The building information modelling market primarily comprises software solutions that are used in the architecture, engineering and construction (AEC) industry for building design, documentation, analysis, construction planning, cost estimation and sustainability. Building information modeling involves creating digital representations of physical and functional characteristics of places using intelligent objects and their relationships between each other. This allows architects, engineers and contractors to evaluate different design scenarios and understand real-time cost implications early in the design phase itself. With the increasing adoption of advanced technologies across major industries, construction firms are also embracing digitalization to streamline processes and enhance productivity.
The global building information modeling market is estimated to be valued at US$ 9,908.7 Mn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the building information modelling market are Autodesk Inc., Nemetschek AG, Beck Technology Ltd., GRAITEC, Dassault Systemes SA, AECOM, Synchro Software Ltd., Pentagon Solutions Ltd, Tekla Corporation, and Bentley Systems Inc. These players are focusing on new product launches and partnerships to expand their global footprint.
The growing demand for building information modeling from the global construction sector is primarily driving the market. BIM solutions assist construction firms in overcoming project complexities, reducing errors and rework. They allow virtual prototyping of buildings before actual construction begins. This simplifies the coordination of MEP designs, structural designs and construction planning.
The market is also witnessing significant growth in regions such as Asia Pacific and Middle East & Africa due to rising infrastructure development activities. Government initiatives forsmart city development and increasing investments in commercial and industrial construction sectors are further propelling the adoption of BIM globally.
Market Drivers
Rising construction activities globally is a major driver contributing to the growth of the building information modelling market. According to the Global Construction 2030 report, the volume of global construction output is projected to grow 85% to $15.5 trillion worldwide by 2030. This rising construction spending on buildings, infrastructure and energy projects is fueling the demand for BIM solutions across major economies. Government mandates in countries such as US, UK, Singapore promoting the use of BIM for public projects is also boosting the market revenues.
Impact of geopolitical situation on the growth of Building Information Modelling Market
The building information modelling market is witnessing several geopolitical challenges which can impact its future growth. The ongoing Russia-Ukraine conflict and sanctions on Russia have disrupted supply chains and increased raw material costs. Since Russia and Ukraine are major exporters of metals like steel and commodities like wheat, their prices have risen sharply impacting construction costs globally. Meanwhile, the economic slowdown in China due to its zero-covid policy is reducing infrastructure and real estate investments which is a key market for BIM solutions in Asia Pacific.
The building information modelling solution providers need to devise strategies to minimize impact of such geopolitical risks. Companies must diversify their supply base and look for alternative sources to offset higher input costs. They also need to focus on other fast growing regions like Middle East and Latin America and expand operations through tie-ups with local players. Adopting innovative technologies like internet of things, augmented reality and blockchain with BIM can help create smart infrastructure more resilient to external shocks. Overall, geopolitical challenges make the case for sustainability and efficiency even more strong which can drive future demand if the industry adapts accordingly.
Value concentration in the Building Information Modelling Market:
The adoption of building information modelling is currently highly concentrated in developed regions owing to higher investments in smart infrastructure. According to estimates, North America accounted for over 35% of the global BIM market value in 2022 led by widespread adoption in the US for commercial, industrial and public projects. Europe is another major revenue contributor holding around 30% share due to growth in UK, Germany and Nordic nations. Significant government initiatives and building codes mandating BIM adoption have propelled the regions to the forefront. However, emerging markets especially countries in Middle East and Asia Pacific are expanding at a rapid pace and offer huge untapped growth potential for BIM solution providers in the coming years.
Fastest growing region in the Building Information Modelling Market:
The Asia Pacific region is poised to be the fastest growing market for building information modelling during the forecast period from 2023 to 2030. This can be attributed to surging investments in infrastructure development across major economies like China and India. Countries in South East Asia like Indonesia, Thailand and Vietnam are also witnessing a construction boom. At the same time, Building Information Modelling is gradually gaining acceptance in the region supported by initiatives to modernize the AEC industry through digital technologies. Additionally, increasing penetration of smartphones, low-cost internet and availability of cloud solutions are supporting faster adoption of cloud-based BIM tools in the region. If the current momentum continues, Asia Pacific will emerge as the new global hub for BIM solutions over the long run.