Construction Software Market Trends

Growth Drivers

• Smart infrastructure & supportive government initiatives: The increasing investments in infrastructure development initiatives, such as smart cities, rail, and road, are likely to increase the adoption rate of construction software solutions. According to the study by the Global Infrastructure Outlook, the investment needs are expected to rise from USD 3.3 trillion in 2022 to USD 4.0 trillion by 2032. Furthermore, the supportive government programs and policies, including the U.S. Infrastructure Investment and Jobs Act and India’s PM Gati Shakti plan, are likely to accelerate the implementation of digital technologies in the construction industry.
• Increasing automation demand: The increasing costs of the workforce and shortage of laborers are emerging as fruitful opportunities for construction software producers. According to the analysis by the U.S. Bureau of Labor Statistics, the shortage of nearly 500,001 skilled workers was registered in 2023. The automation and digital trends are driving contractors to invest in advanced construction software technologies. To align with this trend, PlanGrid, a construction tech company, is concentrating on advancing the development of mobile-first solutions and automation.

Technological Advancements in the Construction Software Market

The integration of advanced technologies is set to enhance the productivity of construction contractors and other end users. IoT-driven technologies are expected to propel the capabilities and sales of construction software solutions in the coming years. The table below highlights the outcome of advanced technologies in the construction sector.

AI & ML Integration in the Construction Software Market

The introduction of AI, ML, and predictive analysis is estimated to accelerate the productivity and efficiency of end users. Architects and designers are expected to invest heavily in the digital technologies integrated construction solution to enhance their final results and cut labor costs. The table below highlights the effectiveness of smart technologies in construction.

Challenges

• Complex regulations worldwide: The different regulations for software technologies are creating a major barrier to the revenue growth of key players. Companies are unable to launch their products owing to complex regulations, which are directly affecting them from earn high profits through trending opportunities. In 2023, Procore Technologies witnessed a market entry barrier in the Middle East region due to complex procurement policies, which delayed their new construction software launches.
• Strict data privacy & protection policies: The stringent data protection policies are expected to hamper the sales of advanced construction software solutions. The need to ensure data privacy compliance is increasing the operational costs for end users and lowering the launch of new solutions, which is hindering the revenue growth of producers. In 2022, the introduction of the Data Protection Bill delayed the launch of various software solutions, including the construction ones.