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Driving Construction Technology Market Growth in 2025: The Role of Surge in Sustainable Construction Practices Driving The Market Growth Due To Rising Demand For Eco-Friendly Building Solutions

09-03-2025 06:06 AM CET | Industry, Real Estate & Construction

Press release from: The Business Research Company

Construction Technology

Construction Technology

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Construction Technology Market Size Growth Forecast: What to Expect by 2025?
The scale of the construction technology market has expanded swiftly over the past few years. There is a predicted increase from $5.09 billion in 2024 to $5.93 billion in 2025, equating to a compound annual growth rate (CAGR) of 16.5%. This development during the historical period can be accredited to an escalating demand for effective project management, an increase in labor shortages within construction, heightened safety apprehensions on job sites, the implementation of BIM (building information modeling), and the preemptive investments in automation made by major contractors.

How Will the Construction Technology Market Size Evolve and Grow by 2029?
Swift expansion is anticipated in the construction technology market size in the upcoming years, expecting to rise to $10.78 billion by 2029, displaying a compound annual growth rate (CAGR) of 16.1%. This predicted growth in the forecast period is ascribed to various factors such as the increasing demand for green buildings and smart cities, stricter safety and environmental regulations, escalating urbanization in emerging countries, government backing for digital construction schemes, and the necessity for real-time project surveillance and data analysis. Amidst this forecast period, noticeable trends include adoption of digital twin technology, risk prediction through AI and machine learning, amplification of VR and AR for education and design purposes, the proliferation of IoT-driven construction equipment, and the incorporation of blockchain for enhancing transparency in contracts and payments.

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What Drivers Are Propelling the Growth of Construction Technology Market Forward?
The burgeoning trend in eco-conscious construction methods is set to spur the development of the construction technology market. Eco-conscious construction methods encompass building techniques, materials, and processes that are consciously keyed towards reducing detrimental impacts on the environment. The main thrust behind this trend is the increasing imposition of environmental regulations, calling for diminished carbon emissions, energy utilization, and resource squandering in construction procedures. Construction technology bolsters such eco-conscious practices by facilitating effective resource supervision, waste minimization, and the adoption of environmentally friendly materials through advanced tools and automation. For example, in July 2024, the U.S. Green Building Council, a United States non-profit entity, reported to have factored in over 46,000 residential projects sanctioned under the LEED green building rating system, following nearly a 5% growth in fresh LEED residential project registrations in 2023. Hence, the escalating trend in sustainable construction practices is cause for the expansion of the construction technology market.

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Which Emerging Trends Are Transforming the Construction Technology Market in 2025?
Leading firms in the construction technology sector are concentrating on incorporating advanced technologies like artificial intelligence (AI) voice technology. This move is aimed at boosting the exactness of field reports and streamlining project documentation. AI voice technology encompasses AI systems that can understand, process, and respond to spoken language, providing the construction sector with real-time, hands-free data input and interaction options that enhance safety, efficiency, and precise field reporting. An example is the SMRT-E, an AI voice technology introduced by Smartbuild Construction Solutions Inc., a Canadian construction firm, in June 2025. The technology allows real-time documentation in more than 200 languages, thereby improving data quality and interaction across construction sites. Through voice commands, field staff can now record updates, safety inspections, and progress reports without the need for manual input, thus reducing delays linked to incomplete documentation. The system transcribes spoken entries into well-structured, time-stamped logs and smoothly collaborates with major project management platforms such as Procore, Autodesk, and Aconex.

What Are the Key Segments in the Construction Technology Market?
The construction technology market covered in this report is segmented -

1) By Type: Solutions, Services
2) By Deployment Mode: On-Premise, Cloud-Based
3) By Technology Integration: Internet Of Things (IoT), Augmented And Virtual Reality (AR Or VR), Digital Twin Technology, Blockchain In Construction, Geospatial And Global Positioning System (GPS) Solutions
4) By Application: Residential Construction, Commercial Construction, Industrial Construction, Infrastructure Development, Smart Cities Projects
5) By End-User: Contractors And Builders, Architects And Engineers, Real Estate Developers, Government And Municipal Authorities, Facility Managers

Subsegments:
1) By Solutions: Project Management Software, Building Information Modeling (BIM), Safety And Risk Management Software, Field Productivity Software, Cost Estimating Software
2) By Services: Implementation And Integration Services, Consulting Services, Support And Maintenance Services, Training And Education Services, Managed Services

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Who Are the Key Players Shaping the Construction Technology Market's Competitive Landscape?
Major companies operating in the construction technology market are Oracle Corporation, Hexagon AB, Autodesk Inc., Trimble Inc., The Sage Group plc, Bentley Systems Incorporated, Nemetschek SE, Procore Technologies Inc., Roper Technologies Inc., Asite Limited, BuildOps Inc., CompanyCam Inc., Roofr Inc., Stack Construction Technologies Inc., SiteDocs Safety ULC, Buildxact Software Limited, Branch Technology Inc., UpCodes Inc., Plannerly Inc., Projul Inc.

What Geographic Markets Are Powering Growth in the Construction Technology Market?
North America was the largest region in the construction technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the construction technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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