Architectural, Engineering, and Construction (AEC) Market Report by Product (Software, Services), Deployment Mode (On-premises, Cloud-based), Enterprise Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), End User (Construction and Architecture Companies, Education, and Others), and Region 2024-2032

Architectural, Engineering, and Construction (AEC) Market Report by Product (Software, Services), Deployment Mode (On-premises, Cloud-based), Enterprise Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), End User (Construction and Architecture Companies, Education, and Others), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A6647
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Market Overview:

The global architectural, engineering, and construction (AEC) market size reached US$ 9.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 21.1 Billion by 2032, exhibiting a growth rate (CAGR) of 8.89% during 2024-2032. The market is experiencing steady growth driven by rapid urbanization and population growth, necessitating large-scale infrastructure and housing projects, particularly in emerging economies, the growing emphasis on sustainability and green building practices, and continuous technological advancements including the adoption of BIM, AI, and IoT.

Report Attribute
 Key Statistics 
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023
US$ 9.6 Billion
Market Forecast in 2032
US$ 21.1 Billion
Market Growth Rate 2024-2032 8.89%


Architectural, Engineering, and Construction (AEC) Market Analysis:

  • Market Growth and Size: The global market is experiencing robust growth, driven by factors such as rapid urbanization, particularly in emerging economies, and the need for infrastructure development in developed regions. This growth is reflected in the increasing scale of construction projects and the rising demand for AEC services, signaling a substantial market size with promising future expansion potential.
  • Technological Advancements: The AEC market is undergoing a significant transformation due to the integration of technologies such as Building Information Modeling (BIM), 3D printing, and AI. These innovations are enhancing efficiency, accuracy, and sustainability in construction projects, offering companies that adopt these technologies a competitive edge in the market.
  • Industry Applications: AEC services find applications across a wide array of sectors including residential, commercial, industrial, and public infrastructure. Each sector presents unique demands, from high-rise urban buildings and smart cities to transportation networks and environmental projects, reflecting the market's diverse nature and extensive scope.
  • Key Market Trends: A major trend in the AEC market is the growing emphasis on sustainability and green construction practices, driven by environmental concerns and regulatory standards. Additionally, there is a trend towards adopting digital solutions for project management and design optimization, catering to the market’s demand for innovation and efficiency.
  • Geographical Trends: Geographically, the AEC market is witnessing rapid growth in Asia-Pacific regions due to urbanization and economic development, particularly in countries like China and India. Meanwhile, developed regions such as North America and Europe are focusing on infrastructure redevelopment and modernization, sustaining their market growth.
  • Competitive Landscape: The competitive landscape of the AEC market is characterized by a mix of global players and regional firms. Companies are increasingly competing on the basis of technological capabilities, sustainability practices, and innovative design and construction solutions.
  • Challenges and Opportunities: The market faces challenges such as fluctuating raw material costs and the need for skilled labor. However, these challenges are accompanied by opportunities, such as the potential for adopting new technologies and expanding into emerging markets, where there is a high demand for infrastructure development.
     

Global Architectural, Engineering, and Construction (AEC) Market


Architectural, Engineering, and Construction (AEC) Market Trends:

Rapid urbanization and population growth

The market is significantly influenced by the worldwide trend of rapid urbanization and population growth. As more people migrate to urban areas in search of better opportunities, the demand for new residential, commercial, and industrial structures increases. This trend is particularly pronounced in emerging economies in Asia, Africa, and Latin America, where large-scale urbanization is creating substantial demand for new infrastructure. This growth necessitates the expansion of housing, transportation networks, public facilities, and commercial spaces. The AEC sector is thus experiencing heightened demand for innovative design, efficient construction methods, and sustainable practices to accommodate the growing urban population, which in turn drives advancements in building technologies and materials. Furthermore, the need to redevelop and modernize existing urban infrastructure in developed countries also contributes to the growth of the AEC market, ensuring ongoing demand for architectural, engineering, and construction services worldwide.

