Global Digital Construction Outlook 2024
Current picture
The digital revolution in construction
The construction industry is inherently complex, with projects typically involving numerous stakeholders and various moving parts.
As countries invest in infrastructure projects to support growing populations, build resilience against climate change and transition to net zero, the industry's familiar resource challenges will intensify with increasing demand.
Construction is beginning to follow other industries in adopting digital tools and AI to enhance efficiency and productivity throughout the project lifecycle, helping to address these challenges.
According to a report by TechSci Research, the global construction software market was valued at USD 19.4 billion in 2023 and is projected to have robust growth, with a CAGR of 14.6% from 2024 to 2029, reaching USD 44.34 billion.
Global digital footprint
Mapping digital tool usage and capability across Gleeds' office locations:
The global construction sector is increasingly adopting digital tools and AI, albeit to varying extents.
Gleeds’ adoption of digital tools in offices across the Americas, Europe, MENA and Asia Pacific enables us to offer clients in-house expertise while also embedding products into our own operations.
As advocates of digitalisation in construction through initiatives such as Upskill, Gleeds’ colleagues deliver data-driven processes and systems for projects, leading to tangible economic and ESG benefits.
Global digital footprint
Mapping digital tool usage and capability across Gleeds' office locations:
The global construction sector is increasingly adopting digital tools and AI, albeit to varying extents.
Gleeds’ adoption of digital tools in offices across the Americas, Europe, MENA and Asia Pacific enables us to offer clients in-house expertise while also embedding products into our own operations.
As advocates of digitalisation in construction through initiatives such as Upskill, Gleeds’ colleagues deliver data-driven processes and systems for projects, leading to tangible economic and ESG benefits.
What does digital transformation look like in the construction industry?
Fundamentally, digital tools and AI transform and augment traditional practices, enabling better collaboration, greater control over the value chain and a shift towards data-driven decision-making. Design, construction and operational methods now incorporate innovative practices that improve efficiency.
Examples range from consultants leveraging digital twins with additional data on programmes, materials and costs — leading to better-informed decisions — to contractors performing real-time revenue calculations on cloud-based programs, offering unmatched analysis and forecasting capabilities.
Beyond the cost and time savings associated with digital tools, safety measures are also improving. For instance, machine learning can predict and flag quality or safety issues on a construction site.
Some of the first digital tools adopted by the construction industry remain integral to everyday tasks. For example, Excel rose in popularity in the 1990s, gaining traction once Microsoft introduced Visual Basic for Applications, allowing users to manage tasks and data more efficiently.
A 2020 survey by LetsBuild found that 85% of the industry still created estimates on Excel. Spreadsheets can save time and reduce costs associated with potential mistakes. However, they require accurate data input, good knowledge of formulae and difficulties in collaborating in documents can lead to errors and inaccuracies.
Another pioneering tool in the industry is computer-aided design (CAD), which dates back to the early 1960s when the first attempts were made to automate traditional drafting processes. CAD overhauled the existing process, bringing precision and speed.
Building information modelling (BIM) took this further by integrating data into 3D models. As well as providing a geometric representation of structure, BIM also integrates information about materials, costs and programmes, enhancing collaboration, reducing errors and offering a more accurate representation of the building throughout its lifecycle.
Like BIM, digital twins offer a digital representation but augment this by facilitating virtual interactions with assets and offering real-time updates. Because the digital twin matches the performance of its physical counterpart, scenario testing can occur, allowing for a digital rehearsal to optimise the building design and enhance its performance before construction.
Over the years, digital twin technology has become more affordable and powerful, with simulations leading to ever more capable insights. In addition to reduced costs and increased speed to project start, there are tangible ESG benefits for the industry and wider society, for instance, the predictive nature of a digital twin can test the suitability of new sustainably sourced materials.
Embracing digital tools
Our Gleeds’ leads rated the effectiveness of digital tools in improving project outcomes as “very effective” or “somewhat effective”.
Evidently, the impact digital tools have is viewed as positive. Examples ranged from improved efficiencies in producing monthly reporting content to digital twins offering a benchmark for project variables or scenario testing.
Current adoption of digital in construction
While the technological capabilities of digital tools and AI continue to develop, the adoption of digital tools has undoubtedly accelerated in recent years following the proven benefits witnessed in other industries such as automotive.
However, according to a recent survey by the RICS the industry may be cooling off for the time being. The level of usage among respondents using digital tools on all of their projects remained consistent with the 2022 report at 12% on average, and most of their projects stayed at 18%.
While some hesitation in adopting new technologies exists, the construction industry is at a pivotal moment where digital transformation provides an opportunity to add value for clients and overcome productivity challenges that have long afflicted the industry. The potential for a new era in construction beckons.
© 2024 Gleeds - all rights reserved
Gleeds privacy policy | Cookie Policy | Modern slavery & human trafficking statement | Equal opportunities & diversity policy