Summary

Overview
Global Architecture, Engineering and Construction (AEC) Market reached US$ 12.3 Trillion in 2023 and is expected to reach US$ 16.0 Trillion by 2031, growing with a CAGR of 3.4% during the forecast period 2024-2031.
Demand for building projects, such as infrastructure development and commercial, residential and industrial construction is growing due to the global economic expansion. The expansion of the AEC industry is facilitated by investments in businesses, private real estate development and public infrastructure. The need for housing, infrastructure and commercial facilities in urban areas rises as a result of rapid urbanization and population expansion. AEC services are required as a result of urbanization to plan, design and develop infrastructure and structures to support expanding urban populations.
Growing merger and acquisition strategies by major key players help to boost market growth over the forecast period. For instance, on April 15, 2021, Autodesk acquired Upchain to accelerate product development data and processes in the cloud. The acquisition helps to deliver more value for the engineers, manufacturers, suppliers and other product stakeholders by increasing collaboration across the decentralized product value chain, regardless of the CAD system.
Asia-Pacific is the dominating region in the market due to the growing technologically advanced product launches by major key players in the region over the forecast period. For instance, on March 31, 2023, SoftTech Engineers launched CivitBUILD, an exclusive Cloud-based and AI-Powered Construction ERP Software. The newly launched product is Cloud-powered and AI-driven Construction ERP based on the SaaS Model which helps to drive the Architecture, Engineering and Construction industry in India.
Dynamics
Growing Urbanization Globally
Infrastructure development is essential for maintaining the expanding urban population because of the accelerating rate of urbanization. The involves constructing necessary infrastructure, such as railroads, airports, bridges, highways and sewage and water delivery systems. Consequently, there is an increasing need for AEC services to plan, design and build major infrastructure projects. The United Nations Population Fund reports that the trend of urbanization throughout the world is at its highest peak ever. 5 billion people of the world's population will live in cities and towns by 2031.
According to data provided by the World Bank, around 56% of the 4.4 billion people on earth live in cities. With cities accounting for over 80% of the world's GDP, urbanization, if properly managed, can create sustainable growth by raising productivity and promoting innovation. The rate at which urban land consumption is increasing is up to 50% faster than population growth, which might result in the creation of 1.2 million km² of additional urban built-up area globally by 2031.
Technological Advancements
Growing technological advancements such as Building Information Modeling, Virtual Design and Construction, Augmented Reality and Virtual Reality and Drones and UAVs help to boost market growth over the forecast period. The construction or infrastructure's functional and physical attributes are represented digitally using BIM. It enables more effective planning, designing, constructing and infrastructure management for all involved parties. Improved project results are eventually achieved by reducing mistakes, increasing project coordination and facilitating stakeholder participation through the use of BIM.
VDC involves modeling construction processes and optimizing project planning and execution via the use of digital tools and technology. With the use of VDC, AEC specialists discover possible problems, identify conflicts and fix them before construction even starts, which improves project efficiency and lowers costs. In the AEC sector, AR and VR technologies enhance communication and visualization. Through the use of these technologies, stakeholders interact and experience 3D models of infrastructure and buildings, which enhances decision-making, stakeholder engagement and design comprehension throughout a project. In the AEC industry, the usage of drones and unmanned aerial vehicles for site surveys and progress tracking is growing. AEC experts monitor project progress, spot any problems and enhance safety on building sites with the use of drones, which provide aerial pictures and data.
Skilled Labor Shortage
Lack of skilled labor leads companies to struggle to recruit suitable specialists to fill critical positions, which can cause delays in project deadlines. Project completion times could rise as a result, affecting overall project timelines and sometimes resulting in penalties for missing deadlines. Companies might have to pay more and provide better perks to draw and keep talent since there is a shortage of competent workers. The results in higher labor expenses, which would lower AEC companies' profit margins and lessen the viability of their projects.
Insufficient qualified labor leads to inadequate building site skills and an indifference to safety regulations. The affects AEC businesses' reputations and their capacity to obtain new contracts by raising the risk of mistakes, rework, accidents and perhaps legal penalties. Implementing and using cutting-edge technology, such as Building Information Modelling (BIM) and automation in the building process, need skilled labor. The adoption of these technologies is impeded by a shortage of trained labor, which would restrict productivity gains and innovation in the AEC sector.
Segment Analysis
The global architecture, engineering and construction (AEC) market is segmented based on component, deployment, enterprise, end-user and region.
Growing Adoption of Architecture, Engineering and Construction (AEC) Software Globally
Based on the components, the architecture, engineering and construction (AEC) market is segmented into software and services. As major companies in the market are launching a growing number of products and as major industries are adopting more and new technologies, the software category has the greatest market share in the globally market. Owing to technological advancements, the AEC industry has produced specialized software solutions, such as design software, project management software and building information modeling (BIM) software.
