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Industry Landscape
The construction industry is undergoing significant digital transformation, driven by demands for increased efficiency, cost reduction, and improved project delivery. While traditionally slower to adopt technology, there's a growing embrace of digital tools, AI, and automation. Challenges include labor shortages and supply chain disruptions, pushing innovation in areas like project management software, BIM, and prefabricated construction.
Total Assets Under Management (AUM)
Construction Spending in United States
~Approximately $1.98 trillion (as of March 2024)
(1.0% (March 2024 YoY) CAGR)
Growth is primarily in private construction.
Residential construction shows mixed trends.
Nonresidential construction is steady.
Total Addressable Market
3.5 trillion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
AI-Powered Project Management
AI and machine learning are being integrated into project management software to predict delays, optimize resource allocation, and automate scheduling, significantly improving efficiency and reducing risks.
Digital Twins & Reality Capture
Creating virtual replicas of physical assets (digital twins) using technologies like laser scanning and photogrammetry allows for real-time monitoring, predictive maintenance, and improved project planning.
Modular and Prefabricated Construction
Increased adoption of off-site manufacturing of building components or entire modules offers faster construction times, reduced waste, and improved quality control due to factory conditions.
Impactful Policy Frameworks
Infrastructure Investment and Jobs Act (IIJA) 2021
The Bipartisan Infrastructure Law (BIL), enacted as the Infrastructure Investment and Jobs Act (IIJA) in November 2021, allocates over $1.2 trillion to upgrade and expand American infrastructure, including roads, bridges, public transit, water pipes, broadband internet, and the electric grid.
This policy will drive significant demand for construction services and technology, boosting project volume and encouraging digital adoption for efficiency and compliance.
Buy America, Build America Act (BABA) 2021
Part of the Infrastructure Investment and Jobs Act (IIJA) of 2021, BABA strengthens existing Buy America preferences by requiring all iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects to be produced in the United States.
This policy increases the focus on domestic supply chains and manufacturing, potentially affecting material sourcing strategies and costs for construction businesses.
Inflation Reduction Act (IRA) 2022 - Clean Energy Tax Credits
The Inflation Reduction Act, signed into law in August 2022, provides significant tax credits and incentives for clean energy projects, energy efficiency upgrades, and domestic manufacturing of renewable energy components.
This policy will stimulate growth in green building and renewable energy construction, driving demand for sustainable materials and energy-efficient construction technologies.
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