Technological advancements and digitalization

The integration of cutting-edge technologies is a key driver in reshaping the market. The adoption of Building Information Modeling (BIM), 3D printing, and advanced software for project management and design is revolutionizing how projects are planned, designed, and constructed. BIM, in particular, provides a digital representation of the physical and functional characteristics of a facility, enabling better decision-making throughout the construction lifecycle. Additionally, the use of drones for surveying, IoT for real-time monitoring of construction sites, and AI for optimizing designs and predicting project risks enhances efficiency, accuracy, and safety in construction projects. These technological advancements improve the quality and efficiency of construction projects and enable more sustainable and eco-friendly designs. The inclination towards smart buildings and cities, which require the integration of advanced technologies, further amplifies this trend.

Sustainability and environmental concerns

The increasing emphasis on sustainability and environmental protection is a significant factor driving the AEC market. There is a growing awareness of the impact of construction activities on the environment, leading to stricter regulations and standards for energy efficiency, resource conservation, and emissions reduction. This trend is steering the market towards green construction practices and sustainable materials. Along with this, green buildings, which are designed to minimize resource consumption and reduce their ecological footprint, are becoming increasingly popular. Moreover, the adoption of renewable energy sources, such as solar and wind power, in building projects is on the rise. The demand for sustainable urban planning and building designs that incorporate natural elements for energy efficiency and improved air quality is also growing. This shift towards sustainability is driven by regulatory requirements and by the changing preferences of consumers and businesses who are increasingly conscious of their environmental impact.

Architectural, Engineering, and Construction (AEC) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product, deployment mode, enterprise size and end user.

Breakup by Product:

  • Software
  • Services
     

Software accounts for the majority of the market share

The report has also provided a detailed breakup and analysis of the market based on the product. This includes software and services.  According to the report, software represented the largest segment.

In the market, the software segment holds the largest share, a trend attributed to the increasing adoption of digital solutions across the construction industry. This segment encompasses a range of products including Building Information Modeling (BIM) software, design and drafting applications, project management tools, and simulation software. The rapid expansion of these software solutions, driven by advancements in AI, machine learning, and cloud computing, is enhancing their capabilities in terms of design efficiency, accuracy, and collaboration. BIM software, in particular, stands out as a pivotal tool in modern construction projects, allowing for comprehensive digital representation and management of the physical and functional characteristics of a project. The software segment is further propelled by the growing demand for efficient and sustainable design solutions, which necessitate sophisticated software tools for analysis, planning, and execution. In addition, the integration of these software solutions into various construction phases, from preconstruction planning to maintenance and operation, underlines their critical role in the contemporary AEC market.

On the contrary, the services segment of the AEC market, while smaller in comparison to the software segment, plays a crucial role in the industry. This segment encompasses a wide range of services, including consulting, planning, engineering, project management, and architectural design services. The demand for these services is driven by the complexity and technical requirements of modern construction projects, which necessitate expert guidance and management. With projects becoming increasingly ambitious and challenging, the expertise offered by professional service providers becomes indispensable. This segment is characterized by the involvement of specialized firms and consultants who bring in-depth knowledge in areas such as sustainable building practices, urban planning, and infrastructure development. The growth in this segment is also fueled by the increasing emphasis on sustainable and green construction, requiring expert advice and oversight to meet environmental standards and efficiency goals.

Breakup by Deployment Mode:

  • On-premises
  • Cloud-based
     

On-premises holds the largest share in the industry

A detailed breakup and analysis of the market based on the deployment mode has also been provided in the report. This includes on-premises and cloud-based. According to the report, on-premises accounted for the largest market share.

The on-premises segment currently holds the largest share in the market's deployment mode segmentation. This preference is rooted in the traditional approach to software deployment where businesses maintain direct control over their infrastructure, data, and applications. On-premises solutions are favored by organizations that prioritize data security and have the capacity to invest in the necessary IT infrastructure. In the AEC sector, where projects often involve sensitive information and large data sets, on-premises systems offer the advantage of enhanced security and control. This approach also allows for more customized integration with existing workflows and in-house systems, a significant factor for many large-scale construction firms and engineering companies.

On the other hand, the cloud-based segment, while smaller than the on-premises segment in the AEC market, is gaining traction rapidly due to its scalability, flexibility, and cost-effectiveness. Cloud-based solutions offer AEC companies the ability to access software and data remotely, an advantage that facilitates collaboration across different locations and teams – a common scenario in large construction projects. This deployment mode is particularly appealing for small to medium-sized enterprises (SMEs) in the AEC sector due to its lower upfront costs and reduced need for extensive IT infrastructure. Additionally, the cloud infrastructure supports real-time data sharing and collaboration, which is essential for managing complex construction projects involving multiple stakeholders. The integration of emerging technologies such as AI, IoT, and advanced analytics is also more seamless with cloud-based platforms, allowing AEC firms to leverage these technologies for enhanced project insights and efficiency.

Breakup by Enterprise Size:

  • Small and Medium-sized Enterprises (SMEs)
  • Large Enterprises
     

Large enterprises represent the leading market segment 

The report has also provided a detailed breakup and analysis of the market based on the enterprise size. This includes small and medium-sized enterprises (SMEs) and large enterprises. According to the report, large enterprises represented the largest segment.

In the market, large enterprises currently dominate the segmentation based on enterprise size. This predominance is primarily due to their extensive resources, which allow for significant investments in advanced AEC solutions and technologies. Large enterprises often engage in multi-faceted, complex projects that require comprehensive and sophisticated tools for design, planning, and management. Their capacity to invest in high-end software and services, including customized on-premises solutions, enables them to effectively manage large-scale projects and maintain competitiveness. Furthermore, these organizations typically have the infrastructure to integrate complex systems, manage large teams, and sustain extensive supply chains, all of which are crucial in large-scale construction and engineering projects. The reliance on established relationships with key clients and government contracts also contributes to the dominance of large enterprises in the AEC market.

On the contrary, the segment of small and medium-sized enterprises (SMEs) in the AEC market, while smaller compared to large enterprises, plays a vital and dynamic role. SMEs in the AEC industry often exhibit agility and adaptability, allowing them to respond quickly to market changes and new opportunities. Their size enables them to specialize in niche areas or offer personalized services, catering to specific client needs or local market demands. Along with this, the growing accessibility of cloud-based AEC solutions is particularly beneficial for SMEs, as it allows them to leverage advanced technologies without the substantial capital investment required for on-premises solutions. This access to scalable and flexible tools levels the playing field, enabling SMEs to compete more effectively with larger firms. Moreover, SMEs often foster close client relationships and can rapidly adapt to emerging trends such as green building practices or localized architectural styles.

Breakup by End User:

  • Construction and Architecture Companies
  • Education
  • Others
     

Construction and architecture companies exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes construction and architecture companies, education, and others. According to the report, construction and architecture companies accounted for the largest market share.

The construction and architecture companies’ segment is the largest in the market's end-user segmentation. This dominance stems from the core role these companies play in the industry, driving demand for a wide range of AEC services and solutions. Construction and architecture firms are directly involved in the planning, design, and execution of building projects, making them the primary consumers of AEC software and services. The needs of these companies are diverse, encompassing everything from initial design and modeling software to project management and structural analysis tools. As these firms undertake projects ranging from residential buildings to large-scale infrastructure, their requirement for advanced, integrated solutions is continuous and expansive. Additionally, the sector's focus on innovation, efficiency, and sustainability further propels the adoption of new technologies and practices.

