Building Information Modelling (BIM) is a kind of software generally utilized in the construction industry. BIM is adopted by construction firms, architecture engineering, and construction (AEC) professionals for effective project life cycle management. It helps gather data from various disciplines and provides a platform for effective communication. This, in turn, enhances project performances and reduces delays.
The Global Building Information Modelling Market was estimated at USD 4.40 billion in the year 2020, and is expected to reach USD 13.38 billion by 2027. The market is growing with a CAGR of 12.1%, in the forecast period (2017-2027).
The building information modelling market witnessed a prolific demand prior to the pandemic due to the significant number of ongoing construction projects globally. However, since the outbreak of COVID-19, the market has experienced delays and/or disruptions due to the dearth of material, parts, and construction equipment. Lack of skilled labor as well as the temporary halting or shutting down of operations due to worldwide lockdowns has had adverse impacts on the overall market.
The global building information modelling market or BIM market is segmented into solutions and services on the basis of component. Of the two, the former dominated the market in 2019 and is anticipated to maintain its dominance throughout the forecast period. The rising adoption of BIM solutions across the AEC industry is a major contributor to the growth of this segment. Implementation of these solutions among various organizations in order to align several construction processes such as procurement and data management which, in turn, improves overall productivity of the projects, will further boost the BIM market.
However, due to recent development in cloud-based technology and rising awareness among other end-users, the services segment is projected to register a higher growth rate in this market segment. Another factor positively affecting the service segment growth is its ability to ensure effective functioning of BIM software and platforms.
Categorized into on-premise and cloud segments, the former has garnered maximum revenue share of the building information modelling market in 2019. It is anticipated to lead the market throughout the forecast period. This growth can be attributed to the increasing concerns associated with the data security of construction projects. Companies such as Autodesk Inc. and Nemetschek AG provide on-premise software for the industrial, healthcare, and residential sectors.
Advancements in technology and buzz around cloud technology have given rise to the development of cloud-based building information modelling solutions. Minimal capital cost and low maintenance requirements are propelling the cloud-based segment forward. Since, both mid-sized and large-sized enterprises employing cloud-based building information modelling solutions, therefore, this segment is expected to witness the highest growth rate during the forecast period.
Based on project life cycle, the building information modelling market is divided into preconstruction, construction, and operations. Preconstruction is the first phase and consists of developing building information modelling models, clash detection, building information modelling co-ordination, and extraction of 2D drawings. The demand for BIM technology due to these activities is high and therefore, the preconstruction segment is estimated to be a high impacting segment of the market.
Classified as building, industrial, civil infrastructure, oil & gas, utilities, and others, the application segment was dominated by the building application. The building segment is projected to grow at the fastest rate during the forecast period since building information modelling is widely used to reduce cost and time overrun, thereby reducing delays. Buildings dominate the application segment due to the ever-increasing number of construction projects such as business and shopping centers as well as retail shops.
North America is expected to capture the majority of the building information modelling market share. The major factors influencing the regional market is the presence of big industry players, supportive government policies, growing real estate and construction industry as well as developments in technology. Furthermore, the expansion of several industries creates the problem of integration. Building information modelling provides solutions to these problems. Therefore, the expansion of businesses in the region will drive the market forward.
Asia – Pacific is projected to be the fastest-growing building information modelling market. This can be attributed to the mandates implemented by the Japanese, South Korean, Australian, and Singaporean governments and the significant growth in the regional construction industry. Moreover, India and China are expected to adopt building information modelling technology. An upsurge in the infrastructure sector is also anticipated to propel the market in the region.
Rapid urbanization and growing population demand infrastructure and housing spaces. With an increasing demand in construction of residential and infrastructural projects, the requirement for efficient functioning and coordination will increase. This will create an upsurge in the demand for building information modelling.
Initiatives and regulations that support the use of building information modelling in public and private constructions implemented by governments across the globe is anticipated to bolster the growth of the BIM market. For instance, the use of building information modelling for commercial projects is mandatory in North America. Moreover, Germany is working towards mandating building information modelling in all infrastructure projects by the end of 2020. Policies such as these are propelling the market growth.
There is a continuous evolution in the construction industry with respect to technologies that can supplement building information modelling. One such technology is that of Virtual and Augmented Reality (VR/AR). Integration of BIM with VR/AR provides better visualization for designers, engineers and others, enabling a one-to-one immersive experience. AR/VR has the potential to enhance building information modelling which, in turn, may fuel market opportunities for the building information modelling market.
Despite the benefits, purchasing the software is quite expensive. Apart from this software cost, the training and service costs are also high. These initial costs may restrict market growth.
The construction industry has a lower level of digitization, as compared to other industries, lagging behind in technology by almost 15 years. Even if technologies provide long-term benefits, the industry is conservative in investing in new digital technologies as well as in R&D. Therefore, despite the additional 20% efficiency that building information modelling provides, conservative spending can hamper the market.
The key players operating in the market are:
The research report analyses the ecosystem of the building information modelling market and categorizes it to forecast the revenues and analyze the trends in each of the following below-mentioned market segments.
Recent News & Developments in the Building Information Modelling Market:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.