Impact of covid-19 on the Global Construction Software Market
The outbreak of the Coronavirus (COVID-19) has caused a lot of hardship across the world. People are struggling with the effects of the COVID-19 pandemic on their health, the economy, and society at large. The Coronavirus pandemic has crippled various industries, including the construction industry. Some of the public construction companies have managed to survive due to public sector construction work. However, these activities are expected to continue for only a short term since the lockdown is expected to continue across several countries. Public-sector construction is expected to halt due to disruptions in the supply chains caused by lack of material and shortage of subcontractors. Companies are terminating contracts to control their expenses. Due to this decline in the construction industry. There has been a significant impact on the construction software market. According to Associated General Contractors (AGC), around 40% of construction firms have had to lay off staff due to the Coronavirus (COVID-19) outbreak.
The construction software market is expected to experience a slight decline due to the COVID-19 outbreak, as many construction sites across the globe have stopped operations. However, cutting-edge technologies in the construction industry, such as communication tools, drones, virtual reality (VR), augmented reality (AR), and building information modeling are expected to support the demand for construction software. These integrated technologies encourage safety & health in the construction industry, thereby helping the employees to meet social distancing requirements. Furthermore, as the trend of remote working is increasing, the architects and engineers may use the existing construction software for the further development of their construction models. The remote working trend among the employees has boosted the demand for cloud-based construction software during the pandemic lockdown period. Conversely, the demand for construction software is expected to decrease further from the 3Q 2020 to 3Q 2021 due to the after-effects of the pandemic.
During the pandemic, the construction software companies have witnessed a high requirement for customer support and many companies are providing it at low or no additional cost. For instance, Procore Technologies, Inc. is providing free access to its Procore platform and related support services for emergency construction projects, which is expected to support the construction of COVID-19 relief facilities. Autodesk is offering free and extended access to its cloud products during the COVID-19 pandemic.