Construction Estimating Software Market Report 2025

The construction estimating software market size has grown strongly in recent years. It will grow from $1.45 billion in 2024 to $1.57 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to shift to digital construction processes, cost overrun mitigation, government investments in infrastructure, global construction industry growth, labor and material cost fluctuations, demand for precision in bidding.

The construction estimating software market size is expected to see rapid growth in the next few years. It will grow to $2.3 billion in 2029 at a compound annual growth rate (CAGR) of 10%. The growth in the forecast period can be attributed to rise in design-build contracts, government initiatives for smart cities, data security measures, mobile estimating applications, integration with project management software. Major trends in the forecast period include cloud-based construction estimating solutions, customization and scalability, ai-based predictive analytics for cost trends, collaborative estimation platforms, integration with cost databases.

The growth of the construction sector is anticipated to drive the expansion of the construction estimating software market in the future. Construction activities encompass a range of processes, including building creation, renovation, deconstruction, and maintenance, involving various tasks such as site preparation, excavation, drilling, and equipment supply. The heightened construction activity contributes to the market's growth as construction estimating software delivers rapid, visual, and accurate results, offering cost savings, improved planning, swift outcomes, and enhanced customer satisfaction. Notably, in April 2023, the United States Census Bureau reported an estimated construction spending of $1.84 trillion in February 2023, compared to $1.75 trillion in February 2022, reflecting the upward trend in construction projects. This surge underscores the driving force behind the construction estimating software market.

The construction estimating software market is poised to benefit from the ongoing trend of increasing urbanization. Urbanization, denoting the shift of population from rural to urban areas, results in the growth of cities and a corresponding decline in rural residency. In this context, construction estimating software plays a pivotal role in efficiently estimating project costs, managing budgets, and optimizing resource allocation amid escalating construction activities and urban infrastructure development. Recent data from October 2022, provided by the World Bank, indicates that around 56% of the global population, approximately 4.4 billion people, presently reside in urban areas. By 2050, this urban population is expected to exceed 7 out of 10 people, with a prediction of urban land consumption expanding at a rate up to 50% faster than population growth by 2030. The rise in urbanization acts as a significant driver for the growth of the construction estimating software market.

Product innovations are a significant trend gaining traction in the construction estimating software market. Leading companies in this sector are concentrating on developing innovative solutions to bolster their market position. For example, in May 2022, Estimating Edge, a US-based software firm, launched VECTOR, a tool designed to streamline quantity takeoffs and provide accurate cost estimates. It enables users to work with both 2D plans and 3D models, enhancing the estimating process for construction professionals. The software aims to boost productivity by automating repetitive tasks, improving collaboration, and offering real-time data management.

Key players in the construction estimating software market are focusing on introducing advanced tools, such as AI-based estimating software, to secure a competitive advantage. AI-based construction estimating software utilizes artificial intelligence (AI) and machine learning technologies to automate the cost estimation process, thereby enhancing both the accuracy and speed of overall project estimations. For instance, in October 2024, Buildxact, an Australia-based software company, launched the AI Estimator Calculator, a groundbreaking tool designed to streamline the construction estimating process by harnessing artificial intelligence for improved accuracy and efficiency. This calculator assists construction professionals in automating cost estimation tasks, enabling them to swiftly generate estimates based on historical data, project specifications, and current market prices. By leveraging AI, the tool minimizes human error and saves time, allowing contractors to concentrate on other crucial aspects of their projects. This technology represents a growing trend within the construction industry to integrate advanced tools that enhance project management and decision-making.

In January 2023, Hexagon AB, a Sweden-based technology company, successfully acquired Projectmates, further enhancing its comprehensive construction portfolio, HxGN Smart Build. This strategic acquisition aligns with Hexagon's commitment to providing top EPCs and general contractors with an extensive suite of solutions. Projectmates, a US-based SaaS-enabled enterprise construction project management software provider, brings valuable features to the table, aiding construction professionals in accurate project cost estimation and effective budget management. The synergy between Hexagon and Projectmates strengthens the technology landscape in construction, combining reality capture solutions, enterprise planning, and project control software for a holistic approach to construction project management.

Major companies operating in the construction estimating software market include Autodesk Inc., Bluebeam Inc., Corecon Technologies Inc., Glodon Company Limited, Microsoft Corporation, RIB Software SE, Sage Group PLC, Trimble Inc., AppliCAD PCL, PrioSoft, Buildsoft Pty Ltd., Heavy Construction Systems Specialists Inc., PlanSwift Software LLC, Oracle Corporation, Advanced Electrical Technologies Inc., QuoteSoft Inc., ProEst, Procore Technologies, STACK Construction Technologies, AccuLynx, HCSS, Clear Estimates, RSMeans data, Sigma Estimates, B2W Software, InEight, RedTeam Software, CostX, Esticom, Estimator360 Inc., WinEstimator Inc., Foundation Software, FastEST Inc., eTakeoff LLC, McCormick Systems, ConstructConnect, On Center Software, UDA Technologies, BidScreen XL, Causeway Technologies.

North America was the largest region in the construction estimating software market in 2024. The regions covered in the construction estimating software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the construction estimating software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Construction estimating software represents a computer application designed for storing and transmitting crucial data related to estimating building expenses. Its purpose is to facilitate the work of construction estimators, offering solutions that range from simple spreadsheets to highly integrated estimating software.

The primary types of construction estimating software products include construction accounting software, construction management software, construction suites software, and project management software. Construction accounting software focuses on allocating expenditures to specific construction projects. It is available through perpetual software licenses, subscription software licenses, and other models, catering to small, medium, and large enterprises. This software can be deployed both on-premise and in the cloud, serving various end-users such as architects, builders, construction managers, contractors, and others in the construction industry.

The construction estimating software market research report is one of a series of new reports that provides construction estimating software market statistics, including construction estimating software industry global market size, regional shares, competitors with a construction estimating software market share, detailed construction estimating software market segments, market trends, and opportunities, and any further data you may need to thrive in the construction estimating software industry. This construction estimating software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The construction estimating software market includes revenues earned by entities by providing preliminary estimate, detailed estimate, quantity estimate, and bid estimate software. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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