Chat with us, powered by LiveChat



Impact Analysis of
Covid-19 on
AI in Construction Market

Global Opportunity Analysis and Industry Forecast, 2019–2026

The global AI in construction market registered a revenue of nearly $408.1 million in 2018 and is anticipated to grow at a 24.1% CAGR, surpassing $2,325.9 million by 2026. The market has witnessed a significant growth previously, but due to the unexpected COVID-19 outbreak, the market will witness decline in growth in 2020, owing to the rising need for safety and advanced measures at construction sites. This growth will be majorly driven by changing construction companies’ behavior, increasing focus towards deployment of technologies such as machine learning and artificial intelligence instead of human labor.

Besides, the market might witness a drift in product availability, as the manufacturers in China have completely shut down their operations. Overall, capital liquidity is the main issue nowadays for construction sectors because circulation of cash has been reduced across the market. For developed projects, commercial business has been affected owing to huge fluctuations in retail, resulting in a decrease in the rental income; on the other hand, companies may decide to reduce office floor space to reduce rental costs. Due to that, a greater negative impact has been observed on construction projects. Our analysts have estimated the condition of the AI in construction market during the COVID-19 outbreak and have come to the following conclusions.


Pre COVID-19
Post COVID-19
Recovery By Realtime BPS *Estimated market Size, 2020,
**Real Time market Size, 2020,
26.3% 24.1% Q3/Q4 2022 222 USD 648.3 Million USD 356.5 Million

* The numbers are estimated prior to the COVID-19 Pandemic in 2020

** The data will vary depending on upcoming developments announced by the operating players



Artificial intelligence plays an essential role in construction industry, specifically in pre- construction phase that includes planning and designing, maintenance & monitoring, safety, and others. AI has enough capability to predict or warn about adverse situations that are going to happen in a project by monitoring and prioritizing the risk on the job site; this aids the concerned team to focus efficiently and effectively on the risk factors within the limited time and resources. Thus, all these factors are gradually increasing the role of AI-based technology in the construction industry. In addition, increasing demand for machine telematics, growing demand for IoT and minimizing the production cost are the driving factors for the growth of AI in construction industry.

AI is used in construction industry for better planning in distribution of labor and machinery across jobs. Robots are constantly engaged in monitoring the location and progress of workers and equipment which aids managers to deploy resources to complete the project on time. To understand the functions of AI, a person must have good technical understanding and capability to perform the functions as well. Thus, all the functions performed by workers earlier are now accomplished by machines, which somewhere reduces the need of skilled labors. These are the major factors for restraining the market growth.



The COVID-19 pandemic has not impacted the AI in construction market much. The impact on domestic business has not been huge. The lockdown period in different cities in China during the pandemic period indicates that there was no production and no delivery. Hence the output value has become zero, due to which many productive projects have been delayed. However, it has been observed that the epidemic effects in Asia-Pacific are improving, as they are analyzing this time as an opportunity for them and now the biggest challenge is to take up new projects quickly and with high capability. Companies will definitely start taking initiatives for new project or services in order to grow the economy again.

The spread of coronavirus has impacted ongoing construction projects with workers adversely. As per KPMG, construction projects costing more than 59 lakhs are under development across the country and out of which most of them have been severely disrupted. It has been observed that labor and capital are expected to be in short supply post COVID-19. Thus, the global economy may foresee a depression and no region will be an exempt. Currently, to overcome from the adverse situation, governments and WHO have started taking initiatives considering it is a short-term impact and will allow essential construction to reopen with proper safety guidelines.



The global AI in construction market will witness significant decline in growth in 2020 and is anticipated to follow the trend until the end of the forecast period. The rapid growth is majorly attributed growing adoption of Building Information Systems (BIM), security sensors, drones, and machine telematics across the globe during this pandemic crisis. This market is expected to retain its growth even after the control of the pandemic situation. Moreover, researchers are significantly making continuous improvements in AI technologies to enhance safety on job sites, such as the implementation of carbon fiber – a kind of material which is eco-friendly and can be recycled.

Robotics, AI, and IoT are capable enough to reduce the production cost of the construction companies up to 20%. Companies are deploying AI to progress safety systems for worksites. AI is helpful in tracking the real-time data analysis such as interaction of workers, machinery, and objects on the site and prepared supervisors for potential issues including safety, construction errors, and productivity. In spite all the predictions of massive job losses, AI alter all business models in the construction industry in order to run construction operations efficiently since for assisting and minimizing expensive errors and reducing worksite injuries, skilled workforce is needed. This aspect will drive the growth of the market in the coming years.

How can we help you?

Our group of skilled analysts provide a solution to help the companies to survive and sustain in this global pandemic. We support companies to make informed decisions based on our findings resulting from the comprehensive study by our qualified team of experts. Our study helps to acquire the following:

  •  Long-term and Short-term impact of Covid-19 on the market
  •   Cascading impact of Covid-19 on the AI in Construction Market , due to the impact on its extended ecosystem
  •  Understanding the market behaviour pre- and post-Covid-19 pandemic
  •  Strategic suggestions to overcome the negative impact on your business or turn the positive impact into an opportunity
We'll help you fight this crisis through our business intelligence solutions.


AI in Construction Market