Construction Estimating Software Statistics 2024

In the fast-paced construction industry, accurate and efficient cost estimation is paramount for maintaining profitability and ensuring project success. As we delve into 2024, construction estimating software has emerged as a critical tool, streamlining processes, reducing errors, and enhancing project management. The latest statistics surrounding these software solutions provide invaluable insights into their adoption, performance, and overall impact on the construction business landscape, making this data crucial for understanding current trends and future potential.

Key stakeholders—including construction companies, project managers, cost estimators, and software developers—stand to gain significantly from this data. By examining the patterns and trends revealed by these statistics, industry professionals can better gauge the effectiveness of their current tools and strategies. Additionally, these insights can help software developers identify market needs and opportunities for innovation, ultimately driving the industry forward.

In an era where technology continues to revolutionize how we conduct business, staying informed about the latest advancements in construction estimating software is essential. This data not only sheds light on current performance but also guides strategic decision-making and planning. By leveraging this information, stakeholders can make informed choices that align with industry evolution, ensuring they remain competitive and efficient in an ever-changing market.

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Top Construction Estimating Software Statistics 2024

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General Market Trends And Growth

• The global construction estimating software market is projected to grow at a CAGR of 9.2% during 2022 to 2030, up from a previous CAGR of 7.5% during 2018 to 2021. ^[?]
• The market size was valued at USD 1.38 billion in 2022 and is expected to grow at a CAGR of 8.9% from 2023 to 2030. ^[14]
• The subscription segment accounted for 56.8% of the market share in 2022 and is likely to maintain its position. ^[14]
• The perpetual license segment is expected to grow at a CAGR of 7.4% during the forecast period. ^[14]
• North America dominated the market in 2022, with a share of 37.1%. ^[14]
• Asia Pacific is anticipated to rise as the fastest-developing regional market with a CAGR of 10.0%. ^[14]

Key Software And Features

• U.S. News & World Report named Buildxact the best overall Construction Estimating Software of 2023. ^[1]
• 1build offers more than 68 million data points, allowing Buildxact customers across the U.S. to access accurate data within a comprehensive estimation tool. ^[1]
• Buildxact enables users to complete quantity takeoffs, compile cost estimates, write quotes, and send them in about 80% less time than it used to take. ^[1]
• STACK announced its acquisition of Bid Retriever and K-Ops in March 2022, expanding its offerings beyond estimating and pre-construction. ^[5]
• Clear Estimates is among the cheapest software, with plans starting at $79 per month. ^[9]
• PlanSwift offers a 14-day free trial, making it easy to experiment with the program. ^[9]
• Houzz Pro is relatively inexpensive, with plans starting at $65 a month and a 30-day free trial. ^[9]

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Technological Advancements And Integration

• Artificial intelligence and machine learning technologies are revolutionizing the cost estimation process by enabling faster, smarter, and more accurate estimates. ^[7]
• Cloud computing and big data are enhancing the cost estimation process by providing access to vast amounts of data from various sources, such as historical records and industry benchmarks. ^[7]
• NASA used a combination of parametric, analogous, and bottom-up estimation techniques to plan and execute the Mars 2020 Mission, one of the most ambitious space missions in history. ^[7]
• The London 2012 Olympic Games utilized a value-based estimation technique to estimate the cost of delivering the largest sporting event in the world. ^[7]

Market Adoption And User Trends

• The software adoption process follows six phases: awareness, interest, evaluation, trial, activation, and adoption. ^[4]
• Innovators (2.5% of the market) are excited about trying products and testing new technology. ^[4]
• Early adopters (13.5%) have a greater need for the product and are willing to spend resources on a great solution. ^[4]
• The early majority (34%) waits for a product to be established and risk-free before adopting it. ^[4]
• The late majority (34%) is risk-averse and adopts technology only after it has been widely tested. ^[4]

Efficiency And Performance

• Sustainable construction practices can save project owners and contractors up to 4% of the total construction cost. ^[1]
• The accuracy of construction cost estimates ranges from -5% to +10%, forming the basis for a cost baseline and the project budget. ^[3]
• RSMeans Data is North America’s most trusted source of construction cost data, known for its accuracy and reliability for over 80 years. ^[8]
• RSMeans database includes over 92,000+ unit costs, 21,000+ assemblies costs, and 140+ square foot models. ^[8]

Cost And Pricing Trends

• Construction and demolition activity produces 600 million tons of waste each year. ^[1]
• Overall construction costs are expected to increase by 3-6% in 2024, depending on the city. ^[16]
• Construction costs in Chicago are predicted to rise by 3.5%, while costs in Phoenix are expected to spike by 6%. ^[16]
• The cost escalation for specific cities includes: Houston (4%), Miami (4.5%), Minneapolis (4.5%), New York (4%), Portland (5%), San Francisco (4.75%), Seattle (4.5%), and Washington, D.C. (4.75%). ^[16]
• The PPI for diesel fuel ballooned 34.6% in August, the largest one-month jump since 1990. ^[15]

