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The global building information Modeling (BIM) market size was USD 5.20 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with building information Modeling witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market will exhibit a lower growth of 9.9% in 2020 compared to the average year-on-year growth during 2016-2019. The market is projected to grow from USD 5.71 billion in 2020 to USD 11.96 billion in 2027 at a CAGR of 11.1% in the 2020-2027 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The building information Modeling is an advanced 3D model software solution that helps AEC architecture, engineering, and construction professionals to gain insights regarding project operations. These insights help in efficiently planning, designing, processing, and constructing entire buildings and infrastructure. Its capabilities to offer improved operational performance, decision making, project cost estimation, and effective collaboration is likely to fuel the demand for BIM. The growing construction of residential and industrial buildings is expected to boost the market. With the government’s support, various public and private builders are implementing the software to boost operational efficiency. For instance, Michigan contractor Barton Malow collaborated with Trimble Inc., intending to double the construction efficiency by 2024. Initially, the company is aiming to achieve everyday workflow, operational safety, productivity, and quality by integrating the software.
Adoption of Remote Working to Boost Demand for BIM
The COVID-19 pandemic has severely impacted the construction and building industry. The fragmented and unorganized construction and infrastructure sector are facing extreme challenges because of the outbreak. Disturbances during the lockdown in manpower, material, plants, machinery, and construction projects are likely to negate its expected growth. Further, the increasing cost of construction, as well as professional & skilled labor fees, is likely to impact industry growth.
However, the pandemic has resulted in the shift toward remote working environments. For instance, digital collaboration tools and software are enabling designers and structural engineers to work from remote locations to map future projects. This is expected to drive the growth of the software market. Besides, by using the software, engineers and builders can handle customer contracts, project management, sales, and other operations remotely. As per various builders and owners, this is an excellent time to upskill laborers and offer foundation classes with digital tools to increase efficiency. Software providers are also helping builders and contractors to gain full benefits of these solutions during the crisis.
For instance, from March to June 2020, Autodesk Inc. offered free access to its BIM 360 Design, BIM 360 Docs, Fusion Team, Fusion 360, and more. The company aimed to provide flexibility for project managers, workers, team members, and owners in this challenging environment. This helped project managers to retain the onsite work with excellent productivity. Thus, the pandemic is expected to surge the demand for building information Modeling software.
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Increasing Government Support to Implement BIM is a Vital Trend
The demand for software in the architecture and construction sector is growing significantly. The solution helps the builder and owner in reducing total costs during the entire operational process. This is driving government support for adopting building information modeling solutions. The implementation of such advanced technologies can offer a robust infrastructural foundation in the country. Thus, governments across numerous countries are utilizing technology to gain efficient results. For instance,
Similarly, governments of other countries such as France, Australia, China, Germany, South Korea, and India have shown keen interest in the software. This is likely to surge the growth of the market.
Rapid Urbanization is Expected to Boost BIM Market Growth
Today, with the growing technological development and improvements in cities, many people are shifting to metropolitan cities across the globe. This is increasing the demand for more infrastructures for personal and commercial requirements in urban areas. The need for residential buildings is also overgrowing in cities. Further, with surging investments in the real-estate sector, the construction of various commercial structures, government and public buildings, and private facilities are also increasing every year across countries. This is boosting the need for efficient operation handling models.
For instance, as per a report published by the U.S. Census Bureau on the construction industry, private and public construction showcased an increase in the total spending in 2019. The U.S. Federal Aviation Administration has funded USD 840 million for the airport infrastructure of the ‘Next Generation of Air Transportation System.’ Similarly, in coming years, vast infrastructural developments are planned across nations. This is likely to surge the growth of the market.
Further, the growing cost of investment in engineering and construction is demanding advanced solutions to reduce costs. Similarly, the increasing smart city projects and high demand for next-generation infrastructure are expected to drive the growth of the market.
High Initial Cost is Likely to Challenge Market Growth
The BIM software helps builders and owners in estimating and reducing the operational cost of the construction process. However, the initial cost associated with the implementation of this software is high. The technologically advanced software requires a suitable network to provide efficient outcomes that add to the total expenditure on high network facilities. Also, continuous service and maintenance needed for the software increase the cost.
Further, the lack of expertise in handling advanced software raises the need for proper training and education. Thus, before implementing the software, formal training, and workshop for workers is essential. This is likely to increase the overall initial cost of investment for its implementation. Thus, the requirement of high investment is expected to hinder the market growth.
Software Segment to Lead Backed by High Demand from AEC Industry
Based on the component, the market is bifurcated into software and services. The software segment is likely to dominate the market during the forecast period. The growing demand for digital tools in the AEC industry is likely to further boost the demand for BIM software. The software also provides BIM objects that offer 3D CAD drawings with more operational use and flexibility. BIM services are expected to showcase high demand during the forecast period. The rising demand for services such as consultation, virtualization, documentation support, and cost planning is likely to fuel the overall market growth.
Growing Demand for High-quality Construction to Drive the Segment
Based on the project phase, the market is categorized into pre-construction, construction, and post-construction. The pre-construction segment is expected to lead the market during the forecast period. The implementation of BIM in the pre-construction phase helps in laying the entire operation scope, building project cost estimation, designing, and planning workflow. This further helps in reducing mistakes and ensuring all challenges are handled in time.
