Global AEC Market Size to Grow About USD 16.5 Billion By 2030

The global AEC market size was worth around USD 8.9 Billion in 2022 and is estimated to grow to about USD 16.5 Billion by 2030, with a compound annual growth rate (CAGR) of approximately 10.20 percent over the forecast period of 2023-2030.

Architecture, engineering, and construction (AEC) software offers a variety of services and plays a major role in initiating constructive project life cycle management. It is extensively used in visualizing, designing, documenting, and drafting phases of numerous projects as it is capable of planning the initial lifecycle process starting from presentation to the culminating stage of production. AEC is widely used among real estate businesses, surveyors, interior designers, construction companies, and mechanical and electrical piping engineers for various purposes. This is mainly because they help in improving overall productivity, minimize labor expenses and overhead cost, and saves a great deal of time. This further results in swifter turn-around time on multiple projects.  

The global Architectural Engineering and Construction AEC market is expected to surge exponentially due to an increase in urbanization across the globe and the rapid construction of various infrastructural projects in both developed and developing countries around the world. A significant surge in population, growing initiatives towards building smart cities by various governments, and an increase in the construction of effective highways & roadways connecting numerous states and cities drive the growth of the market during the forecast period.

In addition, a surge in the need for personalized and cost-effective design solutions, and extensive application of AEC particularly by interior designers and architects to devise a comprehensive layout and make effective use of the three-dimensional (3D) model-based approach for a variety of construction projects will boost the growth of the AEC industry during the forecast period. Besides, AEC is extensively used by most construction and infrastructure companies to incorporate crucial construction processes such as data management and procurement, resulting in improved overall productivity of projects. Furthermore, the growing integration of artificial intelligence (AI) in AEC, the Internet of Things (IoT), and virtual reality (VR) in AEC for enhanced visualization and design create ample opportunities for the growth of the market during the forecast period. However, the high initial investment in AEC software might restrict the growth of the market to an extent during the forecast period.

The global AEC market is segmented based on deployment mode, component, enterprise size, application, and region.

Based on deployment mode, the market is bifurcated into the on-premise and cloud segment. The on-premise segment held the largest market share in 2022 and is further predicted to occupy a dominant market share during the forecast period. The major reason for the growth of this segment is the growing concerns related to the security of data on various projects. Thus, the maintenance of data security in construction projects is paramount as they are very valuable for companies. Various prominent companies in the AEC sector offer functional on-premise software for their wide range of customers in the infrastructure, industrial, and residential sectors. These factors drive the growth of the on-premise segment during the forecast period.

On the basis of enterprise size, it is categorized into large enterprises and small & medium size enterprises. Based on enterprise size, the large enterprise segment held the largest market share in 2022 and is further predicted to grow exponentially at a rapid CAGR during the forecast period. The main reason behind the growth of this segment is that large enterprises tend to spend and invest more in innovative and breakthrough technologies to significantly improve overall productivity and complete projects at a much shorter duration. Thus, an increase in the integration of virtual reality, augmented reality, and the Internet of Things (IoT) with AEC among large enterprises drive the growth of the segment during the forecast period.

Based on region, the North American region held the largest market share in 2021 and is further projected to grow rapidly at a significant CAGR during the forecast period. There has been remarkable growth in the construction and infrastructure sector in this region due to the increase in the standard of living, rise in disposable income, and growth of the economy in this region. Besides, there has been an immaculate surge in the number of commercial buildings due to the presence and rise in the number of start-ups in this region. In addition, an increase in the adoption of innovative technologies such as AR, VR, and IoT among AEC companies further bolsters the growth of the market in this region.

This review is based on a report by Zion Market Research, titled “AEC Market By Component (Solution and Service), Deployment Mode (On-Premise and Cloud), By Enterprise Size (Small & Medium Scale Enterprises and Large Scale Enterprises), By Application (Construction & Architecture Companies, Education, and Others), and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 – 2030.”- Report at https://www.zionmarketresearch.com/report/aec-market

Recent Developments

• In March 2022, ACCA Software, a dominant international developer of AEC software, announced the launch of its edition of Edificius, which is a 3D building design software. The newest 3d building design software from ACCA is equipped with a point cloud that favors performance improvement management, import, and variant viewing capabilities. In this software, the material texture management is also optimized which saves a great deal of time.
• In March 2022, Egnyte, a pioneer in cloud content security and governance, expanded its Egnyte for Architecture, Engineering, and Construction product offering with many new features. The AEC-specific capabilities, which include improved integration with Procore, a major construction management software, were unveiled at Egnyte's AEC Leadership Forum, a virtual gathering focused on information management in the AEC industry.

The global AEC market is dominated by players such as:

• Autodesk inc.
• Bentley system inc.
• Aveva Group plc.
• Trimble inc.
• ACCA Software
• 4M Group
• Esri India Technologies Private Limited
• Procore Technologies Inc.
• Construsoft B.V.
• Ansys Inc.
• Dassault systems
• Nemetschek
• Ansys
• Newforma
• Hexagon AB
• Innovaya.

Global AEC market is segmented as follows:

By Component

• Solution
• Service

By Deployment Mode

• On-premise
• Cloud

By Enterprise size

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

By Application

• Construction & Architecture Companies
• Education
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

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