The growing merger and acquisition strategies by major key players help to boost segment growth over the forecast period. For instance, on February 27, 2023, NICMAR University completed a partnership with SoftTech Engineers Limited, a leading software products company in AEC solutions for Civil/Structural Engineering, Architectural and Construction industry-specific applications to foster a strong industry-academia relationship.
Geographical Penetration
Asia-Pacific is Dominating the Architecture, Engineering and Construction (AEC) Market
The growing green building constructions in the Asia-Pacific help to boost regional market growth. India's building sector is expanding as a result of the government's increased focus on improving the country's infrastructure. Moreover, the sector is expanding due to several important reasons, including increased foreign investments, urbanization and the expanding construction sector. With a growing population and additional individuals moving from rural to urban regions, the Asia-Pacific is rapidly becoming more urbanized.
The tendency has raised demand for infrastructure development projects, including roads, bridges, airports, railroads and residential and commercial constructions and as a result, the AEC sector is growing. Based on information provided by Invest India, United Nations projects that 1.64 billion people will call India home by 2047, with 51% of them expected to live in urban. FDI inflows of US$ 32 billion are going to the construction development industry, which is one of the top receivers in the entire country.
Competitive Landscape.
The major global players in the market include Ansys, Inc, Autodesk Inc., Aveva Group Limited, Bentley Systems Inc., Dassault Systèmes, Hexagon AB, Nemetschek Group, Newforma, Inc., Trimble Inc. and 4M.
COVID-19 Impact Analysis
Lockdowns, social distancing measures and supply chain delays caused by the epidemic caused severe interruptions in building projects across the world. Numerous construction sites experienced temporary closures, which resulted in schedule delays or entire cancellations. The globally supply chain for construction equipment and supplies was disrupted by restrictions on international commerce and transit. Project budgets and timetables were impacted by cost increases and delays in the supply of products and components.
A range of reasons, including sickness, quarantine restrictions and travel limitations, contributed to the pandemic's labor shortage in the construction sector. Requirements for social isolation also had an impact on productivity at construction sites, which delayed the completion of projects. The pandemic's effects on the economy had an impact on project funding and investment in the AEC industry. Project cancellations or delays were caused by reduced cash availability, more stringent financing requirements and investor concerns, especially with large-scale companies.
Russia-Ukraine War Impact Analysis
Significant producers of components and raw materials for the building sector include Russia and Ukraine. Any logistics disruptions caused by the conflict, including trade restrictions or problems with transportation, might cause delays and raise the cost of building projects all over the world. Investor confidence and project funding in the AEC industry were impacted by geopolitical tensions and uncertainties arising from the war. Future economic conditions and regulatory changes cause project cancellations or delays, which would affect the industry as a whole.
Energy supplies could be disrupted by the conflict, particularly Russia's natural gas shipment to Europe. Increased energy prices resulted from this, which would have an impact on building projects' operating expenses and perhaps their feasibility and profitability. Currency exchange rate changes are frequently caused by geopolitical instability. The cost of imported supplies and machinery for building projects is impacted by currency devaluations or fluctuations in major currencies, which could affect project budgets and profitability.
By Component
• Software
• Services
By Deployment
• On-Premise
• Cloud-Based
By Enterprise
• Small and Medium-Sized Enterprises
• Large Enterprise
By End-User
• Constructure and Architecture
• Education
• Civil Infrastructure
• Oil & Gas
• Others
By Region
• North America
o U.S.
o Canada
o Mexico
• Europe
o Germany
o UK
o France
o Italy
o Spain
o Rest of Europe
• South America
o Brazil
o Argentina
o Rest of South America
• Asia-Pacific
o China
o India
o Japan
o Australia
o Rest of Asia-Pacific
• Middle East and Africa
Key Developments
• On November 13, 2023, Autodesk, Inc. launched Autodesk Workshop XR, an immersive design review workspace connected to Autodesk Construction Cloud. It offers efficient and effective reviews for the architecture, engineering and construction (AEC) industry. It empowers teams to review 3D models and their data from anywhere which helps in better decision-making and more sustainable projects.
• On February 10, 2021, Autodesk launched cloud offerings for AEC Design Customers. It is included in the AEC Collection; BIM 360 Design is now Autodesk BIM Collaborate Pro and Autodesk BIM Collaborate is available globally.
• On August 10, 2021, Altair, a manufacturer of converging simulation, HPC and AI acquired S-FRAME Software, a structural analysis software platform used by engineers for the evaluation of a structure's ability to withstand external loads.
Why Purchase the Report?
• To visualize the global architecture, engineering and construction (AEC) market segmentation based on component, deployment, enterprise, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of architecture, engineering and construction (AEC) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global architecture, engineering and construction (AEC) market report would provide approximately 70 tables, 61 figures and 207 Pages.
Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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Table of Contents

1. Methodology and Scope
1.1. Research Methodology
1.2. Research Objective and Scope of the Report
2. Definition and Overview
3. Executive Summary
3.1. Snippet by Component
3.2. Snippet by Deployment
3.3. Snippet by Enterprise
3.4. Snippet by End-User
3.5. Snippet by Region
4. Dynamics
4.1. Impacting Factors
4.1.1. Drivers
4.1.1.1. Growing Urbanization Globally
4.1.1.2. Technological Advancements
4.1.2. Restraints
4.1.2.1. Skilled Labor Shortage
4.1.3. Opportunity
4.1.4. Impact Analysis
5. Industry Analysis
5.1. Porter's Five Force Analysis
5.2. Supply Chain Analysis
5.3. Pricing Analysis
5.4. Regulatory Analysis
5.5. Russia-Ukraine War Impact Analysis
5.6. DMI Opinion
6. COVID-19 Analysis
6.1. Analysis of COVID-19
6.1.1. Scenario Before COVID
6.1.2. Scenario During COVID
6.1.3. Scenario Post COVID
6.2. Pricing Dynamics Amid COVID-19
6.3. Demand-Supply Spectrum
6.4. Government Initiatives Related to the Market During Pandemic
6.5. Manufacturers Strategic Initiatives
6.6. Conclusion
7. By Component
7.1. Introduction
7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
7.1.2. Market Attractiveness Index, By Component
7.2. Software*
7.2.1. Introduction
7.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
7.3. Services
8. By Deployment
8.1. Introduction
8.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment
8.1.2. Market Attractiveness Index, By Deployment
8.2. On-Premise*
8.2.1. Introduction
8.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
8.3. Cloud-Based
9. By Enterprise
9.1. Introduction
9.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Enterprise
9.1.2. Market Attractiveness Index, By Enterprise
9.2. Small and Medium-Sized Enterprises*
9.2.1. Introduction
9.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
9.3. Large Enterprise
10. By End-User
10.1. Introduction
10.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
10.1.2. Market Attractiveness Index, By End-User
10.2. Constructure and Architecture*
10.2.1. Introduction
10.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
10.3. Education
10.4. Civil Infrastructure
10.5. Oil & Gas
10.6. Others
11. By Region
11.1. Introduction
11.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
11.1.2. Market Attractiveness Index, By Region
11.2. North America
11.2.1. Introduction
11.2.2. Key Region-Specific Dynamics
11.2.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
11.2.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment
11.2.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Enterprise
11.2.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
11.2.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
11.2.7.1. U.S.
11.2.7.2. Canada
11.2.7.3. Mexico
11.3. Europe
11.3.1. Introduction
11.3.2. Key Region-Specific Dynamics
11.3.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
11.3.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment
11.3.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Enterprise
11.3.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
11.3.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
11.3.7.1. Germany
11.3.7.2. UK
11.3.7.3. France
11.3.7.4. Italy
11.3.7.5. Spain
11.3.7.6. Rest of Europe
11.4. South America
11.4.1. Introduction
11.4.2. Key Region-Specific Dynamics
11.4.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
11.4.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment
11.4.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Enterprise
11.4.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
11.4.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
11.4.7.1. Brazil
11.4.7.2. Argentina
11.4.7.3. Rest of South America
11.5. Asia-Pacific
11.5.1. Introduction
11.5.2. Key Region-Specific Dynamics
11.5.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
11.5.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment
11.5.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Enterprise
11.5.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
11.5.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
11.5.7.1. China
11.5.7.2. India
11.5.7.3. Japan
11.5.7.4. Australia
11.5.7.5. Rest of Asia-Pacific
11.6. Middle East and Africa
11.6.1. Introduction
11.6.2. Key Region-Specific Dynamics
11.6.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Component
11.6.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Deployment
11.6.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Enterprise
11.6.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
12. Competitive Landscape
12.1. Competitive Scenario
12.2. Market Positioning/Share Analysis
12.3. Mergers and Acquisitions Analysis
13. Company Profiles
13.1. Ansys, Inc*
13.1.1. Company Overview
13.1.2. Product Portfolio and Description
13.1.3. Financial Overview
13.1.4. Key Developments
13.2. Autodesk Inc.
13.3. Aveva Group Limited
13.4. Bentley Systems Inc.
13.5. Dassault Systèmes
13.6. Hexagon AB
13.7. Nemetschek Group
13.8. Newforma, Inc.
13.9. Trimble Inc.
13.10. 4M
LIST NOT EXHAUSTIVE
14. Appendix
14.1. About Us and Services
14.2. Contact Us