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

Construction And Design Software Market Size, Share & Trends Analysis Report By Function, By Deployment, By End Use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-344-7
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Summary

The global construction and design software market size was valued at USD 9.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.5% from 2022 to 2030. The current growth of the market can be attributed to the increasing requirement for large-scale project management, usage of smart devices, and growing adoption of cloud-based solutions. The eruption of the COVID-19 pandemic caused a small degeneration in the market development because of the global termination of the functions of several construction places. Due to the pandemic, a number of construction and interior designing companies have started taking virtual tours of the spaces for which their clients are looking for a design. This helps stakeholders and investors in the construction undertakings to have a good view of the project for their interest and favors the growth of the construction and design software market.

U.S. construction and design software market size, by function, 2020 - 2030 (USD Million)

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 construction and design software demand. The integration of these technologies enables viewing of elevations and dips at construction sites before the commencement of projects which helps to increase the safety of on-site personnel. Furthermore, these technologies support health and safety in the construction sector, encouraging office personnel to fulfill social distancing norms. Conversely, the rise in trends of remote working is facilitating several engineers and architectures to utilize the current 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 market growth. It allows architects to take preventive measures, thereby minimizing rebuilding and remodeling construction projects. Moreover, with the advent of 5G and the increasing power of computational devices, VR applications in interior design solutions allow graphics to become more realistic and render fast. It helps construction and design software improve productivity gain by reducing dependency on documentation and paper works, which helps businesses minimize costs related to interior designing. Moreover, the construction and design software enables architects to prepare a comprehensive floor layout, including accurate measurements of doors, windows, flooring, walls, cabinets, lighting, and furniture.

The rising trend of smart cities and new housing trends in the world enabled by digital technologies is expected to propel the market’s growth. The smart city focuses on better engagement of its citizens for eco-friendly resource utilization, social, and better relational capital while ensuring its quality and performance. Construction and design software helps in redefining the decision-making process in the construction of energy-efficient buildings and smart cities. For instance, Building Information Modelling (BIM) software such as Revit and AutoCAD, are used to visualize and manage the entire building life-cycle and test the construction digitally. Thus, people are more inclining toward the renovation and development of their houses according to the emerging trends in smart cities.

Construction and design software increases the accountability and efficiency of construction businesses by streamlining their manual processes. Additionally, it helps with scheduling jobs & 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 & scheduling segment accounted for the largest market share of 18.7% in 2021. 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 & scheduling globally. For instance, in February 2021, Autodesk, Inc., released Autodesk Build, a construction management software platform built on the 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. These project management & scheduling solutions enable enterprises to gain speed and traction to meet project objectives within a given timeframe.

The field service segment is expected to grow at a CAGR of 9.0% during the forecast period. The segment growth can be attributed to the rising need for mobility with the Internet of Things (IoT), predictive analytics, and the growing adoption of cloud-based applications. Moreover, the real-time monitoring of the field service technicians helps in the timely dispatch of the nearest technician to resolve an issue. It helps streamline all processes associated with field operations. For instance, in March 2020, ServiceMax, a service execution management company, launched a communication platform, Zinc, for their new customers. This platform would provide direct communication of the fieldwork team across the service delivery chain to help serve customers in real-time by maintaining safety during the pandemic. The adoption of these field service solutions will offer lucrative opportunities for segment growth.

Deployment Insights

The cloud segment accounted for the largest market share of 51.6% in 2021. The cloud-based solution allows outsourcing of IT tasks for better work efficiency. It enables project managers to synchronize and connect with multiple teams to get real-time information across the project sites. It has become the most preferred way to deploy construction and design software and is predicted to maintain its dominance over the forecast period. Several large enterprises such as Oracle Corporation and Sage Group offer construction and design software over the cloud. It increases the system’s performance and cost-efficiency and promotes productivity by using data to streamline processes. These benefits offered by cloud deployment will enhance the segment growth.

The on-premise segment is expected to grow at a CAGR of 6.6% over the forecast period. The segment growth can be attributed to the increasing complexity of real-time collaboration among project stakeholders, large upfront capital investments, and higher storage requirements. Moreover, it provides data security associated with construction projects and offers organizations functionalities such as construction estimation, project management, scheduling, and automating tasks into a single dashboard. These will supplement the growth of the segment during the forecast period.

