Construction software is changing the way projects are managed, designed, and delivered, prompting businesses to use them more than ever.
And the results of various research confirm that to be true.
In this article, we’ll explore 8 key statistics that reveal the growing impact of construction software while taking a closer look at specific challenges and opportunities.
Whether you’re new to digital tools or already a seasoned user, these insights will help you navigate the ever-evolving construction landscape and emerge on top.
Let’s dive right in.
In this article...
The US Construction Software Market Is Projected to Reach 13.9 Billion USD by 2029
The US construction software market is rapidly expanding.
Valued at $8.4 billion in 2023, reports indicate robust growth through 2029, when the market is projected to reach $13.9 billion.
With an impressive CAGR of 8.6%, the projections suggest the US market could account for roughly 30% of the global construction software market by 2029.
These numbers highlight the ongoing high demand for software solutions tailored to the construction sector, as well as the pivotal role of the United States construction software market.
More importantly, they underscore that investing in construction software is quickly becoming essential for staying competitive.
Namely, companies are expected to adopt these tools to ensure efficiency, improve transparency, and deliver better project outcomes.
The message is clear: reliance on construction software will only grow, and companies that fail to adapt risk falling behind.
3% of Construction Companies Reported Not Using Dedicated Construction Software
Another research suggests that construction companies are well aware of the importance of adopting technology.
Namely, the 2021 ConTech Report shows that only 3% of surveyed construction companies don’t use dedicated construction software.
This is especially significant given that over half (57%) of respondents come from companies with fewer than 200 people, rather than industry giants.
Moreover, many of these businesses have been around for 50+ years, which shows that innovation is actively pursued by different company profiles.
The high adoption percentage can be attributed to several factors.
For instance, different construction software pricing models have made implementing dedicated construction software more affordable than ever.
Thanks to subscription-based pricing, even small companies can get access to the most powerful software without the high upfront costs.
Plus, businesses can pick and choose between various solutions until they find the best fit for their unique needs and pain points.
What’s important to remember is that finding the right tech takes time, and it’s much easier when you have clarity on what you want to achieve.
Chris Malafa, IT Director for California-based general contractor Griffith Company, notes that if solution providers understand the issues, they can help you find the best answer for them.
Remember: even if identifying the right software takes time, the adoption rate we mentioned testifies to construction software’s ability to resolve issues and create value.
44% of Construction Businesses Face Technical Skill Gaps With Cloud-Based Construction Management Software
Construction businesses are increasingly switching to cloud-based construction management software that offers quick access to real-time data using any device.
Besides the efficiency boost, cloud computing also reduces operational costs.
However, statistics show notable technical skill gaps reported by 44% of companies.
These gaps prevent the successful adoption of cloud-based systems, so it’s important to contextualize them further.
Besides the lack of knowledge about cloud-specific functionalities, common challenges include:
- data management and integration,
- customization and configuration, and
- cybersecurity and access control.
To put it simply, employees struggle to ensure seamless workflows that work for their context and also have trouble setting up access protocols.
The CEO of the software company Bluebeam, Usman Shuja, says that closing these gaps is essential.
He adds that this can only be done through close collaboration of educators, technology providers, and construction industry leaders.
Cloud-based construction management software is already moving the industry forward.
Nevertheless, more widespread adoption will only be possible by bridging the skill gap to match technological progress.
77 % of Construction Professionals Expect Their Companies to Increase Investment in Project Management Software
The majority of over 1,300 industry professionals surveyed by PlanRadar expect their companies to increase investment in project management software.
This puts investments in construction project management software ahead of those in digital solutions for greater energy efficiency and renewable energy (68%) and in BIM (66%).
All three areas are highly relevant, so how come project management emerged on top?
The previously mentioned ConTech report gives us an important clue:
Over 40% of respondents stated they’re more likely to use spreadsheets than software for project management workflows.
Meanwhile, only 4.7% would do the same for CAD/BIM.
The reasoning is simple.
The nature of the project management processes allowed construction businesses to stick to spreadsheets.
But given the increasing complexity of managing construction projects, many are realizing it’s time to invest in better solutions.
There are different types of construction project management software, but they all lead to:
- improved project scheduling,
- resource optimization, and
- fewer errors and delays.
Safet Mustafaj, Executive Director at UK-based S&M Solutions LTD, also stresses the software’s benefits and versatility.
Whether you’re just making the switch from spreadsheets or looking for an upgrade, construction project management solutions are sure to help your business grow.
95% of Construction Professionals Report Cost Savings From Using Construction Management Software
Businesses that use construction management software enjoy several benefits, including better cost management and increased savings.
This benefit was highlighted by 95% of PlanRadar survey respondents who use such a solution.
And these are no small savings either, with 35% of construction professionals estimating that they fall between 10% and 30%.
