AEC Software Global Market Opportunities and Strategies to 2033

This report describes and explains the AEC software market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AEC software market reached a value of nearly $9.06 billion in 2023, having grown at a compound annual growth rate (CAGR) of 5.9% since 2018. The market is expected to grow from $9.06 billion in 2023 to $13.65 billion in 2028 at a rate of 8.5%. The market is then expected to grow at a CAGR of 10.8% from 2028 and reach $22.85 billion in 2033.

Growth in the historic period resulted from the rise in demand for environmentally safe and certified buildings, emerging markets growth, rise in construction activity and increasing adoption of digital technologies. Factors that negatively affected growth in the historic period was high cost of implementation and data security concerns.

Going forward, government support, growing population and urbanization and rising infrastructure investments will drive the growth. Factor that could hinder the growth of the AEC software market in the future include lack of skilled workers.

The AEC software market is segmented by type into designing software, planning software and building software. The designing software market was the largest segment of the AEC software market segmented by type, accounting for 47% or $4.26 billion of the total in 2023. Going forward, the designing software segment is expected to be the fastest growing segment in the AEC software market segmented by type, at a CAGR of 9.2% during 2023-2028.

The AEC software market is segmented by component into software and services. The software market was the largest segment of the AEC software market segmented by component, accounting for 78% or $7.07 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the AEC software market segmented by component, at a CAGR of 9.4% during 2023-2028.

The AEC software market is segmented by project life cycle into preconstruction, construction and operations. The preconstruction market was the largest segment of the AEC software market segmented by project life cycle, accounting for 44.9% or $4.06 billion of the total in 2023. Going forward, the construction segment is expected to be the fastest growing segment in the AEC software market segmented by project life cycle, at a CAGR of 8.6% during 2023-2028.

The AEC software market is segmented by end-user into AEC professionals, consultants and facility managers, and other end-users. The AEC professional market was the largest segment of the AEC software market segmented by end-user, accounting for 51.2% or $4.64 billion of the total in 2023. Going forward, the consultants and facility managers segment is expected to be the fastest growing segment in the AEC software market segmented by end-user, at a CAGR of 8.6% during 2023-2028.

The AEC software market is segmented by deployment mode into on-premise software and cloud-based software. The on-premise market was the largest segment of the AEC software market segmented by deployment mode, accounting for 66.6% or $6.04 billion of the total in 2023. Going forward, the cloud-based software segment is expected to be the fastest growing segment in the AEC software market segmented by deployment mode, at a CAGR of 10.4% during 2023-2028.

The AEC software market is segmented by application into building, industrial, civil infrastructure, oil and gas, utilities and other applications. The building market was the largest segment of the AEC software market segmented by application, accounting for 47% or $4.25 billion of the total in 2023. Going forward, the building segment is expected to be the fastest growing segment in the AEC software market segmented by application, at a CAGR of 8.7% during 2023-2028.

North America was the largest region in the AEC software market, accounting for 42.6% or $3.86 billion of the total in 2023. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the AEC software market will be Asia-Pacific and South America where growth will be at CAGRs of 10% and 9.1% respectively. These will be followed by North America and Western Europe where the markets are expected to grow at CAGRs of 8.6% and 7.8% respectively.

The global AEC software market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 83.9% of the total market in 2022. Autodesk Inc was the largest competitor with 26.9% share of the market, followed by Trimble, Inc with 13.2%, Bentley Systems with 9.7%, Procore Technologies Inc. with 8.5%, Nemetschek Group with 8.1%, Dassault Systems with 5.8%, Esri with 5%, Hexagon AB with 3.3%, Ansys Inc with 2%, and Buildertrend Solutions, Inc with 1.5%.

The top opportunities in the AEC software market segmented by type will arise in the designing software segment, which will gain $2.34 billion of global annual sales by 2028. The top opportunities in the AEC software market segmented by component will arise in the software segment, which will gain $3.45 billion of global annual sales by 2028. The top opportunities in the AEC software market segmented by project lifecycle will arise in the preconstruction segment, which will gain $2.04 billion of global annual sales by 2028. The top opportunities in the AEC software market segmented by deployment mode will arise in the on-premise software segment, which will gain $2.64 billion of global annual sales by 2028. The top opportunities in the AEC software market segmented by application will arise in the building segment, which will gain $2.21 billion of global annual sales by 2028. The top opportunities in the AEC software market segmented by end-user will arise in the AEC professional segment, which will gain $2.32 billion of global annual sales by 2028. The AEC software market size will gain the most in the USA at $1.48 billion.

Market-trend-based strategies for the AEC software market include the use of artificial intelligence (AI) to create virtual models of project visualization, introduction of cloud based software to connect office and field in real time, use of blockchain technology to improve efficiency and data security, focus on sustainability and green design to reduce the carbon footprint, product innovations with focus on integrated solutions, increasing investments to expand and build new products and technologies and strategic partnerships and acquisitions to drive innovation in the market.

Player-adopted strategies in the AEC software market include focus on enhancing operational capabilities through strategic acquisitions, strengthening operational capabilities through the launch of new products, strengthening business operations through upgrading services with strategic partnerships and enhancing business capabilities through upgrading services.

To take advantage of the opportunities, the analyst recommends the AEC software companies to focus on AI-driven project intelligence solutions, focus on cloud-based AEC solutions for enhanced collaboration, focus on leveraging blockchain for enhanced AEC efficiency, focus on strategic investments for technological expansion, focus on designing and planning software segments for optimal growth expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and acquisitions for market expansion, focus on competitive pricing strategies for market expansion, focus on integrated digital marketing for effective promotion and focus on tailored solutions to meet diverse end-user needs, focus on building and civil infrastructure segments and focus on consultants and facility managers segment.