A surge in building activity driven by demands for infrastructure, urbanization and renovation of the built environment is set to fuel a “swift expansion” in the size of the global construction software market, according to a new report
Figures from the Business Research Company show the construction software market is projected to grow in value from $4.06bn in 2024 to top $4.59bn in 2025, representing a compound annual growth rate of 12.9%.
This expansion is due to factors such as shortages of labor in the construction field, which is leading more companies to turn to software, as well as heightened regulatory demands and an increase in the scale and complexity of construction projects.
In addition, an increase in stakeholders, as well as the pervasive use of mobile phones and tablets, are contributing to this growth.
Market set for swift expansion
The construction software market is set for a further “swift expansion” in the coming years, and is expected to reach a value of $7.35bn by 2029.
The surge will primarily be driven by an emphasis on eco-friendly construction methods, increased need for project management tools, augmented adoption of BIM, continued digitization in construction and requirements for uninterrupted integration with other corporate systems.
Noteworthy trends over the forecast period include advances in construction technology, a shift towards cloud-based computing, incorporation of AI and machine learning, improved collaboration instruments and integration with IoT gadgets.
Infrastructure, urbanization and retrofitting driving construction software adoption
The primary growth drivers for the construction software market will be burgeoning demand for infrastructure, continued urbanization worldwide and a need to retrofit and renovate existing buildings and facilities, the report said.
Firms are turning to construction software to enhance project management efficiency, improve communication, streamline scheduling and refine resource allocation, which ultimately helps to cut costs and increases operational efficiency.
The report comes after the 2024 Sustainable Jobsites Benchmarking Report from BuiltWorlds showed the built environment is undergoing a “massive digital revolution” as more contractors adopt AI-powered construction software to meet sustainability goals.
