Architectural, Engineering, and Construction (AEC) Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Software, Services), By Deployment Mode (On-premises, Cloud-based), By Enterprise Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), By End-User (Road, Rail and Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 15.42 Billion
CAGR (2026-2031)	10.28%
Fastest Growing Segment	Cloud-based
Largest Market	North America
Market Size (2031)	USD 27.74 Billion

Market Overview

The Global Architectural, Engineering, and Construction (AEC) Market will grow from USD 15.42 Billion in 2025 to USD 27.74 Billion by 2031 at a 10.28% CAGR. The Global Architectural, Engineering, and Construction (AEC) market comprises the integrated sector responsible for the design, planning, and execution of residential, commercial, and industrial infrastructure through collaborative software and professional services. Growth is primarily sustained by accelerating urbanization and the imperative for sustainable development, which necessitate efficient project lifecycle management to meet complex regulatory and environmental standards. According to the Associated Builders and Contractors, in September 2025, the Construction Backlog Indicator reached 8.5 months, indicating a stable pipeline of work for commercial and industrial contractors despite broader economic fluctuations.

A significant challenge impeding market expansion is the persistent shortage of skilled labor across the engineering and construction disciplines. This workforce deficit delays project timelines and increases labor costs, making it difficult for firms to meet the escalating demand for complex infrastructure projects despite the availability of advanced technological solutions. Consequently, companies are forced to turn away potential work or face reduced profit margins due to the inability to staff projects adequately.

Key Market Drivers

The accelerated adoption of digital technologies and Building Information Modeling (BIM) is fundamentally reshaping the AEC value chain by enhancing collaboration and reducing project risks. Firms are increasingly leveraging cloud-based platforms and artificial intelligence to optimize design accuracy, streamline workflows, and ensure real-time data accessibility across dispersed teams. This digital shift is not merely a trend but an operational necessity to handle growing project complexity and client requirements for data-rich deliverables. According to the NBS, October 2025, in the 'Digital Construction Report', 70% of surveyed professionals stated that they have adopted BIM processes to improve information management and project delivery. This integration allows companies to mitigate errors early in the design phase, thereby protecting profit margins that are otherwise threatened by labor shortages and material price volatility.

Concurrently, the rising regulatory and market demand for sustainable construction is driving significant changes in material sourcing and energy-efficient design standards. Governments and private clients are mandating stricter environmental performance metrics, compelling the industry to prioritize low-carbon methodologies and retrofit existing assets for decarbonization. According to the American Institute of Architects, September 2025, in the '2030 By the Numbers' report, signatory firms achieved an average 56% predicted energy usage intensity reduction across reported whole-building projects. This focus on sustainability is bolstering market resilience even as other sectors face economic headwinds, ensuring a steady flow of work for compliant firms. According to Engineering News-Record, November 2025, total construction starts rose 8% for the 12 months ending in October 2025, underpinned largely by these large-scale, performance-driven projects.

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Key Market Challenges

The persistent shortage of skilled labor constitutes a critical barrier impeding the expansion of the Global AEC market. This workforce deficit creates a severe bottleneck where firms are unable to translate available opportunities into revenue, effectively capping growth despite a robust pipeline of potential projects. When engineering and construction companies lack sufficient qualified personnel, they are compelled to extend project schedules and increase compensation to attract talent, which directly erodes profit margins. Consequently, organizations often decline lucrative contracts because they cannot guarantee staffing levels, neutralizing the benefits of rising demand in the infrastructure sector.

The magnitude of this constraint is evident in recent industry data which highlights the widespread nature of the issue. According to the Associated General Contractors of America, in 2025, 92 percent of construction firms reported having a hard time finding qualified workers to hire. This high prevalence of unfilled positions hampers the industry’s ability to modernize, as the lack of human capital limits the effective deployment of advanced technological tools. Ultimately, the labor gap forces the market to operate significantly below its potential capacity, stalling broader economic momentum in the construction landscape.

Key Market Trends

The Mainstreaming of Modular Construction and DfMA Principles is rapidly altering the AEC landscape by shifting production from unpredictable job sites to controlled factory environments. This operational pivot allows firms to circumvent the persistent skilled labor deficit while accelerating project delivery through parallel site preparation and module fabrication. By utilizing Design for Manufacture and Assembly (DfMA), companies achieve higher quality control and reduce material waste, effectively treating buildings as precision-engineered products rather than bespoke projects. The impact of this shift is evident in recent market data; according to the Modular Building Institute, August 2024, in the '2024 Permanent Modular Construction Annual Report', the modular industry captured an estimated 6.64% of new construction starts, underscoring its growing acceptance as a vital alternative to traditional methods.