On the contrary, the education segment, while smaller compared to construction and architecture companies, represents a significant portion of the AEC market. This segment primarily includes educational institutions such as universities, technical schools, and training centers that offer courses in architecture, engineering, and construction. Along with this, the integration of AEC software and services in educational curriculums is essential for preparing students with the skills required in the modern construction industry. Institutions invest in AEC technologies to provide practical, hands-on learning experiences, ensuring that the future workforce is proficient in the latest tools and methodologies. Moreover, the focus on sustainable design and construction practices in education aligns with industry trends, fostering a new generation of professionals equipped to tackle contemporary challenges in the AEC sector.

Breakup by Region:

  • North America 
    • United States
    • Canada 
  • Europe 
    • Germany 
    • France 
    • United Kingdom 
    • Italy 
    • Spain 
    • Russia 
    • Others 
  • Asia Pacific 
    • China 
    • Japan 
    • India 
    • South Korea 
    • Australia 
    • Indonesia 
    • Others 
  • Latin America 
    • Brazil 
    • Mexico 
    • Others 
  • Middle East and Africa 
     

North America leads the market, accounting for the largest architectural, engineering, and construction (AEC) market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America represents the largest segment in the market, a status attributed to its advanced infrastructure, high investment in construction activities, and the presence of leading AEC firms. The region is characterized by its rapid adoption of emerging technologies such as BIM, AI, and IoT in construction projects. The United States, as a central market within this region, drives significant demand due to its large-scale infrastructure projects and continual redevelopment of urban spaces. Additionally, the emphasis on sustainable and smart city projects in North America further fuels the growth of the AEC market, with both public and private sectors investing in green buildings and energy-efficient designs.

Along with this, the Asia Pacific region is a rapidly growing segment in the AEC market, primarily driven by the extensive urbanization and economic development in countries such as China and India. This region is witnessing a significant rise in infrastructure development, including residential, commercial, and public projects. The increasing population and urban migration in these countries demand substantial construction activities, making the Asia Pacific an essential market for AEC companies. The region's growth is also supported by government initiatives and investments in infrastructure development, particularly in emerging economies.

In addition, Europe's AEC market is characterized by a focus on renovation and modernization of existing infrastructure, alongside new construction projects. The region shows a strong commitment to sustainability, with stringent regulations promoting energy-efficient and environmentally friendly construction practices. Advanced economies such as Germany, the UK, and France are leading contributors to the market in this region, with a high demand for technologically advanced AEC solutions to support complex architectural and engineering projects.

Apart from this, The AEC market in Latin America, while smaller in comparison to other regions, is growing due to increased urbanization and government initiatives to improve infrastructure. Countries including Brazil and Mexico are experiencing a rise in construction activities, both in residential and commercial sectors.

Moreover, the Middle East and Africa region, often considered together in market analyses, is experiencing growth in the AEC market, driven by large-scale infrastructure projects, particularly in the Gulf countries. The inclination towards diversifying economies, especially in the Middle East, away from oil dependency is leading to significant investment in construction projects, including smart cities, mega-infrastructure, and luxury residential and commercial buildings. Africa's market growth is influenced by urbanization and the need for improved infrastructure, although it faces challenges such as limited financial resources and political instability in certain areas.

Leading Key Players in the Architectural, Engineering, and Construction (AEC) Industry:

Key players in the market are actively engaging in a variety of strategic initiatives to strengthen their market position. These firms are heavily investing in research and development to integrate advanced technologies such as AI, BIM, and IoT into their offerings, aiming to enhance efficiency, accuracy, and sustainability in construction projects. Mergers and acquisitions are also a common strategy, allowing companies to expand their expertise, geographic reach, and customer base. Additionally, these players are focusing on forming partnerships with technology firms to leverage emerging digital solutions and expanding their services to meet the changing demands of sustainability and smart city projects. Moreover, many of these companies are actively promoting and implementing green building practices, aligning with global environmental goals and regulatory standards, to meet the growing demand for sustainable and energy-efficient buildings.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • 4M Group
  • ACCA software S.p.A.
  • Ansys Inc.
  • Autodesk Inc.
  • AVEVA Group Plc
  • Bentley Systems Incorporated
  • Construsoft B.V.
  • CYPE Ingenieros S.A.
  • Esri India Technologies Private Limited
  • Hexagon AB
  • Nemetschek SE
  • Procore Technologies Inc.
     

