inc., a construction software solution provider, and its cloud-based software portfolio for the construction industry. The acquisition provided value for Autodesk, Inc.’s cloud users, allowing project owners, contractors, and sub-contractors to automate workflows such as project submissions and closers.

Market players are also investing aggressively in research and development activities to drive organic growth. For instance, in April 2021, DassaultSystèmes partnered with Bouygues Construction, a civil engineering services provider, to accelerate digitization in the construction industry. The partnership accelerated cloud-based research and development activities and mobile-enabled modular and systematic approaches to transform the fragmented ecosystem and address sustainability challenges of the construction industry. Moreover, DassaultSystèmes’ 3DEXPERIENCE platform helped collaborate throughout the lifecycle of a project and simplify and streamline interactions with architects, builders, designers, suppliers, and customers. Some of the prominent players operating in the global construction and design software market are:

  • Autodesk Inc.

  • Oracle Corporation

  • Microsoft

  • Trimble Inc.

  • Constellation Software Inc.

  • SAP

  • Vectorworks, Inc.

  • Sage Group plc

  • BENTLEY SYSTEMS

  • RIB Software SE

Construction and Design Software Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 10.79 billion

Revenue forecast in 2028

USD 18.18 billion

Growth rate

CAGR of 7.7% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Function, deployment, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; Japan; India; Brazil

Key companies profiled

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

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global construction and design software market report based on function, deployment, end use, and region:

  • Function Outlook (Revenue, USD Million, 2018 - 2028)

    • Safety & Reporting

    • Project Management & Scheduling

    • Project Design

    • Field Service Management

    • Cost Accounting

    • Construction Estimation

    • On across Bid Management

    • Others

  • Deployment Outlook (Revenue, USD Million, 2018 - 2028)

    • Cloud

    • On-premise

  • End-use Outlook (Revenue, USD Million, 2018 - 2028)

    • Architects & Builders

    • Remodelers

    • Designers

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Brazil

    • MEA

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