Construction Estimating Software Market Size, Share, Growth, and Industry Analysis, Segmentation By Type (Cloud, SaaS, Web, Installed-PC, Installed-Mobile), By Application (Party A, Intermediaries, Construction Party and Others), Regional Insights and Forecast to 2031

Updated On: 29 April 2024

CONSTRUCTION ESTIMATING SOFTWARE MARKET REPORT OVERVIEW

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The global construction estimating software market size was USD 834.1 million in 2020 and the market is projected to touch USD 1101.3 million by 2027, exhibiting a CAGR of 3.9% during the forecast period.

A computer program called "construction estimating software" is used to calculate the price of starting or finishing a construction project. Construction businesses and contractors utilize these tools to precisely determine the prices of labor, materials, and other project-related charges. Typically, construction estimating software comes with a number of features and tools that let users produce precise and thorough estimates. These elements might include labor and material cost databases, templates for typical construction projects, and instruments for making personalized estimates based on project specifications.

COVID-19 Impact: Pandemic Caused Delay and Halt in Construction Projects and Deceased Supply Chain Downgraded the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic crisis caused by the recent coronavirus outbreak has significantly changed the working cultures of various sectors, including construction. Lockdowns and remain-at-home policies affected a large number of blue-collar workers, who make up one of the largest employment sectors and account for more than 13% of the world GDP. This resulted in several ongoing construction projects going incomplete, which cost the developers a lot of money. The supply chain was also disrupted, which has dire repercussions for all parties involved in the industry.

LATEST TRENDS

"Increasing Integration of 3D Modeling and BIM Technology is a Proven Trend Shaping the Market Structure"

3D modeling and BIM technologies are becoming more and more integrated in the worldwide building estimating software industry. With the use of these technologies, builders and architects can create intricate digital models of building projects, improving project planning and cost estimation. Architects, engineers, contractors, and other stakeholders in building projects may collaborate more easily when 3D modeling and BIM technologies are combined.

For example, Trimble's Vico Office Suite, a project management tool that forecasts construction costs, combines BIM and 3D modeling technology. It enables users to create detailed 3D models of building projects, do accurate cost calculations, and track the progress of projects in real time. Integrating 3D modeling with BIM technology is expected to become more common as it improves project management effectiveness and reduces the likelihood of cost estimating mistakes.

CONSTRUCTION ESTIMATING SOFTWARE MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into cloud, SaaS, web, installed-PC, installed-mobile.

Cloud/SaaS (Software as a Service): Cloud-Based: Users may access construction estimating software and data via a web browser when it runs in the cloud. Users of this kind of software can access it from any internet-connected device because it is housed on external servers. Subscription Model: Users of cloud-based construction estimating software often pay a regular price to access the service, which is provided on a subscription basis. This paradigm is well-known for being accessible, scalable, and simple to upgrade.

Installed on PC: Desktop Software: Installing construction estimating software on a personal computer represents a conventional method. Users set up the program locally on their computers after downloading it. The user's computer is where the program and data are stored, and regular usage of the software usually doesn't require an internet connection. One-time Purchase: Some building estimating software for desktop computers is offered for sale as a one-time item. After purchasing and installing the program on their computers, users can get updates for a brief period of time.

Installed on Mobile: Mobile Applications: Users may work on estimates while on the move with the flexibility of construction estimating software loaded on mobile devices, including smartphones and tablets. These programs are made to function natively on mobile platforms such as iOS and Android. Offline Access: Many mobile apps for construction estimating allow users to operate without an internet connection by providing offline access. For fieldwork where a reliable internet connection might not be available, this can be helpful.

• By Application

Based on application the global market can be categorized into party A, intermediaries, construction party and others.

Party A (Client/Owner): Initial budgets and project plans may be created using construction estimating software by Party A, who is usually the customer or owner. This entails projecting the price of supplies, labor, machinery, and other expenditures. Party A may better assess and comprehend the project's anticipated expenses with the use of construction estimating software. Financial planning, obtaining finance, and making well-informed judgments on the project's viability all depend on this.

Intermediaries (Architects, Engineers, Project Managers):Construction estimating software can be used by project intermediaries, including architects, engineers, and project managers, to provide comprehensive estimates for certain project components. This contains thorough cost analyses for the various stages of construction. By offering a single platform for exchanging project cost information, estimating software may promote cooperation between intermediaries by facilitating communication and effort coordination.

