Analysis Report on AI in the Construction Industry 2025: Major Trends, Driving Factors, and Forecast Insights

AI In Construction Global Market Report 2025

The Business Research Company's AI In Construction Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, January 12, 2026 /EINPresswire.com/ -- "The integration of artificial intelligence (AI) within the construction industry is transforming how projects are executed, driving significant advancements in efficiency and safety. As technological innovations continue to evolve, the AI in construction market is set for remarkable growth, reshaping traditional building processes and creating new opportunities across the sector.

AI in Construction Market Size and Projected Growth Through 2025
The AI in construction market has experienced substantial expansion recently, increasing from $1.76 billion in 2024 to an expected $2.28 billion in 2025. This represents a robust compound annual growth rate (CAGR) of 29.3%. The historical growth has been fueled primarily by enhanced efficiency, cost reductions, advanced data analytics, automation in construction workflows, and improvements in safety protocols on job sites.

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Looking ahead, the AI in construction market is projected to grow exponentially, reaching $7.11 billion by 2029 with an even higher CAGR of 33.0%. This strong forecast is driven by factors such as predictive maintenance, widespread adoption of drones, AI-powered risk management for projects, supply chain optimization, and the use of augmented reality (AR) in construction tasks. Emerging trends include autonomous construction machinery, predictive analytics for managing projects, computer vision technologies for site monitoring, collaborative robots (cobots), and increasing focus on sustainability and energy efficiency within construction practices.

Understanding AI Applications in Construction
Artificial intelligence in construction involves deploying AI technologies and methodologies to gain detailed insights into on-site activities. AI tools help optimize various performance metrics such as energy efficiency and indoor air quality by analyzing data collected from building systems. These applications enable better control and management of construction processes while improving overall project outcomes.

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Infrastructure Development as a Catalyst for AI Adoption in Construction
A key driver behind the rising demand for AI in construction is the surge in infrastructure projects globally. Infrastructure projects typically include new road developments or major modifications to existing transportation networks that impact traffic flow. AI plays a critical role in these projects by leveraging advanced algorithms and technologies to enhance the design, planning, operation, and management phases throughout the project lifecycle. As a result, the construction industry increasingly embraces AI solutions to address the challenges of expanding infrastructure.

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, which is 6.7 percent higher than the July 2023 rate of $2,027.4 billion. Additionally, spending for the year-to-date period totaled $1,237.5 billion, marking an 8.8 percent increase compared to the previous year. This notable rise in infrastructure investment is a significant factor propelling AI integration in construction moving forward.

Regional Market Leadership and Growth Patterns for AI in Construction
In 2024, North America held the position as the largest regional market for AI in construction. However, the Asia-Pacific region is anticipated to be the fastest-growing market throughout the forecast period. This report assesses the AI in construction market across key global regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive overview of regional dynamics influencing market growth.

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