Predicted AI investments should change the fact that the vast majority of construction firms are still quite behind other industries when it comes to technology adoption.
Artificial intelligence will play more of a role on the construction site over the next decade, with more investment by construction firms into AI startups and adoption of cloud-based technologies.
That’s according to market research firm Research Dive, which published its report on the global artificial intelligence in the construction industry. In it, the firm predicts $8 billion in revenue for the industry from now until 2031, with the vast majority of that revenue coming in the final five years of that time frame. The compound annual growth rate for this time period is estimated to be 34.1 percent.
“By regional analysis, the artificial intelligence in construction market in the North America region is anticipated to be the most profitable by 2031,” said senior market research analyst at Research Dive, Surya Sanka. “Increasing adoption of artificial intelligence by various construction sector companies in this region is anticipated to be the main growth driver of the market in the forecast period.”
The construction industry has dabbled with some leading-edge technology, for example a few firms have utilized digital twins and augmented reality to train workers in simulated environments. However, the vast majority of construction firms even in the US are still quite behind other industries when it comes to technology adoption, with high costs and maintenance charges considered two of the reasons for that low adoption rate.
Some large enterprises will look at acquisition or partnership as a means to get a foot in the artificial intelligence market. Research Dive reference this:
“For instance, in May 2021, Procore Technologies, a leading construction management software developer, announced the acquisition of INDUS.AI, an AI-powered analytics software developer. This acquisition is predicted to help Procore to gain a considerable lead over its competitors of the market in the coming period.”
While it is unlikely that the construction industry moves wholesale to cloud-based technologies, we expect by 2030 many will utilize cloud and artificial intelligence as a way to design, plan, and manage operations.