End-use Insights

The architects & builders segment held a market share of 38.1% in 2021 and is expected to dominate the market by 2030. The segment growth can be attributed to the rising demand for design proficiency, to take advantage of the project prospective like scheduled building, development, and building parameter endorsement. Furthermore, the growing adoption of BIM by architects allows synchronization of design and construction planning, conflict detection, and visualization, which will help to plan, design, and manage building projects more effectively. Besides these, architects & builders offer designs customized to the clients’ finances and assist them in decreasing expenditure through imparting complete information about the construction and guaranteeing on-time delivery of the scheme.

Global construction and design software market revenue share, by end use, 2021 (%)

The remodelers segment is expected to grow at a CAGR of 8.1% over the forecast period. The remodelers rely heavily on VR, 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., launched the latest version of Tekla Structures 2021, a structural BIM software solution for structural engineering, constructible BIM, and steel fabrication management. This software also delivers improvements and updated features and offers better usability with in-product guidance. The robust demand for these technologies in residential and commercial buildings will stimulate the growth of the segment over the forecast period.

Regional Insights

North America regional market dominated the construction and design software market in 2021 and accounted for a market share of 33.4%. The regional growth can be attributed to the large-scale adoption of digital systems in the infrastructure domain and BIM by engineers, designers, architects, and builders. Furthermore, the role of governments in promoting the use of technology for the superior quality of construction projects benefits the market 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. With this initiative, it is expected to boost the market growth, and subsequently increase the demand for construction and design software in the region.

Asia Pacific is anticipated to rise as the fastest developing regional market at a CAGR of 9.5% due to the surging utilization of CAD software by the construction sector, rising focus on smart manufacturing, and growing need for fast production of goods. Moreover, the region has a major market for construction and design software due to the increasing construction activities in India, Japan, China, and Southeast Asian countries. For instance, according to Invest India, the National Investment Promotion and Facilitation Agency of the government of India, in 2020, USD 5 billion in revenue was generated in the construction equipment industry. These key factors are creating demand for construction and design software in the region.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in February 2022, Trimble Inc. introduced the Trimble Roadworks Paving Control Platform for asphalt compactors, to enable operators to accurately control the compaction process, and reduce unnecessary passes that can result in over compaction. The solution has a 3D paving control system is designed to improve the speed, accuracy, and ease of asphalt compaction. Additionally, it is compatible with Trimble WorksOS and Trimble WorksManager software. This enables contractors to send construction-ready models from the office to the machine as well as to remotely monitor Jobsite progress and activity. Prominent players operating in the global construction and design software market include:

  • Autodesk Inc.

  • Oracle Corporation

  • Microsoft Corporation

  • Trimble Inc.

  • Constellation Software Inc.

  • SAP SE

  • Vectorworks, Inc.

  • Sage Group plc

  • BENTLEY SYSTEMS

  • RIB Software SE

Construction And Design Software Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 9.98 billion

Revenue forecast in 2030

USD 19.12 billion

Growth Rate

CAGR of 8.5% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Function, deployment, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

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

Key companies profiled

Autodesk Inc.; Oracle Corporation; Microsoft Corporation; 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 & 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 2017 to 2030. For this study, Grand View Research has segmented the construction and design software market based on function, deployment, end-use, and region:

  • Function Outlook (Revenue, USD Million, 2017 - 2030)

    • Safety & Reporting

    • Project Management & Scheduling

    • Project Design

    • Field Service Management

    • Cost Accounting

    • Construction Estimation

    • On-across Bid Management

    • Others (Asset Management and Building System Analysis)

  • Deployment Outlook (Revenue, USD Million, 2017 - 2030)

    • Cloud

    • On-premise

  • End-Use Outlook (Revenue, USD Million, 2017 - 2030)

    • Architects & Builders

    • Remodelers

    • Designers

    • Others (Consultants, Facility Managers, and Automatic Exposure Control (AEC) Professionals, among others)

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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