Construction Technology Market Report 2025

The construction technology market size has grown rapidly in recent years. It will grow from $5.09 billion in 2024 to $5.93 billion in 2025 at a compound annual growth rate (CAGR) of 16.5%. The growth observed during the historical period is due to increasing demand for efficient project management, escalating labor shortages in construction, heightened safety concerns at job sites, the adoption of Building Information Modeling (BIM), and initial investments in automation by large contractors.

The construction technology market size is expected to see rapid growth in the next few years. It will grow to $10.78 billion in 2029 at a compound annual growth rate (CAGR) of 16.1%. The growth in the forecast period is expected to be driven by rising demand for smart cities and green buildings, more stringent environmental and safety regulations, accelerating urbanization in developing countries, government initiatives supporting digital construction, and the need for real-time project monitoring and analytics. Key trends during this forecast period include the adoption of digital twin technology, the use of AI and machine learning for risk prediction, the expansion of AR and VR applications for training and design, increased use of IoT-enabled construction equipment, and the integration of blockchain to enhance contract and payment transparency.

The surge in sustainable construction practices is anticipated to drive the growth of the construction technology market moving forward. Sustainable construction practices involve environmentally responsible methods in building design, materials, and processes that minimize negative environmental impacts. This increase is mainly fueled by rising environmental regulations requiring reductions in carbon emissions, energy use, and resource waste during construction. Construction technology facilitates these sustainable practices by enabling efficient resource management, waste reduction, and promoting the use of eco-friendly materials through advanced tools and automation. For example, in July 2024, the U.S. Green Building Council, a US-based non-profit organization, reported contributing to over 46,000 residential projects certified under the LEED green building rating system, following nearly a 5% rise in new LEED residential project registrations in 2023. Hence, the growth of sustainable construction practices is boosting the expansion of the construction technology market.

Leading companies in the construction technology market are concentrating on integrating innovative technologies such as artificial intelligence (AI) voice technology to improve field reporting accuracy and streamline project documentation. AI voice technology involves artificial intelligence systems that recognize, process, and respond to spoken language, assisting the construction sector by enabling hands-free, real-time data entry and communication, which enhances safety, efficiency, and accuracy in field reporting. For instance, in June 2025, Smartbuild Construction Solutions Inc., a Canada-based construction firm, introduced SMRT-E, an AI voice technology designed to simplify construction field reporting by enabling hands-free, real-time documentation in over 200 languages, improving data quality and communication across job sites. This technology allows field workers to record updates, safety observations, and progress reports via voice commands, eliminating manual input and reducing delays caused by incomplete or missed documentation. The system automatically transcribes spoken entries into structured, time-stamped logs and integrates smoothly with major project management platforms such as Procore, Autodesk, and Aconex.

In September 2022, Arcadis N.V., a Netherlands-based engineering and management consulting company, acquired IBI Group Inc. for an undisclosed amount. Through this acquisition, Arcadis N.V. aims to establish a leader in planning, designing, and building resilient cities by combining its expertise with IBI Group Inc.’s capabilities to drive business growth, expand talent, and enhance client services in the Canadian and US markets. IBI Group Inc. is a Canada-based engineering firm specializing in architecture, engineering, planning, and technology-driven design services.

Major players in the construction technology market are Oracle Corporation, Hexagon AB, Autodesk Inc., Trimble Inc., The Sage Group plc, Bentley Systems Incorporated, Nemetschek SE, Procore Technologies Inc., Roper Technologies Inc., Asite Limited, BuildOps Inc., CompanyCam Inc., Roofr Inc., Stack Construction Technologies Inc., SiteDocs Safety ULC, Buildxact Software Limited, Branch Technology Inc., UpCodes Inc., Plannerly Inc., and Projul Inc.

North America was the largest region in the construction technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in construction technology report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the construction technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

Construction technology encompasses a range of innovative tools, machinery, software, and methodologies aimed at enhancing the efficiency, productivity, safety, and sustainability of construction projects. It includes various technologies such as building information modeling (BIM), drones, robotics, 3D printing, modular construction, and construction management software, all designed to optimize the planning, design, construction, and maintenance stages of a project.

The primary categories of construction technology consist of solutions and services. Solutions are digital tools and systems that improve project planning, design, execution, and management by enabling automation, real-time data insights, and increased efficiency. These solutions may be implemented through on-premise or cloud-based platforms and incorporate technologies such as the internet of things (IoT), augmented and virtual reality (AR/VR), digital twin technology, blockchain in construction, as well as geospatial and global positioning system (GPS) applications. These technologies are utilized across various sectors, including residential, commercial, industrial construction, infrastructure projects, and smart city initiatives, serving end-users such as contractors and builders, architects and engineers, real estate developers, government and municipal bodies, and facility managers.

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

The construction technology market consists of revenues earned by entities by providing solutions such as digital project management, automated equipment, site monitoring, and smart building systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The construction technology market also includes sales of software platforms, connected devices, and automation tools used throughout the planning, execution, and maintenance phases of construction projects. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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