Architecture Software Market Research Report and Outlook by 2028

The architecture software sector is projected to expand from US$ 3,133.84 million in 2021 to US$ 10,206.44 million by 2028, reflecting a compound annual growth rate (CAGR) of 16.2% during this period.

The expansion of the architecture software sector is primarily driven by a surge in global infrastructure initiatives. As populations grow, there is an increasing demand for new buildings, shopping centers, and office spaces, which is being addressed through projects like smart cities and advanced transportation networks. This boom in construction is prompting major industry players to adopt architecture software solutions to enhance project management and execution. The United States stands at the forefront of infrastructure development, with numerous large-scale projects underway. Meanwhile, emerging economies such as India, China, and various Middle Eastern nations are witnessing a robust construction landscape, with significant projects being initiated frequently. The adoption of engineering software tools like CAD, CAM, BIM, and AEC is anticipated to rise sharply in these regions, further propelling the architecture software market forward.

The architecture software market is also benefiting from the growing trend of digitalization within the industry. Digital tools are revolutionizing how architecture professionals operate, allowing for quicker visualization, development, and processing of concepts compared to traditional approaches. Historically, architects depended on a multitude of collaborators, including contractors, interior designers, and real estate developers, which often resulted in protracted and complex workflows. However, the advent of digital technologies has streamlined these processes, enabling architects to work remotely and enhance their productivity. Architecture software has automated numerous tasks, expedited project planning and visualization stages, and allowed architects to create more lifelike representations and visualizations. Clients can actively participate in the design process by viewing enhanced images, videos, or animations, and indicating their preferences for modifications. Overall, digitalization has transformed the architecture sector, presenting significant growth opportunities for the architecture software market.

Key players in the architecture software market include Autodesk Inc., Dassault Systems SE, Corel Corporation, Bluebeam, Inc., progeSOFT, Cadsoft, ActCAD, Trimble Inc., Chief Architect, Inc., and Vectorworks, Inc. These companies maintain a strong presence in the market through innovative product launches, strategic acquisitions, and expansion initiatives. For instance, in February 2021, Egnyte introduced a unified content platform aimed at facilitating the digital transformation of the construction and engineering (C&E) sector. Egnyte assists C&E firms in enhancing project efficiency by offering a centralized document library for Bluebeam users.

Effects of the COVID-19 Pandemic on the Architecture Software Market

Prior to the COVID-19 pandemic, the architecture software market was thriving, bolstered by a booming architecture and construction sector and increasing disposable incomes. However, the pandemic adversely affected the global economy, including the architecture software market. Extended lockdowns resulted in labor shortages, and disruptions in the supply chain, particularly from China, led to diminished performance across various industries. Consequently, many firms began reassessing their strategies to navigate the anticipated economic challenges.

Networking, collaboration, coordination, and site visits are essential components of the architecture industry, similar to many other sectors. Nevertheless, due to lockdown measures implemented in numerous countries, many architecture projects faced delays or were put on hold, significantly impacting the income of professionals in this field. Additionally, client decision-making processes were stalled, and liquidity issues arose during the global crisis. Numerous upcoming projects were scrapped, and architects found themselves needing to revise existing plans in response to clients' requests for cost reductions due to budget constraints. As a result, the growth of the architecture software market was impeded during the lockdown phases.

As the healthcare sector made strides in addressing the pandemic, conditions began to improve, and both individuals and businesses adapted to the new reality. With the gradual reopening of businesses and the easing of social restrictions, the architecture industry experienced a resurgence. This revival led to the resumption of construction and architectural activities globally, contributing to the growth of the architecture software market in 2021 and 2022.