Global Market Report on AI in Construction 2025: Business Expansion, Key Growth Drivers, and Trends from Now Until 2029
The Business Research Company
The Business Research Company's Global Market Report on AI in Construction 2025: Business Expansion, Key Growth Drivers, and Trends from Now Until 2029
LONDON, GREATER LONDON, UNITED KINGDOM, January 12, 2026 /EINPresswire.com/ -- "The construction industry is undergoing a significant transformation as artificial intelligence (AI) technologies become increasingly integrated into its processes. This shift is not only enhancing efficiency and safety but also opening new growth avenues for AI applications within construction. Let’s explore the current market size, the key drivers behind this expansion, regional trends, and the emerging opportunities shaping the AI in construction landscape.
Current Market Size and Growth Trajectory of the AI in Construction Market
The AI in construction market has experienced remarkable growth in recent years. It is set to increase from $1.76 billion in 2024 to $2.28 billion in 2025, registering a strong compound annual growth rate (CAGR) of 29.3%. This expansion during the historical period is largely due to improvements in operational efficiency, cost savings, enhanced data analytics, automation of various construction tasks, and better safety measures on sites.
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Looking ahead, the market is poised for even more rapid growth, expected to reach $7.11 billion by 2029 with an accelerated CAGR of 33.0%. Factors driving this forecasted surge include advances in predictive maintenance, broader adoption of drone technology, AI-enabled risk management for projects, optimized supply chains, and the use of augmented reality (AR) in construction workflows. Key trends shaping the future landscape involve autonomous construction machinery, predictive analytics for managing projects, computer vision technologies for monitoring sites, collaborative robots (cobots), and a strong focus on energy-efficient and sustainable building practices.
Defining AI’s Role in Construction Activities
AI in construction encompasses the deployment of artificial intelligence techniques and tools aimed at providing detailed insights into on-site operations. It helps optimize various building performance parameters such as energy usage and indoor air quality by analyzing data collected from building management systems. This integration enables smarter, data-driven decisions throughout the construction lifecycle.
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Rising Infrastructure Projects as a Major Growth Catalyst for AI in Construction
One of the primary factors propelling AI adoption in the construction sector is the surge in infrastructure development projects. These projects typically involve building new roadways or making significant changes to existing traffic networks, which demand highly efficient design, planning, and management. AI supports these efforts by applying advanced algorithms and technologies to streamline the entire project lifecycle, from conception to operation.
For example, in September 2024, the United States Census Bureau reported that construction spending in July 2024 reached a seasonally adjusted annual rate of $2,162.7 billion, representing a 6.7 percent increase compared to July 2023’s $2,027.4 billion. Additionally, total construction spending during this period rose to $1,237.5 billion, up 8.8 percent from the previous year. These figures highlight the expanding scale of infrastructure work, which in turn fuels the growing need for AI solutions to enhance project efficiency and outcomes.
Regional Dynamics and Growth Patterns in the AI in Construction Market
In 2024, North America held the largest share of the AI in construction market, reflecting strong adoption rates and technology integration across the region. Meanwhile, the Asia-Pacific region is expected to emerge as the fastest-growing market during the forecast period. This growth is driven by rapid urbanization, increasing infrastructure investments, and rising interest in smart construction technologies. The market report also covers other important regions such as Western Europe, Eastern Europe, South America, the Middle East, and Africa, providing a comprehensive view of global market developments.
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