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Preliminary research of Fairfield Market Research indicates a promising growth outlook for global construction estimating software market during the course of next few years.
Construction Estimating Software Market Receives Impetus from a Growing Effort Toward Creating Digital Infrastructure
The current construction estimating software market expansion can be ascribed to the increase in building activity and the shift in construction companies' attention to project cost optimization. Companies are incorporating lean principles into construction processes to minimize waste, boost productivity, and lower costs to support the market trend driven by the aggressive rise of construction activities being carried out worldwide. Software companies are using a variety of business tactics to boost their net sales in response to the rising demand for construction estimating software. Industry players are concentrating on strengthening their client base through partnerships with construction design firms to increase the market revenue and broaden their service network. For instance, in March 2022, Software-as-a-Service (SaaS) supplier Cedreo and construction estimating software vendor Cost Certified teamed up to create a single platform containing estimation and designing capabilities for residential projects. Cost Certified intended to incorporate its platform-based, streamlined construction estimating software.
The expansion of construction estimating software market is also attributed to the numerous government initiatives toward creation of digital infrastructure. Numerous government-approved organizations are creating software to prepare cost structures for construction and infrastructure development projects. For instance, India's Public Works Department (PWD) announced the release of construction and project estimator software in June 2022 to determine the funding needed to start the project and increase system transparency. To increase the versatility of the estimator software, PWD will also make the software interoperable with other construction software, such as asset monitoring and tracking, and quality checking tools.
Construction Estimating Software Market: COVID-19 Impact
The working cultures of several industries, including construction, have undergone significant transformation as a result of the pandemic situation brought on by the new coronavirus outbreak. Due to the implementation of remain-at-home and lockdown, many blue-collar workers were impacted, representing one of the top employing sectors and over 13% of the global GDP. Due to this, several ongoing building projects remained unfinished, causing significant financial losses for the developers. Additionally, there was a disruption in the supply chain, with painful consequences for all sector stakeholders.
Increased Construction Projects Will Fuel Construction Estimating Software Market Expansion
The necessity for building, mall and workplace construction has expanded due to the growing world population, implementing programs like smart cities, and the development of high-speed transit. Therefore, significant stakeholders are deploying construction estimating software to manage these projects efficiently and effectively. Additionally, the epidemic has forced the construction industry to adopt a new way of thinking. For instance, construction estimating software reduces the number of man-hours required to complete a project by eliminating factors like decision-making overlap, duplication of effort, poor communication, etc. Furthermore, during the chaotic COVID-19 outbreak, construction estimating software addresses every problem a construction company might have. The building industry has rapidly expanded across the Middle East, and most of the developing countries in the Asia-Pacific area, including India, and China. For instance, China's overall score on GlobalData's February 2022 Construction Project Momentum Index was 0.67. This index evaluates the pipeline of construction projects at every stage of development, from announcement to completion, and provides a snapshot of the pipeline's health. End users' adoption of construction estimating software is anticipated to be sparked by these impending projects, which will accelerate the expansion of the construction estimating software market.
Rising Adoption for Improved Accuracy, Efficiency, and Profitability of Projects to Drive Construction Estimating Software Market Growth
Construction estimating software is used to improve the efficiency and accuracy of a project's overall estimation process. This software determines the project's estimated cost, making it possible to determine its total cost and raise the profit margin. As a result, the growing use of construction estimating software is fueling the market growth. The construction estimating software market for construction estimating software is also anticipated to grow due to urbanization trends, an uptick in building work, and the cost-effective cloud-based deployment option. To estimate a built assembly, the software also creates a 2D or 3D graphical display that lets the user see the project's components in detail. Using such software, one can handle the bid day procedure, carry out digital takeoffs, and provide project estimates very rapidly. Compiling a thorough project cost evaluation by categories, such as material, operation, and labor costs, is aided by construction estimate software. These elements are anticipated to provide companies with excellent opportunities to grow their firms.