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News: 

  • November 21, 2023: Autodesk Inc. developed Autodesk AI to facilitate creative capabilities and intelligent support. Autodesk AI is a natural feature of its Design and Make Platform and is integrated into Autodesk products.
  • November 13, 2023: 4M Group announced it has invested in and collaborated with Poughkeepsie, New York-based LCS Facility Group ("LCS") through 4M Building Solutions ("4M") in order to expand its janitorial and cleaning services business in the upstate of New York, Texas, and Northern California areas.
  • May 16, 2023: Ansys Inc. announced that a final deal to purchase Diakopto had been reached. Diakopto is a provider of unique EDA technologies that speed up integrated circuit (IC) development. Its primary focus is on assisting in the resolution of serious problems brought on by layout parasitics.


Architectural, Engineering, and Construction (AEC) Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
 Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Product
  • Deployment Mode
  • Enterprise Size
  • End User
  • Region
Products Covered Software, Services
Deployment Modes Covered On-premises, Cloud-based
Enterprise Sizes Covered Small and Medium-sized Enterprises (SMEs), Large Enterprises
End Users Covered Construction and Architecture Companies, Education, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered 4M Group, ACCA software S.p.A., Ansys Inc., Autodesk Inc., AVEVA Group Plc, Bentley Systems Incorporated, Construsoft B.V., CYPE Ingenieros S.A., Esri India Technologies Private Limited, Hexagon AB, Nemetschek SE, Procore Technologies Inc., etc.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the architectural, engineering, and construction (AEC) market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global architectural, engineering, and construction (AEC) market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the architectural, engineering, and construction (AEC) industry and its attractiveness.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global Architectural, Engineering, and Construction (AEC) market was valued at US$ 9.6 Billion in 2023.

We expect the global Architectural, Engineering, and Construction (AEC) market to exhibit a CAGR of 8.89% during 2024-2032.

The rising integration of Artificial Intelligence (AI), Virtual Reality (VR), and the Internet of Things (IoT) technologies with AEC that assist in visualizing, designing, and offering realistic graphics for accurate and easy understanding is primarily driving the global Architectural, Engineering, and Construction (AEC) market.

The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations, resulting in temporary halt in numerous construction activities, thereby negatively impacting the global market for Architectural, Engineering, and Construction (AEC).

Based on the product, the global Architectural, Engineering, and Construction (AEC) market has been divided into software and services, where software currently exhibits a clear dominance in the market.

Based on the deployment mode, the global Architectural, Engineering, and Construction (AEC) market can be categorized into on-premises and cloud-based. Currently, on-premises account for the majority of the global market share.

Based on the enterprise size, the global Architectural, Engineering, and Construction (AEC) market has been segregated into Small and Medium-sized Enterprises (SMEs) and large enterprises, where large enterprises currently hold the largest market share.

Based on the end user, the global Architectural, Engineering, and Construction (AEC) market can be bifurcated into construction and architecture companies, education, and others. Among these, construction and architecture companies exhibit a clear dominance in the market.

On a regional level, the market has been classified into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa, where North America currently dominates the global market.

Some of the major players in the global Architectural, Engineering, and Construction (AEC) market include 4M Group, ACCA software S.p.A., Ansys Inc., Autodesk Inc., AVEVA Group Plc, Bentley Systems Incorporated, Construsoft B.V., CYPE Ingenieros S.A., Esri India Technologies Private Limited, Hexagon AB, Nemetschek SE, Procore Technologies Inc., etc.

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Architectural, Engineering, and Construction (AEC) Market Report by Product (Software, Services), Deployment Mode (On-premises, Cloud-based), Enterprise Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), End User (Construction and Architecture Companies, Education, and Others), and Region 2024-2032
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