Artificial Intelligence in Construction Market Size, share & trends analysis 2020-2027
The global artificial intelligence in construction market size was estimated at USD 412.1 Million in 2019, it is expected to reach the market size of USD 1,850.2 million by 2027 growing at a cagr of 31.22% over the forecast period.
The logistic inefficiency at the construction site has resulted in a lowering of productivity at construction sites for many decades. The majority of the time at the construction site is spent on activities such as logistics and transportation. this results in considerable delay in the completion of construction projects and an increase in operational cost. It is found from research that around 90% of the mega construction projects are delayed by several months due to fluctuation in productivity at construction sites. The delay results in an increase in operational costs such as labor cost, machinery cost, among others.
the artificial intelligence can significantly improve the productivity at the construction site, the system works by creating a virtual model of the construction project which is stored in the building information modeling (BIM) system. the system compares the ideal time for completion of the project with that of the current progress and derives its conclusion to find out project deviations, key areas of improvement, and action plan for improving the performance. Drones and radars are used for creating a 360-degree map of current building progress for comparison with the ideal model.
even a small error in construction planning may lead to heavy operational costs. The early detection of the deviation in the project planning helps the company to avoid future overhead costs and minimizing the error. The system is automatically triggered whenever there is an even a small change in the construction plan, it automatically informs all the supplier’s distributors and manufacturers about the changes and updates the necessary timelines for them.
The major proportion of construction losses are spent on accidents at construction sites, it is estimated that over 300 people tie in construction-related accidents and more than 15000 are injured each year. Artificial intelligence in construction can also be used to minimize the number of accidents at construction sites. This can be achieved by using multiple cameras at the construction sites which shall be connected with the artificial intelligence system which will then carefully monitor each activity happening at the construction site and detect possible sources of accidents in advance using advanced image recognition software.
Artificial intelligence can also be used for construction tool optimization, for example, the system may detect the idle construction tools and equipment which can be used somewhere on the construction site thus, improving the utilization of equipment and labor productivity. The artificial intelligence connected with cameras and sensors can easily detect any object present at the construction site. Artificial intelligence can also detect safety hazards at the construction site and may alert a responsible person for quick action. This feature may save many lives as well as a monetary loss at the construction sites.
Based on the offering type the market has been segmented into solution and services. The demand for the solution segment is growing substantially since the last few years, the majority of the players including IBM and Oracle offer artificial intelligence-based solutions to be applied to the construction sites. The solution comes with advanced features required to manage large construction projects, the key feature includes project management, supply chain management, risk management, Resource Management among others.
Artificial intelligence can enhance the work site productivity while reducing the excessive cost spent on idle resources by optimizing resources such as machinery and humans for better productivity. There are certain operations at construction sites that are repeated in nature and highly time-consuming, cost estimation, resource allocation, payment management among others. All search tasks can be automated by using artificial intelligence.
Among various application types, the project management segment is expected to account for the largest Market share in 2019. Project management is highly crucial in the construction business for timely e completing the construction project, any delay in the project results in a heavy financial cost to the construction company. Therefore most of the major construction companies rely on and artificial intelligence-based project management solution to monitor their project progress.
The AI-based system is capable of performing tasks such as planning and designing, proposal management, Sourcing, and procurement among others. Project cost estimation is one of the finest features offered by artificial intelligence in construction, solution can automatically estimate the cost of the project, expected time of project completion, and required resources.
Based on the construction stage, the Global artificial intelligence in the construction market can be segmented into pre-construction, construction, and post-construction stages. Solutions that offer features focus on the pre-construction stage are highly in demand, these features include project assessment, planning and designing, project cost estimation, timeline, resource allocation, and project management.
Artificial intelligence-enabled cameras are playing a crucial role for implementing the solution, these cameras continuously monitor the construction site and provide data to the AI-based system, Which then calculate the expected time of completion of the project. It also so as to monitor idle resources and helps in proper allocation of resources for maximum output.
By deployment, the market has been segmented into cloud and on-premise segments. The cloud segment is expected to emerge as the fastest-growing segment for the forecast period. Cloud solutions Secure, scalable, adaptable, feature-rich, high performance, and remotely accessible solutions.
The heavy construction industry segment accounted for the largest market size in 2019, this segment includes the construction of Megaprojects such as dams, airports, smart cities, etc. Project management feature is highly required for such projects as huge investments are made in such projects and following the project timeline is very important to avoid excessive cost. Top construction equipment manufacturing companies are developing artificial intelligence in a but platform for their equipment which features such as fleet management, fuel monitoring system, maintenance alerts, and advanced safety system.
The residential segment is anticipated to witness the fastest growth rate in the upcoming few years, as the construction form residential colonies and apartments are growing due to the increasing rate of urbanization.
Based on the organization size, the market can be segmented into small and medium enterprises and large enterprises. The large Enterprises segment dominated the market in 2019 and shall continue to dominate the market over the forecast period. Artificial intelligence-based solutions are expensive and useful in the case of large projects, therefore small and medium organizations tend to avoid this expense. There is also use a lack of awareness about the advantages that the AI-enabled system offers for the business. The SMEs adopt cloud-based solutions, as they are inexpensive compared to the on-premise solutions.
The North America regions dominated the global AI in the construction market in 2019, the U.S. is the key global technology hub with the presence of a large number of artificial intelligence and machine learning companies. The growth of industrial automation is significant, companies in this market readily adopt technology to improve productivity
The Asia Pacific region is growing at an exponential growth rate. The growing construction activities, especially the development of mega projects such as dams, power-generation center, smart cities in this region.
The technology is very new for this particular industry, therefore only a few players are offering their solutions for this market. Creating awareness among small and medium construction companies is very crucial to improve market revenue.
The following are leading companies in the artificial intelligence in the construction market:
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