High Initial Costs of Software to Limit Construction Estimating Software Market Expansion
Several adverse aspects significantly constrain the expansion of the global construction estimating software market. The high initial and continuous cost of programs are among the main obstacles facing the construction estimating software sector. Numerous companies have created affordable software solutions to address this issue with various features and versions. Because it takes a lot of time to learn and is challenging to use, engineers and other structural experts are also cautious about adopting building estimation software.
With Soaring Popularity of Subscription Business Models, Subscription License Category Leads Construction Estimating Software Market
The subscription license category held the largest construction estimating software market share, and it is anticipated that it will continue to rule the market during the forecast period. The rise in popularity of subscription business models, as well as the emphasis on subscriber churn reduction, customer retention, and regulatory compliance, can be contributed to the segment growth. The subscription-based license models now have more flexibility than ever due to developments in cloud computing. Due to this, many constructions estimating software developers have begun collaborating with cloud service providers to make their products available through subscription licenses. By offering effective services to their clients, construction companies can boost customer engagement and, as a result, their revenues due to a subscription-based license model.
Architects and Builders Represent the Key Category in Construction Estimating Software Market
The architects and builders category dominated the construction estimating software market in 2021. The adoption of construction estimating software is anticipated to increase during the forecast period as a result of advancements in Virtual Reality (VR) and Augmented Reality (AR) technologies and their continued integration into architecture, engineering, and consulting software, as well as the significant increase in the number of construction projects. Many architects and consultants utilize interior design software to lessen their reliance on paperwork and documentation, speed up the design process, guarantee well-organized work locations and well-developed designs, and cut total interior design costs.
North America Dominant in Construction Estimating Software Market
Over the forecast period, it is anticipated that the North American construction estimating software market will account for the largest revenue share. The rapid industrialization and widespread acceptance of digital technologies by engineers, architects, and builders—including cloud computing and the Internet of Things (IoT)—can be credited with the region's rise. In the United States, well-known market companies like Autodesk Inc., Procore Technologies, and Oracle Corporation are successfully working on creating new products and improving existing ones to draw in customers and increase the market share. For instance, a U.S.-based construction management business called Procore Technologies announced new capabilities to its Procore platform in June 2020 to improve collaboration and communication in the industry. Some of the new features are a web-based 3D model viewer, action plans, real-time labour costing, custom and configurable fields, and real-time labour costing.
The Asia Pacific construction estimating software market is anticipated to experience stable revenue growth throughout the forecast period because numerous governments worldwide have taken significant steps toward commercialization, expanding infrastructure development, and creating smart cities. In addition, substantial expenditures in cutting-edge technology and expansion in the construction industry have boosted demand for construction estimating software in the area. The market has grown rapidly in India, Japan, and China as a result of the rising use of lean management in processes related to building and the rapid improvement of technology. Urbanization trends, an increase in building activity, and the affordable cloud-based deployment option are all expected to contribute to the growth of the market for construction estimating software.
Global Construction Estimating Software Market: Competitive Landscape
In April 2022, with its recently announced integration with Building Transparency, Procore Technologies, Inc. hopes to facilitate swift and widespread action to address the building industry's role in climate change. Due to the connection, Procore users may now utilize the Embodied Carbon in Construction Calculator (EC3), which strives to advance sustainability in the global construction industry. Similarly, in May 2021, JTC Corporation, a builder of industrial infrastructure, and Glodon Company Limited formed a cooperation. The partnership's objectives were to foster collaboration and provide a structure for construction project cost control. Part of this relationship involved integrating building information modeling, a technique for producing digital representations of actual infrastructure.
Few of the players in the construction estimating software market AppliCad Public Company Limited, Autodesk Inc., Blue beam Software Inc., Corecon Technologies, Inc., Glodon Company Limited, Microsoft Corporation, PrioSoft Construction Software, RIB Software SE, Sage Group plc, and Trimble Inc.
Global Construction Estimating Software Market is Segmented as Below:
By Software License
By Deployment
By Enterprise Size
By End User
By Region
Key Elements Included In The Study: Global Construction Estimating Software Market
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Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
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