The global AEC market was worth around USD 7,085.5 million in 2021 and is estimated to grow to about USD 15,237.4 million by 2028, with a compound annual growth rate (CAGR) of approximately 9.8 percent over the forecast period.
Industry Prospective:
The global AEC market was worth around USD 7,085.5 million in 2021 and is estimated to grow to about USD 15,237.4 million by 2028, with a compound annual growth rate (CAGR) of approximately 9.8 percent over the forecast period. The report analyzes the AEC market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the AEC market.
AEC Market: Overview
For successful project life cycle management, real estate businesses, construction firms, surveyors, interior designers, and mechanical & electrical piping engineers employ architecture, engineering, and construction (AEC) software. The primary goal of AEC software is to improve project performance and results. Construction managers benefit from AEC's assistance in gathering data and information from many disciplines and communicating more efficiently. Increased construction efficiency is combined with improved data transmission and coordination among numerous stakeholders, architects, and construction supervisors to provide AEC users a competitive advantage.
COVID-19 Impact:
COVID-19 has wreaked havoc on communities all over the world and governments & businesses are scrambling to deal with the pandemic's difficulties as quickly as possible. Construction sites, on the other hand, have been shut down in a number of nations which is why organizations across the construction sector are embracing remote working. However, engineers and designers are adopting AEC software and building information modeling (BIM) software to collaborate digitally. Contractors and engineers all across the world are re-optimizing schedules and re-planning projects utilizing augmented reality and virtual reality simulations. Integrated digital-twin solutions are also being created for end-to-end project assistance from design to implementation. Furthermore, contractors are increasingly using internet channels to monitor their employees' well-being through applications, manage precious resources more effectively, procure building supplies, and ensure cash flow. These factors are expected to increase the market growth over the forecast period.
AEC Market: Growth Drivers
Surge in infrastructure projects is likely to offer better growth opportunities.
As the world's population grows, so does the need for new buildings, malls, and workplaces, thanks to the advent of initiatives like smart cities and high-speed roadways. As a result, important stakeholders are using AEC software to run these projects smoothly and effectively. In the Middle East and most growing Asia Pacific nations, such as India and China, the building sector has grown rapidly. For example, in 2017, Saudi Arabia launched a slew of major projects, including the King Abdullah Economic City in Rabigh, which is expected to cost roughly USD 27 million. In contrast, the Abu Dhabi Development Authority declared a budget of USD 6.8 million for Airport Expansion and a USD 500 million project for the Presidential Palace in Al-Ras Al—Akhdar in the United Arab Emirates. These forthcoming projects are predicted to increase end-user usage of engineering software such as CAM, CAD, BIM, and AEC, boosting the AEC market growth.
AEC Market: Restraints
High initial cost likely to hamper the growth of the global market
Despite the numerous advantages and cost reductions connected with architecture, engineering, and construction (AEC) software, the initial cost is substantial. For example, Autodesk's Revit software costs between USD 3,000 and USD 5,000. Aside from the cost of the program, the cost of training and services is also rather significant. As a result, the high initial cost of AEC may stifle market expansion.
AEC Market: Opportunities
Increasing trend of IoT in the construction industry is likely to project great opportunities for market expansion.
Modeling and ordering procedures can become simpler with the use of IoT in construction, and the appropriate material can be supplied straight to the building site, eliminating the time needed for ordering. Also, prefabrication can benefit from IoT technologies. Using prefabricated building components instead of traditional building methods can result in better and more cost-effective solutions, as well as reduced construction waste. On the other hand, employing prefab for major commercial construction projects might be difficult to coordinate with the entire construction lifecycle. As a result, the Internet of Things (IoT) can assist in resolving this issue.
AEC Market: Challenges.
Lack of trained professionals poses a great challenge to the market growth
The construction industry still lacks trained technical professionals in many parts of the world. Companies are facing difficulties to get trained when they are dealing with two of the most challenging, fast-paced sectors imaginable. Also, it is much more difficult when staff is compelled to use obsolete technology that reduces productivity. Plus, it's not only architects and engineers that are in short supply in the AEC business, the gap between available employment and available talent is much larger.
AEC Market: Segmentation
The global AEC market is categorized based on deployment mode, component, enterprise size, application, and region. Based on the deployment mode, the market is bifurcated into on-premise and cloud. The component segment of the market is segregated as software and service. On the basis of enterprise size, it is categorized into large enterprises and small & medium-size enterprises. As per application, it is classified into construction & architecture companies, education, and others.
Recent Developments
AEC Market: Regional Landscape
North America to maintain its dominance over global market during forecast period
North America held the major share in the global AEC market in 2021. This is owing to a significant expansion in the building and infrastructure industry, such as artificial intelligence adoption and an increase in the need for automation in the construction and architectural sector. On the other hand, the market in Asia Pacific is growing at a rapid rate. The Worldwide Building Report predicted that in the next few years, emerging Asian countries will account for 13.5 percent of global construction development. Furthermore, the construction sector in India is forecast to grow at a CAGR of 15.7 percent, which is expected to be a major influence on the region's adoption of AEC software. Furthermore, several of the government of India's important programs, such as Make in India and the creation of smart cities, are projected to boost the construction sector in this region. China is also predicted to contribute significant revenue in the regional market over the forecast period.
Report Scope:
Report Attribute | Details |
---|---|
Base Year | 2020 |
Historic Years | 2016 - 2020 |
Forecast Years | 2021 - 2028 |
Segments Covered | By Product Type, By Application, and By End Use |
Forecast Units | Value (USD Billion), and Volume (Units) |
Quantitative Units | Revenue in USD million/billion and CAGR from 2021 to 2028 |
Regions Covered | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
Countries Covered | U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
Number of Companies Covered | 10 companies with scope for including additional 15 companies upon request |
Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
Customization Scope | Avail customized purchase options to meet your exact research needs. |
AEC Market: Competitive Landscape
Key players operating in the global AEC market include Autodesk inc., Bentley system inc., Aveva Group plc., Trimble inc., Dassault systems, Nemetschek, Ansys, Newforma, Hexagon AB, and Innovaya.
Global AEC market is segmented as follows:
By Component
By Deployment Mode
By Enterprise size
By Application
By Region
Request the coronavirus impact analysis across industries and markets
Surge in infrastructure projects is likely to offer better growth opportunities. As the world's population grows, so does the need for new buildings, malls, and workplaces, thanks to the advent of initiatives like smart cities and high-speed roadways. As a result, important stakeholders are using AEC software to run these projects smoothly and effectively. In the Middle East and most growing Asian-Pacific nations, such as India and China, the building sector has grown rapidly. This rapid surge in future projects are likely to offer better growth prospects
According to the Zion Market Research report, the global AEC market was worth about 7,085.5 (USD million) in 2021 and is predicted to grow to around 15,237.4 (USD million) by 2028, with a compound annual growth rate (CAGR) of around 9.8 percent.
North America held the major share in the global AEC market in 2021. This is owing to a significant expansion in the building and infrastructure industry, such as artificial intelligence adoption and an increase in the need for automation in the construction and architectural sector.
Key players operating in the global AEC market include Autodesk inc., Bentley system inc., Aveva Group plc., Trimble inc., Dassault systems, Nemetschek, Ansys, Newforma, Hexagon AB, and Innovaya.
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