Market Definition
Building Information Modeling (BIM) is a workflow process based around the architecture, engineering, & construction of buildings & other infrastructural projects. It is used for modeling & optimizing projects to ensure that appropriate information is being created in a suitable 3D format & timely decisions are being taken throughout the design, construction, & operation of building assets.
The UAE is witnessing rapidly increasing construction activities, with the government taking several initiatives for promoting the use of technologies like Building Information Modeling (BIM), Virtual Reality (VR), etc., in the construction industry.
Market Insights
The UAE Building Information Modeling Software Market is projected to grow at a CAGR of around 22.5% during the forecast period, i.e., 2022-27. The market witnessed a modest growth during 2017-19, primarily attributed to the rise in government mandates for BIM usage across Dubai and the expansion of the construction industry in the UAE. Earlier the priority of the UAE government was on the capital expenditures & the delivery phase. However, the government's focus is now shifting toward the operational phase of construction buildings, which would provide more benefits by maintaining & assessing the performance of buildings at an early stage. Various government plans have helped the BIM technology penetrate the UAE's construction sector.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 22.5% |
| Key Companies Profiled | Autodesk Inc., Nametschek Group, Bentley Systems Incorporated, Trimble Inc., Dassault Systems, RIB Group, Asite, Aveva Group plc, Hexagon, Archidata Inc. |
| Unit Denominations | USD Million/Billion |
Key Trends in the Market
Integration of VR Technology into BIM Solutions for Easy Examination of Large Scale 3D Models.
With Virtual Reality (VR), BIM solutions could manage to recover, present information, and increase efficiency on communication and problem-solving in a collaborative project. They would also help reduce expenditures due to the construction of realistic models and avoid errors on-site that cause material wastes. VR devices allow users to visualize a virtual world and interact with the virtual space & its components.
Virtual Reality allows visualization & interaction with the virtual world, and BIM helps create & manipulate the design data. Also, the Virtual Reality software allows construction companies to advance their building designs by enabling them to visualize the building model using 3D scanning in the virtual environment. Hence, the link between these two capacities would provide a better experience for the construction industry in the future. Following this perspective, commercial software companies have been extensively developing advanced BIM + VR products. Using BIM technology in construction projects has immense potential to improve the design process by allowing all team members to collaborate accurately & efficiently. Construction companies implementing BIM solutions consider several options while operating VR-based solutions for elaborating 3D models. These tools include accessible head-mounted displays like Oculus Rift, HTC VIVE, Samsung Gear VR, Cardboard (Google VR), Microsoft HoloLens, etc., which enable AEC project stakeholders to enjoy the 3D experience of construction models.
Impact of Covid-19 on the UAE Building Information Modeling Software market
The Covid-19 pandemic negatively influenced the BIM Market in the UAE, primarily due to the pause in international trades, prolonged lockdowns, & reduced construction activities. Since the construction sector is the lifeline of the nation's economy, the UAE government took many significant initiatives to mitigate the impact of the pandemic. It included the announcement of the Planning & Development Stimulus Initiative, the introduction of virtual inspection of construction sites by Zoom or Microsoft Teams, etc.
Besides, the stringent restrictions amidst the crisis forced the government to change the existing laws associated with construction activities and opt for more convenient options like BIM, integration of VR, etc. Through the execution of BIM, team members can coordinate & communicate on a suitable information platform and effectively handle situations like information asymmetry, inadequate supervision, etc. Moreover, amidst the crisis, the burgeoning adoption of remote working mechanisms and increasing digitalization across prominent industry verticals have also contributed to the overall market growth in 2020.
Market Segmentation
By Deployment Mode:
The Cloud-based deployment type dominated the market during the historical period, owing to its cost-effectiveness and easy accessibility. During the pandemic, the economic damage caused by elongated lockdowns and reduced personnel on worksites minimized the remote work, and cloud-based technologies fulfilled the needs during this period. As a part of the drive to position itself as a leading destination for business & tourism, the UAE government is constantly working toward integrating digital technologies like BIM into several landmark projects, such as Dubai Metro, the Louver Abu Dhabi, etc., and organizing events like Expo 2020 wherein various hotels, sports complexes, etc., were constructed. For instance:
By Project Lifecycle:
Of them all, Building Information Modeling (BIM) solutions are used extensively during the Pre-Construction Designing phase of buildings once 3D modeling gets prepared & the flow of the entire building gets decided. Use BIM while constructing buildings reduces the chances of mistakes during the preconstruction phase and helps improve the accuracy of design & cost estimation in the projects. The UAE construction industry undertakes various construction projects related to airways, roadways, commercial & residential areas, etc., to boost revenue growth through its travel & tourism industry. An increase in building construction projects in the UAE would largely require the deployment of BIM services during construction, as mandated by the UAE law, to maximize the building accuracy & minimize construction costs. As a result, enhanced use of BIM during the pre-construction of buildings is expected to drive the overall market growth in the coming years.
The disruption in the GIS industry is rapidly increasing since it is shifting toward 3D modeling. The construction industry is evolving as it transforms from 2D to 3D BIM, thus, indicating the integration of GIS & BIM into one holistic environment, which would drive the BIM market in the UAE.
Recent Developments by Autodesk Inc.
Market Dynamics:
Key Driver: Increasing Government Mandates for Building Information Modeling (BIM) Adoption
Various initiatives by the UAE government toward promoting the adoption of BIM technology have served as an added push to its increased demand in the country. The market witnessed modest growth during 2017-19 due to the rise in government mandates for BIM usage across Dubai, coupled with the rapidly expanding construction industry across the country. In 2015, Dubai Municipality issued Circular No. 207 that mandated using BIM solutions in Dubai's architectural & mechanical work for buildings above 20 floors & with areas larger than Dubai Municipality. Abu Dhabi Municipality announced the adoption of BIM technology for all the construction projects to explore innovative solutions for improving costs, timelines, & overall efficiency. Later in June 2019, the Dubai Road & Transport Authority (RTA) transformed its asset management processes into a BIM-enabled system. Hence, all these events indicate that the utilization of BIM solutions in the country shall continue surging significantly in the coming years.
Possible Restraint: High Initial Costs Associated with BIM Solutions
There are many benefits & cost savings associated with BIM solutions. However, the initial expenditure, which includes education & training about BIM software, management & start-up costs, and transition & behavioral prices, is very high. BIM implementation requires specific software & data storage that costs a significant amount to a company. For instance, the cost of Autodesk’s Revit software ranges between USD3500 & USD4500, which is a barrier to small firms. Hence, the high initial capital associated with BIM solutions might act as a significant growth challenge to the market in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The UAE Building Information Modeling Software Market is projected to grow at a CAGR of around 22.5% during 2022-27.
A. The commercial segment is anticipated to emerge as an area of remunerative growth opportunities for the leading players in the UAE Building Information Modeling Software Market during 2022-27.
A. The integration of augmentation & virtual reality in BIM systems would be a lucrative growth opportunity for the UAE Building Information Modeling Software Market during 2022-27.
A. During 2022-27, the UAE Building Information Modeling (BIM) Software Market is likely to witness a significant expansion, owing to the various benefits of BIM solutions like coordination & clash detection, mitigating risks to reduce costs, improving onsite collaboration & communication, etc.
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