AI in Construction Market Size, Share, and Growth Forecast to 2031 | Technological Advancements Transforming the Construction Industry

The Global AI in Construction Market size was recorded at USD 3.06 billion in 2023, which is estimated to be valued at USD 3.98 billion in 2024 and is projected to reach USD 31.98 billion by 2031, growing at a CAGR of 34.67% from 2024 to 2031. This exceptional growth is driven by increasing adoption of automation, rising need for cost efficiency, and the demand for improved safety and project management across construction operations worldwide.

Artificial Intelligence (AI) is rapidly transforming the traditionally labor-intensive construction industry into a data-driven, technology-enabled ecosystem. AI-powered solutions such as predictive analytics, computer vision, machine learning (ML), and robotics are optimizing planning, design, risk management, and on-site operations. As construction firms face challenges including project delays, cost overruns, and labor shortages, AI is emerging as a critical enabler of efficiency and productivity.

AI in Construction Market: Key Highlights

The AI in Construction market is undergoing rapid transformation as contractors, developers, and governments increasingly invest in digital technologies to modernize infrastructure development.

AI is being widely integrated with Building Information Modeling (BIM), Internet of Things (IoT) sensors, and drones to enable real-time monitoring, predictive maintenance, and intelligent resource allocation.

Computer vision and AI-driven image recognition tools are enhancing on-site safety by detecting hazards, monitoring worker compliance with safety gear, and preventing accidents.

AI-powered project management platforms are helping reduce delays and budget overruns by forecasting risks, improving scheduling accuracy, and streamlining procurement.

North America leads market adoption due to advanced construction technologies and strong investments in smart infrastructure, while Asia-Pacific is emerging as the fastest-growing region due to rapid urbanization.

The global push toward sustainable construction and green building practices is further accelerating AI deployment for energy modeling, waste reduction, and carbon footprint analysis.

AI in Construction Market Drivers and Emerging Trends to 2033

The global AI in Construction market is being propelled by the need to overcome long-standing inefficiencies in the industry. Construction projects often exceed budgets by 20% or more due to poor planning and communication gaps. AI-driven analytics and automation tools address these issues by providing accurate forecasts, improving collaboration, and optimizing workflows.

Governments worldwide are investing heavily in smart city projects and digital infrastructure, encouraging construction firms to adopt AI solutions for improved project lifecycle management. Furthermore, increasing adoption of prefabrication and modular construction is generating demand for AI-powered design and logistics optimization tools.

Market Drivers

Rising Need for Cost and Time Efficiency
AI helps construction companies predict delays, manage labor, and optimize material procurement, significantly reducing project timelines and operational costs.

Labor Shortages and Workforce Productivity
The construction sector is facing a shortage of skilled labor. AI-powered robotics, autonomous machinery, and digital twins improve workforce productivity and compensate for labor gaps.

Focus on Workplace Safety
AI-enabled wearables and computer vision technologies monitor worker activities and detect hazardous conditions in real time, minimizing workplace accidents and insurance costs.

Emerging Trends

Integration of AI with Robotics and Automation
Autonomous construction equipment such as AI-powered excavators and bricklaying robots are revolutionizing on-site operations by improving precision and reducing manual errors.

Digital Twins and Predictive Analytics
Digital twin technology combined with AI allows virtual simulation of construction projects, identifying potential risks before execution.

AI-Powered Sustainable Construction
AI tools analyze energy consumption, material efficiency, and environmental impact, helping builders achieve green certifications and sustainability targets.

Cloud-Based AI Platforms
Cloud-native AI solutions are enabling remote collaboration, scalable data processing, and seamless integration with BIM and IoT systems.

Why This Report Stands Out?

This comprehensive AI in Construction Market report delivers actionable insights for construction firms, technology providers, investors, and policymakers.

The study provides segmented market analysis by technology, application, and region, helping stakeholders design effective strategies. It also includes competitive benchmarking, investment trends, and technology adoption patterns.

The report evaluates return on investment (ROI) for AI adoption in construction workflows and highlights how digital transformation improves productivity, safety, and sustainability.

Who are the Largest Global Manufacturers in the AI in Construction Market?

Autodesk
Trimble Inc.
Bentley Systems
Procore Technologies
Oracle Construction & Engineering
Dassault Systèmes
ALICE Technologies
Buildots
OpenSpace AI
Smartvid.io
Doxel
Hexagon AB
IBM Corporation
Microsoft Corporation
SAP SE

These companies are focusing on AI-driven project analytics, computer vision, and smart construction platforms to strengthen their market positions. Strategic partnerships between software providers and construction firms are accelerating innovation.

What are the Factors Driving the Growth of the Global AI in Construction Market?

By Technology

Machine Learning
Computer Vision
Natural Language Processing
Robotics & Automation

By Component

Software
Services

By Application

Project Management
Risk Management
Safety & Surveillance
Design & Planning
Supply Chain Management

AI enhances visibility, decision-making, and operational efficiency throughout the construction lifecycle, reducing rework and boosting profitability.

AI in Construction Market Future Scope, Trends and Forecast [2025–2031]

The future of AI in Construction looks highly promising as digital transformation accelerates. By 2031, AI will become integral to every stage of the construction lifecycle, from design conceptualization to facility maintenance.

Smart cities, autonomous construction sites, and fully digitized project management platforms will define the next generation of construction ecosystems. AI-powered predictive models will enable proactive maintenance of buildings and infrastructure, extending asset lifespans.

As regulatory bodies emphasize green construction and carbon reduction, AI will play a central role in sustainability modeling and compliance tracking.

Cybersecurity and data privacy will become critical as construction projects generate massive volumes of data. Companies investing in secure AI architectures and interoperable platforms will gain a competitive advantage.

Which Regions are Leading the Global AI in Construction Market?

North America

United States
Canada

North America dominates due to early technology adoption, strong presence of AI startups, and government funding for smart infrastructure.

Europe

Germany
United Kingdom
France
Nordic Countries

Europe’s growth is driven by sustainability regulations, advanced construction standards, and digital innovation initiatives.

Asia-Pacific

China
Japan
India
South Korea
Southeast Asia

Asia-Pacific is the fastest-growing region due to rapid urbanization, mega infrastructure projects, and government-backed smart city programs.

Latin America

Brazil
Mexico
Chile

Increasing infrastructure development and foreign investments are fueling AI adoption.

Middle East & Africa

UAE
Saudi Arabia
South Africa

Smart city initiatives and large-scale urban development projects are driving regional market expansion.

Introduction of the Global AI in Construction Market

• Overview of the Market
• Scope of the Report
• Assumptions

Executive Summary

Research Methodology of Market Size and Trends

• Data Mining
• Validation
• Primary Interviews
• List of Data Sources

Global AI in Construction Market Outlook

• Overview
• Market Dynamics
– Drivers
– Restraints
– Opportunities
• Porter’s Five Force Model
• Value Chain Analysis

Global AI in Construction Market, By Technology

Global AI in Construction Market, By Component

Global AI in Construction Market, By Application

Global AI in Construction Market, By Geography

Global AI in Construction Market Competitive Landscape

Company Profiles

Kings Research Says

The AI in Construction Market is set to redefine how infrastructure is planned, built, and maintained. AI technologies are bridging the gap between traditional construction practices and digital innovation, driving productivity, safety, and sustainability.

The convergence of AI, IoT, robotics, and cloud computing will create autonomous construction ecosystems capable of real-time decision-making and predictive performance optimization.

Organizations that invest early in AI-enabled construction platforms will be better positioned to lead in an increasingly competitive and technology-driven market landscape.