Construction Party (Contractors, Subcontractors): To create precise and aggressive bids for building projects, contractors and subcontractors employ estimating software. The program assists with cost estimation, profit margin computation, and making sure bids are competitive in the market. building parties can monitor actual expenses against predicted costs during the building period by using estimating software. This aids in budget management, deviation identification, and necessary adjustment making.

DRIVING FACTORS

"Demand for Effective and Affordable Construction Management Solutions to Glide Up the Market Growth"

To finish construction projects on schedule and within budget, effective project management and cost estimation are necessary. building estimating software is used by architects, contractors, and project managers to precisely predict costs and improve project management processes, such as the scheduling of building projects. With its help, the possibility of cost overruns and project delays is reduced.

Project managers can accurately estimate and monitor project expenses with the help of Sage Software's construction estimating software, which offers advanced features including task estimates, change order management, and scheduling. Similar to this, real-time communication between architects and builders is made possible by PlanGrid's construction estimating software, which also reduces cost estimation mistakes and improves project management efficiency. 

"Post Pandemic Rising Construction Projects to Ace Up the Market Growth"

The need for building, mall, and office construction has increased as a result of the expanding global population, the adoption of smart city initiatives, and the advancement of high-speed transit. As a result, important players are using construction estimating software to handle these projects in an effective and efficient manner. The pandemic has also compelled the building sector to change its way of thinking. For example, by the elimination of variables such as poor communication, duplication of work, and decision-making overlap, construction estimating software lowers the number of man-hours needed to execute a project. Moreover, construction estimating software takes care of whatever issue a building business can have, even amid the chaotic COVID-19 pandemic. The construction sector has experienced tremendous growth not only in the Middle East but also in the majority of growing Asia-Pacific nations, such as China and India.

RESTRAINING FACTOR

"High Initial Cost of the Software to Hammer the Market Growth"

A number of unfavorable factors severely limit the growth of the worldwide market for construction estimating software. One of the biggest challenges confronting the building estimating software industry is the high upfront and ongoing costs of products. To solve this problem, several businesses have developed reasonably priced software solutions with a range of features and versions. Engineers and other structural professionals are also hesitant to utilize building estimating software since it is difficult to use and requires a lot of time to understand. Over the course of the projection period, the construction estimating software market growth may be adversely affected by the high initial cost of the software.

CONSTRUCTION ESTIMATING SOFTWARE MARKET REGIONAL INSIGHTS

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"The market is primarily segregated into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa."

"North America with Widespread Acceptance of Digital Technologies is Offering Significant Growth Potential in the Market "

With many prominent players in the North American region, the construction estimating software market share is expected to grow significantly with biggest revenue share in the forecast period. The region's progress may be attributed to the fast industrialization and broad use of digital technologies by engineers, architects, and builders, including cloud computing and the Internet of Things (IoT). Prominent US organizations such as Autodesk Inc., Procore Technologies, and Oracle Corporation are effectively expanding their client base and gaining market dominance by developing new products and enhancing their current offerings. For example, in June 2020, Procore Technologies, a construction management company with headquarters in the United States, announced enhancements to its Procore platform aimed at fostering better industry collaboration and communication. A web-based 3D model viewer, action plans, real-time labor costing, custom and customizable fields, and real-time labor costing are a few of the new features.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Important industry players have a big impact on the market and are crucial in determining customer preferences and market dynamics. These major firms provide consumers easy access to a vast array of clothing alternatives through their huge retail networks and online platforms. Product adoption has increased as a result of their strong worldwide presence and well-known brand, which has also enhanced consumer trust and loyalty. These industry titans also consistently fund R&D, bringing cutting-edge designs, materials, and clever features to construction estimating software to meet changing customer demands and preferences. These big businesses' combined efforts have a big impact on the market's future direction and level of competition.

List of Market Players Profiled

• Glodon (China)

• UDA Technologies (U.S.)

• Bluebeam (U.S.)

• RedTeam (U.S.)

• Microsoft (U.S.)

• JBKnowledge (U.S.)

• Takeoff Live (U.S.)

• Vision InfoSoft (U.S.)

• QuoteSoft (U.S.).

INDUSTRIAL DEVELOPMENT

• January 2024: Microsoft rose to the top of the list of publicly listed companies. In the meanwhile, the firm revealed that month that Copilot Pro, a subscription service for artificial intelligence, was now available to small companies.

• January 2023: Microsoft and ChatGPT developer OpenAI announced a new multi-year, multi-billion dollar investment agreement.

REPORT COVERAGE

The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.