Construction sites were once synonymous with dust, noise, and physical labour. But the industry is transforming rapidly, and artificial intelligence (AI) sits at the heart of the revolution. From streamlining project management to revolutionizing safety, AI is changing the way we build. Here are the data points behind the story.
Stats About Market Size
Global
According to Research Dive [Research Dive, 2023]:
- 2021 Market Size: $496.40 million
- 2031 Forecast: $8,545.80 million – CAGR (compound annual growth rate) (2022-2031): 34.1%
From Global Market Insights [Global Market Insights, 2023 ]:
- 2022 Market Size: $2.5 billion
- 2032 Forecast: $15.1 billion
- Growth CAGR (compound annual growth rate): 20%
According to Gitnux [Gitnux, 2024]:
- Global Market Growth: Expected to increase from $434.2 million in 2019 to $2.61 billion by 2024.
- CAGR: Estimated Compound Annual Growth Rate (CAGR) of 25.2% during 2021-2026.
- AI in New Construction: Up to 45% of new construction projects will involve AI by 2024.
North America
- Estimated to contribute 32% to the global market growth, with significant contributions from the US and Canada. The growth is also fueled by technological maturity in the construction sector. [Technavio, 2023]
Asia Pacific
- Projected growth (2022-2031): 34.9% [Research Dive, 2023]
Stats About Adoption
Current State of AI Adoption
- As of 2024, only about 7% of construction companies have fully integrated AI into their operations.
- This suggests a significant gap between interest and full-scale implementation [Gitnux, 2024].
Adoption Rates and Success Challenges
- There is a high adoption rate of AI in the construction sector, with 92% of construction companies embracing the technology.
- But the success rate stands at only 65%.
- This discrepancy indicates that there are significant challenges in effectively utilizing AI within the industry [Neurojet, 2023].
Future Outlook on AI Implementation
- Gitnux’s 2024 findings indicate that 56% of companies within the engineering, construction, and infrastructure sectors plan to implement AI within the next three years.
Industry Professionals’ Beliefs on AI
- Gitnux’s 2024 study shows that 22% of industry professionals believe AI will become mainstream in construction within the next five years, indicating a cautious yet optimistic outlook towards AI’s integration.
- Moreover, 81% of these professionals believe that AI will create more jobs than it replaces, suggesting a positive stance on AI’s impact on employment within the sector.
Management’s Perspective on AI
From the perspective of construction managers, 24% view automating manual paperwork as the top application of AI within the construction sector, highlighting a specific area of potential improvement through AI, as reported by Gitnux in 2024.
AI Adoption in Residential Construction
According to Gitnux’s 2024 report, 85% of new-build homes are expected to incorporate some form of AI by 2025, highlighting the rapid integration of AI technologies in residential construction.
Industry Transformation Beliefs
A substantial majority of enterprises, nearly 90%, are convinced that AI will fundamentally transform the construction industry by 2023, reflecting a strong belief in the transformative potential of AI, as per Gitnux’s 2024 insights.
AI in Road Construction
In the context of road construction, a staggering 98% of professionals recognize the cost and safety benefits brought by AI, indicating a wide consensus on the positive impacts of AI in this sub-sector, based on findings from Gitnux in 2024.
AI and Job Automation
Gitnux’s 2024 report reveals that 77% of stakeholders are utilizing AI to automate various aspects of jobs within the construction industry, underscoring the technology’s role in improving efficiency and productivity.
Stats About Impact
Impact of AI on the Industry
41% of respondents from the engineering and construction sector believe that analytics and AI will significantly impact the industry over the next three years, according to Gitnux’s 2024 report. This underscores the anticipated substantial influence of AI and analytics in shaping the future of construction.
Integration of AI and AA in Construction Processes
Design and Engineering
AI (Artificial Intelligence) and AA (Advanced Analytics) are revolutionizing design and engineering in construction. Their integration can minimize budget and timeline deviations by approximately 10-20% and reduce engineering hours by 10-30%, as reported by Deloitte in 2020.
Economic Benefits of AI in Infrastructure
Cost Reduction and Efficiency
The infrastructure industry sees significant cost benefits from AI, with operational costs potentially being reduced by around 16%, according to Gitnux in 2024. Moreover, AI and Automated Building Management Systems could slash energy consumption in commercial buildings by 35% by 2040.
Global Economic Impact and Productivity Gains
AI is projected to contribute a $13 trillion economic impact globally by 2030, enhancing labour productivity by 40% or more by 2035. A specific case on a healthcare project for Kaiser Permanente in San Diego showed a labour productivity increase of 38% and budget savings of 11% due to AI, underscoring its cost-saving advantages.
Strategic Implementation in Construction
Despite the evident benefits, only 11% of construction and infrastructure industry professionals currently have an AI strategy in place, highlighting a significant gap in adoption.
Workplace Safety
AI technology promises a reduction in workplace injuries by an estimated 20%, presenting a safer construction environment.
Budget Management
The application of AI, particularly with Building Information Modeling (BIM), can enhance budget performance by up to 45%, marking a significant improvement in financial management.
Enhancing Procurement Processes
Through real-time insights for supplier negotiations, task organization, and risk prediction, AI and AA can save 10-15% of total construction costs, as detailed by Deloitte in 2020.
Operational Costs and Asset Management Efficiency
Analytics-enabled initiatives in operations and asset management phases are capable of saving 10-20% in operating costs and boosting ROI by 3% to 7% due to extended asset life.
Driving Innovation in Construction
Market Growth and Patent Increase
The AI market in green building is expected to grow at a CAGR of 30.5% by 2030, with a 300% increase in AI-related patents since 2010, indicating rapid innovation and adoption.
Adoption Trends
Over half of construction companies plan to apply AI within the next three years, demonstrating the industry’s accelerating embrace of AI technologies for improved efficiency and innovation.
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