Global Architectural, Engineering and Construction (AEC) Market Report and Forecast 2024-2032

Global architectural, engineering and construction (AEC) Market Outlook

The global architectural, engineering and construction (AEC) market size attained a value of USD 10.05 billion in 2023. The market is expected to grow at a CAGR of 10.3% between 2024 and 2032 to reach USD 24.36 billion by 2032.

Key Takeaways:

• BIM software, a 3D modelling tool, improves architectural, construction, civil, and MEP projects, aiding design decisions and enhancing building performance, boosting the global architectural, engineering and construction (AEC) market growth.

• In 2021, the US mainly exported AEC services to Canada or the UK, with USD 1.25 billion exported to the UK and USD 1.22 billion to Canada.

• The Chinese government is projected to invest approximately 27 trillion yuan (USD 4.2 trillion) in new infrastructure over the 14th Five-Year Plan period (2021-2025).

The architectural, engineering and construction (AEC) market, as described by the International Trade Administration, covers a range of services related to the planning and construction of both commercial and residential projects. These endeavours typically involve professionals specialising in design and construction and often entail substantial investments that can amount to billions of dollars.

As per the architectural, engineering and construction (AEC) market study, the demand worldwide is predominantly shaped by four main factors: fluctuations in petroleum prices, political instability or risk, population growth, and the ongoing trend of urbanisation. Furthermore, various other factors contribute to the demand for these services, including economic growth, corporate profits, prevailing interest rates, government spending, the shift towards outsourcing and privatisation, and environmental concerns such as the push for sustainable or eco-friendly buildings.

In 2022, the monetary worth of new construction projects in Great Britain surged by 15.8% to a historic peak of £132,989 million, and the count of construction industry workers (excluding self-employed individuals) reached a total of 1.4 million employees, according to Office of National Statistics.

BIGGEST CONTRIBUTOR TO THE GROWTH OF CONSTRUCTION-RELATED EMPLOYEES IN GREAT BRITAIN, IN 2022, IN %

Key Trends and Developments

The global architectural, engineering and construction (AEC) market is enhanced by architectural influence, economic growth, BIM adoption, and infrastructure development.

February 2024

CNH has introduced a program aimed at bolstering the prospects of India's construction sector. This endeavour offers a comprehensive month-long training session on operating backhoe loaders, emphasizing safety protocols.

January 2024

Blending elements of Danish and Japanese architectural styles, BIG revealed its latest project: holiday homes on Sagi Island, Japan. The initiative aims to pioneer a novel, adaptable, and location-flexible lifestyle concept.

January 2024

Plastic Omnium, via PO-Rein, commenced construction of a mega-plant for high-pressure hydrogen vessels in Jiading, Shanghai. Set for operation by 2026, it'll supply up to 60,000 units yearly for China's commercial vehicles.

October 2023

India's construction industry embraced sustainability at World of Concrete 2023, highlighting advanced technologies and strong partner support. Aligned with urban infrastructure goals, it marks a significant milestone in India's construction journey.

Architectural influence

Worldwide, the surge in sustainable homes, comprehensive master planning, pedestrian-friendly communities, disaster-ready infrastructure, and flexible designs are revolutionising architecture, thus, spurring the global architectural, engineering and construction (AEC) market growth, and fundamentally altering architectural practice globally. For instance, The California Academy of Sciences holds platinum LEED certification and aims to become the most environmentally sustainable museum globally.

Economic growth

As per the architectural, engineering and construction (AEC) market report, economic growth and progress encompasses diverse tasks and such as design, planning, construction, management of buildings, infrastructure, and urban environments, thus facilitating development. The AEC focuses on promoting trade in goods, services, and investments while also safeguarding and enhancing investment opportunities.

BIM adoption

BIM software, a 3D design and modelling tool, enhances architectural, construction, plant, civil, and MEP projects by facilitating better design decisions and boosting building performance through agile development, lean construction, and complete digitisation of building design processes. For example, Singapore views BIM as crucial for its smart nation ambitions. The Building and Construction Authority (BCA) and Building SMART Singapore advocate its adoption in construction.

Infrastructure development

The global architectural, engineering and construction (AEC) industry is pivotal in advancing global infrastructure. Vital transport systems, including roads, bridges, railways, and airports, connect individuals, goods, and services. AEC professionals are vital in designing and building these networks to ensure efficiency, safety, and sustainability, fostering trade, and tourism.