The construction segment is expected to exhibit fast growth as building information Modeling enables the builder to maintain the construction quality. The software plays a significant role in managing and controlling equipment, humans, material, methods, and more during the actual construction process. Post-construction BIM can provide enhanced management facilities to owners. This is likely to drive the demand for BIM solutions.
Need for Efficient Modeling Tool to Propel BIM Adoption in Commercial Constructions
Based on the application, the market is segmented into commercial, residential, industrial, and public infrastructure (road, airport, ports, railways, energy & utilities, education, healthcare, social).
The commercial segment is likely to lead the market during the forecast period. The high cost of constructing huge and significant commercial buildings would boost the demand for an efficient digital collaboration tool. This is expected to surge the need for software in constructing commercial buildings. The compulsion from governments for implementing the software in public projects is likely to drive market growth.
Similarly, residential building owners and builders are rapidly adopting this cost-effective software to advance construction operation and quality. Thus, the highly increasing application of the software is anticipated to drive the market growth.
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Architect & Engineer Segment to Lead Fueled by Need to Understand Future Challenges
Based on the end-user, the market is segmented into architects and engineers, facility or construction managers, and builders & contractors. The architect and engineer segment is expected to dominate the market share. The software helps designers and builders to understand the possible future challenges of the projects in advance. Facility and construction managers can obtain continuous insights into the process by adopting the software. This is likely to surge the demand for the software.
The builders and contractors segment is expected to exhibit rapid growth during the forecast period as the software helps lower the cost of construction through its real-time insights. By gaining the information in advance, builders can improvise project operations. Builders and contractors are showing interest in advanced solutions that can enhance the quality of construction. This is likely to drive market growth.
North America Building Information Modeling Market Size, 2016-2027 (USD Billion)
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By region, the market has been analyzed across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America is expected to dominate the revenue share during the forecast period. The early adoption of advanced digital tools and the government’s mandate on implementing BIM software is likely to boost the market growth. Similarly, South America will show significant growth during the forecast period owing to the increasing spending on building and infrastructure. The compulsion on implementing BIM software was released in Mexico in 2017. But, governments of other countries, such as Chile and Peru, are likely to mandate it by 2022. This is expected to fuel the building information Modeling market growth in the region.
Asia Pacific is projected to show remarkable growth during the forecast period owing to the increasing smart city projects across multiple nations such as South Korea, China, India, and Singapore. The growing urbanization is boosting the demand for efficient and advanced solutions in construction and infrastructure. China is expected to dominate the region owing to the vast number of planned infrastructure projects in the country. The country has planned three large scale construction projects using BIM software such as Shanghai Tower, Beijing Phoenix Media Center, and Shanghai Disneyland Resort. This is likely to boost the market growth.
Similarly, the Government of India is considering the implementation of BIM to fast-track the country’s construction process. As per Niti Ayog, reducing the construction time using building information Modeling can lower the cost by 20%. This is likely to drive the demand for BIM software.
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Europe is expected to rank second in terms of the market share during the forecast period. Governments of countries such as the U.K., Germany, Sweden, and France, have mandated implementing BIM in public projects. Further, the significant presence of prominent players in the region is likely to drive growth. Similarly, the Middle East and Africa is anticipated to gain steady growth during the forecast period owing to the rapidly expanding demand for next-generation construction and infrastructure. This is likely to surge the BIM market potential.
Key Companies Aim to Offer Advanced Building and Designing Solutions by Expanding Their Portfolios
Several companies are investing in new product development and improvisation to match the changing needs of builders, designers, project managers, and owners. They are collaborating with other advanced solutions and software providers to expand their product offerings as per the requirement of the customer. Key players such as Dassault Systemes SA, Bentley Systems Inc., Nemetschek AG, Beck Technology Ltd., Autodesk Inc., AVEVA Group Plc., Hexagon AB, Pentagon Solution Ltd., Trimble Ltd., and Planon Group are also vastly investing in enhancing their solutions. These companies are entering into partnerships and integrating various software solutions to deliver smooth functioning and support to users.
November 2020 – Autodesk Inc. announced the new cloud-based AEC (architecture, engineering, and construction) for the design industry. The new feature connects to Autodesk Construction Cloud and BIM 360. The company also launched Autodesk BIM Collaborate for virtual design, project managers, owners, construction specialists, and other non-authorized workers.
November 2020 – Autodesk Inc. announced the integration of Workforce Management Capabilities of Bridgit Bench with Autodesk Cloud Construction. The construction cloud powers BIM 360 and Building Connected Integrations. This integration is expected to offer lowered double entry, discrepancy errors, and enhanced resource management.
An Infographic Representation of Building Information Modelling Software Market
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The building information modeling market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, it provides insights into the latest industry growth trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the drivers and restraints, helping the reader gain in-depth knowledge of the market.
Value (USD billion)
Component; Project Phase; Application; End-User; and Region
By Project Phase
According to Fortune Business Insights, the global market size is projected to reach USD 11.96 billion by 2027.
In 2019, the market value stood at USD 5.20 billion.
The market is projected to grow at a CAGR of 11.1% during the forecast period.
By application, the commercial segment is expected to lead the market.
Increasing urbanization is the key factor in driving market growth.
Autodesk Inc., Dassault Systemes SA, Bentley Systems Inc., Nemetschek AG, Beck Technology Ltd., AVEVA Group Plc., Trimble Plc., and Hexagon AB are the top players in the market.
North America is expected to hold the highest market share.
Asia Pacific is expected to grow at the highest CAGR during the forecast period.
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