Global AEC Market Opportunities and Forecast, 2021-2028


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Global AEC Market Opportunities and Forecast, 2021-2028


AEC Market Statistics—2028
The global AEC market size was valued at $7,188.00 million in 2020, and is projected to reach $15,842.00 million by 2028, growing at a CAGR of 10.7% from 2021 to 2028. Architecture, engineering, and construction software is used by real estate companies, construction firms, surveyors, interior designer, and mechanical & electrical piping engineers for effective project life cycle management. Key objective of architecture, engineering, and construction software is to enhance project performance and produce better outcomes. AEC helps construction managers to gather data and information from relevant disciplines and communicate more effectively. Enhanced data communication and coordination among various stakeholders, architectures, and construction supervisors is coupled with improved construction productivity to provide a leading edge to AEC users.  

Depending on deployment mode, the on-premise segment dominated the AEC market share in 2020, and is expected to continue this trend during the forecast period. The growth of this segment is attributed to rise in concerns about security of data associated with construction projects, which is highly valuable. Larger firms in the AEC industry provide on-premise software for their customers in industrial, infrastructure, and residential sectors. However, the cloud segment is expected to witness highest growth in the upcoming years as it does not involve capital cost as well as has low maintenance requirements, hence is most preferred by mid-sized financial institutions. 

On the basis of enterprise size, the large enterprises segment dominated the market share globally in 2020, and is expected to continue the same during the forecast period. The growth is attributed to rise in use of cutting-edge technology such as augmented reality and virtual reality in large scale enterprises, which needs AEC.  

North America generated highest revenue in 2019, and is expected to continue this trend during the forecast period. This is attributed to rapid growth in the construction and infrastructure sector such as adoption of artificial intelligence and rise in need for automation in the construction and architecture sector. However, Asia-Pacific is expected to exhibit highest growth during the AEC market forecast period as adoption of AEC software is prominent in this region, owing to growth in the construction sector in this region. Surge in multi-story buildings and skyscrapers as well as ongoing developments in infrastructure in this region are expected to be key factors facilitating growth of the AEC market. 


Segment review
AEC market is segmented into component, deployment mode, enterprise size, application, and region. 
- By component, it is bifurcated into software and service. 
- Depending on deployment mode, it is categorized into on-premise and cloud. 
- 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. 
- Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.


Top impacting factors    
Numerous factors such as growth in infrastructure projects, owing to rapid urbanization and increase in productivity through exchange of information drive the market globally. Furthermore, mandatory rules and regulations applied by government authorities for the use of AEC software also drives the market globally. However, high initial cost of implementation of AEC software and lack of skilled workers in the industry restrain the market globally. Furthermore, growth in adoption of AR and VR in the construction industry and rise in implementation of IoT in numerous construction projects are expected to create AEC market opportunity market during the forecast period.


Increase in infrastructure projects 
As population is increasing globally, demand for construction of buildings, malls, and offices, owing to launch of projects such as smart cities and high-speed roads, is on the rise. Hence, to operate these projects seamlessly and efficiently, key players are adopting AEC software. The construction industry has witnessed rapid growth in the Middle East and in most developing countries of Asia- Pacific such as India and China.


Source: The indicators are extracted from Allied Market Research report as a reference for market forecast.