Training And User Assistance

• The most successful user adoption strategies offer a blend of training methods from social learning, experiential learning, and formal learning practices. ^[6]
• Clear Estimates offers training for $300 with the purchase of the package. ^[11]
• Buildertrend offers a professional and well-rounded service with plans starting at $399 per month. ^[9]
• UDA ConstructionOnline has its roots in UDA Technologies, which started in 1999. It works with more than 850,000 construction pros worldwide. ^[11]

Economic And Employment Factors

• The construction industry is forecast to need 546,000 additional workers on top of the normal pace of hiring in 2023 due to a lack of people entering the workforce and a disproportionate number of workers exiting the workforce. ^[23]
• Labor costs climbed by 4.5% in 2021, largely due to the scarcity of qualified workers. ^[18]
• Construction estimators are 85% more likely to work at private companies compared to public companies. ^[19]
• The most common ethnicity of construction estimators is White (75.5%), followed by Hispanic or Latino (13.7%), Asian (4.5%), and Unknown (3.8%). ^[19]

Environmental Impact And Sustainability

• In March of 2022, CostCertified announced a partnership with Cedreo, an application that creates 3D home designs for builders and remodelers. ^[5]
• By 2025, Building Information Modeling (BIM) is expected to result in faster and more precise estimates. ^[12]
• Studies suggest that companies are putting significant investment and budget behind efforts to utilize technology, with more than 45% increasing funds for AI capabilities by more than 5%. ^[13]
• Effective September 2023, the UK is set to phase out the use of fluorescent tube lighting in alignment with the revised EU Commission Restriction of Hazardous Substances (RoHS) Directive. ^[13]

Strategic Business Moves

• In May 2023, Sage Group plc announced the acquisition of Corecon Technologies, Inc., a cloud-based preconstruction and project management solution provider. ^[14]
• In December 2021, Autodesk launched a new feature across the Autodesk Construction Cloud. ^[14]
• In November 2021, the U.S. Government introduced the Infrastructure Investment and Jobs Act (IIJA) to provide funding for developing a digital construction management system. ^[14]
• The program involved receiving USD 20 million yearly funding for five years to boost the adoption of construction software in the construction sector. ^[14]

Key Organizations And Contact Information

• RSMeans Data offers customer support via phone at 1-800-448-8182 or by email at [email protected]. ^[8]
• Mr. Robbin Joseph Corporate Sales, USA We Market Research USA: +17246183925 Websites: https://wemarketresearch.com/ Email: [email protected] ^[2]
• For questions about your estimate or costs, RSMeans Data can be contacted at 1-800-448-8182. ^[8]

Software Pricing And Trials

• PlanSwifts pricing starts at $1,595 annually, with extra costs for add-on modules and plugins. ^[20]
• Contractor Foreman offers a 30-day free trial and a 100-day satisfaction guarantee. ^[11]
• Houzz Pro plans start at $65 per month and come with a 30-day free trial. ^[9]
• STACK’s plans start at $2499 per year and offer a 14-day free trial. ^[9]
• The subscription segment held 56.8% of the market share in 2022 and is likely to maintain its position. ^[14]

User Feedback And Satisfaction

• A survey by Forrester shows that 40% of Europeans now work remotely at least some of the time. ^[13]
• 83% of bid creation involves filling out forms, taking up most of the user’s time. ^[10]
• Buildertrend has been popular for more than 15 years and offers comprehensive support. ^[25]
• According to Dodge Data & Analytics, projects using a collaborative BIM approach had up to a 5% decrease in construction costs compared to non-collaborative approaches. ^[26]

Data And Database Utilization

• RSMeans researchers spend approximately 22,000 hours per year ensuring that costs are accurate. ^[22]
• RSMeans database includes over 85,000 unique line items, making it highly comprehensive. ^[22]
• The database can be localized for over 970 locations in North America. ^[22]
• In 2022, RSMeans Data Online users created a total of 165,697 estimates. ^[17]
• RSMeans Data Online users estimated more than $320 billion in construction work in 2022. ^[17]

Construction Cost Trends And Projections

• The Construction Cost Index for multi-dwelling buildings increased by 0.6% in May 2024 compared with April 2024. ^[24]
• The annual rate of change in the Construction Cost Index was 2.3% in May 2024, compared to the corresponding month in 2023. ^[24]
• Residential building construction costs increased by 1.0% in Q3 2023 following a 2.0% increase in Q2 2023. ^[21]
• Year over year, residential building construction costs rose by 6.0% in the 11-census metropolitan area composite in Q3 2023. ^[21]
• Toronto led year-over-year growth in construction costs for residential buildings at 10.0%, while Moncton led for non-residential buildings at 12.3%. ^[21]

Environmental And Sustainability Initiatives

• Construction and demolition activities produce 600 million tons of waste each year. ^[1]
• Sustainable construction practices save project owners and contractors up to 4% of the total construction cost. ^[1]
• The UK is set to phase out the use of fluorescent tube lighting in alignment with the revised EU Commission Restriction of Hazardous Substances (RoHS) Directive by September 2023. ^[13]

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