Here at Constructech we have been writing about the construction software market for more than two decades, following the ups and downs, the highs and lows, and the big transitions that have happened in the space. From new funding to M&As (mergers and acquisitions), to partnerships, the industry has changed a lot in the past several years. Where are we now? Let’s take a closer look at new trends in the market today.
The construction management software market size is estimated at $9.73 billion in 2024, according to Mordor Intelligence. This is anticipated to be up 9.33% by 2029, reaching $15.20 billion. There are a handful of reasons for this. We are seeing increased demand for construction projects—particularly infrastructure. Another is the worker shortage is driving the need for greater efficiency, which can often be achieved through technology.
The North American construction management software market is one of the leading markets for construction management software.
One of the big challenges we still face—something we wrote about two decades ago—is the highly fragmented nature of the market. Some companies have attempted to rectify this through either partnerships, alliances, or M&As, but the reality is the market is still fragmented, which creates hurdles for construction companies.
Still, greater innovation is on the horizon. Columbia Business School and Trimble recently released a new whitepaper titled, Innovation Growth in the Lynchpin Industries. Those lynchpin industries include agriculture, construction, and transportation. Innovation is needed desperately in these industries to overcome unique projects requirements, siloed data, regulatory hurdles, an aging workforce, complex operational landscapes and ecosystems, and more.
Here is what this whitepaper suggests considering:
- Leverage new contracts that enable risk/reward sharing. This is something we have written about many times. IPD (integrated project delivery), public-private partnerships, and other collaborative agreements offer unique opportunities in construction.
- Leverage constraint to drive creativity. This is an interesting concept. It suggests constraints can actually spur creativity. When there is no other option, creative problem solving isn’t optional.
- Leverage common protocols. Perhaps this is what the industry needs more than anything else. A common format will enable easier data sharing and collaborative decision making among all stakeholders.
As we move forward in a new era of work, the construction industry needs digital transformation. It is no longer optional. But in order to be successful, companies must consider people, process, and technology. Companies must create a clear vision, core policies and procedures, and good training models that work well. And remember, as Peggy Smedley always says, digital transformation is a journey, not a destination. Construction companies have big opportunities, but they must keep the overall core objectives in mind with any new technology implementation strategy.
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