Architecture, Engineering and Construction Market Size to Reach US$ 16.0 Trillion by 2031, led by North America

The AEC market is expanding steadily, driven by urbanization, infrastructure modernization, smart city projects, and rising investments in sustainable.

AUSTIN, TX, UNITED STATES, February 27, 2026 /EINPresswire.com/ -- Architecture, Engineering and Construction (AEC) Market reached US$ 12.3 Trillion in 2023 and is expected to reach US$ 16.0 Trillion by 2031, growing with a CAGR of 3.4% during the forecast period 2024-2031.

The AEC market’s steady growth is driven by major infrastructure investments and technology adoption in the U.S., alongside strategic digital transformation efforts like the Nemetschek & Takenaka MoU on AI‑driven AEC solutions, and Japan’s push for smart, energy-efficient urban development and advanced construction technologies supporting long-term sustainable expansion.

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Key Industry Development

United States: Key Industry Developments
✅ December 2025: Marvell Technology launched its "Golden Cable" initiative, accelerating active electrical cable (AEC) ecosystems for high-performance data center deployments with validated reference designs and software support.

✅ October 2025: OpenAsset highlighted AI integration and BIM advancements as dominant AEC trends, enabling automated workflows, clash detection, and sustainability mandates in U.S. projects.

✅ June 2025: Hexagon identified key AEC shifts including mega-projects, AI-driven digital transformation, and BIM mandates for public works, boosting efficiency amid data center and energy transition demands.

Japan: Key Industry Developments
✅ October 2025: Accretech's Integrated Report emphasized precision measuring instruments for semiconductors and EVs, achieving record sales amid generative AI demand and carbon neutrality efforts in construction tech.

✅ January 2025: Jama Software experts predicted expanded AI automation, digital twins, and net-zero building tools for Japan's AEC sector, addressing workforce shortages through IoT-enhanced project management.

✅ June 2025: Industry trends focused on advanced digitalization and sustainability, with Japanese firms advancing BIM for high-tech manufacturing and reshoring initiatives aligned with regional AEC growth.

Strategic M&A-

✅ In January 2025, AECOM announced the acquisition of Pure Technologies to strengthen its water infrastructure diagnostics and asset management capabilities. The acquisition enhances AECOM’s digital inspection technologies portfolio and expands its municipal infrastructure footprint across North America, supporting long-term smart city and resilience-driven projects.

✅ In March 2025, Jacobs Solutions Inc. completed the acquisition of PA Consulting for approximately US$ 1.8 billion. The transaction reinforces Jacobs’ position in high-value advisory, digital transformation, and infrastructure lifecycle consulting, aligning with global demand for integrated engineering and advanced project delivery solutions in complex infrastructure developments.

✅ In May 2025, WSP Global Inc. acquired Power Engineers Incorporated (deal value reported at approximately US$ 1.8 billion). This acquisition significantly expands WSP’s energy, grid modernization, and power systems engineering capabilities, positioning the company to capitalize on accelerating global investments in renewable energy and transmission infrastructure.

✅ In July 2025, Tetra Tech Inc. acquired RPS Group (previously announced transaction completed integration phase in 2025; value approximately US$ 770 million). The move strengthens Tetra Tech’s environmental consulting and sustainable infrastructure advisory services, enhancing its exposure to climate resilience and regulatory-driven engineering markets.

Major Players:-
Autodesk | Ansys | Aveva | Bentley | Hexagon | Nemetschek | Trimble

Autodesk – A market leader holding roughly 32 % share of AEC software globally. Its dominance stems from comprehensive design and BIM platforms (e.g., AutoCAD, Revit) that enable end-to-end planning, modeling, and collaboration across architecture, engineering, and construction workflows, driving widespread adoption and high recurring revenue.

Bentley Systems – With about 15 % market share, Bentley excels in infrastructure and engineering modeling solutions (MicroStation, OpenBuildings). Its strength lies in lifecycle asset management, digital twins, and infrastructure-focused BIM, positioning it as a go-to for large civil, transportation, and utility projects.

Trimble – Holding around 12 % of the market, Trimble’s suite (Tekla, SketchUp) integrates advanced 3D modeling, construction management, and positioning technologies. Its emphasis on connecting field and design data improves build accuracy, real-time coordination, and project delivery efficiency.

Nemetschek Group – With approximately 8 % share, Nemetschek’s strength is its portfolio of BIM and design tools (including ArchiCAD, Vectorworks). It emphasizes interoperability and creative design workflows that appeal strongly in architectural and engineering sectors, especially in EMEA.

Hexagon AB – Around 7 % market share in AEC segments, Hexagon leads with geospatial and reality capture capabilities alongside its engineering software. Its precise measurement, 3D review, automation, and clash detection tools support digital construction and quality assurance on complex builds.

