Building Information Modelling Market Analysis

Building Information Modelling (Global, 2024)

Introduction

The BIM market is undergoing significant evolution as the construction and architecture industries embrace digital transformation. This new way of approaching the design and management of building projects enhances collaboration between all the participants, optimizes the work processes and improves the overall project outcomes. BIM technology is now being used to help meet the growing demand for sustainable and efficient building practices. Artificial intelligence, machine learning and cloud computing are enhancing BIM's capabilities even further. Consequently, as organizations seek to optimize resources and reduce costs, BIM is expected to gain traction across all building types, including commercial, residential and industrial. This report examines the current state of the BIM market, analyzing the key trends, challenges and opportunities that are shaping its future.

PESTLE Analysis

Political

In 2024, the implementation of government initiatives for the improvement of the built environment is expected to drive the use of BIM. For example, the United States government has allocated around $ 1tn for the reconstruction of its national highway network. These projects will include mandates for the use of digital construction technology, such as BIM. In addition, a number of governments are implementing BIM policies for public sector projects. The United Kingdom, for example, has been a pioneer in requiring the use of BIM for all public projects since 2016. It has influenced global standards.

Economic

The economy of the BIM market in 2024 is characterized by an increase in construction spending, which in the United States alone is expected to reach $1.8 billion. This growth is due to a combination of public and private investments in the construction of roads, industrial and commercial buildings. In addition, the shortage of personnel in the construction industry is expected to reach 500,000 unfilled vacancies in the United States in early 2024, which will lead to an increase in the use of BIM to improve productivity and efficiency.

Social

The social factors affecting the BIM market include the increasing emphasis on sustainable construction and on collaboration between all participants in a building project. A survey conducted in 2024 showed that 78% of construction professionals think that BIM increases the level of collaboration between the participants, which is essential for successful project outcomes. In addition, the rising demand for BIM specialists reflects the increasing importance of digital skills in the workforce. Over the next five years, it is expected that 200,000 job openings will arise in the field of BIM, which will further increase the market’s attractiveness.

Technological

In 2024, technological developments have greatly changed the BIM environment. Artificial intelligence and machine learning have been integrated into BIM tools, which will have a positive effect on their project management and prediction capabilities. For example, companies spend an average of $150,000 a year on BIM-related technology in order to increase the accuracy of designs and reduce the time taken to complete projects. Also, cloud-based BIM is on the rise. According to the research, 60 percent of companies use cloud technology for collaborative project management.

Legal

Legal issues are affecting the BIM market. They include data security and the intellectual property rights in digital building. In 2024, the European Union is expected to amend the General Data Protection Regulation (GDPR). This will have an impact on how BIM data is shared and managed between the different parties involved in the process. Also, construction contracts are increasingly referring to BIM. In the United States, for example, a large proportion (45 per cent) of contracts now include a section on BIM deliverables. In short, BIM is now being recognized as a legitimate tool in project execution.

Environmental

The issue of the environment is becoming increasingly important on the BIM market, especially in terms of sustainable building practices. It is expected that by 2024, about 30 per cent of all new construction projects will use BIM for energy modelling and a sustainability assessment. This trend is being driven by stricter environmental regulations, such as the requirements of the LEED certification system of the US Green Building Council, which encourage the use of BIM for optimising resource efficiencies and minimising waste during construction. The construction industry is also under pressure to reduce its carbon footprint. By 2030, the industry must achieve a 40 per cent reduction in CO2 emissions compared with the level of the year 2000.

Porter's Five Forces

Threat of New Entrants

The BIM market in 2024 faces a moderate threat of new entrants. The threat of new entrants is medium. There are significant initial investments in development of technology and software, but the demand for BIM solutions in the construction and architectural industries is growing, so there is an opportunity for new entrants. The established companies have the advantage of brand loyalty, a strong customer network and proprietary technology, which may hinder the entry of new players.

Bargaining Power of Suppliers

Suppliers in the BIM market have low bargaining power because of the wide availability of software and technology. The market is characterized by the many choices available to companies looking for BIM solutions, which reduces the influence of any single supplier. The rapid development of technology makes it easy for companies to switch suppliers.

Bargaining Power of Buyers

The buyers in the BIM market have a high degree of freedom of choice, and can easily compare the offerings of different suppliers. In the increasingly competitive market, the growing awareness of the benefits of BIM among the customers and the high degree of freedom of choice give the buyers considerable bargaining power. Moreover, large contractors and public projects have considerable negotiating power because of their buying power.

Threat of Substitutes

The threat of substitutes on the BIM market is moderate. While there is still a certain degree of acceptance of traditional methods of project design and control, the trend towards greater digitalization and efficiency in building processes makes BIM solutions increasingly attractive. However, substitutes such as 3D modelling tools and project management software could also be used.

Competitive Rivalry

Competition is intense in the BIM market, with numerous established and new entrants vying for market share. This has led to a steady stream of new products and features. This, in turn, has led to a strong focus on marketing and price competition. The rapid development of technology and the growing demand for integrated solutions have further intensified competition.

SWOT Analysis

Strengths

• Enhanced collaboration among stakeholders through real-time data sharing.
• Increased efficiency in project management and reduced construction costs.
• Improved accuracy in design and planning, minimizing errors and rework.
• Growing adoption of BIM technology across various sectors, including infrastructure and residential construction.

Weaknesses

• High initial investment costs for software and training.
• Resistance to change from traditional construction practices.
• Dependence on skilled personnel for effective implementation.
• Interoperability issues between different BIM software platforms.

Opportunities

• Expansion into emerging markets with increasing infrastructure development.
• Integration of advanced technologies like AI and IoT to enhance BIM capabilities.
• Growing demand for sustainable building practices and energy-efficient designs.
• Potential for government incentives and regulations promoting BIM adoption.

Threats

• Rapid technological advancements leading to obsolescence of current tools.
• Cybersecurity risks associated with data sharing and cloud-based solutions.
• Economic downturns affecting construction budgets and investments.
• Competition from alternative project management and design methodologies.

Summary

In 2024, the BIM market is characterized by a strong collaboration and efficiency potential, but faces challenges such as high costs and resistance to change. Opportunities to grow exist in emerging markets and through the integration of technology, while the rapid development of new solutions and the impact of the economy on market stability are threats. To navigate the changing landscape, strategic focus on education, interoperability and government support is essential.