Architecture, Engineering, and Construction (AEC) Market Expected to Reach $ 15.84 Billion by 2028

According to a recent report published by Allied Market Research, titled, “AEC Market by component, deployment mode, enterprise size, and application: global opportunity analysis and industry forecast, 2021-2028,” the 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. Enhanced productivity through interoperability and government mandates for AEC software usage drive growth of the market. In addition, expansion of the construction industry fuels AEC market growth. Furthermore, rise in environmental and energy concerns as well as emergence of virtual reality (VR) and augmented reality (AR) technologies and their integration with architecture, engineering, and construction are expected to provide lucrative opportunities for the AEC industry growth. 

On the basis of component, the software segment dominated the overall AEC Market in 2020, and is expected to continue this trend during the forecast period. This is attributed to increase in adoption of AEC software among the AEC industry. Most AEC organizations have started adopting these solutions to align all construction processes together such as procurement and data management, which improves the overall productivity of construction projects. However, the services segment is expected to witness highest growth in the upcoming years as there has been an increase in adoption of services among End User, as it ensures effective functioning of AEC software and platforms.

Depending on the 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 the 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 such as Autodesk Inc. and Nemetschek AG 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. Rise in adoption of cloud-based architecture due to COVID-19 pandemic among both large and mid-sized enterprises further fuels growth of the market.

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 high adoption of emerging technologies such as IoT and AR/VR in large scale industries, which increases adoption of AEC software among them. However, the small & medium scale enterprise segment is the growing at a high rate as these enterprises are facing lots of competitive pressure in emerging countries, which forces them to adopt the AEC software for better co-ordination in the market.

COVID-19 outbreak has a moderate impact on growth of the AEC Market as worldwide lockdown during the COVID-19 has increased wide adoption of AEC software to allow projects to continue in a virtual and digital environment even when participants were unable to meet in person. The pandemic has forced to find safer and smarter ways for construction of highways, offices, and homes. This global public health crisis has confirmed significant demand for new ways of building roads, offices and homes, using smart construction to tackle design problems, outdated techniques, inefficiency, and environmental challenges. For instance, in November 2020, Autodesk University launched a program to develop return to work features in its AEC software, which can help users to plan new health guidelines and monitor air quality index frequently to tackle with this situation in workplaces. In addition, the AEC Market is expected to flourish during the forecast period, as the COVID-19 pandemic has enabled challenges, such as low productivity, affected margins, and drop in R&D investments; hence, construction firms are being forced by to adopt AEC software faster. For instance, in May 2021, Bentley Systems launched online learning and education program of AEC software freely to train its employees and students for using AEC software. 

Key Findings of the Study

• By component, the software segment dominated the Architecture, Engineering, and Construction (AEC) market in 2020. However, the service segment is expected to exhibit significant growth during the forecast period.
• On the basis of deployment mode, the on-premise segment accounted for the highest revenue of AEC Market in 2020; however, the cloud segment is expected to witness the highest growth rate during the forecast period.
• Depending on enterprise size, the large scale enterprise segment generated the highest revenue in 2020. However, the SMEs segment is expected to witness the highest growth rate in the near future.
• Region wise, the AEC Market was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the coming years. 

This report provides an in-depth profile of some key market players in the architecture, engineering, and construction industry are Ansys Inc., Autodesk Inc., Aveva Group Plc, Bentley System, Inc, Dassault Systemes, Hexagon AB, Innovaya, Nemetschek, Newforma and Trimble, Inc. This study includes AEC Market trends, AEC Market analysis, and future estimations to determine the imminent investment pockets.