Controlling costs is one of the top priorities for project managers across the industry, and leveraging technology to do so is proving very effective.
According to Dodge Data & Analytics, over half of construction companies that implemented some digital solution see budget management improvements.
Construction management suites are at the forefront because they enhance a range of processes, which makes them both efficient and cost-effective.
The case study on Composite Construction Systems Inc.’s implementation of construction management software Contractor Foreman supports this claim further.
The CCSI’s Vice President, Vaughn Dobbins, explains that simply tracking work orders and change orders enabled the company to reduce administrative costs and increase revenue.
Besides the tangible benefits of automating several processes, Contractor Foreman helped CCSI improve their overall communication, reducing the risk of delays and costly rework.
All in all, if you’re looking to cut costs, it might be time to adopt the right construction project management software.
85.1% of Construction Companies Find Mobile Integrations Important when Considering a Construction Software Purchase
Based on the 2021 ConTech findings, the vast majority of construction companies consider mobile integrations very important when it comes to investing in construction software solutions.
The reason why is not too big of a mystery.
Construction mobile technology delivers a host of benefits, enabling greater mobility and insight into on-site activities.
If construction teams can seamlessly use their smartphones, they can access and update project details in real time, even while they’re on the job site.
Think of site managers instantly reporting delays, accessing inventory data, or uploading photos of completed work.
With mobile-friendly software solutions, you reduce communication gaps, ultimately improving decision-making and project coordination.
Now, what happens if a company adopts construction software without mobile integrations?
Well, in that case, you will have to turn to additional tools, which aren’t always compatible.
The lack of compatibility quickly makes data sharing a mess.
The aforementioned ConTech report shows that a lack of integrations frequently leads to companies relying on manual transfers and spreadsheets.
Pretty inefficient and prone to errors, right?
If you want to avoid these kinds of scenarios, it’s important to prioritize mobile integrations that drive efficiency and help bridge the gap between the field and the office.
77% of Construction Companies Currently Use Asset Tracking and Management Software
The 2024 survey of professionals working in New Zealand’s construction industry showed that 77% of construction companies use asset tracking and management software.
This type of software is also the most commonly implemented on-site technology, which places it ahead of safety monitoring solutions, as well as estimating and project management software.
So, what makes asset management tools so popular?
For one, they help companies overcome common asset-related challenges like limited visibility or information sharing.
By monitoring fuel usage, machine downtime, and different asset health parameters, construction businesses can make better operational and maintenance decisions.
Teletrac Navman’s survey even shows that many companies highlight the use of asset management software and other technologies to win bids.
Besides being a convincing argument for potential clients, construction professionals worldwide rely on the GPS capabilities of these tools to enhance security and deter equipment theft.
Namely, the CIOB’s report on construction crime shows that 65.2% of construction professionals consider asset tracking systems effective for countering theft.
Equipping your most valuable assets with real-time GPS trackers and leveraging powerful features like geofencing enables you to instantly access location and other key information.
One thing’s certain: whether in New Zealand, North America, or elsewhere around the globe, asset management systems are already essential tools in the modern construction industry.
69% of Construction Firms Say That Implementing Software Solutions Has Improved Safety and Compliance
Continuing with the Teletrac Navman survey, New Zealand-based construction firms reported improved safety and compliance after implementing software solutions.
When it comes to the overall benefits of implementing technology, enhanced safety and compliance ranked second, right behind cost-efficiency.
Worker safety is a fundamental concern of construction companies, and its priority status is further reinforced by ESG obligations.
Nevertheless, ensuring safety on construction sites remains a notable challenge due to the high-risk nature of work, as well as evolving regulations.
Fortunately, technological advances are making things easier.
KPMG’s 2023 global construction survey emphasizes the need for building a safety-first culture, but also highlights the increasing role of technology.
According to their report, data analytics, modular fabrication, and wearable safety devices are the driving forces behind improving worker safety and well-being.
Josh Kanner, Oracle’s Senior Product & Strategy Director and expert on construction risk mitigation, explains that much of the effort goes into automated AI-powered observations.
Based on these observations, AI can pinpoint immediate concerns but also generate overall site safety ratings.
According to Kanner, the best part is that construction companies feel like they’re getting better results with less admin.
In the end, the biggest benefit for construction companies that rely on safety technology is real-time monitoring that delivers more gains with less hassle for everyone involved.
Conclusion
Construction software is more than a trend—it’s an essential ingredient for companies to stay competitive in a fast-changing world.
The stats we presented uncover preferred use cases and common obstacles, but they’re particularly clear about the benefits.
Companies that embrace these tools are seeing real results, from cost savings to streamlined operations.
And the technology will only continue to evolve, bringing new opportunities for growth, sustainability, and innovation.
Ultimately, the construction industry is in for some big changes.
So if you’re not on board yet, what are you waiting for?
