Construction Software Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

The Global Construction Software Market is anticipated to reach US$ 3,549 Mn by 2030 from US$ 1,753 Mn in 2021, registering a CAGR of 8.3% during the forecast period 2022-2030. Construction management software is a set of programs that helps in managing material requirements, estimating job work, cost control, labor management, and assessment of risks. Construction management software aids in activities from planning to execution of the project work, it designs framework, maximizes resource efficiency, develops communication and hierarchy planning, thereby enhancing the performance of construction projects. 

The construction software market is majorly driven by factors such as a rise in construction spending and project complexity. A rise in construction spending due to a rise in urbanization is creating demand for projects that support denser population centers, such as transportation, power, and sewage. Moreover, it is estimated that only 15% of firms deliver projects on time and only 30% of firms currently deliver projects on budget. Therefore, to easily manage, boost the workflow, and ensure timely delivery of projects with real-time tracking technology, construction software plays a crucial role in the industry. Furthermore, cloud-based technologies are an emerging opportunity for the construction software market. The Cloud Storage market is growing at a CAGR of ~21% during 2021-2027. Cloud computing outsources the data processing and storage to more powerful machines that allow increased efficiency and less burden to manage data with fewer resources. The cloud removes hardware limitations, prevents data loss, and improves accessibility, thereby leading to cost savings. However, high deployment and maintenance costs, as well as cybersecurity & data protection risks, act as a roadblock to the construction software market. 

Report Summary

The study of the Global Construction Software Market considers various market determinants, industry value chain analysis, and competitor analysis of the market. The report discusses the analysis of the construction software industry for the period 2016-2030, where the base year is 2021 and the forecast period is 2022-2030. The report provides a detailed analysis of the global construction software market across 19 Chapters and, 256 pages. The report includes data presentation across 55 tables and 133 statistical figures. 

The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein the intensity of rivalry and bargaining power of buyers is high. 

The subsequent section provides details of the market analysis based on different segments such as components, modules, project types, end-users, and regions. The report also includes a detailed study of the value chain of the construction software industry. It includes designing, engineering, supplying, construction, and operation & maintenance. The report also covers extensively the key competitors in the global construction software market and provides a SWOT analysis for each of the competitors. 

Key Takeaways from the Global Construction Software Market Report

• The software segment holds the maximum share in 2021, while the services segment is anticipated to grow at a faster rate as compared to the software segment. This is due to the growth in the adoption of consulting services among organizations to create and manage high-performing and resilient supply chains.
• The customer management segment is estimated to grow at the fastest growth rate during the forecast period 2022-2030. The significant growth of the customer management segment is attributed to the increasing utilization of technology to manage customer relationships in the construction business, especially in the small-to-medium-size businesses where customer word-of-mouth plays a key role in sourcing new businesses.
• In terms of project type, the commercial segment has the lead amongst all the other types of projects in 2021. The study shows that the commercial segment would shrink a little during the forecast period.
• By end-users, contractors hold the highest market share in the year 2021. The significant hold of contractors in the global market share is attributed to the regular working role of a contractor at a construction site, which includes primary monitoring of day-to-day activities of a construction site.
• North America holds the highest share in the Global Construction Software Market in 2021, owing to the high volume of construction projects in Canada and the US. However, Asia Pacific is going to be the gamechanger in the construction software market during the forecast period.

Impact of COVID-19

Top construction companies were already investing heavily in technology adoption even in pre-pandemic times. However, the pandemic has further forced many construction players during COVID-19 to digitize and use technology to ensure the safety of their workers and boost productivity, thereby positively impacting the global construction software market. This trend is estimated to continue in the future as well even in post-COVID-19 times. 

Competitive Landscape

The key players in the global construction software market are Sage Group PLC, Oracle Corporation, Autodesk, Inc, Roper Technologies, Inc., Constellation Software Inc., Constellation Software Inc., RIB Software SE, Procore Technologies Inc., and Jonas Construction Software Inc. among others. The market players are involved in developing multipurpose and integrated software solutions to amplify their growth and thereby gain valuable traction in the global marketplace. The companies are engaging in making strategic decisions such as product launches, R&D, agreements, and collaborations to gain market share.

Segmentation Overview of the Global Construction Software Market

Following are the different segments of the Global Construction Software Market:

By Component Segment of the Global Construction Software Market is sub-segmented into:

• Solution
  • On-premise
  • Cloud
• Services
  • Professional
  • Managed

By Modules Segment of the Global Construction Software Market is sub-segmented into:

• Contract Management
• Procure Management
• Finance Management
• Inventory Management
• Real Estate Management
• Labour Management
• Customer Management
• Others

By Project Type Segment of the Global Construction Software Market is sub-segmented into:

• Residential
• Commercial
• Industrial
• Others

By End Users Segment of the Global Construction Software Market is sub-segmented into:

• Creative Agencies
• Architects
• Consultants
• Engineers
• Builders
• Contractors
• Owners
• Interior Designer
• Home Remodelers
• Others

By Region Segment of the Global Construction Software Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • Turkey
    • Bulgaria
    • The U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • Rest of Eastern Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa