The artificial intelligence (AI) in construction market is witnessing substantial growth, with projections indicating a surge from $1.76 billion in 2024 to $2.29 billion in 2025, reflecting a compound annual growth rate (CAGR) of 30.0%. This expansion is fueled by AI-driven efficiencies in construction, cost reductions, enhanced data analytics, and automated construction processes that improve project safety and efficiency.
Looking ahead, the market is expected to grow even more rapidly, reaching $7.21 billion by 2029 with a CAGR of 33.2%. Key drivers behind this acceleration include predictive maintenance, increased use of drones, AI-powered risk management, supply chain optimization, and augmented reality (AR) applications. Other emerging trends set to influence the market include the adoption of autonomous construction equipment, predictive analytics, computer vision for site monitoring, collaborative robots (cobots), and a greater emphasis on energy-efficient and sustainable construction.
A major catalyst for AI adoption in construction is the surge in global infrastructure development. AI’s ability to enhance project lifecycle management—from design and planning to execution—makes it invaluable for large-scale projects. For instance, the U.S. Census Bureau reported that construction expenditure in July 2024 reached $2,162.7 billion, marking a 6.7% increase from the previous year.
Leading firms are also leveraging AI to gain a competitive edge. In December 2022, Canada-based PCL Construction launched AI Surveyor, an advanced platform that automates progress tracking and improves efficiency through AI-powered GIS analytics and drone data. As AI continues to revolutionize the construction industry, companies investing in these technologies are poised for long-term success.