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Market Segmenatation-

1. Product Segmentation (Software vs Services – US & Japan):
In the AEC market, the primary segmentation by product divides the industry into software and services. In the United States, software solutions such as CAD, BIM (Building Information Modeling) and project management platforms dominate investment as firms increasingly adopt digital tools to improve design accuracy, collaboration, and project delivery efficiency, with services supporting planning, engineering consulting, and construction management. In Japan, the market similarly splits between software products that enhance design precision and collaborative workflows and a broad range of AEC services including architectural planning and sustainability integration, reflecting growing demand for efficient and high-quality construction outcomes.

2. Deployment Mode (On-Premises vs Cloud):
Segmentation based on how AEC solutions are deployed shows a nuanced market dynamic. In the US, although cloud-based solutions are gaining traction for their scalability and remote collaboration benefits, on-premises deployment still holds significant share due to concerns over data control and integration with legacy systems. Japan’s AEC market also distinguishes between on-premises systems, preferred for traditional workflows and sensitive project data, and cloud-based platforms that are increasingly adopted for cost efficiency and real-time collaboration across dispersed teams within construction and engineering firms.

3. Enterprise Size (Large vs SMEs):
Enterprise size segmentation highlights differing adoption patterns in each country. In the United States, large enterprises account for a substantial proportion of AEC market revenue because of their involvement in major infrastructure, commercial, and urban development projects that demand comprehensive digital and service solutions, while small and medium-sized enterprises (SMEs) progressively adopt scalable tools to boost productivity. Similarly in Japan, large firms drive the market with advanced technology integration for complex construction projects, while SMEs leverage cost-effective and flexible AEC solutions to remain competitive in residential and mid-scale commercial assignments.

4. End-User Segmentation:
The end-user segmentation groups customers by industry involvement such as design, construction, education, and others. In the US AEC market, construction and architecture companies represent the most significant end-user segment due to continuous demand for new builds, infrastructure modernization, and redevelopment projects that require integrated design and engineering services. In Japan, construction and architecture firms likewise dominate usage of AEC technologies and services, with education and institutional sectors also contributing to technology adoption as academic programs integrate modern AEC tools to prepare future professionals.

Market Drivers:-

• Federal Infrastructure Investment and Modernization Programs (U.S.): The U.S. Department of Transportation and other federal bodies are channeling over US$ 1 trillion through the Infrastructure Investment and Jobs Act, accelerating highways, bridges, transit, and broadband construction. This funding pipeline is significantly increasing design-build contracts and digital engineering adoption across U.S. AEC firms.

• Smart City and Urban Redevelopment Initiatives (Japan): Under the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Japan is promoting compact city models and smart infrastructure upgrades. Large-scale redevelopment projects in Tokyo and Osaka are driving demand for BIM, seismic-resilient engineering, and advanced project management solutions in the AEC sector.

• Rapid Adoption of Building Information Modeling (U.S.): The National Institute of Building Sciences reports increased federal-level BIM mandates for public infrastructure projects. U.S. contractors are integrating BIM, digital twins, and cloud collaboration platforms to reduce cost overruns and improve lifecycle asset management.

• Resilient and Earthquake-Resistant Construction Demand (Japan): Following updated seismic compliance standards enforced by the Japan Meteorological Agency and MLIT guidelines, Japanese AEC companies are investing heavily in structural reinforcement technologies, base isolation systems, and advanced materials to meet strict disaster mitigation regulations.

• Private Sector Investment in Sustainable Buildings (U.S. & Japan): Green building certifications led by the U.S. Green Building Council and Japan’s CASBEE program are accelerating low-carbon construction. Corporate net-zero commitments and ESG disclosures are pushing architects and engineers to adopt energy-efficient designs, modular construction, and renewable-integrated building systems.

Regional insights:-

North America: 33% (Largest share globally, driven by early adoption of BIM, advanced collaboration platforms, and substantial infrastructure investment the US contributes 77% of this region’s share)

Asia Pacific: 27% (Fastest-growing region, fueled by rapid urbanization and infrastructure expansion in China, India, and Japan Japan accounts for 18% of Asia Pacific’s AEC market)

Europe: 25% (Steady share supported by regulatory BIM mandates and digital construction standards across major markets like Germany, UK, and France)

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Conclusion-
The AEC market demonstrates stable long-term growth supported by infrastructure development, rapid urban expansion, and digital transformation across construction processes. Governments and private investors are prioritizing sustainable, resilient, and smart infrastructure projects. As technology integration deepens and emerging economies accelerate development, the industry is positioned to maintain consistent expansion through 2031.

Sai Kumar
DataM Intelligence 4market Research LLP
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