India’s AEC/O firms are overwhelmingly investing in early-stage digital workflows. As visualized in the chart below, visualization and rendering solutions account for 35% of total software usage, making them the most utilized category across the market. 2D planning software is the second-largest segment at 22%, followed by 3D modeling at 19%. Structural design tools represent 13% of usage, while project management and documentation tools account for the remaining 11%.
The market’s base is heavily skewed toward smaller players. SOHO (Small Office/Home Office) firms account for 75% of software users, reflecting the industry's decentralization and its reliance on freelance or modular design networks. However, many of these firms use unlicensed, open-source, or basic tools—limiting their ability to participate in standardized, integrated workflows.
Architecture firms are leading users by segment, accounting for 30% of total usage, followed by interior design at 18%. Engineering and construction firms lag in adoption, with many still outsourcing modelling functions.
Rapid Adoption Driving Workflow Enhancement
There is a strong enthusiasm among firms regardless of size to rapidly adopt new software platforms. The majority believe that onboarding new digital tools will immediately boost productivity, accelerate project timelines, and seamlessly integrate with existing staff skills with minimal retraining.
Large firms are leading the charge, with 70% stating they are eager to bring in new tools, primarily driven by their desire to innovate beyond existing operational scales and overcome the inertia of established systems. Medium-sized firms closely follow at 60% readiness, while 62% of small firms and 70% of micro businesses share similar eagerness.
These numbers highlight a widespread recognition of digital onboarding as a strategic imperative with clear and immediate benefits—underscoring the strong demand for cutting-edge, high-impact integration approaches from solution providers.
A Sector in Transition
The Indian Architecture, Engineering, Construction, and Operations (AEC/O) software sector is entering a phase of strong expansion, with Nemetschek India projecting a market value of USD 280 million by 2029, up from USD 192 million in 2024.
This growth, translating into a healthy 8% compound annual growth rate (CAGR), is being driven by demand for faster, more accurate planning and design solutions across residential, commercial, and infrastructure sectors.
Yet the momentum is being moderated by industry-wide hesitation to adopt new tools, concerns about operational disruption, and continued use of fragmented or non-interoperable software ecosystems—especially among smaller firms.
Commenting on the findings, Nirmalya Chatterjee, Managing Director of Nemetschek Group – Indian Subcontinent, said: “India’s AEC/O software market stands at the threshold of a technology-driven leap. Our findings reveal a high level of design-tool adoption, but also underline the urgency to overcome fragmentation and integration challenges. The market’s projected 8% annual growth is exciting—but it must be matched with readiness across organizations of every size. To truly build the future, we must also build digital trust. That means smarter collaboration, seamless workflows, and a cultural shift toward adopting tools that improve outcomes—not just outputs.”
