Global construction survey reveals the true extent of barriers to digitalization in the construction and real estate sectors
- 97% of construction professionals expect to see increased investment in digitisation at their companies over the next three years
- The largest technology investments in the next three years are expected in construction project management software
A new report by industry-leading digital construction, real estate and facilities management platform PlanRadar reveals that construction sector digitalisation has stagnated.
The most startling finding is that 77% of respondents are struggling to implement new technologies, with around a quarter of companies polled (28%) saying implementation is easy or very easy.
Surveying over 1300 construction professionals across 15 countries, including the United Kingdom, Australia, Austria, Brazil, Croatia, Czech Republic, France, Germany, Hungary, Italy, Poland, Romania, Serbia, Slovakia and Spain, the study examined existing levels of digitalization in the construction and real estate sector, as well as its growth prospects over the next three years.
Stuck in the analogue age
Unsurprisingly, given the implementation challenges, a high proportion of companies haven’t invested in emerging technologies like 3D printing (80%), robotics (82%) and artificial intelligence (74%). Technology fields that received the most investment were energy efficiency and renewable energy (26%), BIM (19%) and construction management software and platforms (19%).
Looking at construction teams using this tech, the data suggests the sector has a long way to go in terms of digitalization. Almost two thirds of professionals have not seen a recent increase in the number of digital role hires in their companies.
Investment hotspots
The research revealed the main area of technology investment to be construction and real estate management software, with 77% of respondents saying they expect to see an increase in investment in the next three years.
This correlates with the 95% of the respondents who have seen cost savings using proptech, 35% of which estimate between 10% and 30% savings. Over two thirds of respondents also expect growth in digital solutions that support environmental commitments, regulating energy efficiency and renewable energy. Finally, reflecting its utility across various applications in construction, Building Information Modelling methodology also stood out as a tool expected to receive significant investment, according to two thirds of respondents.
Challenges implementing new tech
Most (8 out of 15) of the countries surveyed consider the traditional view of stakeholders as the main challenge holding back the introduction of new technology. Perception of low return on investment came in a close second, as flagged by 17% of Australian companies, over a fifth of UK companies, 28% of those in France, and just under a quarter in Austria and Germany.
Growth prospects
Over half of respondents expect their companies to invest at least 11% more in digitalisation. The UK is aiming lower with only 46% of businesses anticipating the same level of investment, while just under a quarter of respondents predict this percentage to be more than 31%, led by Australia (39%), Hungary (27%) and Romania (30%).
Head of Sales (MENA, APAC and Central Asia) at PlanRadar Vitaly Berezka shared his thoughts on the findings, “In today’s ever-changing construction industry, adopting digital technology is not just an option, it’s a must. We’re witnessing a shift towards the future, where the integration of construction software brings unmatched efficiency, collaboration, and innovation.”
Check out the full report here
