Verdantix Green Quadrant Highlights Surge In Construction Management Software Adoption Amid Profit Margin Pressures And Tariff Hikes

As the construction industry contends with shortages of skilled labour, escalating material costs driven by global tariffs and mounting regulatory pressures, construction management software (CMS) adoption has soared. Firms are increasingly turning to software to bridge workforce gaps with AI and robotics, ensure compliance and protect profit margins. In response, CMS vendors are developing more advanced offerings to support cross-functional collaboration that caters to diverse stakeholder needs, to capture a market set to reach $5.1 billion by 2029.

Since 2024, the CMS sector has witnessed over 10 major acquisitions, including Autodesk’s recent acquisition of Payapps. Consolidation amongst large players has created a clear distinction between established vendors offering comprehensive platforms with broad capabilities and integrated connectivity, and more agile firms focusing on delivering specialized solutions. This reshaping of the competitive landscape has given construction firms greater flexibility to align their technology choices with specific operational needs and strategic priorities, while enabling them to choose platforms that align with their strained budgets.

The Verdantix Green Quadrant: Construction Management Software (CMS) (2025) report provides capital project directors, heads of construction and software procurement managers with essential insights to identify the best-fit solution for their requirements. The report highlights 12 of the most prominent CMS solutions in the market, with six firms – Autodesk, Procore, RIB Software, Trimble, Nemetschek and Oracle – demonstrating market-leading capabilities. Key report findings:

• Labour shortages are driving construction firms to leverage AI, to bridge skills gaps and boost productivity, with CMS vendors responding with advanced AI integration and automation features. Providers such as Omega 365 are developing proprietary GPT models to streamline data, automate tasks and enhance predictive analytics and risk management. Trimble LiveCount digital take-off software also uses AI to automate estimation processes by detecting and counting items directly from drawings, to reduce manual intervention and human error.

   

• Regional headwinds, including new US tariffs impacting global supply chains, and forthcoming UK GAAP revenue recognition changes, are accelerating CMS adoption, as construction firms seek tools to manage tighter margins and meet stricter financial reporting requirements. For example, Nemetschek’s integration capability with financial tools allows for automated transfers of time-tracking data to payroll systems, for wage calculation and cost monitoring.

   

• Increased regulatory pressure on project owners is driving demand for CMS platforms that ensure safety compliance throughout the building life cycle and mitigate legal, financial and reputational risks. Vendors such as Oracle are evolving their solutions to support owners in maintaining the ‘golden thread’ of information – enabling seamless documentation, improved oversight and sustained compliance from design through to facility management.

   

• Growing project complexity is driving demand for centralized, real-time software solutions. Vendors such as Autodesk are responding with advanced features, such as virtual reality integration, for proactive issue resolution prior to construction.

   

• As cross-functional collaboration becomes critical, vendors are enhancing their CMS tools with features to eliminate data silos, such as site attendance tracking, real-time subcontractor monitoring, and integrated communication to boost project visibility and coordination. Procore, for example, offers a broad solution targeted towards main contractors, owners and subcontractors, centralizing capabilities into a single solution to eliminate the need for users to purchase multiple licences.
  
  

“The construction industry is at a critical juncture, facing a labour tipping-point, squeezed profit margins and tariff hikes. As a result, adoption of construction management software has increased dramatically. With regulatory goalposts shifting, the risk of non-compliance is rising, making software essential to avoid legal liability, financial penalties and reputational damage," said Sophie Planken-Bichler, Analyst at Verdantix. “This momentum is driving innovation and consolidation across the market, characterized by broader capabilities, an emphasis on mobile-first design, enhanced system compatibility and advancements in AI integration. To remain competitive, providers must ensure their platforms meet the industry's growing demands for productivity, regulatory compliance and seamless data continuity.”

To learn more, read the full report here: Green Quadrant: Construction Management Software (CMS) (2025).