Architectural, Engineering, and Construction (AEC) Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Architectural, Engineering, and Construction (AEC) Market is projected to expand from USD 15.42 Billion in 2025 to USD 27.74 Billion by 2031, reflecting a compound annual growth rate of 10.28%. This integrated sector encompasses the design, planning, and execution of residential, commercial, and industrial infrastructure, supported by professional services and collaborative software. The market's growth is largely fueled by rapid urbanization and the pressing need for sustainable development, both of which demand efficient project lifecycle management to adhere to stringent regulatory and environmental standards.

According to the Associated Builders and Contractors, the Construction Backlog Indicator stood at 8.5 months in September 2025, signaling a stable pipeline for commercial and industrial contractors despite broader economic fluctuations. However, the sector faces a significant hurdle in the form of a persistent skilled labor shortage across engineering and construction disciplines. This deficit delays timelines and raises costs, forcing companies to turn away work or accept lower margins, thereby limiting their ability to fully capitalize on demand despite the availability of advanced technological solutions.

Market Drivers

The rapid integration of digital technologies and Building Information Modeling (BIM) is fundamentally transforming the AEC value chain by improving collaboration and lowering project risks. To optimize design accuracy and streamline workflows, firms are increasingly utilizing artificial intelligence and cloud-based platforms, ensuring real-time data access for dispersed teams. This shift represents an operational necessity rather than a simple trend, enabling firms to manage complex projects and client demands for data-rich deliverables. According to the 'Digital Construction Report' by the NBS in October 2025, 70% of professionals surveyed have implemented BIM processes to enhance information management and project delivery, allowing for early error mitigation and margin protection against labor and material volatility.

Simultaneously, increasing regulatory and market pressure for sustainable construction is driving major shifts in energy-efficient design and material sourcing. Private clients and governments are enforcing stricter environmental metrics, necessitating low-carbon strategies and the retrofitting of existing assets. According to the American Institute of Architects' '2030 By the Numbers' report from September 2025, signatory firms reported an average 56% reduction in predicted energy usage intensity across whole-building projects. This sustainability focus fortifies market resilience against economic headwinds, securing work for compliant firms. As noted by Engineering News-Record in November 2025, total construction starts increased by 8% for the year ending October 2025, driven primarily by these large-scale, performance-focused projects.

Market Challenges

A persistent lack of skilled labor remains a critical obstacle to the expansion of the Global AEC market. This workforce deficit creates a significant bottleneck, preventing firms from converting opportunities into revenue and effectively capping growth despite a strong pipeline of projects. When sufficient qualified personnel are unavailable, engineering and construction companies face extended schedules and increased compensation costs to attract talent, which directly diminishes profit margins. Consequently, organizations are often forced to decline lucrative contracts due to staffing uncertainties, thereby neutralizing the advantages of rising infrastructure demand.

The severity of this constraint is underscored by recent data illustrating the widespread nature of the problem. According to the Associated General Contractors of America, 92 percent of construction firms reported difficulty finding qualified workers to hire in 2025. This high incidence of unfilled roles hinders the industry's modernization efforts, as insufficient human capital restricts the effective implementation of advanced technological tools. Ultimately, this labor gap compels the market to function well below its potential capacity, stalling broader economic progress within the construction landscape.

Market Trends

The mainstream adoption of Modular Construction and Design for Manufacture and Assembly (DfMA) principles is rapidly reshaping the AEC sector by moving production from unpredictable job sites to controlled factory settings. This operational shift enables firms to bypass the ongoing skilled labor shortage while speeding up project delivery through simultaneous site preparation and module fabrication. By applying DfMA, companies improve quality control and decrease material waste, treating buildings as precision-engineered products rather than bespoke creations. The significance of this trend is highlighted by the Modular Building Institute's '2024 Permanent Modular Construction Annual Report' from August 2024, which estimates that the modular industry accounted for 6.64% of new construction starts, confirming its growing acceptance as a key alternative to traditional methods.

In parallel, the implementation of Circular Economy and Material Deconstruction Practices is transforming resource management to tackle embodied carbon. Firms are increasingly focusing on the reuse of structural components and regenerative materials to limit environmental impact during construction and demolition. This strategy aligns with strict climate objectives and lowers supply chain risks by reducing dependence on virgin raw materials. The environmental impact of this transition is substantial; according to Sweco's October 2024 report, 'Building the circular economy into construction,' circular economy initiatives have the potential to cut CO2 emissions from the production of key infrastructure materials, such as cement and steel, by 40%.

Key Players Profiled in the Architectural, Engineering, and Construction (AEC) Market

• Trimble Inc.
• ACCA software S.p.A.
• ANSYS, Inc.
• Autodesk, Inc.
• AVEVA Group Limited
• Bentley Systems, Incorporated
• Construsoft B.V.
• Esri Global, Inc.
• Hexagon AB
• Nemetschek Group

Report Scope

In this report, the Global Architectural, Engineering, and Construction (AEC) Market has been segmented into the following categories:

Architectural, Engineering, and Construction (AEC) Market, by Product:

• Software
• Services

Architectural, Engineering, and Construction (AEC) Market, by Deployment Mode:

• On-premises
• Cloud-based

Architectural, Engineering, and Construction (AEC) Market, by Enterprise Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

Architectural, Engineering, and Construction (AEC) Market, by End-User:

• Road
• Rail
• Others

Architectural, Engineering, and Construction (AEC) Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Architectural, Engineering, and Construction (AEC) Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.