Global Architectural, Engineering and Construction (AEC) Market Trends

As the need for energy rises, the AEC industry develops power plants for efficient and sustainable electricity production, incorporating renewables like solar and wind, as well as traditional sources such as coal and natural gas. It provides reliable and eco-friendly energy and supports industrial, commercial, and residential growth. This is driving the architectural, engineering and construction market growth.

As urbanisation speeds up, the demand for housing, offices, and retail areas increases. The architectural, engineering and construction market plays a critical role in designing and constructing these spaces, ensuring they are functional, visually appealing, and environmentally conscious. By delivering top-notch living and working environments, AEC enhances community welfare and drives economic expansion.

Market Segmentation

Global Architectural, Engineering and Construction (AEC) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Software

• Services

Market Breakup by Deployment

• On-Premises

• Cloud-Based

Market Breakup by Enterprise

• Small and Medium-Sized Enterprises

• Large Enterprise

Market Breakup by End Use

• Construction and Architecture

• Education

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Software segment enhances the global architectural, engineering and construction (AEC) market by facilitating the delivery of superior building and infrastructure projects

Construction project management software streamlines building firms' ability to monitor and enhance project progress, encompassing design, coordination, and execution. It aims to modernise workflows, ensuring timely project completion within scope.

Architecture services are utilised to elevate various stages of the design and construction process, including Schematic Design, Design Development, Construction Documents, Bidding, and Construction Observation.

Cloud-based deployment is propelling the global architectural, engineering and construction (AEC) market growth by offering cost-efficiency and flexibility

Cloud computing offers enhanced flexibility, reliability, performance, and efficiency while reducing IT expenses. It fosters innovation in architecture, construction, and engineering.

Key market players offer on-premises software to optimise workflows and productivity in the residential, construction, and agriculture sectors. The economic benefits of on-premises solutions further drive their adoption in the AEC industry.

Small and medium-sized enterprises (SMEs) lead the global architectural, engineering and construction (AEC) market share, driven by growing infrastructure projects

As per the World Bank, SMEs constitute most businesses globally and play a significant role in job creation and economic growth. They comprise approximately 90% of businesses and over 50% of global employment, thereby contributing to the architectural, engineering, and construction (AEC) market development.

Large-scale industries significantly drive the architectural, engineering, and construction (AEC) market growth due to their extensive architectural development, construction, and engineering needs.

The demand for the architectural, engineering, and construction (AEC) is being accelerated by the advancements and expansion in infrastructure development, fuelled by construction and architecture innovation

Architecture is crucial in shaping identity and space. Buildings reflect culture, values, and history, fostering community connections. Construction is pivotal, generating employment, enhancing society, and creating spaces that unite communities.

Competitive Landscape

Market players are integrating software development into computer-aided design and engineering, fostering improved collaboration with suppliers and customers, thereby enhancing business interactions.

Aveva Group Limted, founded in 1967 and headquartered in Cambridge, USA, is a software development enterprise. Their industrial cloud platform enhances business collaborations with suppliers and customers.

Bentley Systems Inc., established in 1984 and based in Pennsylvania, USA, is renowned for its software development in computer-aided design and engineering, particularly in CAD, among other areas.

Autodesk Inc. established in 1982 and based in California, USA, is a leading software development firm. The company's focus areas include digital prototyping, consumer software, and sustainable design software, among other specialities.

Hexagon AB founded in 1992 and headquartered in Sweden, provides sensor, software, and autonomous solutions such as metrology systems featuring sensors, CAD, and CAM software. Their product range serves various industries including construction, mining, agriculture, aerospace, automotive, defence, and manufacturing.

Other key players in the global architectural, engineering and construction (AEC) market are Dassault Systèmes, Ansys, Inc., Nemetschek Group, Newforma, Inc., Trimble Inc., 4M S.A. Advanced Software Engineering Systems, and others.

Global Architectural, Engineering and Construction (AEC) Market Analysis by Region

The AEC market in North America is growing due to the expanding construction industry, and increasing AI adoption, alongside urbanisation, infrastructure renovations, and industrialisation. Typically, the United States primarily exports AEC services to Canada or the United Kingdom, with exports reaching USD 1.25 billion to the UK and USD 1.22 billion to Canada in 2021.

U.S AEC SERVICES EXPORTS BY COUNTRY, 2010-2021, IN THOUSAND MILLION DOLLARS

The Asia Pacific is projected to experience the rapid growth in the global architectural, engineering and construction (AEC) market in the foreseeable future, driven by factors such as swift urbanisation, population expansion, economic advancement, and substantial infrastructure investments in emerging nations like China, India, and Japan.

Key Highlights of the Report