Concurrently, the Implementation of Circular Economy and Material Deconstruction Practices is transforming resource management to address embodied carbon. Firms are prioritizing the reuse of structural components and regenerative materials to minimize environmental impact during construction and demolition phases. This approach aligns with stringent climate goals and mitigates supply chain risks by reducing reliance on virgin raw materials. The environmental potential of this transition is significant; according to Sweco, October 2024, in the 'Building the circular economy into construction' report, circular economy initiatives could reduce 40% of CO2 emissions generated by the production of key infrastructure materials such as cement and steel.

Segmental Insights

The Cloud-based segment is projected to witness the fastest growth within the Global Architectural, Engineering, and Construction market due to the increasing necessity for real-time collaboration across geographically dispersed project teams. Industry stakeholders are prioritizing cloud deployment to facilitate simultaneous access to Building Information Modeling data, which enhances coordination between architects, engineers, and contractors. This shift is further driven by the need for scalable software solutions that reduce reliance on physical IT infrastructure while ensuring data consistency. Consequently, firms are adopting cloud technologies to streamline workflows and mitigate communication delays inherent in traditional on-premise systems.

Regional Insights

North America dominates the Global Architectural, Engineering, and Construction (AEC) Market, largely due to a convergence of substantial federal investment and advanced technological integration. The United States’ implementation of the Infrastructure Investment and Jobs Act has served as a primary catalyst, directing massive capital toward modernizing transportation networks, energy systems, and public utilities. Furthermore, the region leads in the adoption of Building Information Modeling (BIM) and sustainable design standards, which significantly enhance project efficiency and reduce lifecycle costs. This synergy between government-led infrastructure renewal and private-sector digital innovation cements North America’s position as the global market leader.

Recent Developments

• In October 2024, Bentley Systems announced a strategic partnership with Google to integrate high-quality geospatial content into its infrastructure engineering software. This collaboration enabled the incorporation of Google’s vast geospatial data with Bentley’s digital twin platform, providing engineers and planners with comprehensive real-world context for their projects. The initiative was designed to optimize the design, construction, and operation of infrastructure assets by improving data visibility and accessibility. Through this open ecosystem approach, the companies aimed to accelerate digital transformation and help stakeholders address critical challenges in resilience and sustainability within the built environment.
• In September 2024, Autodesk released significant updates to its Construction Cloud platform, introducing new tools designed to streamline project workflows and financial management. The launch included "Budget Snapshots" within the Cost Management solution, which enabled teams to capture and compare budget data at specific intervals to better track financial health and protect profit margins. Additionally, the update featured "Object Colors" for 3D models, allowing users to visually differentiate model elements based on specific criteria. These enhancements were developed to help construction professionals reduce risk, improve decision-making transparency, and maintain tighter control over project schedules and costs.
• In September 2024, Trimble launched a new Reality Capture platform service designed to improve the management and sharing of massive digital datasets in the construction industry. This cloud-based solution enabled secure collaboration on data captured via 3D laser scanners, mobile mapping systems, and uncrewed aerial vehicles. By integrating with Microsoft Azure, the platform allowed project stakeholders to ingest, store, and process large point cloud and imagery files more efficiently. The service aimed to democratize access to complex geospatial information, fostering better decision-making and advancing the adoption of digital twins across the design-build-operate lifecycle.
• In July 2024, the Nemetschek Group announced the completion of its acquisition of GoCanvas Holdings, Inc., a leading provider of field worker collaboration software. This strategic integration strengthened the company’s capabilities in the "Build & Construct" segment by digitizing traditionally paper-based processes and simplifying safety inspections. The acquisition facilitated a paperless data collection ecosystem, enhancing efficiency for construction site workers and improving compliance across projects. By combining complementary technologies and customer bases, the company aimed to capture significant growth opportunities and synergies throughout the entire architectural, engineering, and construction lifecycle, particularly in the United States market.

Key Market Players

• Trimble Inc.
• ACCA software S.p.A.
• ANSYS, Inc.
• Autodesk, Inc.
• AVEVA Group Limited
• Bentley Systems, Incorporated
• Construsoft B.V.
• Esri Global, Inc.
• Hexagon AB
• Nemetschek Group

By Product	By Deployment Mode	By Enterprise Size	By End-User	By Region
Software Services	On-premises Cloud-based	Small and Medium-sized Enterprises (SMEs) Large Enterprises	Road Rail and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Architectural, Engineering, and Construction (AEC) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Architectural, Engineering, and Construction (AEC) Market, By Product:

• Software
• Services

• Architectural, Engineering, and Construction (AEC) Market, By Deployment Mode:

• On-premises
• Cloud-based

• Architectural, Engineering, and Construction (AEC) Market, By Enterprise Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

• Architectural, Engineering, and Construction (AEC) Market, By End-User:

• Road
• Rail and Others

• Architectural, Engineering, and Construction (AEC) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE