The global Architecture, Engineering and Construction (AEC) industry is in the midst of a paradigm shift. Following decades of underinvestment in the technology needed to support and improve business functions, the market is waking up.
We look at the market drivers which are transforming the industry including digitisation, increasing project complexity, the advent of BIM, mobile technology and cloud computing.
The consolidation trend within the AEC software market looks set to continue as both construction software specialists and generalist heavyweights aim to boost market share. The rise of cloud computing, an increasing desire to access information on mobile devices, and the growth of the BIM market is creating new demand for innovative technology solutions across the sector. As such many providers are using M&A to fill in gaps in their portfolio to enable them to capitalise on the growing market opportunity.
Case study: Union Square
The sale of British firm Union Square to US player Deltek shows how the increasingly complex demands of project management are driving M&A in the AEC software market. If you want a view on the huge challenges of running a construction project just ask Richard Vincent, co-founder of UK knowledge management software company Union Square. “On a typical construction project you can have upwards of 30 different companies all working on the same building. So that’s 30 different organisations trying to deal with information at the same time. That means an awful lot of data needs to be managed and tracked properly.”